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Setting up an Arts Business: Cultural Enterprise Factsheet

Contents

  1. Introduction
  2. Making the Leap
  3. Research
  4. Be realistic about money
  5. Location / Premises
  6. Flexibility
  7. Further sources of information
  8. Reading List

1. Introduction

Setting up an arts business or becoming a self-employed practitioner is like setting up any type of business and requires a great deal of planning and thought. The following information outlines six points to consider before starting your own business.

Why are you doing it?

Principled artist ('product' first) to Hard entrepreneur (profit first)

The entrepreneurial business person is purely profit led and not so concerned with product type. Making individual pieces of expensive furniture would be a possible means of making money, but, if this activity did not fulfil the financial objectives of the business, it would be discontinued in favour of a product or service which generated greater profit margins.

In contrast, for the principled artist, making beautiful furniture will be of prime importance and they will be prepared to modify their economic objectives rather than compromise their creative practice.

2. Making the Leap

Don't be daunted - there is a lot of assistance available for those who want to set up their own business.

Make use of the specialist and generic organisations e.g. Business Eye, the Potentia partners, or Small Business advisors at your local bank, who can all help you develop your business idea.

There is a perception that artists make bad business people, however, there is nothing magical about being a competent business person. Sound common sense, solid research, and good organisation are imperative. Other skills, such as creative thinking, problem solving, working collaboratively and communicating ideas effectively are already part of the creative process. Finally, business skills, such as book keeping, can be learnt or brought in from other individuals who have acquired specialist knowledge in such areas.

3. Research

Market research is the gathering of information and advice on your chosen field. This will help you to determine factors such as how to price your work, which customers you would like to target, where your business should be based, etc. There are many excellent publications (ACW's Boost Your Performance) and websites (www.a-n.co.uk) that will help you with your research.

Talk to practitioners who have experience in the field you are about to enter, and if you are going to be selling products, talk to the agencies likely to be helping you sell your work.

Remember to promote, your business. Advertising is expensive, so master the art of the press release!

4. Be realistic about money

You may find the thought of raising/borrowing money frightening; however a new business may get bogged down by lack of capital investment.

'Kitchen Table' - Little or no capitalInvestment toUrban Studio Considerable working capital

The left side of the scale may initially seem quite attractive but is it appropriate for the aims of your business? Can you cover your overheads? Will it be profitable enough to provide you with a monthly salary?

5. Location / Premises

In the modern world, technology has made the geographical location of businesses less important, but it is still statistically true that the majority of applied arts studios, for example, are centred in major conurbations.

There are a number of factors to consider:

6. Flexibility

It is unusual for creative practitioners to be supported by one business or career; the ability to adapt to demand can add stability to an enterprise ­ when one area is slow another can take over. What other skills do you have that can create alternative streams of income? For example;

Finally, being your own boss in the arts can be a demanding, challenging, extremely satisfying and rewarding career. If you decided that you have the time, skills and dedication to devote to developing your own business or practice, you will need to have;

7. Further sources of information

http://www.businesslink.gov.uk ­ general business advice and publications such as the No Nonsense Guide to Government rules and regulations

http://www.bytestart.co.uk/ - a small business portal with advice on starting up and running a business

http://www.business-plans.co.uk/ - advice on how to write a business plan and links to templates

http://businessplanhelp.co.uk - advice on how to write a business plan and links to templates

http://www.companieshouse.gov.uk/about/pdf/gbf1.pdf - information on forming a company

http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml - information on starting a business

http://new.wales.gov.uk/topics/businessandeconomy/?lang=en

http://www.businesseye.org.uk

8. Reading List

Below is a list of suggested titles that contain further information on this subject. Each title is linked to an Amazon page, which contains publishing details, customer reviews and will allow you to purchase books online.

© Cultural Enterprise 2005