If you’re starting a creative business after leaving school or university, what issues will you face? Some young entrepreneurs shared five pieces of advice for creative start ups.
Rebecca Holder is 25 and runs The Handmade Emporium.
1. Understand why you’re doing it
Creative people thrive on fulfilling their interests. Alison explains: “They don’t set up a business for the money. They are genuinely interested in something and view their work as a lifestyle choice.”
When she was 24, Rebecca Holder launched The Handmade Emporium, a website selling crafts, after completing a course at The Princes Trust.
“After months of being unemployed I started making candles to sell at craft fairs. I was aware of existing websites but I wanted to do something different.”
Gabriel Nobel, currently studying for his A Levels, set upOrigin London, a creative initiative for new designers and artists. “I had a friend who at 15 had his own exhibitions and I thought I could do something like that.
“Originally I started with a line of t-shirts. We’ve hadexhibitions and are planning other creative ventures.
“I’m the project manager, bringing people together and doing the PR, but there’s all sorts of people involved in Origin on the ground. My grandma sews the logo onto the t-shirts!”
2. Approach finance and paperwork professionally
You need to invest in a public profile. Have a good quality website, logo and business cards – but don’t rush into this. Check branding names aren’t already in existence and that all your marketing materials are consistent.
For finances look for grants or loans. If you’re borrowing money from friends or family, make sure it is a loan that you will pay back, not just a handout. You don’t want it to put a strain on relationships.
Gabriel set up Origin on £1,000. His overheads were lower compared to Rebecca, who needed a more sophisticated website.
“The biggest hurdle is being full of ideas but the Princes Trust loan only goes so far. There are many things I’d love to add to offer my customers, but simply can’t, due to lack of cash.”
Alison believes you will look like an amateur unless you have a business bank account (though you can’t open one until you are 18)
“It is much safer for trading online and protects you against criminal investigation. Never mix up accounts, if you do personal shopping online, have a separate Paypal account for that.”
Despite having a business account, Rebecca still finds it hard dealing with her bank. “Banks do not take me seriously and I get surprised faces when I say yes, it is me that runs the business.”
Keeping your accounts up to date is also vital, so find a method that suits you. Recording expenses and payments in a notebook can be just as effective as using online software.
Your local tax office can advise on what you can and can’t claim for expenses. For example, if you cycle to a freelance job, you can claim back 20p a mile as a legitimate expense.
All your costings, visions and goals should be recorded in a business plan. Although you will need a professional one to apply for funding, an informal one should be kept, monitored and up-dated by you. This will help keep you on track.
3. Build a support network
Mentors do not need to be in your sector. Alison says, “Mentoring is free and usually involves meeting up with someone every couple of months to monitor your progress.”
The Princes Trust introduced Rebecca to her mentor Mike Stokes who runs The Business Club Lincolnshire Ltd. “Mike is available for a chat on email any time and we also meet up where he gives me help and advice, especially with numbers.”
Rebecca believes that as her experiences grow, her business will get better. “My general knowledge keeps developing as does my confidence, which is helping me promote myself better.”
Gabriel on the other hand, isn’t too concerned with being associated with organisations. “Funding can be limiting and I don’t want the responsibility and restrictions that come with them.
“A lot of Londoners are business savvy. There are creatives all around me and I’d much rather learn from these people.
“I have a lot of respect for those who’ve started their own independent movements – my influences include Michael Kopleman at Gimme 5 who distributes streetwear and Eric Brunetti from Fuct.”
If you don’t have a mentor then you could start with reading up on people you admire and find out how they’ve made it, as well as researching about the industry.
Alison has written several books targeted at creative ventures, including a pocket guide that simplifies everything you need to know to start a business.
4. Protect your creative work
There are considerations that creative businesses specifically need to take into account: legal issues around copyright are the most common for anyone involved in design.
Alison explains, “Social media makes it much easier for us to access imagery.
“So it’s more likely you’ll be inspired by existing artwork, or your own ideas will be adopted by someone else.
“There are also some excellent web resources on this subject:
- Own It (intellectual property advice for creative businesses)
- The UK Intellectual Property Office publishes helpful information online.
- Legal Advice Centre at Queen Mary, University of London.”
5. Exploit marketing and publicity opportunities
For Gabriel, one of his concerns is whether he can sustain the momentum and press interest in Origin London, like when ID Magazine made a short film about him.
“I’m aware the novelty factor will wear off – I’ll no longer be a teenager, so the hook to write about me will change. But I’m a long-term thinker and I’m not going to give up what I’ve started.
“The t-shirt side is already supporting talented collectives likeTIMC who design them and the screen printer who prints them. Origin is about supporting home-grown talent so as long as that continues, I’ll keep assisting them.”
Rebecca spends quieter periods, when there are less sales, on raising her companies profile. “I blog about our products – it simply hasn’t been cost-effective to pay for printing or advertising.
“But there are lots of organisations that want to help small businesses – don’t be shy about approaching them.
“Last July I got a huge boost when Theo Paphitis picked me as hisSmall Business Sunday winner. That didn’t cost me anything, I just tweeted him!”
While Gabriel continues his studies, he only spends an hour a day on his business, but his goal is to make a living from it. Getting the name and brand known is his key strength. “As you grow older you loose your self-belief.
“That’s one thing I want to exploit as much as I can now – taking risks and doing things others are too afraid to do…I hope I don’t grow out of that confidence.”
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