Business plans for creatives: what mistakes to avoid

To give you a push in the right direction we’ve put together a list of the most common mistakes startups make during the initial planning phase. Here are some things you should know:

Undervaluing the products you create

If you create something beautiful and then sell it to the lowest bidder then you’re doing yourself a disservice. Your work is worth what someone is willing to pay for it, so don’t make the mistake of selling for what you feel you should sell for. Test the market and see what people are willing to part with in exchange for your work.

Leaving the hard tasks until the last moment

One of the most common mistakes is putting off hard and uncomfortable tasks. If you want to turn your creative talents into a lucrative new business, you’re going to want to tackle them head-on and embrace the challenge.

Being ridiculously over-ambitious

If you want to keep your motivation up, you’re going to want to be able to achieve the targets you set for yourself. No matter how successful you are, if your targets still seem miles out of reach you’re going to feel like you’re a failure. The best approach is to have a variety of tasks and deliverables that gradually increase in difficulty. It will allow you to build your confidence and take pride in what you’re building.

Not factoring in any possible delays

No list of common startup mistakes would be complete without some mention of being overly optimistic. Whether you are part of an online creative studio, or you’re importing new craft materials to use with your next big project, there will always be unforeseen delays. Even if you can’t identify what they are right now, you need to build some leeway into your business plan.

Ignoring the tools and services that are already out there

There are so many different tools and services out there you can utilize that we simply can’t fit them all into a simple 3-minute read. Here are a few you need to know about:

TrustMyPaper allows you to have a professional fine-tune your plan for flow and structure.

GrabMyEssay specializes in quick turnarounds when you want to make some last-minute alterations.  

Grammarly is ideal for using during the drafting process so you can create precise sentences that mean exactly what you intend.

Google Docs is a great collaborative tool if you’re partnering with a fellow creative to get your new joint venture off the ground.

Hemingway will prove useful if you want assistance with getting your plan concise and to the point.

Not quantifying any of your goals

It’s not enough to say you want to be the leader in your industry. Set yourself a quantifiable goal that you can actually measure your progress against if you want to give your business clear direction from day one.

Lucy Canner, Content Specialist at Studicus writing service says:

“I’ve sat through far too many meetings with talented creatives who make this mistake. Their work is inspirational, but they don’t seem to know the first thing about how to direct their efforts in a way that will make them money. My answer is always the same: be quantitative”  

Trying to offer far too many services

Last but not least, you simply must avoid having too much in your plan. If you want to offer half a dozen services from day one, you’re going to get burned out. And if you’re not exhausted from all the extra work, you’ll certainly be priced out of the market by specialists who focus on one or two key niches.

Final Thoughts

Hopefully, this article has given you plenty of direction and motivation to really push things forward. Don’t worry, you’re still going to get plenty of time to be creative every single day, it’s just that you need that additional structure and direction that running a business demands. Take your time to familiarize yourself with the mistakes above, and you’ll be able to ensure you learn from them without having to make them yourself.

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About the Author

Angela Baker is a self-driven specialist who is currently working as a freelance writer at BestEssay writing services. She is always seeking to discover new ways for personal and professional growth and is convinced that it’s always important to broaden her horizons. That's why Angela develops and improves her skills throughout the writing process to help inspire people.

To blog, or what to blog? 50 ideas for creative businesses

Over the past several years blogging has evolved from personal journal to marketing platform, given the rise of social media. While platforms such as Instagram, Twitter and Facebook may come and go in popularity, a blog is home to all your platforms. A directory for your portfolio, podcasts, products, services, and information while creating additional online visibility.

Given that blogging is slower and more expensive than social media, the key is quality over quantity. Below is a list of 50 blog topics to inspire you to create original, authentic content for your client base, while building community. Whatever your creative business or niche, you will find inspiration for your blogging content.

Ok, here we go!

Image: Christina Lowry

1. Restate your brand vision. Your why.

2. Q&A - They ask, you answer. Comb through your client emails for your most commonly asked questions, or use social media to put a call out for client questions, then answer them in this post. Invite readers to leave further questions in the comments.

3. Create a library of free training – a one stop post for any tutorials, how to’s, lists of tips etc

4. Include client testimonials and photos of clients using your products – the more creative the better

5. Share behind the scenes of look books or photoshoots – shout out to the team, the location, relay stories from the day

6. Create a mosaic of your nine favourite images from Instagram with a call to action to follow you on Instagram

7. Share your successes – awards, features, published work, do a recap on your/ your businesses achievements

8. Travel diary – going away for the weekend, heading overseas on a holiday or buying trip? Create a travel diary with tips from your experience

9. Summer reads – books that fit your niche that they may not have heard of and will thank you for

10. Curated gift ideas – Create a collection of products from your range that would be perfect for a special occasion, like Mother’s Day. Or, inspire with a selection of local makers products for a Christmas wish list

11. ‘Meet the Maker’ interviews – take five with a crafter you employ or represent, interview a staff member

12. Recipes – whether your brand is food related or not, recipes often add a sense of connection

13. Seasons – from seasonal products, to imagery of the seasons, nature is always a great starting point

14. Tips or advice – your favourite apps, the best way to do something, how to get a job in your industry, share your knowledge

15. Behind the scenes – everyone loves to take a peek behind the exterior and see the details of how things are made

16. Insider’s guide – share the secretes of your niche, your hometown, styling etc.

17. A studio/ workshop/ shop/ office tour – allow the audience to connect with and be inspired by your spaces and what they say about you or your brand

18. How To – use a product, make something, fix something. People love to learn.

19. The making of – a step by step visual of how something is made

20. Sneak peeks – create excitement about an upcoming collection

21. For the love of – share beautiful images relating to your audience. For the love of linen, gardens, lipstick, stationary

22. Highlights from the previous year, season or market – create a round up of images and info

23. Launch details – whether it is a book, product, event, share share share

24. Half yearly check-up – open up on how you working towards your goals, or encourage others to make plans for the next half of the year

25. Summer bucket list – things to do this Summer

26. Brand history – what has changed, what has stayed the same. When and where did you start out and where are you now?

27. Personal or funny stories – what you wanted to be when you grew up, how you thought Tasmania wasn’t a part of Australia, how you got a nick name

28. Create a regular feature – you can create a monthly challenge, feature a maker each week, a weekly editorial, a collection of inspiring images and quotes

29. Future plans – what are your big dreams? What direction do you see the business going in? If you knew you couldn’t fail, what would you do?

30. Write a list of your favourite accounts to follow on Instagram/ podcasts

31. Travel essentials – what do you pack when you go away overnight, overseas, with children?

32. A ‘day in the life' post – people are always fascinated by a day in the life of an entrepreneur or business owner.

33. Your routine – morning/night – do you wake at 5 am to do yoga and write your diary, or are you a night owl?

34. Share videos – video content is getting bigger and bigger. You can make a video out of most of the topics in this list.

35. Celebrate your businesses birthday – do a giveaway, celebrate your achievements, thank your customers

36. Your must-haves – what’s on your rider? Is it kombucha and lip balm? Coffee and a great bag? A certain pen, organiser or night cream?

37. Overcoming a creative funk – how do you find inspiration? What is your go to for self-care?

38. Explain one of your services – imagine a client came across your page for the first time and you were explaining what you do, or how a product works.

39. Your road to success – the path to overnight success is usually a long one.

40. Overcoming failure – think of a time when you used a failure to achieve a bigger goal, or to motivate you to do even better.

41. Things you won’t ever do – perhaps you won’t sell your originals, perhaps you will never buy caged eggs, we are as much what we do as what we don’t do.

42. Organisation hacks – do you batch production, are you a compulsive list keeper, are you terrible and being organised and have found ways to make it easier?

43. Create a roundup of your best content – save them from reading the whole blog and create a post that has the best of the best in one place.

44. Staying motivated – what keeps you motivated when business is slow, or you haven’t reached goal, or someone has copied you

45. Charity – do you support an organisation, do you fund raise, do you work with a company that pays living wages in third world countries?

46. How to style – a dress, a cushion, an office

47. Which _____ is the right one for you? This is great if you offer several similar products

48. Re-publish your email newsletter with a call to subscribe

49. Share something new – a product, team member, idea, business cards. People are attracted to new things.

50. Steps you have taking to have less environmental impact – recycled packaging, non-toxic dye, compostable mailers, timeless style.

Now, it’s time to get writing! Grab a cuppa and a notebook and brain storm some of the ideas on this list to create blog posts of value, with personality, that connect with your audience. Use you blog to inform, entertain and ultimately, give them the details that help them decide to work with you.

Working with a Business Mentor

Ever wondered what it’s like to work with a business mentor? We ask Jane Vandemeer, CWC treasurer and board member for her advice.

Jane Vandermeer is a creative & entrepreneurial thinker who doesn’t thrive under red tape or lots of rules. Having worked within the Fashion industry for 30 years, you can definitely say that fashion and small business is in her blood! Her strengths are to problem solve, particularly with a small budget, and to look into a small business to see what areas need help and guidance. Read Jane’s advice on working with a business mentor, and what you can get out of it.  

Part of my story

Not sure about you but I often found it challenging to cost up my garments. There was also the difficult task of promoting myself. Whether I was producing a range, making one-off pieces or providing a service (they were harder actually!), there was always the conundrum:

How do you price something when you are not sure how long it might take?

Perspective customers need a price or price range. So many times, I wanted the sale so I guessed the price, hoping that I was close to right. But it can be hard to remain competitive, cover your time, costs & make a profit!

Having a professional mentor can help

A professional mentor will look at your business from a different perspective. It is so hard to do that yourself when you are in the thick of small business.

Life gets in the way. It can be hard to keep yourself accountable. It is easy to push things to ‘next week’, particularly the things you don’t love doing.

One of the benefits is that having regular meetings with a mentor creates accountability and deadlines. It is one big way that can help propel your business forward, and significantly quicker.

Who is mentoring suited to?

• You are at the start up stage and not sure where to start. This includes important things like where to focus or spend money first.

• You have been in business for a while, feeling like you are working around the clock but can’t seem to get ahead and not sure why.

• You are looking at an exit plan but not sure how to do that

• You are passionate about so many things

• Those who are willing to take advise & learn

• Those who are brave to grow

• Many creatives’ are multi-dimensional but this can be overwhelming. Then comes paralysis…so you do nothing! A mentor can keep you going.

Tips when selecting your mentor

I often describe selecting a mentor as like selecting a councillor. Working one-on-one with a mentor is such a personal experience. If you are going to invest in a mentor, you need to connect and align with the right person.

A good place to start is to spend time at an initial meeting to ‘get a feel’ about a perspective mentor before diving in. If after the first meeting you don’t think you’re the right fit, that’s totally ok. Be upfront - they might also be able to recommend someone who is. 

Do you want your perspective mentor to be someone you admire?

Are they someone who has achieved or brings experience within the areas you need help & support?

Considerations for offerings/packages

In the initial meeting together, whether that is online, on the phone or in person, ask lots of questions. Make sure you are both clear on things like fees and what the mentoring service involves. 

Mentors might have different fee structures depending on the type of service you require. Here are some examples:

• An hourly rate. This is good for casual mentoring where something is project/problem based. 

• A program with a set number of modules. This type of structure gives perspective clients an idea of prices up front, so there are no surprises.

Some areas to consider:

• Appointment/meeting duration

• Frequency of meetings

• Does it include support such as emails, resources, phone calls outside of meetings?

• Are there certain days you can communicate?

• How is the payment system structured?

• Many do offer payment plans. This is often great for cash flow for small businesses.

Don’t be afraid to ask for clarity if you are not sure and get everything in writing. 

Expectations

It is good to set some expectations between yourself and your mentor too. Do you want someone to ‘teach you’ how to do various tasks/aspects of your business? Or do you want someone to ‘do it for you’?

Different mentors will have different approaches. For me, I have always come from the space of teaching & sharing knowledge, so that you are empowered to know, understand & grow. Everyone works in their particular way and there will be a mentor which will suit your style. 

Here is an example of what a mentor does…. 

A beautiful client of mine had been in business for over 5 years (so not a start up). She was working very hard yet not making enough at the end of each month.

After spending the time to understand her costs and sales. I discovered that she was only making 2% profit margin on many of her services!

We worked on a solution which gave her four options/strategies to increase profit within those existing services. The important thing was that they were all practical & easy to implement.

Her services were back up to 75-90% profit margin and best of all, it didn’t require that business owner to work any harder. 

A final note…

Different ideas can provide a different perspective to a business. Professional assistance can help set up ways to attract prospective clients who happily and joyfully pay for your beautiful and considered work!

Jane is the owner of Finesse Business and Style which provides services in business mentoring and styling. She is also the founder of Intuitive Whispers which provides intuitive products for the heart and soul.

Accounting tips for your creative business

By Monica Ng

One of the biggest challenges for creatives can be understanding and keeping up to date with the accounting side of their business. Understanding the numbers in your business is a vital skill that can remove much of the guesswork when you make decisions regarding the profitability of your work. When you have access to real data and can identify concrete trends across the profitability of the products and services that you offer, you can make decisions based on real information, not just a gut feeling.

As a jewellery maker and designer myself, I completely understand that managing the books can be a difficult and tedious task, because before I changed to a creative career, I was working in the accounting industry. So today I want to help you gain a better understanding of your numbers and the areas where you generate the most and the least amount of money, by explaining two must-have 'business report cards' and guiding you through how they can assist you to monitor and assess your business profitability.

1. Profit and Loss Statement

Your Profit and Loss (P&L) statement shows how your business performed during a period of time. There are three main factors of a P&L statement:

Revenue: Any sort of income you earn, whether it be from sales of products or services, commission etc; and

Expenses: Any sort of expense you spend in the course of running your business like:

• Cost of goods sold
• Supplies and materials (raw materials you use to make your products – fabric, beads, glue, metal etc)
• Rent
• Advertising (Facebook ads, Google adwords, marketing materials like business cards, post cards etc),
• Fees and charges (online shop fees, PayPal/credit card transaction fees, bank fees, EFTPOS fees, website hosting fees, stall hire fees, consignment fees)
• Office expenses (stationery, printing)
• Subscriptions (magazines/journals related to the industry your business operates in)
• Postage
• Utilities (electricity, gas, water, telephone, wifi)
• Insurance (home and contents, theft, public and product liability)
• Professional services (legal, accounting)
• Repairs and maintenance (equipment your business uses)
• Wages, superannuation etc.

(Please note this is a example of the kind of revenue and expense items a typical business may have - yours may vary.)

COGS (cost of goods sold): COGS refers to the costs directly associated to the production of a product. This includes any material costs, labour, shipping and other costs to transform the product to be ready for sale. Determining the COGS can be one of the more difficult things to calculate and the value changes depending on which valuation method you use when you’re doing your books. But to explain the concept simply, let’s go through an example. Let’s say, I have $100 worth of beads in inventory at the beginning of the month. I buy an extra $20 worth of beads during the month and have $50 worth of beads at the end of the month. How do I calculate my COGS?

(Beginning inventory: $100) + (Purchases: $20) – (Ending inventory: $50) = Cost of goods sold: $70

For more information or assistance developing your specific COGS, have a chat with your accountant!

Now here are some key formulae for a P&L statement:

• Revenue – Cost of Goods Sold (COGS) = Gross profit
• COGS = opening stock + purchase – closing stock
• Gross profit – expenses = Net profit/net loss

Remember to keep receipts for EVERYTHING you purchase, whether it be offline and online. For online purchases I like to save each receipt into a specific folder on my computer (and I also back it up regularly). You might prefer to print out your receipts and keep them organised in folders dedicated to a single month or specific financial year.

2. Balance Sheet

Your business' balance sheet shows your assets, liabilities and owners equity as at a specific date.

Assets: Cash, accounts receivables (money you have invoiced your clients that you have not yet received), inventory, investments, tools and equipment and any other asset your business owns

Liabilities: Money that your business owes (you have been invoiced for a service you used and have not yet paid or materials you have bought but not yet paid for), accounts payable, bank/credit overdraft and any other debt

Owners Equity: Anything that is left over, once liabilities have been paid for from assets. If your equity is high, it means that your assets outweigh your liabilities, if your equity is negative, you’re losing money, and your business isn’t making enough money to carry the level of debt it’s carrying.

The basic accounting equation for a balance sheet is: Assets = Liabilities + Owner’s Equity

Ageing receivables and payables.

If you sell products or services, you’ll need to keep a track of the ageing of receivables and payables. Ageing is usually broken up into four categories: 0 – 30 days, 31 – 60 days, 61 – 90 days and 91+ days.

When you issue an invoice to a client or customer, the longer the invoice goes unpaid, the higher the likelihood that you may not get paid at all. It’s important to monitor invoice payments, so you can chase up a client if the invoice becomes overdue. A debt is said to 'go bad' when the client doesn’t pay or can’t pay, which may mean you need to write it off as a bad debt. Not getting paid is certainly not good for your business!

Other useful accounting tips

Set up a dedicated bank account

It’s a good idea to set up a dedicated bank account for your business. Therefore, whenever you update your financial information, you don’t need to wade through all the transactions to pick out the ones that are personal and which ones are business-related transactions.

Let technology help your keep track of your data

There are lots of techonology options to help you manage the data your business sales generate, so you can turn it into information that’s accurate, relevant and timely for decision-making. If you’re just starting out or your revenue and expenses are quite straight forward, you could use something as simple as an Excel document to keep track of everything. Otherwise, cloud-based accounting software such as MYOB, Xero or Waveapps offer a host of benefits - though some might incur a monthly fee (but most have a free trial period so you can see if the investment works for your business needs).

Make accounting part of your weekly or monthly routine

Depending on the level of activity your business generates, you should update your financial information weekly or at least monthly to give you a good indication as to how your business is performing. Choose a day or even half a day each week/month, and dedicate yourself completely to managing and reviewing your P&L and balance sheets. Remember, this day is important to spend on your business and not in your business.

Do your own books (or at least keep a close eye on them!)

When you’re just starting out, I totally recommend you do your own bookkeeping so you can understand what is happening in your business, rather than outsourcing it straight away to a professional bookkeeper or accountant. As your business grows, and your business generates more activity, it may be worthwhile bringing on a professional to assist, so you can concentrate on the things you do best and provide most value to your business. Bu having said that, even when you have outsourced these tasks to other people, it’s still important that you understand the accounting and continue to review the numbers from month to month.

Get started today

If what you've read sounds great, but still a little overwhelming - never fear. Over at my website I’ve created a customisable P&L template for you – so you can use this immediately for your business! The template contains instructions to guide you. Try it out and I'm sure you'll get addicted to how knowing how your business is going financially. Happy accounting everyone!

NOTE: This article is intended as an EDUCATIONAL GUIDE ONLY and is NOT INTENDED to be taken as specific financial advice. Please discuss your business' financial performance with a qualified accountant, solicitor or financial advisor.

Monica Ng left her accounting career at the end of 2013 to run Geometric Skies, her Etsy jewellery business, alongside her jewellery and object design studies at the Design Centre in Sydney. Find Monica at her blog or on Instagram @geometric_skies.