Creative blues: five common fears and how to beat them

By Emma Clark Gratton

Working for yourself or passionately following a creative project requires a level of mental toughness and self-confidence that is hard to maintain. Dealing with rejection, financial challenges, working long hours with just yourself as taskmaster… all these things can build up until you are having an existential crisis before your morning coffee.

To make it even more difficult, these days of stunning Insta feeds and #humblebragging tweets can feel that everyone else is kicking goals while you are still slogging away. The reality? Even Frida Kahlo and Gertrude Stein and Madonna have done crappy work, and spent days pottering around in their pyjamas eating toast and not producing much. The people who are at the top of their game aren’t talking about it on Facebook, they are simply doing the work.

Here are some of the most common fears, self-doubting phrases and negative feelings that crop up, and how to deal with them.

I don’t deserve this!

You do. Whether you are taking the giant leap of quitting your day job, or simply ditching a family Game of Thrones marathon to dig out your old painting gear, all creative pursuits are worthwhile and valid. At the risk of sounding like an inspirational Instagram post, we only get one life, so why the hell wouldn’t you give it your best shot?

It is not a matter of 'deserving' or 'earning the right' to be creative. You don't need to justify it to anyone!

But (insert name here) is already doing this waaaaay better than I can!

You know the feeling: you’re feeling pretty good about yourself, chugging along on your creative projects,when a friend/colleague/stranger makes a big announcement. Perhaps they have an amazing book deal, or a huge solo exhibition, or they landed their dream creative job in Japan. You hug them and celebrate, but deep, deep down you feel a little stab of “Why not me? What is wrong with me? Do I suck?”

Morrisey even wrote a song about it: “We hate it when our friends become successful”, which goes “You see, it should’ve been me / It could’ve been me / Everybody knows / Everybody says so.”

This is a hard feeling. This feeling doesn’t make you a bad person (you can be genuinely happy for someone and still be slightly jealous at the same time), but it can be useful to examine that feeling further. Remind yourself of all the cool stuff you HAVE done, and the awesome things you are planning to do.  There is room for all of us, and there is plenty of work to go around.

 I don’t know what I’m doing!

Want to know a secret? Nobody actually knows what he or she is doing. It is a total ruse! Making mistakes, failing spectacularly, and starting again is all part of life. There is nothing you can’t find help on, either online or by asking people who have done it before.

When you are feeling overwhelmed and lost, try to cultivate a “what if?” attitude. Just try something that feels like a fairly good idea, then go from there. And remember, no one was born knowing how to code, or design, or knit. Learning new things is part of the fun!

But this is too scary/hard/overwhelming!

All the best things are scary. Sometimes, jumping in headfirst is the only way to give yourself the kick you need. But if you are feeling overwhelmed, then break the task down to the smallest component that you feel comfortable with. Want to start your own Etsy business but feeling totally overwhelmed? Just start by making a list of the kinds of thing you could sell. Take tiny, incremental steps towards your goal, then use the momentum to keep going.

I’m too poor/lazy/busy!

Well then, do what you can. Anything is better than nothing, right? Even the busiest working mother with multiple kids and a busy job can find time to crochet a few rows before bed, or scribble out her plans for starting a ceramics business. Work with what you’ve got. Heaps of resources and creative inspirations are free: go to the library and borrow art and business books, practice your floristry using blooms from your garden, or write your novel on your lunch break from your desk job.

Generally, a good way to deal with these kinds of doubts is to allow yourself to fully experience the negative feeling, acknowledge it, and then get on with your day. Let the fear and negativity in, say hello to it, but don’t let it stop you from getting on with being awesome. A favourite quote of mine is “A garden grows where you water it”, which means the things you nurture and pay attention to are what will grow the fastest. This goes for thoughts and actions as well as gardens: prioritise your creative pursuits and see what happens.

If you are genuinely struggling with anxiety, depression or feelings of overwhelm, I cannot stress the importance of talking to someone. Talk to your partner, your mum or a friend who gets it. Otherwise, seeing a counselor is an excellent way to sort out any issues in an objective way, and can help you get back on track. You don’t need to be in the depths of depression to seek professional help. In fact, seeking help when you are feeling good can help you handle the more serious emotions when times are tough.

Regional creative: Tracy Lefroy, Cranmore Home

By Jasmine Mansbridge

For my guest blog this year I wanted to look specifically at women who are running a creative business from a regional location. One lady who is doing this, and with great success is Tracy Lefroy from Cranmore Home. I knew of her business even before I began looking for prospective interviewees and I was blown away to discover that she is based on a farm in Western Australia.

So, just as I was, I am sure you will be inspired by Tracy’s story.

Where are you based and what business are you in?

Cranmore Home is a curated collection of Australian-designed and ethically-sourced homewares, art and fashion. The online store is complimented by a brick and mortar store located in my hometown of Moora, Western Australia, 180km (a beautiful two-hour drive) north of Perth.

Have you always lived in a regional/rural area?

I have spent the majority of my life living in WA’s beautiful Wheatbelt and Midwest region. I grew up in a very small place called ‘Irwin’ which is near the coastal town of Dongara, 350km north of Perth, just 10 minutes from the beach and with three sisters to keep me on my toes…. It was a pretty ideal childhood.

Like many country kids, I headed off to the city for high school and stayed on for Uni, where I completed my Honours in Agricultural Science at the University of WA. I greatly enjoyed some ‘obligatory’ overseas travel before moving to Northam in the Wheatbelt for work.

In 2005, I was the youngest recipient to be awarded a prestigious Nuffield Scholarship, which took me to some amazing places around the world. Since then, I have been farming with my husband, Kristin and his parents at our property ‘Cranmore Park’ near Moora.

How long have you been in business? Has it become easier, or harder as time has gone on?

The seed for Cranmore Home was planted in 2010 shortly after my husband and I moved into our beautiful old farmhouse. Three babies, three years and a once-off pop-up shop later I launched my website and in 2014 opened a retail space in Moora.

I started this business because I am passionate about Australian food and fibre and the manner in which it is produced, AND I saw a massive gap in the homewares market for a retail outlet that championed our amazing home-grown designers and artists.

I had passion, a great premise and a strong business background but absolutely ZERO retail experience! So I always knew it was going to be a steep learning curve and a lot of hard yakka (I am a self-confessed workaholic). What I didn’t expect was the amazing array of opportunities for me to grow my business- I am currently developing a trade/commercial arm of Cranmore Home, which is super exciting for my little business.

So to get back to your question…. It’s definitely not easier, but it is not necessarily harder either. Cranmore Home is this amazing vehicle for pursuing my passion and the more I put into it the more rewards, challenges and crazy experiences it throws at me.

What has been/is your biggest challenge?

With three young kids, I juggle Cranmore Home around family, farm, friends and other life commitments. Like any working parent and partner, the work-life balance situation is constantly being tweaked but I am getting better at taking a breath, stepping back and knowing that while I cannot "do it all" right now, I can do my best at each facet of my life.

Business-wise, freight is the biggest cost challenge as I offer free Australia-wide shipping. It is just not cost-effective to freight stock across the Nullarbor to my showroom in Moora only to send it back to customers on the East Coast. As a result, I now have warehouse space in Melbourne, Sydney, Brisbane, Adelaide and Perth where stock is sent direct to my customers.

What are you most proud of?

My three gorgeous kids! I’m also incredibly proud to be a farmer and business owner that champions Australian design. Having the honour to represent incredible designers + makers whilst living and breathing farming, has been such an honour and something of which I am very proud.

What would you do differently in business if you had your time again?

Eeek, I am an eternal optimist so my sights are firmly set forward, I am not great at hindsight. But I have learnt a few expensive lessons in my first few years of Cranmore Home. One of the areas I am trying to improve upon is really targeting and refining my advertising spend.

Where do you see yourself ten years from now?

Wow, in 10 years my kids will all be at high school, which is scary and makes me a little teary! Life will be so different but, there is nothing like three sets of boarding school fees to keep you motivated in your business.

What are you looking forward to most in the next twelve months? 

We have an amazing ‘Winter Workshop’ planned for July. Now in its third year, the Winter Workshop is a dynamic event, with the format changing yearly. This year I have such huge ideas… now to get them to happen!

I learn so much from collaborating with the Cranmore Home designers and it is such a rewarding experience being part of their creative process. The Winter Workshops is an opportunity for my clients to be able to experience this same creative excitement and fulfilment plus be exposed to the beauty and heritage of ‘Cranmore country’, the WA wheatbelt.

Can you offer anything special to CWC readers?

I sure can! I would love to extend a special CWC offer of 15% store-wide here at Cranmore Home (only excluding Heatherly Beds). Just enter CWC15off at checkout to redeem.

Have you got anything you'd like to plug?!

I have just started a fortnightly newsletter to bring my customers behind the scenes of Cranmore Home. It features sneak peeks of new products, subscriber-only discounts, first dibs on advanced orders and takes clients ‘behind the brand’ to get to know the amazing designers and artists that I proudly represent.

To sign up just fill in the pop-up window when visiting www.cranmorehome.com.au

What is your favourite social media platform for your business?

I am an Instagram addict!!! @cranmorehome and @cranmorehomesale allow me to converse directly and instantly with clients, designers, journalists, bloggers, etc.

I am a very visual person and a firm believer in the phrase ‘a picture says a thousand words’. Instagram allows me to express the motivations and inspirations behind Cranmore Home.

Interview: Allison Smith, architect

By Emma Clark

Allison Smith is the woman behind Studio 15b, a boutique architecture studio based in Brisbane. With over 20 years experience in architecture, Allison branched out and began her own practice in 2013. You can follow her work on Instagram and Facebook.

What drew you to becoming an architect, and to doing what you’re doing today?

Architecture was the main idea that stuck in my mind as a possible career path during high school.  It’s a profession where every day is different, every project is different and as an Architect we are required to continue to learn and adapt to changes in the world. The variety is what keeps me going and motivated in this challenging industry.

I’ve worked in small, medium and large firms in Brisbane and London, which has seen me work on a large variety of projects from small alterations and additions, new large homes, multi-residential developments, heritage buildings, community, commercial, train stations and education projects.  Seeing a project from the very initial client meeting through to the finished constructed project can take years but it makes it all worthwhile when you see the final product.

I have most recently established my own small practice - Studio 15b.  In two and a half years I have built a small team but would like to expand this team in the future.  Having my own practice is an enjoyable challenge and I’m glad I took the plunge.  I feel that Studio 15b is able to provide a personalised service as a small practice that is backed by big practice experience.

Can you give us a little insight into your creative process?

One of my design strengths is being able to take the disorder and sometimes confusion of a client’s brief, along with all the other constraints that comes with building and then reorganise to give it purpose and reason.  Whether those constraints are budget related, to do with the site or council, I enjoy testing the options to produce one clear concept that fits the brief and the constraints best.

Creating interest and flair while fulfilling the brief is key.  We continually test ideas with form until we are happy with the results, before we present to the client what we feel is the best solution for a project.  I’m a very considered designer and prefer simple, refined solutions. The simplest solutions are often the hardest to achieve but I prefer not to take the easy road. I like designing the most efficient solutions that are not necessarily what the client imaged but end up fulfilling the brief even better than they could have anticipated.  This clearly demonstrates the value of our service to them.

Who is your typical customer/client?

Our clients could roughly be allocated into three types each with totally different needs.  We have a good understanding of each of their different needs and what they require from a project perspective.  We enjoy the variety that each client brings.

Typically our residential clients have generally never been involved in a building project.  For these clients we spend a great deal of time educating them in the process.  This helps them better understand and gives some reassurance to what can be a stressful process for them. It is our job to guide them through.  We are given a lot of trust, with in most cases their biggest investment - we value and respect this.  Design decisions are very personal choices and we aim to guide as well as collaborate with our clients.

Our multi-residential clients are generally developers with a range of experience.  We tailor the service to their needs.  Personal considerations are not usually a factor with these cost driven projects, however factors such as; designing to the current market, maximising the development in terms of saleable area and number of units plus aligning with the budget that is driven from sale prices all come into play.  We enjoy working with experienced and new developers to help them achieve the most from their development.

Our commercial clients also have different project requirements.  We have worked with a number of businesses to improve their fitouts.  Every business is different and I enjoy finding out how each of them tick.  Then we question whether there is a better way of operating from a business perspective as well as in the available space.  A well designed fitout can improve staff productivity which generally leads to increased sales or revenue.  We enjoy working with businesses big and small.

What does a typical day involve for you?

A typical day starts with getting on top of any urgent emails and quickly flicking through a couple of construction or architecture blogs such as The Urban Developer and ArchitectureAU.  It keeps me on top of the industry as a whole and also sets the tone for the day.

I’m big on writing lists, so weekly I put together a ‘to do’ list but I also have daily ‘to do’ notes which I often leave as reminders of urgent things to do.  Because I am the sole director, it’s important that I spend my time on the most pressing things first and prioritise well.  This list is constantly changing so it’s important to revisit it daily.  It serves as a good reminder to focus and help with my productivity.  I try to roughly plan out the week ahead for meetings at appropriate times, but also plan time for project work.

I usually arrange a coffee with an industry colleague or potential client every week or so.  Networking serves multiple purposes.  As a small practice it is important to seek communication with what is going on in the industry outside your own world.

Once I’m organised with a list of priorities, then a typical day could involve a mix of writing a fee proposal for a potential client, reviewing my staff’s project work as well as completing my own project work.  Depending on the stage of the project this could be some initial design sketches or design development, through to coordinating with consultants or visiting a project under construction.

What has been your proudest career achievement to date?

There have been many proud moments throughout my career and it’s hard to pinpoint just one.  The most recent being the start of Studio 15b and winning a HIA Interior Design Award with our first project.  It was totally unexpected but important to recognise and celebrate these achievements.  It certainly gives you motivation to continue what you are doing.

What's the best piece of advice you've been given?

A direct piece of advice doesn’t come to mind, but I’ve watched and learnt from many other architects that I’ve worked with.  I’ve tried to model myself on a little of all the things I admire about others but with my spin on it.  Things such as being proactive in sorting out any issues that arise, not worrying about things that are out of your control and keeping a good work/life balance most of the time.  These are all things I aim for.

What are your plans for the future?

I plan to continue building Studio 15b.  I would like to grow our small team and create a culture of friendly and dedicated people who use their strengths to provide Architecture & Interior Design solutions to those that see the value in our service.  I encourage anyone to approach us for networking or project opportunities.  We are always available for a chat.

Branding basics: Define your brand

By Mirella Marie

This is Part One of designer Mirella Marie’s series Branding Basics.

What is a brand? A brand is more than just a logo. A brand is who you are.

 There are five fundamentals that form a brand. One cannot exist without the other, and for a brand to be successful, the fundamentals must work together to communicate everything you think, say and do.

 1. Promise

 Your brand is a promise to your clients and customers. Incorporating more than just products or services, your brand looks past what you’re selling to reach the feelings evoked in people when they use your products or services. Creating a powerful brand promise is essential, but unless you keep it, your brand will not stand up to the scrutiny of consumers, your industry or the marketplace.

What does your brand promise to deliver?

 2. Perception

 A brand is identified by the way people perceive it. Developing consumer perceptions that accurately reflect your brand is crucial; otherwise it will suffer limited growth potential. Everything a successful brand does is designed to trigger specific consumer awareness and inspire action.

 What perception is your brand creating?

 3. Expectation

 Consumers develop expectations based on your promise. If you advertise your products or services as being the best in the world, people will expect the best in the world. If your visual communication is careless and unclear, people will expect your products or services to be low quality. If your brand does not deliver, people will become frustrated or confused, turning to your competitors for those expectations to be met.

Are you representing your products or services based on what people expect?

4. Personality

Every brand has a personality. You can determine the personality of your brand by using five key words to describe it, for example: quality, reliable, local, honest, sustainable. Now look at what you’re offering. Do those words accurately describe your brand as it is, or how you wish it were? From the very first impression, people will assess your brand’s personality to determine if they want to engage with it. The best way to measure this is to think of your brand as a human. Ask yourself honestly — would you want to be friends with it?

What would your brand be like if it was a person?

5. Identity

 An identity is the visual representation of your brand. The way something is presented will define the way people react to it. If your brand is who you are, your brand identity is what your look like. Humans are highly visual so your customers’ attention must be attracted in a matter of seconds. The most effective way to do this is with an engaging identity. An identity consists of elements such as a logo (name/symbol), typography, colour, copywriting, photography, icons, imagery, etc. All of these visual elements must come together cohesively and consistently to communicate your promise, shape perceptions, meet expectations and define personality. If one of these fundamentals is weaker than others, it can affect your entire brand.

How are you using your brand identity to communicate to your audience?

With so much competition in your industry, does your brand identity stand out, or fit in with everyone else?

Creating a Brand Strategy

 To understand how these brand fundamentals work from the perspective of your audience, consider your favourite brands and why you gravitate to them when making your own purchasing decisions.

 – What triggers your desire for the products you buy?

– Why do you buy one type of product over another, exact same product?

– What draws you to the services you use?

– What makes you recommend services to people you know?

 “Human behaviour flows from three main sources: desire, emotion and knowledge.” — Plato

 Assess your own purchasing decisions as a consumer, and then use those factors as the foundation for your brand strategy. This way you will better understand your audience, its needs and its motivations, creating the empathy you need to provide an engaging, memorable experience for your clients and customers. 

In a world of information overload, the last thing people need is more of the same. What they need is a reason to believe in you.

Mirella Marie is the owner and creative director of Vertigo, a Melbourne based graphic design studio specialising in brand identity and design for creative and commercial clients. She is also a contributor for Women of Graphic Design, a project examining the work of female designers around the world. Join her on Instagram @studiovertigo.

Project planning 101

  By Jes Egan

Being organised is a skill. It’s something that you can learn and refine but it doesn’t always come naturally. I have always been an organiser since a very young age. Today in my day job, that is exactly what I do. I plan and manage projects from start to finish and all that stuff in between. You may be lucky enough to have a specialist around you who will do this, or like many small creative businesses have to become a bit of a jack of all trades and apply this skill to what you are doing. Here are a few of my tips to help plan away.

Project planning

Planning a project at the very beginning before you start the job/work can save a great deal of time, stress and unneeded work being done. It’s one of those things that you can put at the bottom of the list as there are so many more interesting or fun things to get your teeth stuck into. For many people it isn’t the most enjoyable part but is definitely something that I would recommend doing for most projects, not just the larger ones.

Plan the entire project

Define the scope of the project clearly and precisely, make sure you have set the parameters of what you agree to do before you start. Try and define this at the beginning so you don’t have what we call scope creep, doing things for free that you didn’t originally agree or quote for, unless they’re prepared to allow you to charge more for it. Knowing what you are doing at each stage is a massive time saver as you move through the project. This can make you more efficient and make your project more cost effective and possibly more profitable.

Don’t know where to start? Sit down and think about what you need to do. This may be by starting at whatever the end result needs to be and working backwards. Work out what you need to get done and in what order you need to do it in. Start by writing this down as a task list.

Gantt chart milestone plan

Creating a timing plan or gantt chart is common practice and is really helpful. It allows you to plan what order everything needs to happen, factor in supplier deliveries, client approvals and reviews if required. There are many programs that can make this easier for you such as MS Project and Merlin Project or some great free online ones such as TeamGantt. Take the above task list and start to add dates to it, if you have a deadline start from there and work backwards. A good tip that I learnt many years ago is to put any key dates or milestones into a diary/calendar as an additional reminder.

It is helpful to group tasks together under headings in a clear and logical order. Some tasks will be dependent on another task being completed, find these dependencies and pin point them out. Know when if one task is delayed where the knock on effect will hit.

When changes happen such as delays in approval or from suppliers, make sure you map the changes as they happen so you can see the knock-on effect. It’s not always possible to complete a project on the agreed deadline. If there are delays throughout, sometimes you can make up time elsewhere. This isn’t always the case so make sure you update the plan when they happen so it is a realistic completion date and doesn’t leave you stressed trying to do a million things right at the end.

Daily todo lists

A big part of project planning is not just mapping it out at the beginning, it’s following it. I’m a massive list person - I write a new one at least once a day. It keeps me on track with what needs to happen that day and it also gives me clarity and allows me to prioritise what to do when I am overwhelmed. Handwriting lists, using apps or your calendar are all good ways to do this. Start the day by writing one todo list, bringing items over from the previous day that didn’t get completed and add to it. Prioritise it and tick off the items as they are done. The satisfaction of each tick can motivate you to get working on ticking the next one off.

Status meetings

If you are working with a team, suppliers or clients, regular status meetings is a good way to keep progress of how the job is tracking. These don’t have to be too long - simply review your timing plan and check that all items for that day/week are on track. If not, find out why and try to address it or make a plan to tackle it. Make sure any task delays or early completion dates are applied to your timings so that you are keeping as up to date as possible. If it helps, apply a traffic light tracking system to each task, where green = on track, orange = at risk of causing delays and red = delayed / needs attention.

Be realistic

Thinking ahead can save you loads of time in the future. Understanding this and putting the time into this can be boring but it is worth it in the long run. Just remember to be realistic and allow yourself the time to do what you want to do as best as you can do it.

 Jes is a ‘practical creative’ and a very busy lady, doing the business in a digital agency, being an artist and an university lecturer, who can creatively be found cutting up a storm at paperchap.com. Follow Jes on Instagram.

Networking while abroad

By Di Scully

Whether it's a permanent move or an extended vacation, it is a thrilling moment when you make the decision to head overseas. The opportunity to start over, find an exciting new direction, explore a new city and divulge into a new culture creates an unyielding level of excitement and anticipation within. However, it’s not uncommon to subsequently feel the pull of doubt and possibly fear when you contemplate how this move will impact your existing business or prospect of finding new work.

To get you started, your first step is all about finding new friends and making new connections. Here are some ways you can build your own network in a new city.

BEFORE YOU LEAVE

If you have the time to plan your relocation overseas, there are things you can do to ensure your transition is as smooth as possible.

Maximise your existing contacts. Now is the time to reach out, be fearlessly friendly and make the connection with those you know. Do you have a friend, acquaintance or distant family member who currently lives in your new city? And don’t forget to exhaust your contacts on social media. Are you friends with people on Facebook who may currently live overseas or who have lived in your new city? Is there anyone you follow on Instagram who has inspired you on this journey that your could reach out to? Another great place to explore your network of contacts is from university. Attend an Alumni night to connect with people in your industry who may know someone aboard they could introduce you to.  The more people and connections you have before departure, the more comfortable the leap to your new country will be.

Connect online. The internet is an amazing tool to connect with people overseas. Is there an Australian group or society who currently live in your new city that have a website or Facebook page to connect? For example, in New York City, there is a fabulous community called Australian Women in New York. This group of women are so diverse in age, demographic, life experiences and skills that you are bound to connect with someone who can help you get started! In the early stages of setting up your home and finding your feet, a familiar accent who speaks your language and understands the 'Australian' way, will help you feel more at home. If you are seeking out connections in your area of work, LinkedIn is a great resource to utilise. If you haven’t already set up your own profile page, then do this before you leave and try to make connections with people in your industry prior to your departure.

IN YOUR NEW CITY

When you touch base in your new town, don’t let a month or two pass you by without achieving the goals you set out to do. Here’s a few things you can start immediately to get you connected with the locals.

Volunteer work or an internship are a great way to devote your time to something you are passionate about in your new city, while you have time available to you. Both fields of work will lead you to like-minded people, new connections and potential job opportunities that will no doubt help you feel more settled and in touch with the community around you.

Enrol in a class. There is so much to learn from a new city and the way your field of work operates there. So make sure you enrol in a whole host of events, classes, courses and conferences in your area of expertise or interest. These spaces will allow to you immediately connect with people who share a similar passion and skill, but at the same time, allow you to gain a better understanding of how things operate in your new city.

Be social. To find work overseas, you not only have to network in your area of expertise, but participate in social activities outside of work-related events to make friends too. Consider this, how many people do you know who have found work from contacts in the industry, word of mouth or friends? So if the offer for a coffee catch up, dinner or friday night drinks presents itself to you, embrace it! You never know who you may meet and the next opportunity waiting on the horizon for you.

Networking is all about building your community and the more people you know, the more you can reach out to when you need a favour.

Interior designer Diana Scully owns and operates her own interior design firm Spaces by Diana that’s all about designing beautiful, personalised homes to reflect the people who live in it. Diana also has her own lifestyle blog, Spaces + Places, where she regularly writes about inspiring spaces to see and visit from around the world and shares her recent travel adventures. Follow Diana on Facebook, Instagram and Pinterest.

By Di Scully

Whether it's a permanent move or an extended vacation, it is a thrilling moment when you make the decision to head overseas. The opportunity to start over, find an exciting new direction, explore a new city and divulge into a new culture creates an unyielding level of excitement and anticipation within. However, it’s not uncommon to subsequently feel the pull of doubt and possibly fear when you contemplate how this move will impact your existing business or prospect of finding new work.

To get you started, your first step is all about finding new friends and making new connections. Here are FIVE ways you can build your own network in a new city.

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.