If you are going to be going into freelance,"about 62 percent of artists and related workers are self-employed." United States Department of Labor follow this questionnaire to create a business plan. These are the necessary questions for artists and designers starting their own business.
To make this Questionnaire into a Business Plan, copy and paste the questionnaire into your own document, answer the questions, then create paragraphs under each header as in the professional example (Visualpump Artist Guide and Business Plan) and student examples (download).
STARTING A BUSINESS:
1. CREATE AN IDENTITY
• Company Name
• Tagline (ex: Interactive Design)
• Tagline (ex: Interactive Design)
• Website address
• services (ex: Google site design with Google applications integration, logo design, print media design and animated info-graphics).
• business card w/ your tag-line, e-mail and web address on it.
2. REGISTER YOUR BUSINESS NAME AND SET-UP AN ACCOUNT:
• Business names are registered with the county here (Kent County, Mi Registration info)
• Business name are registered on the web through the hosting service you sign up with.
• Take your business registration to a bank and set-up a separate DBA (doing business as) checking account. Have checks made to this account and write expenses out of this account. This will make paying taxes easy because your checking account statement will double as your business balance sheet. Use a program like Turb-tax or hire an accountant to do your taxes at the end of the year. When you start making more than $20,000 per year you will want to pay taxes quarterly. A tax accountant can set that up for you. Tax accountants will charge $200 - $300 to to set that up and prepare your taxes.
3. CREATE A BUSINESS STRUCTURE:
What is the form of business ownership?
• Business names are registered with the county here (Kent County, Mi Registration info)
• Business name are registered on the web through the hosting service you sign up with.
• Take your business registration to a bank and set-up a separate DBA (doing business as) checking account. Have checks made to this account and write expenses out of this account. This will make paying taxes easy because your checking account statement will double as your business balance sheet. Use a program like Turb-tax or hire an accountant to do your taxes at the end of the year. When you start making more than $20,000 per year you will want to pay taxes quarterly. A tax accountant can set that up for you. Tax accountants will charge $200 - $300 to to set that up and prepare your taxes.
3. CREATE A BUSINESS STRUCTURE:
What is the form of business ownership?
• CHOOSE THIS IF YOU ARE JUST STARTING OUT: Individual (Sole Proprietorship) with a DBA (Doing Business as)
• Limited Liability Company (LLC)
4. CREATE A BUSINESS MISSION:
• What is the mission of your business?
• What are the current market trends?
• What is your focus within your market? (What makes you different then your competitors)
5. WHO IS THE TEAM?
• What are their roles and responsibilities? These people can be professionals that you contract with on an as-needed basis. They can help you to develop estimates for your clients as well as do the work. (ie: web designers, programmers, writers, printers, web services, interns, artists, construction contractors)
6. CREATE A MARKETING PLAN:
• What product or service does your business provide?
• What are the trends in your market?
• What are the trends in your market?
• How does your company make its product or how is the service performed? Please be specific.
7. COMPETITION AND PRICING:
• What makes you unique in the marketplace?
7. COMPETITION AND PRICING:
• What makes you unique in the marketplace?
• When you benchmark your work against others why would a customer choose you? (For Example: Are you stylistically different: in what way?; faster, cheaper, offer free services, local, digital, hold eMeetings, come to their office, totally on line in contrast to brick and morter, give several choices for design, rich media, etc)
• Who are your major competitors and where are they? (include urls)
• How do your prices compare to your major competitors?
8. MARKETING STRATEGY:
• How do customers know about your product/service? (ie: postcards, word of mouth, eMarketing, google ads, attending Ad Club meetings, signs, print ads, flyers, business cards etc.)
9. KNOW YOUR CUSTOMER DEMOGRAPHICS:
Who are your customers?
• When choosing a target market of consumers, use some or all of the following parameters:
age, gender, where they live, where they work, occupation, education, income
level, marital status, race, needs, values, buying patterns, styles, lifestyles, cultures,
interests, hobbies, personality types or traits.
• When choosing a target market for businesses, use some or all of the following parameters:
industry, type of business, annual sales, number of employees, location,
number of years in business, type of ownership, membership in trade associations or
organizations.
Where are they located?
What is your customer's budget for your product/service?
What is your customer's online experience? Include where they go online to find product/services.
Where do they go in person to find product/services? (Ie. Conventions, trade shows, etc.) What kind of advertising experience has been successful in the past to pull/push your particular customer demographic towards your type of business? (i.e.: What are others in your market doing to gain business? - Internet campaigns, Door to Door with Portfolio, Mail campaigns, postcard campaigns, email campaigns, viral marketing, etc.)
• Who are your major competitors and where are they? (include urls)
• How do your prices compare to your major competitors?
8. MARKETING STRATEGY:
• How do you encourage repeat business and attract new customers to do business with you?
Where do you sell your products or services? (i.e.: Artists Markets, out of your studio, online, Comic Cons, phone cold calls etc.)• How do customers know about your product/service? (ie: postcards, word of mouth, eMarketing, google ads, attending Ad Club meetings, signs, print ads, flyers, business cards etc.)
9. KNOW YOUR CUSTOMER DEMOGRAPHICS:
Who are your customers?
• When choosing a target market of consumers, use some or all of the following parameters:
age, gender, where they live, where they work, occupation, education, income
level, marital status, race, needs, values, buying patterns, styles, lifestyles, cultures,
interests, hobbies, personality types or traits.
• When choosing a target market for businesses, use some or all of the following parameters:
industry, type of business, annual sales, number of employees, location,
number of years in business, type of ownership, membership in trade associations or
organizations.
Where are they located?
What is your customer's budget for your product/service?
What is your customer's online experience? Include where they go online to find product/services.
Where do they go in person to find product/services? (Ie. Conventions, trade shows, etc.) What kind of advertising experience has been successful in the past to pull/push your particular customer demographic towards your type of business? (i.e.: What are others in your market doing to gain business? - Internet campaigns, Door to Door with Portfolio, Mail campaigns, postcard campaigns, email campaigns, viral marketing, etc.)
10. CREATE A TIMELINE:
• Plan Ahead
What do you need to accomplish in order to make this business become a reality?
What products/services do you need to have completed?
What do you need in your portfolio?
List what you need in this portfolio. (this portfolio needs to be similar in breadth and depth to your competition.)
What classes do you need to meet your goals?
Do you need an online portfolio?
11. PUT YOUR FUTURE IN A TIMELINE:
• While in school what needs to be accomplished by graduation
• Six Months after graduation what needs to be accomplished
• 2 years after graduation what needs to be accomplished
• 5 Years after graduation what needs to be accomplished
12. ESTIMATE START UP AND OPERATING COSTS:
Labor Costs: (Include what it will take you to begin this business, including, marketing, design work, business management, etc.)
Expenses: (a yearly operating expenses summary (attach a cost analysis spreadsheet) including: new equipment, web hosting, credit card services, Office Expenses, Studio Rent (if other then your home), Insurance, cost of production, cost of contracting work, LLC fees, lawyer fees, accountant fees etc.)
Cash Distribution: (How and when will you pay your employees?)
Advertising Costs: (Include leave behinds, google ads, internet marketing, print costs, mailing costs, etc.)
13. UNDERSTAND YOUR FINANCIALS:
• What type of business records kept for your business (financial statements etc.)?
• Some written records; some regular reports; Professional/ Accountant)
• How much of your own money do you plan to invest over the next year?
• How much will you draw from the business over the next year?
How much of the business money will be reinvested into the business?
• How much will you draw from the business over the next year?
How much of the business money will be reinvested into the business?
• Where do you get supplies/ materials for the business?
• Does the business currently have inventory (stock or digital)?
• What do you expect your sales will be in the best month(s)? $____________
• What do you expect your sales will be in the worst month(s)?$____________
• What will you charge per hour?
• What is a typical large sized job? Who is it for and what will you charge?
• Describe client and Project Details
• What is a typical medium sized job? Who is it for and what will you charge?
• Describe client and Project Details
• What is a typical small sized job? Who is it for and what will you charge?
See the Project Pricing Link for advice
14. DETERMINE CASH FLOW:
• What will you charge per hour?
• What is a typical large sized job? Who is it for and what will you charge?
• Describe client and Project Details
• What is a typical medium sized job? Who is it for and what will you charge?
• Describe client and Project Details
• What is a typical small sized job? Who is it for and what will you charge?
See the Project Pricing Link for advice
14. DETERMINE CASH FLOW:
• How will the customer pay?
• When will the customer pay?
• How will you pay your fulfillment sources, contract workers and others involved in your business? (30 days?, 60 days?)
• What is your method of employee compensation?
15. LOANS AND INVESTORS (this can be in time or money):
Things to consider when applying for a loan or asking for investment contributions:
15. LOANS AND INVESTORS (this can be in time or money):
Things to consider when applying for a loan or asking for investment contributions:
• Is the business woman-owned?
• Is the business minority-owned?
• (These answers may help you to apply for a grant.)
• Is your business full-time or part-time?
• What are the business' hours of operation?
• How much money would need to be invested?
• Would there be ROI (Return on Investment)?
