business support pack

Business Support PackGiving you all the basic information you need when setting up your enterprise

Contents

Pack developed by:Robin Widdowson: Creative Economy TeamChris Chinnock: Community Engagement TeamMatthew Nicholson: Community PartnershipsRamesh Bains: Investment and RegenerationDesigned by: Communication and Marketing

Legal structures

Marketing plan guidelines

Pricing your work

Time management

IPR

Business planning guidelines

Combined business plan template

Cash flow

Business Support Pack

Social EnterpriseDefinitionThe general definition for social enterprise is a company which reinvests its profits for a social purpose as opposed to redistributing them to shareholders – clear? Well lets unpack that sentence a bit…..the key words are:

• Company – so a Social Enterprise must be a registered Legal entity

• Social Purpose – some specific Social aims which the Social Enterprise it is set up to achieve, it must be about creating a benefit to people in the community and affecting a positive change.

• Profit – People talk about ‘not for profit’ but it’s more helpful to think of going ‘beyond Profit’. Profit is something all Social Enterprises should seek to make, it’s what they do with it that counts – which leads us on to…..

• Redistributing – Social Enterprises reinvest their profits back into the business to help deliver their Social Purpose. This is opposite to Private companies that exist purely to make money for the shareholders/owners/investors.

• Shareholders – Social Enterprises do not as a rule have share-holders – however like all good rules there are exceptions to this!

Legal StatusSocial Enterprise can take a number of different Legal forms and it’s important to pick the right one; you’ll need to understand the difference between them here is an overview of the main legal forms so you can compare the different features.

Legal structures for social enterprise at a glanceLegal structure Summary: most typical

featuresOwnership, governance and constitution

Is it a legal person distinct from those who own and/or run it?

Can its activities benefit those who own and/or run it?

Assets “locked in” for community benefit?

Can it be a charity and get charitable status tax benefits?

Unincorporated association

Informal: no general regulation of this structure; need to make own rules.

Nobody owns: governed according to own rules.

No: can create problems for contracts, holding property and liability of members.

Depends on own rules. Would need bespoke drafting to achieve this.

Yes: if it meets the criteria for being a charity.

Trust A way of holding assets so as to separate legal ownership from economic interest.

Assets owned by trustees and managed in interests of beneficiaries on the terms of the trust.

No: trustees personally liable.

Trustees/ directors no, unless trust, court or Charity Commission permit.

Yes (if trust established for community benefit).

Yes if it meets the criteria for being a charity.

Company Ltd by Guarantee (other than Community Interest Company)

Most frequently adopted corporate legal structure; can be adapted to suit most purposes.

Directors manage business on behalf of members. Considerable flexibility over internal rules.

Yes; members’ liability limited to amount unpaid on shares or by guarantee.

Yes (but no dividends etc to members if it is a company limited by guarantee).

Would need bespoke drafting in articles (which could be amended by members).

Yes if it meets the criteria for being a charity.

Company Ltd by Shares (NEWCO)

Less adopted; can be used to distribute profit to social shareholders

Shareholders manage business

Yes; members’ liability to amount unpaid on shares

Yes (dividends to members)

Would need bespoke drafting in articles (which could be amended by members)

Yes if it meets the criteria for being a charity

Community interest company (CIC)

New “off-the-peg” limited company structure for social enterprise with secure “asset lock” and focus on community benefit.

As for other limited companies, but subject to additional regulation to ensure community benefits.

Yes; members’ liability limited to amount unpaid on shares or by guarantee.

Yes, but must benefit wider community as well. Can pay limited dividends to private investors.

Yes, through standard provisions which all CICs must include in their constitutions.

No, but can become a charity if it ceases to be a CIC.

Industrial & Provident Society (IPS) (Co-operative)

For bona fide co-operatives that serve members’ interests by trading with them or otherwise supplying them with goods or services.

Committee / officers manage on behalf of members. One member, one vote (regardless of e.g. sizes of respective shareholdings).

Yes; members liability limited to amount unpaid on shares.

Yes, but should do so mostly by members trading with society, using its facilities etc, not as a result of e.g. shareholdings.

Would need bespoke drafting in articles (which could be amended by members).

No – would have to be constituted as community benefit type of IPS.

Charitable Incorporated Organisation (CIO)

First ready-made corporate structure specifically designed for charities

Similar to company but with different terminology (e.g. for “directors” read “charity trustees”).

Yes; members either have no liability or limited liability.

Members: no. Charity trustees: only if constitution, court or Charity Commission permits.

Yes. Cannot be anything but a charity, and must meet the criteria for being a charity.

Marketing plan guidelinesMarketing is a key part of business success; it sets out clear objectives and lists the actions you will take to achieve them. Perhaps most importantly it looks at how you can ensure that your plan becomes reality.

A marketing plan includes factors such as deciding which customers to target and how to reach them, how to win their business and keep them happy afterwards, as well as continually reviewing and improving everything you do. Remember that marketing in itself will not guarantee sales, but a well-researched and coherent marketing plan will give you a much better chance of building long-term, profitable relationships.

This guide outlines the key areas to look at in an effective marketing plan and what you should include in it.

Marketing plan summary and introductionYour marketing plan should start with an executive summary, which gives a quick overview of the main points of the plan. However, although the executive summary appears at the beginning of the plan, you should write it last. Writing the summary is a good opportunity to check that your plan makes sense and that you haven’t missed any important points.

Business PlanIt’s a good idea to introduce the main body of the marketing plan with a reminder of your overall business strategy, including:

• what your business is about (your business mission)

• your key business objectives

• your broad strategy for achieving those objectives

This helps to ensure that your marketing plan and your overall business strategy all work together. For example, suppose your business strategy is based on providing premium quality products and service. Your marketing strategy and plan will need to take this into account. It should target customers who appreciate quality, promoting your product in ways that help build the right image and so on.

Write a marketing planExternal and internal analysis for your marketing plan

Understanding the environment your business operates in is a key part of planning, and will allow you to discern the threats and opportunities associated with your area of business. A PEST analysis helps you to identify the main opportunities and threats in your market:

• Political and legal changes such as new regulations

• Economic factors such as interest rates, exchange rates and consumer confidence

• Social factors such as changing attitudes and lifestyles, and the ageing population

• Technological factors such as new materials and growing use of the internet

You also need to understand your own internal strengths and weaknesses. For example, the main strengths of a new business might be an original product and enthusiastic employees. The main weaknesses might be the lack of an existing customer base and limited financial resources.

A SWOT analysis combines external and internal analysis to summarise your Strengths, Weaknesses, Opportunities and Threats. You need to look for opportunities that play to your strengths. You also need to decide what to do about threats to your business and how you can overcome important weaknesses.

For example, your SWOT analysis might help you identify the most promising customers to target. You might decide to look at ways of using the internet to reach customers.

Your marketing objectives

Your marketing objectives should be based on understanding your strengths and weaknesses, and the business environment you operate in. They should also be linked to your overall business strategy.

For example, suppose your business objectives include increasing sales by 10 per cent over the next year. Your marketing objectives might include targeting a promising new market segment to help achieve this growth.

Objectives should always be SMART:

• Specific - for example, you might set an objective of getting ten new customers

• Measurable - whatever your objective is, you need to be able to check whether you have reached it or not when you review your plan

• Achievable - you must have the resources you need to achieve the objective. The key resources are usually people and money

• Realistic - targets should stretch you, not demotivate you because they are unreasonable and seem to be out of reach

• Time-bound - you should set a deadline for achieving the objective. For example, you might aim to get ten new customers within the next 12 months

Only a percentage of the general population will buy your products or use your services, so the more accurately you can focus your marketing and sales efforts on them, the less time and money you will waste. It is a good idea not to aim too widely with your targets, to avoid spreading your resources too thinly.

Setting parameters

You may have limited capacity and resources and therefore need to think clearly about what is achievable when setting out a marketing plan. Potentially the “market place” could be international with countless of potential customers. However to make all of these people aware of what you are offering them would take a considerable amount of time and money, bear in-mind there is only you to do the tasks that are needed.

Once you have decided who is going to buy your product you need to consider were they are going to buy it from - is it a direct sale from your premises or your website or is it going through a middle man, a gallery, retailer, agency etc? You will want to put a perimeter around a chosen geographical area or areas and carry-out market research within the areas to identify the size and details of your customers, what projects or services they are delivering and how you can link in with these.

Marketing Materials

How are you going to attract customers? There is a whole array of marketing devises that you can use to find your customers:

Business cards, LetterheadsPostcards, BrochuresWebsites, Blogs, Social networkingNetworking, Referrals etc

However, the first place to start is by considering whether you are going to have a business name or use your own name. Either way you will need to have a business brand, logo or identity and this has to reflect your type of business. For instance, a business card for a local honey producing Bee keeper could use a parchment paper with swirly green text to promote the business, this clearly reflects the product. Alternatively a designer furniture outlet might produce a stark, white lacquered card with very simple lettering and minimal, but bright logo - again this sends out an immediate response to the business ethos.

Good quality images are needed; these will be incorporated into all of your promotional materials and are therefore crucial. Remember, all marketing materials need to be consistent, keep layouts, colour ways, fonts and overall appearance the same.

Route to market

Be persistent! Finding customers is a long term investment and therefore takes a lot of nurturing. Once you have identified your customer you might want to either drop them an introductory email or preferably give them a call. You need to know who, if possible, your key contact is. You also need to think about the purpose for the contact, what is it that you want out of it? It is always a good idea to have a standardised tick box sheet listing items you need to cover; there is nothing worse than putting the phone down and forgetting who you have spoken to and/or what their response was. This call is really about briefly introducing yourself and letting your customer know that you will be mailing them out some details about your business and that you will be following this up to gain feedback.

Mail out: Make this manageable and remember that each letter that goes out needs a follow-up call. Make sure that you have a copy checked letter and have inserted a link to your site and enclosed a visual reference to your work.

Follow-up call: These have to be done no later than 10 days after your mail out and are simply to gain feedback from your customer about your work and if they can use it at some stage. Also, if possible, to see if you can make an appointment.

Keep you potential customer or existing customers in touch with your progress, new projects or features at least every 2-months, either via the internet or by other means.

Pricing your workIntroductionPricing your work can be a difficult thing to do, some rely on their instincts of what they believe is a fair price while others make assumptions based upon what others are charging, what the markets will stand or what they believe their customers can afford. These are all valid points. However they are not accurate financial indicators to your individual business circumstances, meaning that we all have different costs, profit margins and overheads and therefore all will have different pricing policies. You need to know whether your business will be in profit when quoting a figure or if you are making a loss. More importantly you need to know what your “break-even” point is.

This pricing guideline will enable you to break down each element of your business expenditure, (material and overhead costs etc) including the biggest expense YOU. You must consider how you value yourself and your time not only as a creative person but as a consultant and business person and how much you have invested so far in reaching this professional level. The guideline will also help you to consider what may go wrong or to take account of unforeseen costs and make sure that your business has some money left in its account at the end of a project.

You might want to try out different variables when using this format, but remember, once you have decided the figures and percentages you are going to use, stick with them and don’t change them, otherwise this will cause confusion. You are better using one consistent format for every market place or customer.

Product Pricing FormulaA few things to consider…

Material costs

What materials are you going to require to undertake a task, commission or project? These may include experimental, mock-up or proto-type costs as well as materials needed to fulfil your order.

Overheads

You need to include some overhead costs - you may be using a room in your house and this will use a percentage of the house outgoings, lets say one sixth of all costs.

Rent/mortgage Electricity Broadband Water

Rates Heating Phone

Calculate the total amount of costs based on last years statements, for example £5000 ÷ 6 = £833. Lets say that you work 40 weeks per year on the business: £833 ÷ 40 = £21 per week and you are working 15 hours per week: £21 ÷ 15 = £1.40 per hour, this might not seem a lot, but is still a legitimate cost for your accounts. The Inland Revenue would have no problem with you submitting this as an on-going expense.

You can also do this if you have business premises - just divide your annual outgoings.

Labour

This is entirely up to you what you set your rate at but you must consider yourself as a professional, not an amateur. You must also bear in-mind that you won’t be working full time on the business all the time, you don’t get sick pay or holiday pay and most importantly it is you that takes the risks: the buck stops with you!

Look at what other creative people are charging.

Avoid charging yourself at the same rate as a low paid employee.

There are many different ways in which people cost their time, some by the hour, others by a half day or a full day rate, a lot of this is dependant on what you do, i.e. if you are a sculptor producing an artwork this would most likely be charged at an hourly rate, if you are delivering a 2 hour workshop session you would probably charge a half day rate (given travel and prep work).

Contingency

You are most likely spending additional time on the business that you haven’t accounted for (bits of travel, sketching ideas, nipping out to the shops to buy materials etc) and also spending small amounts of money on the business that you aren’t considering (emails, internet, small items): you do need to account for these.

Also you need to add a percentage into your budgets for anything that could go wrong (installation problems, extra material costs, extra delivery/ transport costs, breakages etc).

This percentage is called contingency and it covers you for all of your unseen cost. What you set your contingency percentage is up to you, but you need to consider your risks, i.e. a painter may have a lower risk and therefore charge 7% and a public artist will have a higher risk and may have a contingency of 30%.

Profit

At the end of the day you need to remember that you have a business and that business needs to have some money left at the end of a project or end of the year. If you can get into the mind-set it is useful to consider yourself as an employee of your business, i.e. the business is one entity and you work for it - separate it out. Profit can be used to buy new equipment, update your website, get new brochures, or give yourself a bonus …. The average national profit margin is 24% and again it is up to you to set your margin.

The main thing to remember in all of this is that when you set your formula stick to it and don’t keep changing it to suit an audience or what you think your product/service that you have just created or delivered is worth.

Product Pricing Formula summary

A = Material Costs

B = Overheads

C = Labour @ £15 per hour (e.g.)

D = Contingency 12% (e.g.)

E = Profit @ 30% (e.g.)

A + B + C = sub-total + D = sub-total + E = Final Total

Time management guidelinesTime Management is the act or process of exercising conscious control over the amount of time spent on specific activities, especially to increase efficiency or productivity. Time management may be aided by a range of skills, tools, and techniques used to accomplish specific tasks, projects and goals. These include planning, setting goals, scheduling, and prioritising, delegation, monitoring. Time management is a necessity in any project development as it determines the project completion time and scope.

As a self employed person Time Management is hugely important to get tasks underway, worked through and completed. An Action Plan template will help clarify tasks and motivate their progress and this guideline will take you through the steps needed to use it.

Head-to-paper task: As a creative person you might have a hundred and one ideas buzzing about in your head - this is great, but you can’t do all of these things at the same time, it takes some planning. The first thing to do is to get things out of your head and onto paper - this is simply a “Brain-Dump”. Nothing has to be in any particular order but it will give you the opportunity to look at the options and make some priority decisions: some things will be ridiculous, others may need looking at in 2 years time, some even longer; however a few will be credible and achievable in the short term. It is these you will need to separate out and prioritise, but keep it simple, maximise these to 2 or 3 options only.

Brainstorm: Choose an option and put down everything that needs to be done to achieve it, what are the key tasks that you need to do to make that happen? Again, get all of this down on paper.

List: Initially the brainstorm might look like a big bowl of spaghetti with no clear structure and so the next part is crucial. You will need to take a look at each task and put them into an order so that you have a clear methodology of what you need to do and in what logical order.

Action Plan: Objectives/tasks: Transfer your key tasks (as above) into the right hand-side column of the Action Plan template, starting with the first thing you need to do at the bottom and working up until you have all your tasks in order on the table.

Deadlines: You must decide, realistically, how long this goal is going to take you, or how hard you are prepared to work on it. Or it may be that it is dictated to a particular time in the annual calendar (ie the Christmas market). Each task that you have identified needs a deadline and each square/cell running left to right represents a week in time. Plot in how long each task is going to take you on the grid.

Cost: If there is a costing element to an action then add this into the cell. By doing this you will realise, for example, that a task to be done in 16 weeks is going to cost you £200, so you are aware you need to be making provision for that spend.

Review/reflect: Review your action plan at the end of each week to see what you haven’t achieved and plot this onto the action plan, marking in major priorities that have slipped into a different colour code.

See below for an example of an Action Plan and a blank template for you to use to plot your key tasks.

Objective/sAll basics marketing in

place. Make contact with a number of galleries

15 12 Appointments made

10 10 10 10 10 10 10 Ring, mail-out and follow-up

20 Complete portfolio

Prioritise database

350Stationery pack from

printers

Pricing policy

10 2nd draft portfolio. Evaluate

20 Market research

650 Website development

Decide geographical area to market too

30 1st draft portfolio inc prints

65Buy A4 portfolio, sleeves

& mounts

Take artwork to printers

Choose brand ID, design stationery pack

Develop brand ideas

250 Photograph work

Catalogue work

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Actions

EXAMPLE: Business Action Plan: 6 monthly progress chart

Week 1 = Date = Money that needs to be introduced 10

Objective/s

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Actions

EXAMPLE: Business Action Plan: 6 monthly progress chart

Week 1 = Date

Doing The Rights ThingWhat Is Intellectual Property? From the music we listen to and the books we read, to the computer software and products we use in our daily lives, each is a product of human creativity, and that creativity is protected. It is these creations of the mind, once expressed, that make up intellectual property.

There is no IP protection in the UK for ideas or concepts, only for expression of those ideas or concepts. So, products, technical solutions and new inventions are protected by patents and design rights; literary, artistic, dramatic and musical works are protected by copyright; and brand names, words, sounds and even smells are protected by trademarks (even the ‘smell of freshly cut grass’ has been trade marked by a Dutch perfume company that uses it to give tennis balls their aroma).

Therefore, in business, everything, from your own designs, software, brand, packaging and logo should be protected. In a nutshell, all of your mental and creative ‘outputs’ can be transformed into tangible ‘commodities’ so that you can licence, sell, trade, divide or retain your rights to those ‘commodities’.

The Importance of IP in the Business Arena It’s a competitive landscape out there, increasing the need to stay ahead of competitors. Meanwhile, the knowledge and information-driven economy has increased demand for artistic and creative content, which has given intellectual property an increasingly important role in commercial life. Ultimately, as forms of creative expression have evolved, IP rights have evolved to protect them.

Thanks to technological advances and globalisation, businesses of all sizes have more opportunity to maximise the value of their IP in international markets. However, these same technological advances have also made it even more important to protect what is rightfully yours. Why? Because duplication and distribution costs have been lowered as a result of digitisation, making it easier for others to copy and distribute your work/ideas/concepts as their own.

Indeed, IP is a crucial asset for businesses of all sizes and the collective value of intellectual property has never been greater. Whether innovation or reputation are your key business drivers, you will create intellectual property within your business and you will therefore need to protect it.

You’ve no doubt heard stories about creative people getting ripped off? All true. After all, if unprotected, a great idea, invention, product or creation could be snapped up by a larger business that is in a better position financially to commercialise, leaving the creator of the intellectual property with no financial or moral reward for their efforts.

So, as well as making sure your own creative efforts are rewarded and protected, by properly managing your IP, you can:

• Gain the competitive edge by carving out a strong position for your brand, products and services and prevent your competitors from copying you

• Increase your company’s market value, both before and after flotation. If you have various relevant patents in place and have registered your trade mark, you’ll find it easier to access venture capital and will be much more investor-friendly as a result.

• Create a strong credible brand and corporate identity to persuade more customers to do business with you

• Avoid expensive litigation from those rights you may have infringed had you not fully understood IP

• Prevent others from trading off your own creative endeavours

What Can Be Protected And How So? Patents protect inventions, design rights protect 2D and 3D designs and copyright protects dramatic, artistic, literary and musical works.

PATENTS: A patent is a legal document that grants the owner absolute rights (a monopoly) to produce, use or sell the patented product, and prevent anyone else using their innovation or invention. The document also describes the full technical workings of the invention in detail (so a patent protects ownership and usage, but not privacy).

Patent protection is granted for a period of 20 years from the date the patent application was filed. On expiration, the invention then enters

the public domain and is available for others to exploit commercially. Patents provide recognition and financial reward and inspire future generations of inventors.

COPYRIGHT: Creators of original artistic, musical and literary works can protect their work with copyright. Copyright covers all forms of

creative works, from books, paintings and films, to choreography, sound recordings and computer code, software, graphics and other digital media.

Copyright gives creators the exclusive rights to use or authorise others to use their work. The author, or freelancer or employer owns the copyright, rather than the publisher or employee, unless agreed

otherwise. And copyright protection gives the owners rights to prevent copying, publication, broadcasting, distribution or hiring).

There is no need to register your copyright. Rather, copyright exists automatically as soon as an original piece of qualifying work is created. So, as soon as you write, upload or create your work, it is instantly protected by copyright.

However, it’s essential that you keep evidence of the evolution of the work. You can do this by including the © symbol, date and your signature on any preparatory work such as design sketches, documentation and research material. This log of the work’s development will be invaluable if you need to enforce your IP and prove you own the copyright.

Literary, dramatic and artistic works have immediate copyright protection that lasts until 70 years after the death of the creator. Computer generated works and performer’s rights last until 50 years after the creator’s death, while typographical arrangements are given 25 years protection. This is currently a thorny issue as the first wave of rock ‘n’ roll recordings, starting with Elvis, are about to go out of copyright in Europe. Not surprisingly, the UK music industry wants the current 50-year time limit extended.

Worth noting: 1. Employers own copyright; employees do not own rights to anything they’ve created

in accordance with employment.

2. If you are freelance, you own the copyright, not the client, unless you have a contract for a service that assigns copyright to the commissioner of the work. So, usually, freelance or commissioned work will belong to the author of the work, unless there is an agreement to the contrary, (i.e. in a contract for service).

TRADE MARKS: A trade mark is a “badge of origin” by which the public can distinguish the products and services of one business from another (i.e. logo, slogan, brand name). A trade mark can be protected by registering it and a registerable mark must be distinctive and can consist of words, letters, numbers, images, drawings, symbols, smells and sounds, or a combination of these.

To be registerable, the mark must be distinctive and not identical or similar to a previously registered mark that applies to the same or similar goods or services. A trade mark registration must be renewed after 10 years.

A trademark that is registered gives the owner the exclusive right to use it or authorise someone else to use it. Protection usually lasts for

7-10 years or more and can be renewed. Registered trade marks are enforceable under trade mark law and use the ® symbol. Conversely,

unregistered trade marks are not enforceable under trade mark law and use the TM symbol.

DESIGN RIGHTS: Designs can be protected too. Design rights can be registered or unregistered and rights exist for 2D and 3D designs,

but don’t protect the functionality of a design, only the ‘ornamental or aesthetic aspect’, i.e. the appearance of a product resulting from

its features, lines, contours, colours, shape, texture, materials or ornamentation.

The design must be novel and have individual character. If successful, protection can potentially last for up to 25 years, renewable ever five years.

Unregistered design rights exist automatically, like with copyright, and this lasts for 15 years, but must not be a common-place design.

Two important points for any budding designer to remember are:

1. Employers own design rights, employees do not own rights to anything they’ve created in accordance with employment. Especially important if you want to take a concept from your employment to market.

2. If pitching for a commission, it is the commissioner who owns the rights to the designs because you have been contracted to provide the service for them. Ordinarily, freelance/commissioned work copyright would belong to the author, but if you assign copyright through a contract when providing the service, the person commissioning you will own it. If in doubt, check who owns what.

MORAL RIGHTS: These are your rights to be identified as an author or creator of intellectual property. You can waive your moral rights via a release form. Some entrepreneurs using research students to help them develop products may ask that they waive their moral rights, or broadcasters using footage of performances.

Managing your IP and Unlocking The Value Of Your Creativity STEP-BY-STEP

STEP 1 – Identify Your Intellectual Property

• List any creative ‘assets’ – your intellectual property, from your logo and company name/brand, to your packaging design, products and software

• Check your designs, expressed ideas, concepts and creative works are new and original

STEP 2 – Protect Your Intellectual Property

• Put in place a simple confidentiality agreement with a client, potential manufacturers or investors BEFORE you start negotiations (you can download sample contracts from www.own-it.org). A well drafted agreement will specify the type of information to be protected, how long the duty of confidentiality is to last and to whom the information may be disclosed.

• Register designs, patents and trade marks, visit www.ipo.gov.uk

• Secure Internet domain names to safeguard your brand

• Agree terms and get everything in writing. When approaching manufacturers you should strive to get various agreements in place, such as a confidentiality agreement, prototype agreement (whereby the factory agrees to make a sample to your specifications), heads of agreement and manufacturing agreement.

• Catalogue everything that you have. Keep good records, including your sketches, notes, drafts, diagrams, contracts, letters and e-mail communications. Strive to keep all work in progress and a ‘design’ or working story.

• Assert your rights. Mark the author/publisher or creators name on all copies of your work, along with the date and country. © (Name of owner) (Year of creation).

• Put registered design rights and other IP renewal dates in your diary. Never forget IP rights or domain name renewals.

STEP 3 – Exploit Your Intellectual Property

Managing and exploiting your biggest asset, your IP, will help your business make more money – to do this you need to:

• Ensure any designs, trade marks and patents you register or apply for are the same as those you intend to market.

• Inform people that you have a registered design or trademark to increase your credibility and make people aware of your rights. For example, you should put your design rights number on any packaging and ® if you have a registered trade mark.

• Maximise returns by licensing your rights either as a whole or separately to exploit your IP in different territories or different forms – this way you hold onto your rights whilst making money from them

• Charge an assignment fee if the client wants the rights, always seek external advice before assignment (such as the size of the fee and appropriateness of this decision)

• Licence your IP (either exclusively or non-exclusively). You can licence your rights exclusively to the licensee only, or non-exclusively to the licensee and anyone else you choose to licence to. You can licence reproduction or distribution rights, rental or lending rights. Consider what you are licensing (e.g. your trademark, copyright, design rights) in what format (exclusively or non-exclusively) and how long for (e.g. are the terms of the licence for a fixed term, perpetual or terminal) and finally, where in the world you are licensing to?

• Figure out whether you require royalties, licence fees or both. (Royalty payments generally vary between 4 and 14%, dependent on the type of creative work/industry)

• Negotiate fair terms. This is the period where you spend time bargaining to work out a deal. Next comes the contracting part, which involves formulating the details to create a binding agreement.

• Make sure you are given equitable remuneration for your work. For example if you produce sound recordings, you should be paid royalties by the MCPS PRS alliance. And, if you have written a book, you should receive lending royalties as well as royalties from your publisher.

• Use a Creative Commons licence if you want to control and share your IP. You can choose to allow reproductions of your work but not for commercial purposes or other methods of use, so some rights are reserved instead of all.

Visit www.creativecommons.org for more information.

STEP 4 – Enforce Your Intellectual Property

Even the big boys can experience problems enforcing their IP. DVD piracy costs the film industry hugely, just as illegal music downloading costs the music industry. So how can you enforce your IP effectively?

• Monitor what competitors and new entrants to your market are doing. Get news alerts, subscribe to industry news, keep an eye on the UK Intellectual Property Office site (www.ipo.gov.uk) site and pay attention to new trade marks being advertised. If any infringe yours you are able to contest them once they’ve been advertised.

• Send standard cease and desist letters if you find anyone infringing your IP rights. A lawyer can help draw up an effective letter to send out and advise you on the best course of action.

Resources Here’s a bunch of useful resources to help you stay on top of your IP and maximise its value.

www.own-it.org Own-it offers intellectual property (IP) advice, information and learning resources for the creative sector. We offer a range of services, from basic to specialist support, through an online enquiries system, online and face-to face seminars and workshops and, where appropriate, surgeries with IP lawyers. We work with a network of IP advisers including leading law firms, law schools and specialists at various trade organisations associated with the creative industries in the UK.

www.alcs.co.uk The Authors’ Licensing and Collecting Society Limited (ALCS) is the UK rights

management society for writers.

www.ipo.gov.uk Provides information and advice on copyright issues, plus patents, registered designs and trade mark info.

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Written by Cheryl Rickman for from Own-it (www.own-it.org)

Business planning guidelinesIt is essential to have a realistic, working business plan when you’re starting a new enterprise or developing an existing business. A business plan is a written document that describes your businesses objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to measuring success within your business.

The audience for your business planThere are many benefits to creating and managing a realistic business plan. Even if you just use it in-house, it can:

• help you spot potential pitfalls before they happen

• structure the financial side of your business efficiently

• focus your efforts on developing your business

• work as a measure of your success

You should also bear in mind that a business plan is a living document that will help you monitor your performance and stay on track and will therefore need updating and changing as your business grows. Regardless of whether you intend to use your plan internally, or as a document for external people, it should still take an objective and honest look at your business. Failing to do this could mean that you and others have unrealistic expectations of what can be achieved and when.

What a business plan should include• An executive summary - this is an overview of the

business you want to start. It is vital.

• A short description of the business opportunity - who you are, what you plan to sell and to whom.

• Your marketing and sales strategy - why you think people will buy from you, what you want to sell and how you plan to sell to them.

• You and your team - your credentials and the people you plan to recruit to work with you.

• Your operations - your premises, production facilities, your management information systems and IT.

• Financial forecasts - this section translates everything you have said in the previous sections into numbers.

Presenting your business planTo make sure your business plan has maximum impact, there are a number of points to observe.

Keep the plan short - it’s more likely to be read if it’s a manageable length. Think about the presentation and keep it professional.

Tips for presenting your plan• Use plain language so anyone can understand it – avoid jargon!

• Edit the plan carefully - get at least two people to read it and check that it makes sense.

• Ensure you use email-friendly formatting – word or pdf

• Include a cover and a contents page

Using the business plan templateThe business plan template is designed to simplify the process of creating your business plan. Headings have been used in the document to help you structure your thoughts into clear and concise messages. The template asks a number of detailed questions about the proposed business - its markets, costs, etc. - they may demand research prior to completing it. The time spent is an investment which will pay dividends in the long term.

Business PlanName of Business

.......................................................................................................................................

Author

.......................................................................................................................................

Date

.......................................................................................................................................

Business PlanINDEX

Page Index ..............................................................................................................1

Business Details ................................................................................................2

Executive Summary (including finance required) .......................3

Personal Details .................................................................................................4

Personal Survival Income ...........................................................................5

Type of Business ................................................................................................6

Aims ...........................................................................................................................7

Marketing ..................................................................................................8, 9, 10

Premises ..............................................................................................................11

Equipment ...........................................................................................................12

Year 1 Profit & Loss Account ..................................................................13

Year 2 Profit & Loss Account ..................................................................14

Additional Information ................................................................................15

S.W.O.T. analysis .............................................................................................16

1

Business PlanExecutive SummaryGive a summary of the key elements of your plan to create a short, but rounded overview of your business.

The summary should be exactly that – a summary of your idea, your target market, your business and its approach as well as giving an overview of finance within the business.

Remember that most investors/funders will read the Executive Summary and then jump straight to the cash flow so you need to get your message across here and give enough information to make an investor/funder want to read on.

This should be the last section you complete.

2

Business PlanYour BusinessThis section is about the core of your business, what legal status you have, how your business is structured and who is involved.

3

Business PlanBusiness goals; what is it that you want to achieve?

AIMS

Year 1

Year 2

Long term

4

Business PlanMarket ResearchMarketing is a key part of business success; it sets out clear objectives and lists the actions you will take to achieve them. Perhaps most importantly it looks at how you can ensure that your plan becomes reality.

A What are you going to sell?

B Who are your major customers and why will they but your service?

Is the market price sensitive? Yes No

Understanding the environment your business operates in is a key part of planning, and will allow you to discern the threats and opportunities associated with your area of business.

C What evidence of market research have you carried out to show the demand for your product or service? i.e. response to leaflets, letters, questionnaires, face to face, phone etc

D Who are your major competitors? - name them

E How do you intend to promote and sell your product or service? Include marketing costs

5

Strengths Weaknesses

Opportunities Threats

Business PlanMarketing SWOT Analysis A SWOT analysis combines external and internal analysis to summarise your Strengths, Weaknesses, Opportunities and Threats.

For example, the main strengths of a new business might be an original product and enthusiastic employees. The main weaknesses might be the lack of an existing customer base and limited financial resources.

What are your competitors’ Strengths, Weaknesses, Opportunities and Threats?

6

Strengths Weaknesses

Opportunities Threats

Business PlanWhat are your internal strengths/weaknesses? Now think about your own business...

7

Business PlanFinance and costingsYou need to know whether your business will be in profit or if you are making a loss and what your “break-even” point is.

This pricing guideline will enable you to break down each element of your business expenditure, (material and overhead costs etc) including the biggest expense YOU!!

F How much will your product or service cost to make/produce/provide? How have you arrived at this figure - Including materials, overheads and direct labour

I How much will you charge for your product or service?

8

aYear 1

Forecast Profit and Loss account for year 1(all figures exclude VAT if registered)

Sales £

Less cost of sales £

Gross profit £

Less overheadsOwner drawings/dividends £

Staff Salaries & Wages £

Employees NIC £

Rent £

Rates & Water £

Repairs & Maintenance £

Gas & Electric £

Business Telephone £

Internet £

Insurance £

Motor Expenses £

Advertising £

Stationery & Printing £

Legal and Professional fees £

Bank Charges & Interest £

Sundry Expenses £

Corporation Tax £

Accountant Fees £

Total Overheads £

Net profit for year £

9

Cash Flow ForecastIntroductionA cash flow forecast should be a reflection of actual money into and out of a business.

It isn’t supposed to be a substitute for a profit and loss account.

Is your income to be received regularly?

Account should be taken of seasonal peaks and troughs in your cash flow.

Is your income affected by the weather, holiday periods, school holidays, etc?

If your company expects its income from a small number of large payments – say from regular contracts – the cash flow should show when these amounts are expected to be received.

Do not ‘smooth out’ the income by dividing the amount out over the year.

Staff costs should include on-costs – NI, tax, etc. (As a rule of thumb, allow an extra 20% on top of salary.)

In kind or pro-bono items should not be included. Nor should debtors/creditors. Include VAT with purchases.

Extra notes should be appended to explain certain items, e.g. professional fees, loan instalments (it is not always clear which loan is referred to – an existing one or the one being applied for.), bank charges or interest, drawings, fees or any item out of the ordinary. (e.g. an unusually high or low figure in any given month.

There should be no gaps.

If you are sending us actual cash flows up to the present time there should not be a gap before commencement of cash flows forecast for the future.

Forecast cash flows should correspond with cash items on a profit and loss forecast.

If your cash flow shows deficits, i.e. minus figures at the end of the month, how are these to be financed? (e.g. bank overdraft.)

Cash flow Forecast

INCOME Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TotalSales £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Contract(1) £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Contract(2) £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Contract (3) £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Fees £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Grants £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Donations £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Sale of assets £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Other income £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Other income £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Total Receipts £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

EXPENDITUREStock Materials £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Wages/NI £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Pension Contributions £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Rent/Rates/Water £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Heat/light/power £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Equipment £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Repairs & Renewals £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Marketing/Promotion £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Transport/travel £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Print/stationary £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Postage/carriage £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Telephone/fax £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Professional fees £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Insurance £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Loan Payments £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Other loan payments £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Bank charges £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Leases/HP/Other £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Other Expenditure £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00


Total Payments £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Net cashflow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00Opening Bank Balance £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Closing Bank Balance £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Company name ........................................................................................................................................ Year 1


Wages/NI £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00


Rent/Rates/Water £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Heat/light/power £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Equipment £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00






Telephone/fax £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00


Insurance £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Loan Payments £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00


Bank charges £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00

Leases/HP/Other £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00



Total Payments £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00




Cash flow Forecast Give details of the assumptions used in constructing the forecast - see also notes supplied

INCOME Year 1 Year 2 Year 3Sales Examples: Retail sales expected to grow at 10% per annum; Direct

sales will grow at 25% per annumContract(1) New contract with City Council commences month 3 Expires month 9 year 2Contract(2) Existing contract with PCT runs until month 4 year 2 but strong

indication that it will be extended further 6 months

Key Fund Grant/LoanFees Source?Grants Indicate whether offer received for new grantsDonations Is this based on average received over last 12 months or if higher/

lower why?Sale of assetsOther incomeOther incomeTotal Receipts

EXPENDITUREStock MaterialsWages/NI How many staff/employees - planned recruitment? Staff costs should

include on-costs – NI, tax, etc. (As a rule of thumb, allow an extra 20% on top of salary.)

Pension ContributionsRent/Rates/Water Term of lease / rent review date / rent free periodHeat/light/powerEquipment Capital purchases or planned maintenance?Repairs & RenewalsMarketing/PromotionTransport/travelPrint/stationaryPostage/carriageTelephone/faxProfessional feesInsuranceKey Fund Loan Payments Ask for an indication of likely repaymentsOther loan payments give details of who loan from, what it was for, interest rate and

approximate expiry date - any security given?

Bank chargesLeases/HP/OtherOther ExpenditureOther ExpenditureTotal Payments

Net cashflowOpening Bank BalanceClosing Bank Balance If your cash flow shows minus figures at the end of the month, how are these to be financed? What is level of bank overdraft & who is provider?

Company name ........................................................................................................................................

business support pack

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