creative humber - 25 dos and donts for your creative business
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A checklist of dos and don\'ts for your creative business as delivered to Creative Humber - October 2011TRANSCRIPT
25 Dos and don’ts for your Creative Business
By Richard Rowell
Richard Rowell FCCA
About Me
• Accountant • Managing Director @ Dataplan Payroll • Vice Chair – Chamber of Commerce NEL• Partner @ Forrester Boyd
Richard Rowell FCCA
My mission
My day job is helping businesses to
• Earn more• Enjoy what they do • Work less
Richard Rowell FCCA
Today
Top tips for Creative Businesses• The big question we all forget to ask • A checklist to see where you are now• A brief look at business plans• 4 part formula for successful business• 2 essentials elements to improve profits• 5 specific areas for Creative Businesses
Richard Rowell FCCA
Today
A little bit about you !
Richard Rowell FCCA
Strategic thinking
To start a bit of strategic thinking
Richard Rowell FCCA
Strategic thinking
The biggest question of all
1) Why are you doing what you are doing?
Richard Rowell FCCA
What does success mean?
Bob Dylan says
“A man is a success if he gets up in the morning and gets to bed at night and in between he does what he wants to”
Richard Rowell FCCA
What does success mean?
Mark McGuiness in his book for Creative Businesses suggests that success is Freedom, Money and time
Freedom to do what you want when and howMoney to maintain youTime to spend as you please
Richard Rowell FCCA
What does success mean?
So I would urge you to think about what it is you are trying to achieve and what success means to you
Richard Rowell FCCA
Know where you are
2) Do carry out a situation report on your business.
SWOT analysis ?David Parrish - T-shirts and SuitsPRIMEFACT for creative businesses
Richard Rowell FCCA
Know where you are
• People• Reputation (or brand)• Intellectual property• Market information• Ethos• Finances• Agility• Collaborators• Talents
Richard Rowell FCCA
The Business Plan
3) Do a business plan
4) Don’t do a business plan
Richard Rowell FCCA
More practical matters
4 part formula for successful business
Richard Rowell FCCA
Successful business formula
More Sell
Richard Rowell FCCA
Successful business formula
More profitably
Richard Rowell FCCA
Successful business formula
More often
Richard Rowell FCCA
Successful business formula
More peopleTo
Richard Rowell FCCA
Selling more
Increase the value of each sale5) Do hunt out premium price opportunities6) Don’t bundle everything into one price7) Do look at value pricing8) Do offer services for every pocket9) Do practice top down pricing 10) Do capture all of your time
Richard Rowell FCCA
Sell More profitably
Make sure you are improving profits too11) Don’t discount / crash the price12) Do avoid sales13) Don’t reinvent the wheel 14) Do build it once sell many times15) Reduce your delivery cost
Richard Rowell FCCA
More often
Cost to keep customers < cost to gain new16) Do target specific products that keep
customers coming back for more17) Do design products and services that go
beyond one off sales18) Do design in recurring income, residual
incomes and commissions
Richard Rowell FCCA
To more People
• Small business = small resources• So how do we increase our reach ?• Word of mouth referrals are essential so
get people talking about you• People only talk about 2 types of service• Jim Collins – good to great
Richard Rowell FCCA
To more People
19) Don’t wait for business to come to you20) Don’t expect advertising to provide your
answer21) Do create systems to ask for referrals22) Do ask for testimonials
Richard Rowell FCCA
Successful Business Formula
Other key ingredients
23) Do keep your costs under control
Richard Rowell FCCA
Billing and getting paid
23) Do get your contracts, terms and conditions sorted
Richard Rowell FCCA
Richard Rowell FCCA
Billing and getting paid
24) Do get your contracts, terms and conditions sorted
25) Do get deposits where you can26) Do create invoicing points where you
can27) Don’t get stuck waiting for clients28) Do consider personal guarantees29) Do actively pursue debtors !!!
Richard Rowell FCCA
Problems for creative business
• Time stealers• Skills and resources• The competition• Your order book• Your business advisers
Richard Rowell FCCA
Time stealers
30) Don’t do spec work 31) Do get rid of PITA clients32) Do keep on top of your finances33) Don’t be afraid to turn customers away34) Do hold effective meetings35) Do manage your phone calls
Richard Rowell FCCA
Skills and resources
36) Don’t expect it will be easy to borrow from the bank
37) Do focus on what are you good at ?38) Do consider outsourcing the rest 39) Use networking opportunities40) Use social media
Richard Rowell FCCA
The competition
41) Do check them out 42) Create Competitive Advantage43) Differentiate yourselves44) Do consider co-opetition
Richard Rowell FCCA
Your order book
45) If there is a large order book you are probably undervaluing your services
46) If there isn’t one price may be a factor47) Do remember you don’t have to win
every enquiry
Richard Rowell FCCA
Using your advisers
48) Don’t pay accountants to add up – we are expensive
49) Don’t spend ages talking about accounts50) Do use your accountants knowledge to
help you build your business51) Use e-factor / Business Link52) Use support groups like this
Richard Rowell FCCA
Summing up
• Figure out what it is you want• Establish where you are now• Think about how you are going to get
there • Break your business issues down into
manageable chunks and tackle individually• Don’t bet the business on one change
Richard Rowell FCCA
Any Questions?
Richard Rowell FCCA
Contact details
richardrowellfcca
magicrichy