If I were to become a freelancer, this would be my business plan, though I'm not sure I want to, I think I might like to set up a company with someone else, I have a few options with that, having talented people in both Newcastle and Manchester who I've collaborated with and who would probably set up business with me.
Ben Bowsher Design
Nature of the business:
Mission Statement
Ben Bowsher Design is the company name for myself, a freelance designer who offers environmentally friendly design and illustration solutions. In the current business climate, with the Kyoto agreements policy on taxation as it is ) "The burden of taxation will move from the 'goods' to the 'bads'; (thereby to) encourage innovation in meeting higher environmental standards."-From businessballs.com article), companies are increasingly looking to reduce tax costs by introducing procedures to make their work places and practices more environmentally friendly. Couple this with the current increasing social awareness of the impact we’re having on the environment and the ‘trendiness’ of ethically aware business, and it becomes clear that overtly environmentally aware design solutions are going to be an increasing market.
So, from my own design process, whether it is management of paper or environmentally friendly ways to operate my computer, right down to working with the printers on recycled paper stocks and vegetable oil based inks I aim to create a fully environmentally friendly working practice.
Business objectives
3-12 Months:
• Create a working relationship with an environmentally friendly printer. www.lovelyasatree.com list the most local printers that fit the criteria are Wyndeham Gait printers in Grimsby and Horner Brothers in Rotherham, l though I could use waterless lithography if I used one further afield, the carbon footprint of transporting this is more harmful than the water wastage in traditional lithography.
• Have a fully functioning website that I can direct potential clients to as well as sell my own products with my own designs on them, such as t-shirts and posters etc.
• Establish links with local business in Leeds and Manchester area using direct marketing from the Marketing Communications Mix
• Enter at least 3 design competitions in order to try and succeed and get some notoriety
• Find at least one other designer with whom I can collaborate in the long term.
1-2 Years:
• To expand my regular client base to at least 5 regular customers whilst maintaining a regular amount of freelance work
• To use an increasing client base to expand my business to the whole of the North.
• To begin generating independent work for sale using collaborative partners (3 collaborative projects over the year)
3 Years +
• Further expand client base to a national level using increased contacts through collaborations and notoriety gained from awareness of my business through direct marketing and personal selling.
• Use growing income to invest in more ambitious personal projects for sale, and submission to well renowned blogs such as ‘It’s Nice That’, ‘Fffound.com’ and hopefully attract attention from design journals such as Grafik and IDN
Structure
The business it’s self is composed entirely around me, as a freelancer I will be in charge of promoting myself, idea and concept development as well as design executions. Obviously I will outsource other things such as using an accountant to manage my money and a printer for print production.
Status
The legal status of the company would be a ‘sole trader’, this makes it easy to set up and cover the administrative side of the company. This does make me liable for all debts and potential claims; so good liability insurance will be covered in the costing. (businessballs.com) I have a quote from Hiscox insurance for £194.27 a year including all those insurance needs.
2. Resources
Products
• Design and illustration solutions for business and organisations 90% of income
• Selling of my own branded products such as t-shirts through my website. 10%
Resources
• Renting a studio – £2000 per annum (based on search at freeofficesearch.co.uk)
• Commercial software license for Adobe Creative Suite- £1571 (one off cost)
• Stationary and materials – £600 estimated per annum
• Web hosting – £240 per annum
• Accountant – £200 estimated per Annum
Start up resource costs would then be £4011
Stock
• I’m not going to need stock for design jobs; the client’s needs will be thoroughly costed and taken into account when pricing the work.
• In terms of prints to sell for my website, it’s going to start out as quite a limited need, which I will adjust as popularity and notoriety increase. I have a quote to get artist’s prints for £40 per 50 prints on www.awesomemerchandise.com (who are environmentally friendly), Estimating that I will have roughly 4 designs to start with, and only needing perhaps 25 of each, that’s roughly £80-£100.
• T-shirts are more expensive, roughly £275 per 30 3-colour t-shirt designs. Estimating again to having roughly 2 t-shirt designs and needing about 30 of varying size of each to start with, that’s roughly £525.
Total stock cost is £625
TOTAL: £4636
3. Prices
• As a designer, I have used a costing model that takes into account all of my expenditure and worked out the minimum price I must charge per day of working to turn over a profit of £20,000 to cover cost of living etc. .The total came out at £95.45 a day, or roughly £2000 a month. Because I can’t assume I’ll have the same number of clients a month; I’d have to estimate 3-5 clients a month, the costing would be specific to their requirements but between £300-£1,000 per client, based on the scale of the job and the time demand of their design solution.
• In terms of pricing my t-shirts and prints, I have looked at a few competitors, given the price it costs to make (£9.17 per t-shirt) and the acceptable rate for t-shirts these days going at around £25 (http://www.truffleshuffle.co.uk/), allowing a £15 profit per t-shirt And a need to sell only 11 to recoup my expenditure. With prints it’s easier to make a profit, looking at websites such as www.msieben.com and www.jamesgulliverhancock.com, print pricing can go from anywhere between £20-£100, I think, given the price that Awesomemerchandise gave me, that the quality dictates I price on the lower side of that estimate. £20 per print allows me to recoup my profits within selling 2 prints.
4. Customers
PEST ANALYSIS
Political influences
The Kyoto agreement mentioned in economic influences means that Government are introducing economic incentives (i.e. lower taxes) to companies that use environmentally friendly approaches, this includes their design. I think this means there will be an increase in companies looking for people like me who have an environmental awareness in what they do.
The upcoming Copenhagen conference in December should see companies try to reduce their carbon footprint on a wide-spread level, this would have implications for the way they work in terms of design across the country, including Leeds. This again suggests that a designer who has an ethically conscious background could be an interesting contact point for local business and organisations.
Economic influences
"The UK Government's Climate Change strategy is to encourage UK industry to use less energy by using financial measures, specifically taxation. And more specifically the Government's stated aim is to reform the tax system, according to this oft-quoted statement made in 1997, following the Kyoto Agreement:
"The burden of taxation will move from the 'goods' to the 'bads'; (thereby to) encourage innovation in meeting higher environmental standards."-From businessballs.com article
This means that companies throughout the UK, companies have to abide by environmental standards to avoid higher taxes, hopefully this means more companies will be aware of the need to apply this to their design needs. Though, as I've mentioned in the technology aspect of this PEST analysis, new technologies to create more environmentally friendly print solutions are hard to find in the local area. Anyway, all in all this may mean that ethically led free-lancing becomes a selling point to these companies, even if they have to pay a bit extra in terms of printing costs.
In Leeds, social businesses, i.e. those whose purposes are mainly social and whose surplus money is re- invested into the business can get funding. These are likely to be community projects etc. that would need financial help to get design promotion, help is available to these companies in order to get the services of people like me.
Social influences
There has been a large embracing of the idea that we need to act more environmentally consciously, I think especially over the last 10 years or so. I've noticed it permeate into T.V. advertising, such as the carbon footprint ‘Bedtime Stories’ advertisement. Awareness of company corruptions such as the scandals surrounding Enron and MacDonald’s has led to an increased distrust between brand and consumer, forcing businesses to appear more and more ethically aware. Increasingly companies and individuals who may need design work are becoming aware that their creative solutions need to be equally as environmentally friendly as their recycling habits, reduction of carbon footprint etc.
Technological influences
As with any city, it is possible to find great environmentally friendly technology to support the process. The development of technology in terms of paper recycling means that most recycled papers are at a competitive price with 100% virgin paper (conservatree) and are also available locally, which again adds to the availability of environmentally friendly print design to the less well off of my ethically led clientele. However, the nearest fully certified environmental printers is Wyndeham Gait in Grimsby (lovelyasatree), which wouldn't be too much more in terms of the carbon footprint it leaves. However, this does minimise the likely-hood or ability of poorer companies/organisations to manage an ethically led business enterprise. More fully ethically led printers in the UK that use waterless Litho are much harder to find, and much more expensive. In contrast to this it seems Yorkshire is a hot spot of creative industries meaning that investments in new technologies are being made all the time, suggesting an increase in the possibility of more environmentally friendly print practices being set up everywhere.
SEGMENTATION ANALYSIS
1
Demographics
In the first year, it’s likely to be small local business’ that respond to the direct marketing strategies I use: Small new café’s, independent music labels and promoters etc. Small design agencies that need to outsource to my skills as an illustrator. These are companies likely to be run by creative middle-classers who need ethically aware design at a slightly cheaper rate than the bigger design agencies out there.
Psychology
Likely to respond to visuals that are quite vocal about ethical awareness in terms of their visual aesthetic, so hand rendered visuals give it a more personal and trustworthy feel, allowing me to use my skills as an illustrator to attract their attention. Following Maslow’s hierarchy of needs, they are most likely ‘self actualisers’ who have developed an understanding of their own ethical awareness and are willing to implement this in to every facet of their business, including design solutions.
Geography
Clients will be local to the Leeds/Manchester area first, as I develop links locally before expanding nationally through developing contacts. Customers are likely to be from a younger audience, who tend to work in the City Centre and around the University through to Hyde Park. Again in Manchester, the clientele is likely to come from the City Centre and the trendy ‘northern quarter’
Behaviour
Because this client is likely to be young and looking for quite contemporary design, they’ll have an awareness of a lot of modern technologies and websites, such as facebook, linkedin.com etc. to build up networking, as well as using the web as a means of communication and research. This will allow me to direct them to my website and hopefully they’ll engage with this quite readily.
2
Demographics
People buying self created, ethically produced merchandise are people who are going to have come across my website and really engage with contemporary design. They’re likely to be ‘self actualisers’ also, wanting to explore their own taste in clothing and artwork. The demographic is going to be similar to me, they’re people engaging in artwork I’m making for my own self-actualisation so they’re likely to be similar: 18-25, students or young designers themselves, based initially around Leeds and Manchester, but occasionally getting hits from people stumbling upon my website from right across the nation.
Psychology
‘Self Actualisers’ who want to buy products that represent who they are as people, their taste in design etc. Will respond to contemporary illustration and design graphics that connect with either their musical/literature awareness.
Geography
Because it’s web based, realistically I could appeal right across an international market, as long as I make people aware that I can ship internationally. However it’s most likely to start with a local awareness of me as a designer and my business, with a gradual build to national attention and as I come into my 3+ year objectives, internationally as I manage to get work featured in journals and blogs.
Behaviour
Frequent the net; particularly design blogs and websites of designers and trendy clothing companies such as CXXVI.net, ASOS, American Apparel, and Urban Outfitters etc.
SWOT ANALYSIS of competition for customers
Now I’ve identified two potential sets of customer, it’s important to do a SWOT analysis of two designers who's target audience and approach to the business side of design I may like to emulate. I will do this based on their websites and what they offer. I will analyse the visual approach to the website, how it functions (i.e. navigation, if there's broken links etc.) what services the designer offers through the website, and the way their portfolios are presented. I am going to look at Michael Sieben's website and Jon Burgerman's website.
Visual Approach:
Both websites appear to have an introductory page, both quite simple with their work laid against white backgrounds, Michael Sieben's appears to be a slideshow demonstrating works and various photographs he's taken himself which I suppose give an idea of his mentality as well as his visual aesthetic. Jon Burgerman's is simply an advertisement for a show he has on at the minute. Upon clicking these and entering the website, I am greeted on both occasions by a fairly sparse looking blog-like page that shows the latest news and goings on of both artists. Both have the links to other areas (shop, portfolio etc.) at the top of their website in a fairly simple way. The strengths of the visual approach on both occasions is the clarity of the website and how easy it becomes to navigate because of the simple visual approach. This makes it quite inviting to people that are perhaps a little tech-phobic. I personally feel, that while this is a big strength, that even so, more could be done with the aesthetics of the website to demonstrate more visual flare. The websites themselves are quite boring, and I wouldn't personally want my potential customers to then make that assumption of me. Jon Burgerman's is a little flashier, employing a few more colours and a decorative header. So when looking at my own business and it’s visual identity, I’ve learned that clarity is good, but I could hold an advantage over the competition by having a clear but more visually engaging website and ‘brand identity’ in my business cards’ and direct marketing strategies.
Function:
Both website use a similar navigation system at the header of the page, both are extraordinarily simple to use and the titles are appropriate to the content the links display. On both websites, this gives any potential customer re-assurance in terms of reliability and trust-worthiness. On websites where they may not function well, you as a designer are doing yourself a disservice by creating the impression that you are less technically skilled, even if it isn't you who'd made the website. Opportunities for my website/business: there is an increasing amount of websites and WYSISG software that allow you to build increasingly sophisticated websites of your own, this would allow me (as a web development ignorant) to build my own website that could compete with both of these.
Services:
Both offer a gift shop of original artwork, prints and books etc. that allows a relationship with customers as well as services he provides clients. There is a contact link for both; this allows potential clients to engage with the artist personally. Both have a variety of things such as scrapbooks (Michael Sieben) and competitions (Burgerman) that mean that the customer can engage on some personal level with the artist and buy into him as a person, which is likely to increase sales in customers over a longer period of time rather than one off sales. Burgerman has a link of free downloads such as a self assemble paper model net, these little freebies again promote a personal connection with the artist that may increase sales and are nice little promotional flourishes. All these things are important to take in as an artist with my own website. However, neither really create the impression that they are contactable for work, making it harder for potential clients as a pose to customers to relate to this website. It is important for me to make my contact details very well presented both on my website and in my promotional materials such as business cards, C.Vs and mini portfolios.
Presentation of Portfolios:
Both use thumbnail images categorised into sections such as 2D and 3D (Jon Burgerman) or commercial and fine art (Sieben) you can then click on these thumbnails to get a high-res image or series of images. Unfortunately on Michael Sieben's website, this involves side scrolling using the ">" button, unfortunately this is hit and miss and without a side scroll bar, it becomes incredibly frustrating to negotiate his portfolio. Burgerman's portfolio also lacks a bit of focus as it's laid out as an informal blog and makes it difficult to navigate. I'd say in both cases this is a major flaw: no client is going to want to struggle through your portfolio and it's likely to detract potential customers that haven't already bought into their aesthetic. If I can do this very well and clearly, I’m more likely to be able to target my potential customers in a much more effective way than potential rivals.
There’s also a potential gap in the market, at least in the initial stages, when I’m working mainly locally. Specifically in Leeds there appears to be few design agencies who have anything about being environmentally aware in their mission statements. This allows me to attract a potential client basis with few local competitors. As my business grows though, I can expect competition from design agencies such as Thomas.Matthews.
5. Marketing
Advertising- The difficulty of advertising, is realising where your market would look... for example, placing adverts in newspapers would cost a small fortune and probably not reach many people that need graphic solutions, i.e. an incredibly non-cost effective waste of time. It would also be dangerous to presume that because I read those magazines and newspapers therefore my customers would too. Web advertising, again is probably not cost effective for the amount of customers it is likely to attract... I can't imagine anyone trusting a designer they found on a dodgy internet advertisement, just the same way that no one trusts adverts for pharmaceuticals etc. that whole area of advertising is tainted by it's presence on a medium that's hard to regulate.
Other issues with advertising are that clients tend to look for designers ONLY when they need a design job; they are unlikely to stumble across you reading their daily newspaper or their fashion magazine. Placing an advert in appropriate directories that deal with businesses could work. I don't think this is the best route, though. My company or my name might be 500th in a list of 5,000 or something ridiculous. A business requiring my services is unlikely to employ me in this situation; I am just a name on a list. For this reason, I believe that using advertising to market my business, at least at this stage is unlikely to work effectively.
Personal Selling- Personal selling is creating a direct relationship with a client through one to one contact, over the phone or in person. In terms of graphic design, I think this would work quite effectively: design solutions and ideas are best put across when a discussion can be made between client and designer. I can create a rapport with the customer, a trust that is likely to build a lasting partnership. It’s also inexpensive. The difficulty with this is generating conversation with people to begin with and hoping that this leads me to a design job... the likely-hood is that most conversations will lead nowhere. This might not be the most time-effective way to generate business.
Publicity/Public relations: Publicity can be a good way to get recognition for a designer, doing community based works for free can create a positive and trust-worthy appearance as long as enough of the right people see it and can report it in local newspapers/news broadcasts etc. A notable example recently was the Poppy appeal that took place and the project to redesign/rebrand it undertaken by students across Leeds College Of Art. The winners gained attention not just college wide, but from local artists and businesses as well as the Yorkshire post, who I believe did an article on it, but I cannot locate. However, this has the potential to go wrong; If you do a piece of work for free and then the publicity element backfires, you may have created a nice piece of work, that was worth a lot of time, effort and money that has literally got no reward to it. From personal experience organizing an exhibition, publicity is also something that’s hard to develop a momentum on, I had several meetings with press officers who said they were actively promoting it, but I feel that it had very little impact on the outcome. Publicity is something to look for perhaps in the longer term 3+ year objectives.
Direct Marketing: In Graphic Design, direct marketing could be the creation of purpose built promotional packaging and distribution to specific potential clients. This could come in the form of several one offs that I hand deliver to local business' that I come across or the heads of community projects. The benefit of this is that unlike advertising, where a general audience is canvassed in the hopes of making a connection which can prove both financially expensive and unrewarding in terms of attracting clients, specific phrases or imagery can be given to specific potential clients, meaning that they're much more likely to be interested in your product than the average Joe Bloggs that may pick up a newspaper. Unfortunately the drawbacks are that it can be incredibly time consuming and also quite expensive to make these one-offs, particularly if the potential client is still not interested afterwards. However, I believe that this is the most effective method of promotion in the marketing mix and should be used carefully, but optimistically, when I try to attract clients.
I project to spend most of my time on direct marketing and website design and hosting. Hosting will annually cost me roughly £240 per annum, for a reasonable hosting, whilst designing it myself will limit the cost of having to pay another designer. I project to spend roughly £600 on crafting special mail outs for direct marketing, expecting that to cover up to 50 carefully chosen clients, based on my segmentation analysis of who’s likely to respond to my design practice.
6. Monitoring Progress
I aim to check the objectives list I made at the start of the business plan on a quarterly basis to evaluate where I’m at: If I’m ahead or behind the schedule and what I can do to improve.
I also want to install systems where I can get customer feedback on both my website merchandising and from my clients, this will help me see where I can improve customer relations and my design process as a whole.
Bibliography
http://www.businesballs.com
http://www.businessballs.com/climatechange.htm
http://www.lovelyasatree.co.uk
http://www.graphicdesignblog.co.uk/so-whats-stopping-you-from-becoming-a-freelance-designer/
http://speckyboy.com/2008/02/24/53-steps-to-follow-if-you-want-to-become-freelance-web-designerdeveloper-60-resources/
http://www.awesomemerchandise.com/heavyweight-prints-p-56.html
http://www.bytestart.co.uk/
http://denisewymore.files.wordpress.com/2009/02/maslows_hierarchy22.jpg
http://www.freeofficesearch.co.uk
http://www.awesomemerchandise.com
http://www.conservatree.com/
