Feature: Running your arts based business 2012

How artists can beat the credit credit crunch and make money for their creative work?

As grants disappear and sponsorship dries up, how can artists and creatives sustain their work in an increasingly difficult economic climate? We look at the options for artists, performers and others in the arts and creative industries. What can artists do to run as a business and make their art pay for itself?

News

11th April

Making A Living - sharing experience

Creative Leicestershire is running a series of group discussions on the issue of how artists and creatives make a living. The event is focused on self-employed artists, performers, writers, film-makers, designers and craftspeople and those running small arts/creative businesses. The event will use the tried-and-tested Open Space technique so that all those attending can both contribute to the discussion and learn from each other. We hope you can come willing to meet new people and share your challenges and experience. The next events will be in:

North West Leicestershire - Tuesday 15 May, 5 pm -7.30 pm. The Lyric Rooms, Lower Church Street , Ashby-de-la-Zouch , Leicestershire LE65 1AB

Charnwood - Tuesday 19 June 5 pm - 7.30 pm. Loughborough Town Hall, Market Place, Loughborough.

These events are free for anyone based in Leicester/shire or Rutland, or £5 for those based elsewhere.

How to book | Open Space

Feature article

How can musicians and entertainers make a living from what they do?

Trevor Locke reports

With the financial storm clouds gathering on the UK's economic horizon, how can people in music and and entertainments industries survive? How can they make their creative activities pay?

We can't provide a cast iron solution but we can look at the options and give you some ideas.

If you are an painter, craft producer or fabrics designer, how can you run a successful business?

The challenges facing people who make paintings, crafts and fabric products or other crafts or art works are real challenges. With disposable incomes plummeting and consumers having to make cut backs in their weekly grocery bills, how can producers persuade them to buy things they don't really need?

Arts and entertainments are not essential; most people would think of them as luxuries. Despite the ravages of the recession, people are still buying luxury goods. In an era of gloom and poor employment, people seek entertainment and they still buy gifts for their friends and loved ones. The economic cup is not half empty - it's half full.

Whatever your line of work, your passion needs to be turned into hard cash. Otherwise, the work you love so much is not going to be sustainable and you will have to go out and find a proper job.

Part 1: Don't think it can't happen

If you have a good product, someone, somewhere will want to buy it.

You might be a

• painter
• sculptor
• weaver
• fashion designer
• jeweller
• musician
• magician
• art photographer
• poet
• film maker

or anyone who works, broadly speaking, in the creative sector. You produce artistic products or services. In this respect yours is like any other business. You need to turn your work into income.

You need to go out and find your customers, the people who want what you have got.

Tip: make full use of social networking sites like Facebook or Twitter to find customers.

You might be an artist but that doesn't mean you're not in business.

You have skills; skills have value. Your creations are worth money - there is a market for what you do. If there are people or companies that want what you have to offer, then you need to market your skills, sell your product and make a living. It's all a question of finding the right outlet.

Marketing is key to this. So is having a clear brand and identity.

You just have to find your customers

Customers come in many shapes and sizes: they could be individuals, audiences, crowds, companies, fans, other businesses, public bodies ... they are all potential customers. All you have to do is sell to them.

It doesn't matter whether you make lace or laughter, if there are people out there who want it, sell to them. Find your consumers and make them want what you have to offer.

OK, I make it sound so easy. I run a magazine. I know only too well how hard it is to make money out of what I do. As a writer I make it easy for people to find me. I go out and look for people who will be interested in what I write about.

Well, you got here!

All business is about marketing and selling. If your 'output' has a value (artistically, creatively) then there should be a market for it. If you're making nice things, things of beauty, then someone, somewhere will want to buy your work.

If you're entertaining people, with your voice, your music, your humour, what ever, someone will want to buy a ticket for it.

That's what it's all about: taking your offerings to the market, finding the audience, finding the fans, getting them to buy.

Being able to do effective marketing is the key to being successful. Fortunately, the world has just made this much easier. The Internet has made it possible for people to find each other - for artists to find their audience and for audiences to find their artists.

Part 2: Know how to make it happen

If you are not sure how to turn your work into a business, get some help. Find a mentor who can talk it through with you or an adviser who can point you in the right directions.

If you think you need training, it's out there somewhere.

Tip: write a marketing plan for your product. It's a good way of getting your head round what you need to do, when and how you need to do it.

You don't necessarily need a web site these days but if you have one make sure people are visiting it. Put your web site address on Facebook, Twitter, Linkedin and the many directory sites that you can easily find on the Internet.

Part 3: Control your finances

One of the most common mistakes in business is to spend more than you should. If you have worked out your budget and your forecast of sales and costs, you should be able to control your finances.

Make sure your products are appropriately priced. Scour the market to see what your nearest competitors are charging. It is a very common mistake to charge too little; it is possible to charge too much and loose sales because potential customers just don't wan to pay what you are asking.

It could of course be of course you are are trying to sell to the wrong customers. If you think your price is justified but are getting too much resistance from potential buyers, look for a new market.

Tip: make sure you keep records of everything you earn and buy.

Part 4: Think about your options.

There are several ways you can set up your business. Some some arts projects might think about being a social enterprise. Some opportunities and indeed some sources of funding could open up for your project if it is a social enterprise.

If you are one person working alone, then you are classed as a sole trader. If you make a big enough profit you might have to pay tax on it. You should register with HM Revenue & Customs and complete an annual self assessment for tax purposes.

Before you spend money setting up a company get qualified tax advice from an accountant. It is not a good idea to set up a company just because you want to be in business.

If there are just two or three of you, consider creating a legal partnership.

Tip: If you are not sure what kind of legal format you should have talk to Business Link or SEEM.

Part 5: Work together.

Business is not all about competition. Often business is about working together, collaborating with people who share the same interests as you. Sometimes, this might be the same customers - people who buy one kind of product might also buy something else. Sometimes businesses can work together to help each other out in the market place.

If you buy in materials in order to make things, your suppliers are important to you. The more they can sell, the more reliable and helpful they will be to you. There are numerous examples of different, independent businesses getting into collaboration in order for all of them to win.

Sole traders or micro-businesses can share resources, particularly when it comes to marketing.

There are many networking events where you can meet people over a coffee and sometimes these contacts can be really very useful. Check out the Creative Coffee Club at the Phoenix and the Networking events at the LCB Depot.

Come back to this page soon for more ideas about making a living from your arts business.

Other pages you might like:

Promote your band

Promoting the arts

Helpful links

Leicesterprise - business advice for artists

Creative Leicestershire

Creative Enterprise Hub

Linkedin: online business networking

SEEM - social enterprise in the East Midlands

SFEDI - support for enterprise

Chambers of Commerce

Federation of Small Businesses in the East Midlands

Torr Waterfield Accountants online resources

Leicester City Council - business support and advice.