ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS MM Creative Business

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS Focusing on the way you think about your arts practice vis a vis business, not just a hobby What is a business? Why set up a business? Should I be in business? What will my business be? These considerations need to be made in relation to my art making,financial considerations and the obligations required for establishing and running a business

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS So what is a business or in the case of arts practice professionalising what I do? Making a decision to practice full time and give up my day job or combining other work with more time spent on arts practice Setting up a structure that means that I can maximise the tax advantages and make deductions for materials, resources, rent etc (notwithstanding whether you are full time or not) Determining to take the plunge and putting my work out there, both in terms of marketing and competing with other artists

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS NAVA describes a professional artist as: The term professional is intended to indicate a degree of training, experience or talent and a manner of working that qualify artists to have their work judged against the highest professional standards of the relevant occupation.

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS If I am a hobbyist am I a professional? YES- you can be professional in your approach as described by NAVA but you mightnt be taken that seriously by the art world- its all a matter of the aims your work Tony Tuckson a renowned Australian artist always held down a full time job as a gallery Director, but he was certainly a professional- however the tax dept would probably have viewed his art making activity as a hobby.

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS What does this mean for other arts or creative ventures ? Professional Standards may not be judged by an individual of a group but by the market So in some cases judgement will be by the market Issues of standards will be measured by the market in terms of demand for the product/s Some creative ventures will however try to balance standards or try to balance their preferred work with more commercially viable products

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS What does the law (essentially the tax office) say? xation-of-professional-artists/

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS So what should I do? Legal and tax fundamentals Becoming a legal entity, eg Registered Business name, Forming a Private Company, Partnership, Cooperative PAYG implications ABN requirements

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS AND…… GST requirements Intellectual Property/Copyright Insurance- Professional and Public

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS In the case of a professional artist, actor, musician this may also involve taking on an agent or gallery which will be part of the business mix. This has other implications such as paying commission on work acquired or work sold, as opposed to a DIY approach

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS Steps I need to take to professionalise and set up a business remembering that there are different models 1. Make a decision! 2. Do a budget- what will it cost me for the initial set up and at least one year of operation 3. Get an ABN and in the first instance do not apply for GST unless you plan to earn over $75,000 from your art and other allied paying jobs (ref case study)

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS 4. Decide whether to use your name or a business name, if you want to use another name this must be registered in Victoria through consumer affairs 5. Get a quote for various insurances, public liability, professional indemnity, sickness insurance- think about risk 6. Work out a marketing plan including the development of a website and data base so you tell the world that your art is for sale 7. Choose an appropriate portal to showcase your work ( Own website, Facebook, Ebay, Etsy)

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS The beginnings of an on going and sustainable life business A vision for my work (s), product, products Preliminary budgeting to achieve immediate goals Planning for the day to day management of your business Time out for longer term planning (you have to dedicate time to work on your business not just arts practice Maximising opportunities the internet offers through social networking, linking and website optimisation Thinking about product development

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS Can I be have a business and claim business deductions as well as deductions for an agent or gallery dealer? YES, you can but you still must show that you have set up a home office or studio, that relates to your business If you dont do this you may be considered just a casual contract employeeif you are spending say most of your time teaching or working in some other job or jobs.

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS National Association for the Visual Arts business.gov.au (General Information about establishing a business) Grants for Business Development Business Victoria Arts Law Centre of Australia

ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS Public Law Interest Clearing House Australian Tax Office Arts Victoria Australia Council Business Mentors Skills for Growth factsheet_April09_3.pdf