Principles of Business Success for Creative Entrepreneurs Consortium for Entrepreneurial Education Columbus, Ohio November 2010

Who are Creative Entrepreneurs?  Often self employed  Multiple disciplines Design, Performing Arts, Fine Arts, Casting Directors, Writers, Consultants, Photographers  This is a rapidly Growing Segment of our Economy

What is Different About Creative Entrepreneurs?  Creatives see possibilities  Creatives are full of energy and enthusiasm for the work they do  Often they take on several different careers or paths- all at the same time; whatever works will be what they do

What is Different About Creative Entrepreneurs?  No money-often buy into concept of “starving artist” –lifelong feedback says you cannot support yourself with your art.  Creative Entrepreneurs want to make the product-not build a business

The problem is time  Making the product takes up all your time and the artist cannot hire others to make the product  AND Creative Entrepreneurs are afraid to charge the value of their work  As a result, creatives are often overworked and abysmally underpaid  They have no time and no money

The Time/Money Squeeze  There are simply not enough hours to go around. The creative entrepreneur cannot possibly do it all  Results: Poor Health Poor Quality Poor Relationships

Business Principles for Creative Entrepreneurs Focus-Choose A Path  Creatives must choose one career  If you want to make a living from your art, you must focus on it – choose carefully.  This is the most critically important thing that the creative can do to ensure future financial success

How to Find Focus  I use a Venn Diagram and have the client describe the place where these intersect.  The intersect point is where they should focus their business. It must make money now and have a future trajectory of growth. Makes $ Passion For Good At

Business Principles for Creative Entrepreneurs Develop a Niche and Become the “go-to” Expert.  The more narrow the niche or offering or work the creative offers, the more they can make themselves the expert in their field and, accordingly, charge more money.  A narrow niche eliminates competition

Power of Specialized Niche  Having a specialty narrows the range of possibilities into one area;  Having a specialty means you can be known by potential customers for one thing- the market is not confused about what you do  Having a specialty can help build your reputation in your specific area; thus helps you find exactly the right customers who value you

Business Principles for Creative Entrepreneurs Clearly Articulate Your Value Proposition  The creative must learn how to present exactly what they do and its uniqueness and value in a few short, powerful sentences.  This is very hard work but worth it- potential clients must be able to understand EXACTLY what the creative offers.  Clear, Concise, Compelling

Business Principles for Creative Entrepreneurs Avoid Mission Creep  Stick to Your Chosen Path  Say No to work that will not take you where you want to go-very scary!  Always ask, am I the only one who can do this? If the answer is yes, that is part of your job. If the answer is no, delegate it to someone else.

Business Principles for Creative Entrepreneurs Develop A Business Mind Set Write down your financial goals Know your monthly personal expenses Know your monthly business expenses Set an hourly rate that will earn you the money you need. Seek out financial advise and support Think like an entrepreneur-believe you deserve wealth

Know Your Monthly Financial Needs  Develop a “budget” or at least list your personal needs  Add to that a “budget” or what your business needs You must include the cost of hiring help you need You must include a reasonable salary for yourself

Know Your Monthly Financial Needs  Include the real costs of living such as Health Insurance Savings Debt reduction Savings  Do not create a starving artist budget. Know what it really takes to live and produce your art

Set Measurable Goals  Goals can be # of hours to spend each day on marketing and # of hours to spend on producing your work  Goals can be # of pieces you need to sell of $ you need to generate each month  Goals can be for completion of projects or to achieve some recognition

Business Principles for Creative Entrepreneurs  Avoid the Time Money Squeeze Track Your Time Charge Top Dollar for Your Work Learn What Your Competition Charges Leverage Your Time Outsource Your work

Know Where You Spend Your Time  Track your time- use a time card  Results will surprise you  Resolve to do only the things that you can do- hire out the rest  Focus on your art

Leverage Your Time  This means you know: How to do the work once and sell it again and again How to develop multiple income streams How to determine where YOU the creative should spend your time

Charge Enough for Your Work  If you do not charge enough: Customers do not think you are valuable You will not have enough money to hire the support you need- such as marketing and business help You will be overwhelmed with low paying work that will never lead you to the larger jobs you really want

Learning Objectives of these Principles Used as a Curriculum:  Creative entrepreneur develops more of a business mind set and creates some simple metrics such as: Cost of product/service and break even Monthly (weekly, yearly) revenue needed Create a simple budget

Creatives can create a different model.  Rather than the traditional pyramid model, creatives can create a model we call the “waterbug”

Business Principles for Creative Entrepreneurs Understand Your Target Clients  Get very clear about who is your target market- detail them every way you can.  Learn from and get referrals from current customers  Figure out where customers have come from; dig deeper in that channel

Business Principles for Creative Entrepreneurs Market Every Day  Most creatives do not like to market but you can reduce the anxiety if you do it every day.  Avoid the euphoria/despair curve  This is a difficult but critical discipline

Learning Objectives of These Principles as a Curriculum:  Creatives use the Venn Diagram to help them focus and find a niche  Creatives do basic competitive analysis  Creatives learn to set realistic personal and business budget and determine break even point for their work.  Creatives set sales goals

Learning Objectives of These Principles as Curriculum  Creatives Understand the differences between “Be" and “Build” Business Models  Creatives identify what support services they will outsource to allow maximum time devoted to production of their art.

Learning Objectives of These Principles as a Curriculum:  Students articulate their unique value proposition and are able to describe their exact target customers  Creatives create a marketing plan and a web site that matches them with their target customers  Creatives create a detail marketing calendar and practice marketing skills

Questions?  You can find me at:    Sign up for my newsletter  Join my Blog  Better Smarter Richer is a work book for creative entrepreneurs to help them develop these skills