How not to fail - Enterprise Lecture

Entrepreneur rollercoaster, getontherollercoaster.com
-uninformed optimism
-informed pessimism

5 reasons why businesses fail
1. Failure to adapt to a changing market
-keep up
-be informed
-understand your macro and micro environments
-SWOT your competitors/other practitioners
-PEST your environments
-NESTA -website - marketing
-design week magazine/website
-specialist info what is going on
-jobs

visual arts
-daily rate
-research for dissertation
-legal advice
-jobs and opportunities

2. Failing to continually market yourself
-marketing communication mix

£. Not seeking professional advice when you need it
-collaborate
-identify people who you need (strengths) get them on board and excited
-patience
-execute ideas better than anyone else
-exploratin
-reflection
-travel - find out about community
-dinf different entry ways to your passion
-know yourself
-be willing to say no

Creative Choices
Frank Design
-integrity
-communication
-cultural awareness
-professional skills and organisation
-think like an artist
-problem solve
-creative solutions

Artist
-place
-community
-exhibition
-time management
-2nd job
-network - share idea - meet like minded people - don't lose direction

4. Inadequate Accounting Records
-get accountant - in partnership - share burden
-professional help

5. Disregarding or misenterpreting financial records


PRESENTATION
-Business Plan

1. Demonstrate your product or service
-features and benefits
-target customer - segmentation
-skills and capabilities
-legal status
-SWOT/PEST analysis
-marketing principle - and apply them to a strategy
-problems setting up a business (last 4 lectures)

2. what resources will you need
-equipment
-space
-stock

3. Why will people buy from you?
-unique selling point
-competitors/other practitioners or examples of similar projects
-look at their S&W
-say what opportunites this presents you
-compare prices

4. Marketing Plan
-3 effectice and innvoative methods - explain

5. How much will it all cost
-start up costs
-overhead costs - next 12 month
-direct costs (materials and labour)

Powerpoint
-no more than 10 slides
-visual aid - not a crutch
-hold your notes in your hand
-marketing plan
-costs
-include all points
-do a fab pitch
-get high marks

Interviews
-to get that job
-the business/employer want to hire someone and make a profit, grow the business
-imagine their risk
-right interview technique
-employer watches their competitors
-talk to eachother and know what they are up to
-aware of their environment
-knows what their USP is
-looking for someone who can make a difference
-looking for passion and awareness
-find out who their competitors are
-conduct a SWO|T analysis on them and come up with some opportunities from you findings
-ask them aboout their competitors at interview to show you have some business capabilities
-see what competitors have - say what you have to give the advantage - and weaknesses
-take an interest
-read 3 serious newspapers before the interview (Yorkshire Post, Guardian, Design Week)
-see if you can identify any issues that may be affecting their industry at the moment
-ask them about things that are affecting their business in the world/ industry
-what about Japan
-VAT
-do they have customers abroad

Artsmis
East Street Art
Umbrella - rent a space
the unit - office based in middle of city
Round Foundry Media Centre
Old Broadcasting House - co-working space, network, open plan office
Leeds College of Art
Pop-up Shop
MADE - student market

Stash your cash - Looking after the money - Enterprise Lecture

Language
-advantage
-business

Invoices and Statements

Invoice:
-the bill
-bontains customer name/address
-itmeized goods
-total payment
-seperate total with VAT
-date of invoice
-invoice number
-your business address

Statement:
-a reminder
-your business address
-your customer address
-prompt your customer to pay you timely - 2 weeks after invoice

Terms and Conditions
-designed to protect your rights and interests
-costs
-delivery arrangements
-payment terms
-credit limits
-your right to charge interest on overdue amount and claim compensation for recovery costs

The Statement
-send out on or day before the due date
-send out every month there after
-how much is owed
-court

Accounting
-keeping track of who owes you money
-see how much you are spending on materials and services
-see money coming in and going out
-make sure you don't spend more than you earn

Accounting Software
-small business - recommended for use

-Quick Books
-Bank Tree
-Sage
-Turbo Cash

Money in - business - money out
-diagram

Accountant
Chartered - No
Certified - Yes
-find out how much they are going to charge you

Start-up costs
-spend cash on new equipment
-design web site
-register company name
-design logo
-decorate premises
-launch party
(governmnet got banks to put 8billion into new business start up's)
-many companies get a loan to cover costs
-usually have to pay back quickly after 2-3month

Where does the money come from?
-banks - Barclays, Natwest, HSBC, Lloyds
-funding organisations and investors
-the arts council, yorkshire forward, venture capitalists (dragons den- want a cut of profits), shareholders (sell shares for so much each)

Prizes and Awards
-shell live wire
-make your mark
-go for ones with big prize money
-looks great on your CV even if you don't win - shortlisted - finalist

What banks want to know?
-marketing plan
-how much money do you need?
-how much money have you got
-how will you spend the money
-how will you pay the money back
-if you don't put in as much as you are asking from them they see them as the risk

Indirect Costs
-utilities - gas, water, electricity
-office supplies
-equipment leases
-part time help
-insurance
-rent
-known as: overheads, fixed costs, cost of doing business

Direct Costs
-a cost directly attributable to the manufacturing of a product
-or what the customer takes away with them
(e.g. a bottle of water - bottle and cap and labels would cost about 3p to make but is charged 80p-£1.50 to buy. This is because it covers the indirect costs and everything gone towards making it + profit)

Tangible Assets
-company name - brand
-Intellectual Property -IP - designs
-trade secrets
-copyrights
-trade marks
-goodwill
-competitive advantage

Difference between cost and price
Cost:
-the total time, money and resources associated with a purchase or activity
Price:
-the total price that is charged to customers
DON'T GET THEM MIXED UP

Capital Assets
-the money, property and other valuables which collectively represent and individual or business
-reciepts
-money coming to to business, e.g. from sales

Payments
-money going out, e.g. rent adn materials
-cash flow or net cash flow
-cash reciepts
-minus cash payments

Taxes
-income Tax - tax on personal income
-corporation tax - tax on profits of limited company
-Vat - value added tax is a tax on scales
-council tax - based on the value of a property

Business rates
-tax based on the value of a property

What to do when you start a business
-open seperate bank accounts for your business
-find a certified accountant
-find a local solicitor
-register your business with the Inland Revenue

(Listen to Podcasts from lecture)

Dont Get Ripped Off - Lecture

Using copyright images/text is ok in college - covered by licence but not ok when you go to work
[intellectual property - IP]

Patents
-1712 - henry Mill took out the first patent for a typewriter in England 'Qwerty' -people paid fee to use it in their manufactures
-can opener - ring pull - adopted world wide -$150,000 a day
-patent leather - Seth Boyden 1818 - wipe clean

Trademarks and logos
-TM - trademark
-Circle with 'R' - registered
-Logo - embodies qualities
-you go to a brand that you know you get from them what you want
(Nike tick, Mercedes, Audi, Heinz colour arrangement, Guiness shape of glass)

Registered designs
-iphone - Apple Inx

Copyright
-sign and date your work
-sign and get date stamped by bank or psot office
-keep copy (good practise)

FAIREY V.s. ASSOCIATED PRESS (AP)
-Fairey reproduced a drawing of a photograph of Obama
-Fairey made alot of money from the photo being reproduced
-AP sued Fairey - and now wants shares
(illegal to draw from a photograph)

Johnny Cupcakes
-keeps suing 'Benny Frying Pan' for ripping off his designs
-Urban Outfitters also ripped off one of his designs

IP website

How long does it last
-Patents last a max of 20years
-Trademarks - for ever
-Logos - renew every 10years
-Design Rights- upto 25years- renew every 5 years
-Copyrights - until 70years after death
-Music - 50years after its creditied - then goes to  public domain and artist loses the right to reproduce exclusively

George Lucas - Star Ward - Fox Studios
-Merchandising rights for Star Wars - he has a share of the Box Office Revenue

Andy Warhol passed over his copyrights before he dies - to a charity

Peter Pan
-if you hand over copyright to a charity they have the rights and royalties forever (law changed)

CSL - hire and artist
-free licencing of you work - people can pay to use and you get royalties

Dacs
-valuing visual arts
-if an artist sells their work and then the work keeps getting sold for more and mre the artist will still get a cut of this

AOI - Association of Illustrators

blogger.com
facebook
youtube - non-exclusive, royalty free

Intellectual Property Office

Images available to licence - say this referring to your own work

Enterprise Lecture 5 - '10 Steps to a Future You'

1. Proactivity:
-Stimulus - response
-stimulus - choice - response
-circle of influence/concearn
-the more you know about macro environment,  the more chance of influencing it

2. Project:
-future vision
-create a principle - centered personal mission statement
-extend the mission into long term goals
-Business Vision, Priority Management, Business Plan, Life Plan

3. Provide:
-clear explanations to people
-speak in their language, not yours
-talk about benefits - not process
-expertise (GURUS)
-think - create - inspire

4. Prioritise:
-put first things first
-keep a proper balance
-stick to your personal statement
-vision - can't prioritise without one

5. Presents:
-think win/win
-seek outcomes and relationships that are mutually beneficial
-do a favour to gain a favour

[Coffee with Kloog - Karl Hopkins]

Kohlberg's Theory
-pre-conventional - dependent
-conventional - independent
-post-conventional - inter-dependent

6. Pause:
-pause/listen - give all your attention
-empathise - put rouself in their place
-don't re-iterate or interpret - just listen
-do you know how they feel or are you just saying how you feel
-seek first to understand - then be understood
-learn from your differences

7. Proven:
-consistency/integrity/reliability
-people's experience of dealing with you

[Andy Goldsworthy/Jimmy Choo]

8. Partner:
-synergy multiples your talents
-work with other experts outside your field to achieve greatness

[James Dyson, Antony Gormley, Michelangelo, Everest expeditions]

YOU CAN ACHIEVE MORE IF YOU DON'T TRY TO DO EVERYTHING YOURSELF
-sources
-partner
-'Avatar' - 600-800 credits - all free lance or small businesses

9. Pitstop:
-sharpen up - get new stuff
-rest - renew - revitalise
-explore - challenge - excite
-always have something new to talk about

10. Propel:
-extinguish your fears
-exude confidence
-instil faith
-networking events
-market yourself

IF YOU DON'T BELIEVE IN YOURSELF, WHY SHOULD ANYBODY ELSE?
-stand proud

How to Successfully Promote Yourself in 6 Easy Steps - Lecture 4

How and what?

Too much noise - 5000 ads a day - the average a person will see
-how do your stand out?

Marketing Communication mix
-Murray and O'Driscoll (1996)

Methods of getting noticed
-needs to use a number
IF YOU DO NOTHING, YOU GET NO RESULTS

Method 1:
-memorable business card
-ads
-events - customer notice you
-radio - interview
-write articles
-run a blog
-exploit social media
-publicity
-quirky - memorable
-keep it up - attention - name get's mentioned here and there

Method 2 - build their interest:
-website - info about you - down to Earth
-portfolio - show work
-information packs - something for nothing, hints and tips
-catalogue
-cuartion
-exhibition - examples of work (phone)
-offer your time for free - network

Method 3 - convince them:
-artist statement - values/mission/pitch
-recommendations - previous people you worked for, prove other people like you and your work
-awards
-cummunity engagement
-professional engagement
-professional bodies
-charity events
-involvement

Method 4 - Make your offer irresistable
-value proposition
-pricing strategies - appropriate
-packaging - product/service/after service
-try before you buy - trial - confident - little for nothing
-recommendations
-differentiation
Got to know what the competition is, so you can say what their strengths and weaknesses are, and how you fit in.

Method 5 - close the sale:
-convenience
-buy it now
-right place, the right time
-delivery
-personal selling
-interactive web site
Is anything missed?
Would you like to make deal now?
Would you like to involve somebody else before you decide?
Might say note yet - revisit
-contract - what getting for money - ask questions

Method 6 - reinforce:
-after sales service - 0f there is a problem
-advertising
-public relations
-longevity
-merchandising
-maintaining contact - tell them what you have moved on to do - see if they have more work for you
-building relationships
-how do you reinforce them and prove they have made the right decision
-never throw away a contact - even for the smallest bit of work

Johnny Cupcakes
-suitcase tour - world tour
-road trip - selling from car - t-shirt design - limited edition
-video of trip
-branding on van

Youtube - ''The Facebook Era''

AIDA
-ignorance - not doing anything to get discovered
-attention - awareness initiate
-interest - educate
-conviction - belief/confirm - experience
-desire - need/value
-action - acquisition - transfer
-reinforce - extension support
-follow up
CONSTANT
-nothing is a one off
-keep at it
-build up contacts who want to engage and work with you
Who?
-individuals, different talents
-define and refine customers

Target you market
-'selvege mag'
-demographics
-success of advertising in this mag is shown

Advertising waste
-target audience - hyer targetting
-latent demand

Market Segmentation

Media Usage
-creative agency/boutique/consumer
-knowing where our customers go for info tells you how to reach them
-don't jsut assume
-put yourself in their shoes

B2B
-help them
-get workm noticed

Consumer Segmentation
-demographics - measurable facts
-geographical factors - where? - weather, population
-lifestyle - who are they? when they are thinking of you?

Youtube -The Internet - good/bad

Value - What are you worth - Lecture 3

Drucker 1985 -
''Innovation is the tool of entrepreneurship.''

Mihaly -
''Creativity is the act of seeing things that everyone around us sees while making the connections that no one else has made.''

Philip Kotler - CCDVTP
Creating
Communicating
Deliverying
Value
to a Target Market
for Profit

Creating value is about managing your product/service
-don't push product onto people but design a product for what people want

Collaboration

Maslow'd heirachy of needs - to help understand what motivates us
1. Self Actualization
2. esteem
3. Love Belonging
4. Safety
5. Physiological

Being useful and entertaining

Where is the money?

Greatest human need = greatest market potential
-food industry
-housing
-utilities
-medicine
-transport
-construction
-insurance
-water
-new technology

Reduced huma needs = lower market potential
-organic farming
-holiday cottages
-home insulator
-health spas
-luxury sports cars
-conservation
-religion
-swimming pool
-alternative technology

A Value Proposition:
-overall aims - or mission
-specific aims - these set out the difference we hope to make - how it will affect people - outcomes
-objectives - these set out how we plan to go ahead achieving our aims - how exactly - outputs

BBC mission/vision/values
Ben & Jerry's Mission and values
-product mission/social mission

Leeds College of Art mission and values

Ideas and Opportunities - Lecture 2

Hi failure rate in start-ups can be avoided by doing lots of research before you get money, before you get people, develop products.

It is better that you evaluate the ideas before you launch yourself rather than to waste time and money discovering you have made a mistake some way down the line.

What is the difference between an idea and an opportunity?

An idea can occur at any time, to anybody, randomly, seldom materialise. Everyone has ideas but they don't always come into reality.

An opportunity occurs when environmental factors merge to create the right conditions for the right idea to take flight. In the right place at the right time:

1. You are aware of what is going on around you and the time is right to take advantage of it

2. You are in an enabling environment

3. You have the resources to make it happen

Amazon Case study:

How would you respond if you were creating products and services in a developing economy where there is very little financial support from government and little spare cash for people to help themselves? 

''Amazon was not profitable for 10 years. Only when they changed their  business model  were able to make it a stable and successful operation. They had one of the most successful sales web sites ion eth world but simply could not sell enough books to make a profit. Then a huge penny dropped for them. What they had actually achieved was the development of a unique selling platform that they could offer a sa service to other book sellers. So now they had two different customers a) those who buy books and b) those who sell books. So sometimes you need to step back form what you are busy doing to see what you are really achieving.  Amazon went on to patent ‘one click’ and also ‘ other people who bought this also bought''

 So, how do you find out find the environment is receptive to your idea or not? Here is a test list you can use to find out if your target audience may be receptive to your idea or not. 

 You can apply these questions to your own project work. For instance, if you are creating a site specific installation piece, you might consider what environmental factors you should accommodate in order to get an appropriate response from your audience. 

What site specific political issues should you be aware of?

What are the local economic conditions you want to respond to or reveal?

What cultural aspects of society in that place are you picking up on?

What are the economic factors that will make this project possible?

If you cannot answer these questions then you are not aware enough.

PEST Analysis:

Political Factors

Economical Factors

Social Factors

Technological Factors

The Big Bang:

Political Changes:

Local,national and international

-Trade Laws 

-Tax Breaks

-Human Rights

-Legalisation

Technological Changes:

Do you know about the latest thinking or just what you see in the shops?

(Wired, Guardian, Economist)

Economical Changes:

-Do you have an informed opinion on it?

-Read a broadsheet newspaper once a week

Social Changes:

Do you know what is affecting everyone or just what affects you?

-Work-life balance

-Eco-aware

-Ageism

-Debt Recovery

-Grow your own

An opportunity is when these factors come together at the same time.

Being able to pick up on these signals in a marketing environment are key qualities of Entrepreneurship. The common tool is a PEST analysis.

Look at current : -

1.Political Changes  ( from local issues to national and international issues)

2.Economic changes (unemployment, Big new employment opportunities create new wealth,  Currency exchange rates)

3.Social Changes ( trends, behaviour patterns, TV reflects popular trends)

4.Technology changes ( what has just changed, what are the latest opportunities on eth internet or on mobile applications)

5.Forget last year’s trends and last decade’s technology – Everyone else has already been there.

What kind of Creative are you?

Evolutionary -------------------- Revolutionary

(The revolutionary will plough through everything and everyone to make change

The evolutionary is someone who adapts current situations, products and designs to gradually make changes that will carry people along with you.)

Manager -------------------- Opportunist

(The manager looks after existing situations and makes them more effective and efficient.

The Opportunist will seek new opportunities and hopes someone else will help them make it work)

Cautious -------------------- Risk Taker

(A cautious creative will give the market what it wants

The risk taker will give the market something it didn’t realise it needed yet!)

What is a Creative Entrepreneur?

There are roughly three types of entrepreneur.

1.The owner worker

1.Pros. – you practice your own aret in a solitary manner and are totally in control of every aspect of your work

2.Cons:- It is easy to fall into the ‘creative labourer’ trap. Your income will be limited by time, health and interruptions.

2. Owner manager

1.Pros:- your role is more diverse and you meet more people. You can develop talent in others and they enable you to generate more income. It is easier to control quality at arms length.

2.You have less time to do your own creative work. You have to think for others. You become a manger of people.

3.Owner Entrepreneur

1.You direct the creative work of others and orchestrate a number of different income streams so if one income stream fails, there are still others to keep you afloat. You can take more holidays and relax doing your own creative work.

2.Sometimes the opportunities you identify do not bring any income. Sometimes risks lead to disasters.

Where do opportunities come from?

-Social/Political Trends

-Technological Developments

-Political Change

-Economic conditions

-Human Need

-Problems

-Research

Some things to research and how they spotted opportunities:

(Starbucks, Nike(Bowerman), Sony Walkman, Concorde, Internet, Richard Branson Virgin, Innocent Smoothies)

Technology PUSH --- Market PULL:

-Technology PUSH means that new products that have emerged through the development of new technology are presented to the market without necessarily knowing how successful they may be.

-Market PULL means that products are developed in response to market demand for change.

Where does the creative fit in?

-Project management

-Know how to find the right people

-Know where to source stuff

-Can work as a team

-Gets along with all kinds of people

-Optimistic

-Communicates well

Project Manager Skills:

1.Define the Problem- What is required by whom and by when

2. Build Confidence - Gain client trust and convince people to invest in your innovations

3. Problem Solving - Lateral thinking, holistic thinking and 3-D visualisations

4. Risk Analysis - PEST analysis

5. Physical Resources - Know your suppliers, develop relationships and make them your friends

6. Planning - Create a system that works for you and that helps you to communicate ideas to others

7. Human Resources - Be connected, network and know who can help you achieve high quality solutions

8. Quality Control - Define the quality of work required. Never entrust this decision to others because your reputation is on the line.

Opportunities can simply arise from these aptitudes because you, or others, recognise that you can put things together in a better, more effective, more imaginative and more convincing manner to achieve higher quality results. This is the most common opportunity that is developed. Some people think that entrepreneurs are heroes with massive personalities but actually, they tend to be quiet, hard working people who are sometimes a bit dull.  Richard Branson, James Dyson and Sir John Hegarty are perfect examples of that.

So you think you have spotted an opportunity?

Skills:

-Technical

-Process

Aptitudes:

-Teamworking

-Entrepreneurs do not do it alone

Predisposition:

-Risk/Caution

-Evolution/Revolution

/Manager/Opportunist 

How do you know if this is a good opportunity or not?

-Look at competitors:

 How many? 

How well are they doing? 

What do they do well? 

What could you improve on?

Assessing Competitors:

Strengths - What you can learn from the things they do well?

Weaknesses - What are they not good at?

Opportunities - For you or your practice

Threats - From Macro environment

Assess the quality of Opportunity:

-For me (How will it affect your personal life, where you live, your family and your work / life balance?)

-For the customers (How will you affect the customers’ quality of life or businesses)

-For the planet (What beneficial effect can you have on your local, national and global environments?)

-For other stakeholders (Who else is affected by your business? For example, if we look at Leeds City Art Galery, who can you say is affected by its activities? These people are all stakeholders)

Stakeholders can be organised in these three brackets.

•The internal environment in a business / practice

•This may just be you. Or may be 10 people who work together

•The Micro environment

•These are the stakeholders who are just on the periphery of your ‘world’

•They are affected by your success or failure

•The Macro environment:

-These are stakeholders or factors which are beyond your control.

-They are not directly affected by your success or failure but by the cumulative effect of  many successes and faillure.

-You may be significantly affected by these factors beyond your control.

SWOT Analysis:

Strenghts

Weaknesses

Opportunites

Threats