Page 1


Introduction • Defining your work and your offer

• Income streams, price and value • Costing and setting a daily rate • Legal structures and paying tax • Planning and budgets • Building a profile

• Next steps and further sources of help


maintain motivation

sustain your business


Defining your work • What sort of work do we create?

• Who do we create it for? • Where do we show it? • How do we pay for it?


What you create

Have/need list

description

inspiration

skills

school

biog cv

influences

field

“the pitch”

process

artist’s statement

context

materials

format/s

product

quotes & reviews

techniques

value

genre/s

range

documentation

Who you create it for

public services

community

general public

tourists

individuals

local authorities

corporate clients

social & professional networks investors

local audience

export market

collectors

critics

age groups

schools

academics

peers

showcases

directories

trade fairs

programmes

Where you show it festivals

publications

venues

symposiums

community spaces

competitions & awards

corporate spaces

open submissions

© Cultural Enterprise Office 2005

programmers distributors curators

directors cultural co-ordinators arts development officers professional associations

registers websites screenings broadcasts conferences

public spaces scratch nights social & professional networks

artist’s groups industry players

agents promoters

commissioners


Income streams, value and price • How do we pay for it? • Income streams


sales

commissions grant funding donations loans in kind support

fees investment

royalties

crowd funding

employment

sponsorship

bank interest


How do we pay for it? • Income streams


Considering value & income streams


corporate design fee

one off / bespoke commission domestic design fee gallery shop retail

workshops & classes production pieces licensing royalties

Visual art, craft & design income streams


new writing commission headline tour corporate gig

session work support slot workshops & classes royalties merchandise regular gig slot

Music income streams

downloads


Considering value & income streams


Adoption lifecycle


Number of Customers / Size of Audience

Considering value & income streams


Costing and setting a daily rate • Costing • Daily rate


Value


*Personal drawings for self employed, royalties, payments & shares


Costing your daily rate


Overheads plus Salary

Days per year

Holidays

Contin -gency

Admin

Total days available

Weekends

no admin time

£27,000

365

104

30

5

0

226

£119

£15

admin at 25%

£27,000

365

104

30

5

56

170

£159

£20

admin at 40%

£27,000

365

104

30

5

90

136

£199

£25

Costing your daily rate

Daily Hourly Rate Rate


Legal structures and paying tax


Structures • Freelancer • Self employed

• Sole trader • Limited company • Charity • Social enterprise


Self Employed Scottish Charitable Incorporated Organisation

Company Limited by Guarantee

Partnership Limited Liability Partnership

Community Interest Company

Company Limited by Shares


who you answer to

who you register with


who you answer to

who you register with


You are your business and have personal liability

Self employment


You are your business and have personal liability

Self employment


You are your business and have personal liability

Self employment


You are your business and have personal liability

Self employment


You are your business and have personal liability

ÂŁ

Self employment


Self employment timeline • Register with HMRC on commencing trading • Set up book keeping system (and appoint an accountant?) • Reconcile finances regularly • Register to do return online • 6 April – New financial tax year


£ £

Self employment


Invoice Jess Hunter 21 Brookbank Gardens Glasgow G12 8FG Tel: 0141 555 1234

The Tron Theatre 83 Trongate Glasgow G1 8DL Invoice No. 106 Date: 23 December 2014

UTR: 0123456789

Services Provided:

Costume design on the production of ‘The Little Mermaid’ Christmas Show 2014 Agreed fee: Expenses (receipts attached) Total

£1,500.00 £432.15 £1,932.15

Terms: 28 days from date of invoice. Please make cheques payable to ‘J Hunter’ at the above address or BACS transfer to the following account: Sort Code: 83-12-34

Account Number: 00333555

Please support small businesses with prompt payment.


£ £

£

Self employment

£


£ £

£

Self employment

£


Self employment timeline • Notices to complete tax return issued • Prepare accounts from start date to 31 March

• 31 October – deadline for paper returns


National Insurance

Income Tax

Class 2 contributions

Basic personal allowance

£2.75 per week

£10,000

Class 4 contributions

Basic rate tax (£0 - £31,865)

9% of annual profits over £7,956

20%

Small Earnings Exception

Higher rate tax (above £31,866)

£5,885

40%

Tax Year 2014-15


Annual Income Less work-related costs Net profit for tax Less personal tax allowance

£ 27,000.00 - £8,500.00 £ 18,500.00 - £10,000.00

Taxable Profit

£8,500.00

Basic Rate Tax on £8,500 @ 20% Class 4 NI ((£18,500- £7,956) @ 9%) Total 2014-15 bill (due 31 Jan 2016)

£1,700.00 £948.96 £2,648.96

1st instalment of 2015-16 bill (50% estimate) £1,324.48 Total payable at 31 Jan 2016 £3,973.44

Tax & NI Calculation, 2014/15 Accounts


Self employment timeline • Submit online return

• Pay tax bill • 31 January – final deadline for paying tax bill (and 1st payment on account)


Partners are jointly and severally liable

Partnership


Partnership


ÂŁ

Partnership


£ £

Partnership

£


£ £

Partnership

£

£


£ £

Partnership

£

£


£ £

Partnership

£

£


Limited Company


• Non-profit distributing

• Profit distributing

• Social, public or charitable aims

• Commercial aims

• Liability limited to amount guaranteed by board members

• Liability limited to directors’ shares

• Often adopted when seeking public finance

• Often adopted when seeking private finance

Limited Company


The company has the liability but the directors are accountable

Limited Company


Limited Company


Limited Company


LIMITED COMPANY

Limited Company

£


LIMITED COMPANY

Limited Company

£


Which structure? • Level of risk, responsibility and ownership employee, employer or owner • Flexibility and security for personal future, IP and that of the Company • Will you be able to manage your money and draw an income in a way that suits your circumstances? • Level of Administration • Will you really gain from fundraising opportunities? • Could you use a ‘godparent’?


Planning and budgets


Gain teaching qualification

Build on previous work

Fudge presentation due to nervousness Do some more courses

Relearn how to draw / paint etc

Drink a lot of wine Get lost trying to find college

Do some work! Get some sort of portfolio together Now

Pay application fee

Use year’s experience and top notch slides at ace interview

Make better portfolio

Re-apply through GTTR

Deal with crushing sense of rejection

Attend interviews Put slides upside down in carousel

Take slides

Work like a dog for a year

Take better slides

Write out that form again

Organise referees

Drink a lot of coffee


Gain teaching qualification

Motivation Materials, time, Work like a space, money, dog for a ideas year Nervousness Build on Use year’s previous work Fudge experience and top £12 presentation due Drink a lot of Pay notch slides at ace to nervousness coffee Materials application interview money Coffee fee Experience, top Wine Make better Do some notch slideshow portfolio more courses Drink a lot of wine Re-apply Take better Materials through slides Get lost Slide film, tripod GTTR trying to find Relearn how to college Deal with draw / paint crushing sense Write out that etc Ideas, of rejection form again space, time Friends/colleagues Attend Do some who lie, time, Patience, interviews Organise work! patience wine referees Put slides Get some sort upside down in of portfolio carousel together Now

Take slides Slide film


£

Income Revenue Grant Project Grants Workshop Fees Bank Interest Total Income Expenditure Direct/Project Costs Materials Equipment Hire Packing & Transport Tapes & Cables Project Staffing Overheads Staffing Costs Rent, Rates & Insurance Power & Heat Telephones & IT Travel & Subsistence Stationery & Postage Press & Publicity Legal & Accountancy Fees Bank Charges

Theatre company: Project budget

Sub total Expenditure Plus 5% contingency Total Expenditure Net Surplus/-Deficit

20,000 12,000 3,650 50 35,700

8,000 2,000 300 700 3,000 14,000 12,000 5,000 500 700 300 450 450 500 100 20,000 34,000 1,700 35,700 £0


Gain teaching qualification

Motivation Materials, time, Work like a space, money, Jan dog for a ideas year Nervousness Build on Use year’s previous work Fudge experience and top £12 presentation due Drink a lot of Pay notch slides at ace to nervousness coffee Materials application interview money Coffee fee Experience, top Wine Make better Do some notch slideshow portfolio more courses Drink a lot of wine Re-apply Take better Sept Materials through slides Get lost Slide film, tripod GTTR trying to find Relearn how to college Deal with draw / paint Jan crushing sense Write out that etc Ideas, of rejection form again space, time Friends/colleagues Attend Do some who lie, time, Patience, interviews Organise work! patience wine referees Put slides Get some sort upside down in of portfolio carousel together Now

Take slides Slide film


Milestones • Keep you and others on track • Clarify (contractual) expectations • Act as payment triggers


April

May

June

July

Aug

Total

Sept

CASH RECEIPTS Design Fees

2000

1000

Workshop Fees Lecturing

3000 250

250

250

250

250

3,000 250

Fashion Shows Start-up Grant

1,500 0

1200

1,200

Bank Interest Loan income

3,000

0 500 1950

500 2250

250

250

3250

1250

9200

CASH PAYMENTS Materials (workshops)

950

Studio rent & electricity

120

Tools & equipment

500

500

Insurance

344

344

Tel, postage & stat.

30

120

30

120

950

30

120

30

120

30

120

30

720

180

Tax advisor

0

Party & invites

0

Bank charges National Insurance

4

4

4

4

4

4

24

11

11

11

11

11

11

66

Loan repayments

0

Transfer to savings acct

0

Transfer to personal acct Net Cash Flow Opening Bank Balance Closing Bank Balance

800

800

800

800

800

800

4,800

1809

965

1915

965

965

965

7584

1285 -1665

-715

2285

285

141 0

141

1426

-239

-954

1331

141

1426

-239

-954

1331

1616

Costume designer: 6 month cash flow


Building a profile • Who are you connecting with? • Who you’ve worked with and who you want to work with • Advocates, promoters and media • Keeping in touch

• ‘Customer care’ and reputation


What will you do now? • Set yourself 3 actions


Next steps • How to Contact the Press & Media • Documenting & Presenting Your Work • Planning Your Web Presence • Costing & Pricing Work

• A Guide to Funding & Financing • Funding Sources • Making Applications & Proposals • Legal Structures Guide


Next steps • Cash Flow Guide • Budgets Guide • A Guide to Starting a Business Plan • Business Plan Contents Guide • How to Contact the Press & Media • Market Day Workbooks


Next steps • Creating Contacts Workshop • Presentation Skills Workshop

• Making Applications & Proposals Workshop • Planning Your Time and Project Workshop • Market Day Workshop


Supporting creative businesses throughout Scotland Enquiry Line: 0333 999 7989 Weekday: Mon-Fri: 09:00-17:00 Evening: Wed: 17:00-20:00 ..

info@culturalenterpriseoffice.co.uk www.culturalenterpriseoffice.co.uk www.facebook.com/ceoscotland @ceoscotland

Please note: Clients and other organisations have kindly given permission for Cultural Enterprise Office to use some content only within the workshop. Therefore some of the slides shown in the workshop are not reproduced in this document. Where possible we have attributed the source of the content in the presentation for clients to research further.

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Starting Out  

A Cultural Enterprise office workshop focussing on operating, financing and making a living from your creative practice and the practicaliti...

Starting Out  

A Cultural Enterprise office workshop focussing on operating, financing and making a living from your creative practice and the practicaliti...

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