Principles of Business Success for Creative Entrepreneurs Consortium for Entrepreneurial Education...

Principles of Business Success for Creative Entrepreneurs

Consortium for Entrepreneurial Education Columbus, Ohio November 2010

www.Bettersmarterricher.com

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



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



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



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.



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



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”



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



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:

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creative entrepreneurs to help them develop these skills

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