Focusing on the financial aspects of the entertainment business this month, I found an article that proves very helpful for anyone considering starting their own creative business. Personally, I plan on being a freelance service provider, so Bob Koch's, "The Business of Creative Services" had valuable information for me to keep in mind.
Koch mentioned sales as being one of the more important aspects of entrepreneurship. I've told many people before, as well as wrote in this blog, about the differences and sometimes complications of people in the entertainment business that are strictly of creative skill, and those that are strictly of technical skill. It's not often mentioned in trade publications the business-minded individual. You want to sell your service to as many people as you can, which may be more difficult if you're your own business and trying to beat the well-established, go-to guys out in the business. I cannot emphasize the importance of networking enough in the entertainment industry. Koch suggests you, "evaluate the client roster on a regular basis. Provide attention to solid clients both in production as wells between project. And consider parting ways with high maintenance, low-margin clients." Once you get yourself out there, it's just as important to maintain contact with these people in your industry so they don't forget about you. To make sure you're not being taken advantage of, cutting that high-maintenance, low-margin client will only benefit your profits…and your stress level.
Aside from networking, the next best thing to get your name out is an advertisement marketed toward your desired audience in your field. If you do this in something completely irrelevant like "Toaster Enthusiast Magazine," or even something too general in your field and expect great results, you will be disappointed. Place an ad, hire publicists, attend conferences, and reach out introducing your specific service and niche you cover. Tell people what sets you apart from the rest and why you're the best on out there. Marty Neumeier suggests in his book, "The Brand Gap," to convey 3 meaningful answers to 3 important questions, "who are you? What do you do? Why does it matter?" (p. 31) to your prospective client. The link I've provided goes to a summarized slideshow of the book. Just make sure you're operating smoothly and living up to your word. If your clients are happy, they'll spread the word and be another form of marketing for you within the industry.
Finally, you will want to be very organized and plan appropriately. Even daily functions running smoothly will better your business. The sloppier you get, the more likely your business will crumble. Imagine losing contacts or important financial documents or deliverables for your client! Unacceptable. What will also help you is planning financially. Make sure you know how much you need to make in order to pay your bills on time. Koch says, "accounts receivable is a problem for many small firms. By developing a rapport with a key financial person on the client side you can find you can get paid sooner." That is fantastic advice for those creating a business. Starting a good relationship earlier in the process will benefit you greatly in the end.
You'll obviously want to do better than just breaking even, so if you're making more, I suggest you invest a good percentage back into your business instead of your pocket. Being in the entertainment industry, technology changes and improves every day and you'll want to make sure your equipment is up to date. Don't get ahead of yourself and buy every new item, though. Research and make sure your purchases are wise and beneficial.
I wish the best of luck to those of you thinking about creating your own creative business. I can only hope you take Bob Koch's advice and possibly read "The Brand Gap," as it will only help you learn about how to properly market your brand, being your business.
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