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HOW TO BUILD A CRAFT BUSINESS A practical pragmatic learning by doing business course Supporting makers to develop their ideas and skills into commercially viable businesses Gordon Hamme in partnership with Birmingham Assay Office

HOW TO BUILD A CRAFT BUSINESS 2023 2nd Edition Gordon Hamme in partnership with Birmingham Assay Office

Published by BUILD A Craft BUSINESS First published in 2020 Dr Gordon Hamme British Library Cataloguing in Publication Data A catalogue record of this book is available from the British Library ISBN 978 1 8380282 2 0 Second Edition of Business Course for Creative Artisans All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopy recording or any information storage and retrieval system without permission in writing from the publishers Acknowledgements Dedicated to my wife Angela and all my friends in craft I would like to thank my partners the Birmingham Assay Office for making this project possible In particular the Assay Master Doug Henry and his team Emma Watson Alison Pickerill and Kelly Fisher With the kind patience and diligence of the book s designer Michael Lopategui of Design Effect and editor Susan Quilliam and additional development by Paul Wright the book has achieved a wonderful style and quality Finally my thanks to the craftspeople who agreed to be featured and the use of their work images Build A Craft Business Publishing Jordans Bucks HP9 2SW gordon hamme co uk www buildacraftbusiness co uk

Contents Author profile 2 Introduction 7 Chapter One Entrepreneurship Enterprise Motivation 13 Chapter Two Branding Marketing Publicity 21 Chapter Three Digital Marketing 35 Chapter Four The Legal Structure of Your Business 51 Chapter Five Intellectual Property Protection 63 Chapter Six Financing Your Enterprise 73 Chapter Seven Case Studies 93 So What Next 101 Further reading 103 Financial to do list 106 Worksheets 108 1

Author Profile Dr Gordon Hamme This book is based on my 45 years in business culminating at the age of 62 in a PhD which researched and analysed enterprises in the craft silversmithing industry businesses owned and run by makers many of whom are my good friends I hope that my research and business experience will shed light on how I think about earning a living I was very lucky to start at the age of 17 when my mother offered to give me a small part of her market stall at the new and incredibly busy Sunday Wembley Market next to the famous Stadium My girlfriend and future wife Angela and I sold gold and silver jewellery at the market and at that time such trade was something of an innovation Our customers loved it Fairly quickly we were selling jewellery at more street markets every day particularly at Middlesex Street in the City of London It was very fashionable in the 1970s for people to visit markets looking for clothes factory overruns seconds and other bargains It was a golden time for everyone with young office workers coming to the market every payday which in those days was a Friday to buy the latest fashions and jewellery We designed a clean simple colourful stall as we had just a few moments to grab someone s attention create trust and maybe hand out a business card Each piece we sold had a little story The narrative would normally begin I made 2

this because this stone looks really nice as a ring as a pendant and so on Soon I decided to learn to be a maker and paid a Hatton Garden jeweller to teach me the basics Unfortunately in 1980 the price of precious metals spiked and we couldn t trade profitably So we both took jobs Angela took a job in Hatton Garden a centre for high end jewellery and a world wide hub for the diamond industry Working for a jewellery trade supplier she not only learned the business but also built a whole department on her own doing all the buying and selling of precious metal jewellery components known as findings After a while Angela set up her own business Exchange Findings just down the road from her previous employer The business grew quickly and I joined her a year later The initial key to the success of Exchange Findings was the Hatton Garden messenger system Every workshop had a messenger a runner who came to the Garden to buy that day s or week s supplies of essential items Angela always made sure they left with a completed list of our products We also worked out that we weren t just selling jewellery components we were selling time The workshops needed everything yesterday so we became direct and speedy suppliers of everything they might need bullion products sheet wire findings tools and machinery Our competitors the bigger trade suppliers would only make to order but we held products in stock often delivering items to distant purchasers by post the very day after they had ordered Today that s normal then it was a revolution After 12 years we sold Exchange Findings to Cookson Precious Metals a large bullion producer They bought our company not only because they wanted to be in the sector of the market we were trading in findings They also wanted to take us out of the bullion business we were a nuisance competitor Angela stayed with Cookson Precious Metals building and running their internet business for a further 13 years which now is a massive 55 000 customers While all this was going on as well as working for Cookson I became a mentor for the Prince s Trust which supports young people to start their own business One of the main things I learnt while at the Trust was that the key to making a new business work is having a mentor This insight has shaped much of my later academic work and I firmly believe that mentorship should be a central plank of all start up businesses 3

At that time I was also very fortunate to become a non executive director of a fine jewellery company led by one of Britain s best designers Stephen Webster Stephen had great faith in PR as a way of promoting his company he created a look book which he adhered to for the whole of his career laying out every aspect of the look and design of his business image the brand Stephen s wife Assia drove the company s PR department relentlessly sending out press releases almost daily Their networking with clients journalists and editors was truly amazing Stephen made the wedding rings for Madonna and Guy Ritchie after which Madonna was very generous about being photographed at high profile events wearing Stephen Webster jewellery Stephen also helped younger designers through his Rock Vault programme which featured jewellers at the prestigious Couture show in Las Vegas Stephen was awarded an MBE for his services to the jewellery trade and it was through him that I learnt the importance of a brand look PR and celebrity endorsement and relentless hard work In 1994 I decided to study for a Master of Business Administration MBA degree I admit that I did this for fun But the MBA taught me a huge amount about how large companies are run and as a result I learnt that small and micro companies are completely different to large ones and need a separate set of guidelines Later I discovered that many courses designed for artisan companies apply large company MBA principles which in my opinion are inappropriate and unhelpful Five years later I left Cookson to publish the Goldsmith Magazine commissioning editing and writing articles The magazine covered the jewellery and silversmithing industries through maker profiles commentary on products exploration of markets and coverage of national and international trade shows all around the world Through writing the magazine and through the analysis of successful companies my suspicions were confirmed that people who do well relentlessly network and never stop promoting their business In 2008 I co founded British Silver Week with silversmith Brett Payne our aim being to promote contemporary silversmithing In our first year we reached over 1 5 million people and in the full 10 years of the organisation our work resulted in 95 exhibitions as well as television radio magazine and newspaper coverage in the United Kingdom Europe and Asia Through organising British Silver Week I also learnt to work with larger organisations such as the Goldsmiths Company and London Craft Week culminating in a partnership with the Worshipful Company of Furniture Makers the Inspired Exhibitions 4

Silver Beaker by Karen Wallace Silver Packet Vase by Rebecca Joselyn Silver engraved Teapot by Angus McFadyen Four years later I became a freeman of the Goldsmiths Company a City of London guild founded in the fourteenth century and now mainly a trade networking organisation and charity I later became a liveryman of the Company which gives you the right to herd your sheep over London Bridge free of charge To be of use to the trade and in order to carry on networking I also serve on the Executive Committees of the National Association of Jewellers Education and the Goldsmiths Craft and Design Council I gained my doctorate in 2019 at the University of Edinburgh my final thesis being Crafting the 21st century artisan silversmith Exploring the elements of a silversmith development framework this can be found on the Festival of Silver website My thesis filled in lots of gaps in my knowledge including the history of silversmithing and craft and the trials and tribulations of running a micro business Also through the 60 interviews I did with friends and colleagues I learnt a huge amount about the motivations of running a craft business which for craftspeople is often unclear the profit motive is not always the centre of an artisan s life What s next for me I think that sharing the ideas in this book are important because I believe that many craftspeople come out of their degree courses with little or no idea of what to do next One such lady I met having finished her degree just wanted to run away So I hope that offering the course and supporting it through this book I can make a road map for creative people who want to build their business which will be a very satisfying job for me and very useful to you too 5

Silver fruit bowl by Juliette Bigley at the Inspired Exhibition 2015 6

Introduction This book explains how to do what you need to do and then not have to worry about it 7

Introduction This book has been written to accompany the Build A Craft Business Course which has been designed especially for you as a craftsperson The ideas for the course came to me while I was researching for my doctorate at Edinburgh University which was split between the art school and the business school I became very concerned that business education for artist craftspeople was not hitting the mark and I spent a great deal of time working out why this should be I eventually realised that business courses in art schools were being written using theories and language which are simply not appropriate for people such as artists who learn by doing trial and error By now you have already spent several years learning your vocation you now need simple systems to run your business and earn a living So I m looking to give you the tools to do just that Who is the Build A Craft Business Course aimed at The course has been created to support artist craftspeople from all craft sectors to develop their ideas and skills into commercially viable businesses The target audience includes Recent and final year graduates of craft colleges Creative businesses which need help in growing to the next stage People considering a second career in craft Craftspeople with skills but little business experience Would the course suit you Are you developing a really good craft or artistic product range or idea Do you want to establish a commercially viable business based on your skills and talent Have you changed career and now want a detailed plan for how to get started If the answer to any of these questions is Yes then this course has been designed for you 8

Silver folded Bowl by Karina Gill Silver Box by James Dougall What is the basis of the Build A Craft Business Course The most important idea for this course came from Finland where a business school running a Master of Business Administration MBA degree programme took a revolutionary step in teaching They asked three groups of 20 students to brainstorm business ideas then told them to just get on with it The groups developed their ideas in a practical pragmatic learning by doing way They did this with limited resources just as in the real world Plus at the outset no business theories were taught or used only discussions of the results what worked what didn t The students did carry out research on business theories they did that much later and as part of a wider programme of study The end result was that a significant percentage of the students did not finish their MBA course They were so happy with the progress they were making in their chosen projects that they left the business school and just got on with it My PhD research took this Finnish experiment as its starting point then explored how artist craftspeople learnt to operate commercially For the majority of such craftspeople studying business tends to be a bolt on course at the end of a 3or 5 year programme of learning about art design and craft Not surprisingly most of the students I met during my research couldn t relate to this kind of education and learned little largely because the teaching wasn t set in the right sort of context Artists are hands on people who learn by experimentation and I realised that for them mastering business skills should follow the same process So I created the BACB course on a need to learn basis and this book follows the same approach In both course and book the information aims to cover the essentials setting up your business marketing and sales business structure intellectual property rights finances in a system which is simple which works and which will guide you in how to keep trouble at bay It tells you how to do what you need to do and then not have to worry about it You choose which pieces of advice are pertinent to you it s your vocation your business 9

What does each chapter of this book cover Chapter 1 sets the scene for how you look at your business and how you should approach it Entrepreneurship or Enterprise By asking this question you can save yourself a great deal of time and energy Are you seeking new markets which is an entrepreneurial approach Or are you creating an enterprise which will promote your unique work Chapters 2 and 3 focus on the branding marketing sales and digital social media which should be at the centre of your business These chapters outline your options so that you can think carefully about how you will market your company then use the simple systems this book offers in order to sell your product Chapter 4 covers the legal structure and framework of your business It lays out all the options you have around being a sole trader partnership or limited company and it documents your most important obligations Chapter 5 explains the detail of registering and defending your intellectual property rights You need to understand how to formally record your designs and products so that you can prove they are yours and can protect them from people who might try to copy your work Chapter 6 discusses the finances of your business and the elements you need to master These include creating a portfolio of jobs to keep the money coming in handling sales and purchases bookkeeping banking getting support and raising extra funding Chapter 7 completes the book with three case studies of successful and inspirational artist craftspeople Finally I include a short summary of what to do next and a list of useful books as well as two worksheets and a month by month financial to do list Silver enamel Beaker by Kyosun Jung Silver Beaker by Malcolm Appleby enamelled by Jane Short Art it Up Silver Beaker by Lasse Baehring 10 Silver Salt Pepper by Adam Veevers

Where for you now You ve probably spent several years getting to the stage of launching a business How does this book help and how should you best use it Read the book through once to get the feel of it Then take each chapter and complete the suggested follow up exercises purely from your point of view Keep your answers short and simple and don t worry about what if By the time you ve completed the exercises you should have created a complete set of notes which are personal to you Then you can make a clear straightforward plan Do you need to be entrepreneurial in your outlook Often not But you do need to consider what type of enterprise you will run and what your motivations are Is there a market for your work This is the trial and error bit Show your work to friends and family they ll love it whatever it looks like Then show your products to someone you don t know if they offer to buy you ve got a winner How do you want to present yourself and your craft What professional personality do you want your customers to associate with you You might say you re just a small business and not a brand But if you haven t devised a brand for yourself your public will devise it for you What is your marketing approach Look at the websites of makers you admire What shows did they do last year which galleries stock their work should you follow in their footsteps You might like to contact these organisations too Have your CV ready along with high quality images of your work Build a really simple website to tell people where your products are stocked and where you will be exhibiting Talk relentlessly about your venture And always be positive when talking to everyone Cut out the negative What systems for making outsourcing and dealing with your legal obligations and finances do you need to organise A bank account a book keeping system an accountant if needed You could delegate some of these systems particularly the ones not critical to the final outcomes Once you have settled these issues you can turn your attention to the important bits earning a living being creative and enjoying yourself And please please please try to get on with it Small trial and error steps are the way forward 11

Set of drawers by Ed Wild burr chestnut sycamore 3 000 year old bog oak handles and detailing 12

Motivatio Chapter 1 Entrepreneurship Enterprise Motivation Though entrepreneurship and enterprise are not exclusive of each other identifying which matters to you and how they matter will help you manage your business and your life successfully 13

Entrepreneurship Enterprise Motivation Many of the approaches taught at traditional business schools are of little relevance to craft businesspeople these being profits first Most significantly the majority of artist makers often feel uncomfortable dealing with profit first motivations in business Which is why it is far better to understand your own motivations at this stage of your career and to follow guidelines which match your own philosophy and experiences This chapter sets the scene by inviting you to focus on the style of running your business which most motivates you maybe establishing a voice or looking forward to a legacy of work Which tasks will you do yourself because you are motivated by them perhaps creativity or design and which will you delegate perhaps administration And how does this feed into your unique selling proposition USP the personality of your company your brand Entrepreneurship or Enterprise Are you looking for a way to make the most amount of money possible do you have an entrepreneurial outlook If you want to be an entrepreneur there are many books you can learn from These are often fun to read with stories of inspired insights business derring do and high risk winner take all strategies Of course being entrepreneurial will be important to you If so you ll be considering entrepreneurial questions Is there a market for your product Where will you sell craft fairs galleries online or in some setting that s never been tried before The big winners combine design technology marketing flair and ways of disrupting the old order Think of what Sir James Dyson has achieved as an alumnus of the Royal College of Art and of how many creative makers have embraced new technology such as rapid prototyping or techniques they have developed themselves Or are you instead looking to express your creativity and develop the lifestyle you want do you need to have an enterprise approach If so you ll be considering what it takes to run a craft enterprise using tried and tested systems for running a craft business with little need to be entrepreneurial For you there may be many more reasons to be in business than just to earn a living There may be inspirations that sit alongside your commercial approach and inform it It s fine not to always have profit making first and foremost in your mind 14

Your motivations entrepreneurial or enterprise centred will influence what type of business owner you are They ll impact on how you set up your company deal with self employment maximise your creativity run your business manage your life work balance employ people and make the multitude of decisions both large and small that you will need to face as you move forward If you can think about these issues now and have clarity of purpose you will be much less conflicted in your attitude to business your allocation of time and the risks you are willing to take Though entrepreneurship and enterprise are not exclusive of each other identifying which matters to you and how they matter will help you manage your business and your life successfully Craftmaker motivation A great deal has been written about motivation and the pursuit of happiness and it s worthwhile considering some of the main ideas relevant to what makers do One leading thinker Mihaly Csikszentmihalyi explains motivation as people stretching themselves towards an optimal experience trying to accomplish something difficult and worthwhile whilst still being in control of their actions and masters of their own fate He explains that It is not the hope of achieving fame or making money that drives them rather it is the opportunity to do the work that they enjoy doing Which seems to me an excellent definition of the enterprise motivation which so often drives craftspeople From these ideas Csikszentmihalyi developed the concept of flow which he describes as The state in which people are so involved in an activity that nothing else seems to matter the experience itself is so enjoyable that people will do it even at great personal cost for the sake of doing it He notes that the learning of complex forms of expertise requires commitment of emotions and will It s not enough to know how to do something one must do it consistently Again craftspeople can relate very well to this idea Mona Nasseri and Sandra Wilson in research done at the University of Dundee take this idea further Central is the perception of craft not as a means of production but as an exercise of relating to the world Through the dialogue between the mind body and environment craft practitioners experience a particular form of connection with the world that reshapes their perceptual and conceptual understanding of it 15

My own research discovered the following motivations in the group of makers I studied Craft mastery Lifetime learning of craft skills Self direction Achievement Profitability Self respect Public and peer recognition Legacy a record of high quality work Community and friendship You can see that the motivations of craftspeople are complex and to add to this complexity motivations change over time It s useful to recognise that running your own business fulfils different and profound needs and that these needs are central to your well being Role models and motivation My research into design and craft based businesses strongly suggested that artisans tend to follow role models they admire You as an artist maker will have learnt your key skills from such role models lecturers visiting speakers at college authors of craft books and magazine articles and fellow artisans you ve seen and met at craft functions Now you will need to establish yourself in the marketplace as a role model of the future You will need to demonstrate mastery through your craft skills your creativity and your personal authenticity Crucially you ll need to be held in high regard by your peers by the craft industry and by the public perhaps by making your name in the press perhaps through winning awards To support your journey of discovery I m not trying to turn you into an entrepreneur Instead my aim is to enable you to fulfil your potential by blending resources from entrepreneurial as well as from enterprise expertise in order to create the business you truly want 16

Two role models Here are two books which are particularly interesting to creative people running their own businesses because they explain in detail how two such people one an entrepreneur the other an enterprise artisan did just that The authors have different points of view none of which are right or wrong but crucially both people understand their own motivations The Business of Creativity Michael Jacobsen Harriman House Ltd Petersfield 2013 Michael Jacobsen manages large individual projects such as theatre productions which come together but then eventually end Jacobsen holds that for many in the creative sector cash and profit are dirty words which is why he feels the sector is not taken seriously in the commercial world He however looks at his creativity from an entrepreneurial position and feels that business and creativity will always be an uneasy marriage but it is a marriage of convenience and also a marriage of necessity he makes his creativity work to his business advantage Jacobsen believes that the logistics of setting up a business are having a vision mission and values basing the business on research having the right ingredients being on a solid financial footing creating a sound business plan and structure having good administration and taking a marketing centred approach Work for Money Design for Love David Airey New Riders Publishing San Francisco 2012 Designer David Airey on the other hand takes an enterprise approach He values the benefits of remaining a one man band which allows him the rewards of offering high quality personalised service developing his business to reflect his own beliefs and keeping control of his personal time Working from his at home office in Northern Ireland Airey s speciality is designing brand identity he uses his blogging platform to promote his personal business philosophy and services and to lead people to his website His enterprise approach has gained him clients around the globe The lesson these two makers offer is that if you identify your motivations it is possible to shape your business from the beginning So work out which activities actually make you money and which activities such as bookkeeping are purely mechanical and do not motivate you Work out which activities you re doing because you like doing them and which it is important you do whether or not you enjoy them With these insights you ll start your journey on the most effective and the most rewarding road 17

Follow up work Outline your business idea Write a short description of what you want to do What are your personal aims How can the way you organise yourself best serve these aims Will you be running an entrepreneurial company or an enterprise company Or maybe a mix Keep your answers simple You can refer to them later to focus your thoughts when life gets complicated 18

Your notes 19

Silver display by Colette Bishop 20

arketing Chapter 2 Branding Marketing Publicity The most successful craft sellers focus on building ongoing relationships with buyers who purchase portfolios of objects or who often collect work from a favourite maker 21

Branding Marketing Publicity Marketing should be at the centre of everything you do in business it s how you present yourself your craft and your business to the outside world This is the central concept of the course around which everything else revolves Because of that the first and most important marketing task is to understand yourself In Chapter 1 I touched on the motivations of being an artist craftsperson and it s from that self knowledge that you can start to market your business From the outset word of mouth advertising is the very best form of promotion and the greatest exponent of this is you You need to be the most enthusiastic person about your business if you re going to build its potential for success and increase its chances of prospering First thoughts on marketing There are numerous marketing definitions and concepts Here are three key ones for you to consider Concept 1 Marketing is the activity and process of creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large More specifically marketing involves the following Culture the set of values and beliefs which drives decision making that is committed to serving customers needs Strategy the way marketing defines market segments and develops your product offerings for those target markets Tactics the day to day activities of your product management pricing distribution and communications advertising personal selling publicity and sales promotion Concept 2 It s good for your business to have from the start a clear and consistent sense of professional personality the way it appears to the public and in particular to its target customers This personality can inform every aspect of business presentation and marketing and a strong appropriate and convincing personality will positively influence commercial success Once your business develops and expands this sense of personality can solidify into its brand identity 22

Concept 3 The businesses most likely to succeed are those which take notice of customers expectations wants and needs and then do whatever is necessary to fulfil those criteria better than their competitors do My own research indicated that what customers want from craftspeople falls into four categories in order of priority Unique design Very high standards of design High levels of craftsmanship Hand made objects using traditional techniques Now you need to consider just how you can sell your product There are many channels you can use such as craft fairs dealers galleries exhibitions and selling direct to the customer Brand Engraving and enamelling by Phil Barnes Create a look book and consistently refer back to the ideas you commit to Keep everything simple It needs to answer the questions What is your brand identity Name Simple pronounceable easy to spell Logo Simple meaningful Colours No more than two or three colours Bold clean Tone of voice Warm Professional Friendly Brand purpose Why What are the benefits of buying my product or service What What is the product service How Where can I buy it 23

Craft fairs Craft fairs are the most common route to successful craft sales because they generate interest and build contacts Exhibiting creates familiarity for the buyers who often attend the same portfolio of fairs Most craftspeople report that 20 30 of sales come after an exhibition or craft fair For optimum results from exhibiting at a craft fair make sure your plans include the following An attractive stand that engages people s attention Personalised images using strong photography Stylish displays of your product for maximum impact Good quality packaging preferably including your trading name Easy on stand invoicing and payment systems Business cards postcards and brochures for the customer to take away Efficient craft fair organisers will create effective publicity ahead of the fair but you yourself will also need to spread the word Get leaflets from the organiser which publicise the fair s dates and location then email or post these to your contacts including friends and family Craft fairs are a key opportunity to build an invaluable database of clients That said there are problems with craft fairs that work against the maker they re often a form of public entertainment with the exhibitors being the entertainment I spoke to one artisan who considers this to be a fundamental problem with craft fair marketing She admits that the new and enthusiastic public interest in craft is a brilliant thing but she also maintains that craft fairs have become largely a day out complete with activities such as talks demonstrations and making tents for kids As she says Nobody is actually there to buy They are there to have a fun day which is fine but we makers are the ones paying for that Gold and enamel brooch with carved stone by Stephen Webster 24

Show organisers cover their costs through entry fees and stand fees and as there are more makers than there are available show slots it is difficult to be discerning at the beginning of your career Makers just starting up may have to attend lots of fairs for little result and this can be an expensive and demoralising process Exhibitors often stay optimistic by measuring the success of a craft fair not by the number of sales but by the number of good conversations undertaken Regular showing at high quality fairs is essential to building your familiarity and credibility So it s best to take the long term view of exhibiting by considering it to be a crucial part of making your way and becoming established on the circuit It s worth persevering in order to explore all opportunities to expand your audience Several makers I talked to noticed that it can take two or three attendances at a particular exhibition or fair before people actually buy Inspired Exhibition 2017 at the Goldsmiths Centre Clerkenwell Dealers galleries exhibitions Selling through third parties such as dealers galleries and exhibitions is often the preferred option for artisans It can make a significant contribution to your sales and it removes the need for you to sell to the customer in person Many craftspeople find difficulty in selling their own work but interestingly have little difficulty being enthusiastic selling a colleague s work But in order to explore and access the third party route instead of having to forge a good relationship with individual customers you have to forge good relationships with gallery curators and exhibition organisers 25

One problem is that it s common to sell to such third parties on an ad hoc or informal basis which can cause tension if your retail prices are different from thirdparty prices So take particular care about guaranteeing that your selling price and the price at the gallery exhibition are the same If you don t do this you may be seen to be undercutting prices and the relationship will soon break down Ideally you need a clear contract which documents terms responsibilities on both sides the auditing of goods and sales and the length of the agreement You will also need a disciplined system of record keeping especially of damages losses and goods on sale or return Don t feel embarrassed to go and check your sale or return stock at agreed intervals after all it s your stock Invoice anything which is missing Silver XY Candlesticks by Brett Payne Selling direct to the client One eminent maker I interviewed earns his living purely through selling his own work directly to clients in the UK Europe and around the world He asserts that this approach has several benefits He has a direct relationship with the client There is better communication for complex commissions The retail price all goes to him The maker comments The attitude of the client to me as opposed to their attitude to a salesperson is completely different I ve noticed over and over again that I can get things across to a customer which someone else can t because they are focussing only on sales 26

There s the relationship I have with the client and the relationship the client has with the piece and it s a little triangle between the three of us Then once I ve let go of my part the relationship is between the client and the piece and that s a different thing It s as if you have given birth and then the client is taking over the parenting of the piece They re the custodians of it Even when you re selling a speculative piece over the counter it s the same because although you ve created the piece without a commission there s still a relationship there between you and the buyer And it s very very rewarding It is a similar situation for many senior makers These people are the role models to which young makers aspire although it may be a long haul from graduation to international sales and recognition In order to maximise your effectiveness in the selling channels I ve just described you will need to master certain skills such as meeting customers in face to face situations producing stylish print materials and dealing with the press Take the time to observe how senior makers sell at a fair Designs for silver repouss chasing and wire work by the artist Wally Gilbert 27

Face to face customer contact My interviews with senior makers showed me that word of mouth recommendation and the building of a personal network of buyers is the best path to strong sales The most successful craft sellers focus on building ongoing relationships with buyers who purchase portfolios of objects or who collect work from a favourite maker At the heart of relationship building is customer contact You may have a stand at a craft fair have a presence at an exhibition where your products are being displayed or open your workshop to the public a recent survey by the Crafts Council shows that a full 10 of sales for makers come through open studio days So you need to make sure your face to face interaction with prospective customers is highly effective One young jewellery maker I worked with initially struggled with selling at craft fairs often locating herself at the back of her stand and on her mobile phone head down ignoring customers As her mentor I persuaded her to leave her phone aside for the duration of the opening hours of each fair and we created a little speech about her work that she could use with customers Given practise and success she has become much more confident interacting with buyers Here are my guidelines for face to face contact Make sure you are dressed smartly to give you confidence Leave your mobile in your pocket no matter how bored you get Use all available time to engage with and chat to customers Your friends can wait until the pubs open With new clients explain that you are the maker and make sure they understand that you can work to commission With existing and established buyers ideally remember their names and their previous purchases Ask all customers about their needs what are their aims in buying is the piece they re interested in for a special occasion what is the context Explain what the piece is made of and a little about the making technique Emphasise the benefits and features of the piece what is known as its Unique Selling Point USP You will feel that this is blindingly obvious but don t be afraid of doing this It will lead on to other things Let the customer try on or handle any piece they are interested in Get comfortable with how to close a sale Do you think that this could be of interest Or Do you think that you might like to buy this Or Would you like to commission something similar for your birthday or whichever occasion 28

Finally stand back and give the customer some space to think If they look at you and smile then ask Can I gift wrap it for you Give the customer your card leaflet or other promotional material Make sure you ve got a payment system that is simple and works anywhere Keep smiling Print materials Business cards promotional postcards handouts and brochures are vital both in face to face interaction and in venues where you are not present At trade shows and exhibitions you may also want larger display boards or banners to call customers attention to your stand I knew one craftsperson who had followed the traditional route to becoming an artisan maker in silversmithing and jewellery through taking her degree at art college and then spending a year at a craft finishing school I advised her to create a small leaflet written as if a journalist had written it explaining her inspiration techniques qualifications and where she could be contacted She says that this leaflet alone transformed her sales Fenella is an award winning designer creang elegant silverware and jewellery for the modern age and home She brings FENELLA WATSON a delicate balance to each of her pieces through a unique use and juxtaposion of space and volume DESIGNER SILVERSMITH JEWEELaLcEhRpiece that leaves the workshop has gone through a rigorous design and fabricaon process making Fenella a true 21st century designer silversmith Having gained a First class Honours degree in Metalwork Jewellery at Sheffield Hallam Fenella connued her training at Bishopsland Educaonal Trust Aer an intense one year residency Fenella moved back to Sheffield where she was mentored by leading Brish Silversmith Bre Payne at Yorkshire Artspace In 2016 Fenella was awarded the presgious Sheffield Assay Office commission Lile Gems Her Centrepiece is now on display in the Millennium Gallery in Sheffield Other work by Fenella can be seen and purchased at exhibions and cra shows throughout the year as well as through her online shop COMMISSIONING WORK If you are interested in having a piece of work commissioned for a special occasion or would like further informaon about the bespoke design services Fenella offers please get in touch via email or phone Fenella is always happy to arrange workshop visits to discuss commissions Wedding Christening gis Engagement ring design Wedding ring workshops Jewellery alteraons repairs Mini 4 page brochure s w winwfow ffeenneellllaawwaattssoonn ccoomm 29

The aim of print materials is chiefly to drive customers to your website where they can gain more in depth information about your product and about you The most important elements to include in print materials such as business cards or postcards are high quality images of your products your name or trading name a one or two line description of what you offer your website and email address Other elements you could include in larger print materials such as leaflets could be images of you particularly of you working details about yourself your workshop and business addresses a list and description of your products your philosophy and approach to making your background qualifications and credibility especially any prizes you have won Once you know which words and images you want to include you may choose to create the layout of the item yourself many websites which offer digital printing also offer online support for this With more complex designs you may want to consult a professional graphic designer It s also best to consult a professional if you need to develop a logo or trade mark for your business A graphic designer can tailor these to fit the personality or brand you want to present to customers Websites offering digital printing are cheap and easily available as are high street instant print shops Dealing with the press This section of the chapter includes extracts of material provided by the Small Business Network of the Guardian newspaper Press releases are useful to publicise your work for example the launch of your new products or the opening of your new studio Some people manage without press releases but they can be important good to have as part of your marketing and as an affirmation of your standing in the world Plus the fact that the information you send out is controlled only by you means you can personally build everyone s perception of you and your work That said don t send out lots of press releases just for the sake of it You need to make sure your story is interesting preferably with a local angle relevant to whatever you are publicising Where possible include a human interest element an anecdote about you what you do the items you make 30

Where should you send your press release Send to every exhibition organiser trade fair and gallery you work with they will be delighted to be dealing with a maker who is so professional and proactive Approach the newspapers local to you or to an event you are involved in The websites of most newspapers will list the names and email addresses of the journalists covering the different departments most useful to you are probably the local events pages or the lifestyle sections relevant to your craft Try to steer clear of generic email addresses such as news and instead make it your mission to get the name and email address of the person who will decide whether to use your story Also contact the radio and TV researchers of stations local to you or to an event you are involved in Check the stations websites for relevant names but if in doubt ring up and ask If people are brusque on the phone don t take it personally broadcast stations are busy places How should you approach your press release If your first sentence doesn t grab the reader they may not look any further So make your top line the most important part of your story the first line so that it comes right at the beginning of your release Your first line should be a summary of the story in no more than15 20 words and should read like the opening of a news piece Journalists are taught to get as many of the Five Ws who what where why when in the first paragraph of any news story So for examples of great first sentences for press releases look no further than your daily newspaper The ideal length of a press release is an A4 side or 300 to 400 words That s just three or four short paragraphs and one image Sub headings and bullet points are useful to make information easy to digest Make sure your contact details are prominent preferably at the top of the press release List your mobile number and keep that phone with you constantly for two to three days after you ve sent out the release If someone does want to feature your work you need to be there to respond 31

Should you include photographs in a press release A photograph will always add interest to text Subjects could include your product your workshop your event stand Aim for as professional a look as you can this is often possible just using a mobile phone to photograph your work Use natural light where possible choose a clear and simple background crop the picture for maximum impact Check the size and resolution needed if possible confirm the appropriate file format with the gallery owner exhibition manager or newspaper magazine you are approaching Normally provide a jpeg or tiff at 300dpi or more than 2MB a low res image is no good Photographs for use on an exhibition stand will need to be larger and of higher resolution than those for use on a press release You may want to hire a professional photographer Follow up work Write a short leaflet profiling you and your company Aim to introduce the individual personality of your business the features and facets that make your work desirable and unique By communicating these and so inspiring your audience you will encourage them to value your work Remember to think about the following marketing concepts to inform your leaflet Culture the set of values and beliefs at the centre of your business Strategy your market segments and your product offerings for those target markets Tactics your day to day activities of product management pricing distribution and communication 32

Your notes 33

Columbian door knocker 34

Digital Chapter 3 Digital Marketing Digital media is the fastest growing means of modern communication we artisans too should use it to publicise and promote our business ventures 35

Digital Marketing Digital media is the fastest growing means of modern communication Advertisers and marketeers have been quick to recognise the value of using this medium and craftspeople too should use it to publicise and promote our business ventures Makers often hope that digital marketing will be the silver bullet to success I however strongly believe that although important digital marketing should be seen as only one element of your marketing mix you shouldn t let it dominate your marketing strategy In this chapter I cover three key ways of using digital media developing your own website using social media creating your own blog How do these activities help you Nowadays it s essential to have a website for publicising your products and often for allowing your customers to purchase those products directly from you Social media and blogs give you direct flexible and regular ways of communicating with your customers but they are optional and you may choose not to prioritise them and to instead focus on what you do best the making People often use media presence as a measure of success and are often surprised when high profile businesses fail If you really want to know how a company is doing check their accounts in Companies House you may be shocked by the low level of profits made by many of the highest profile players However you can only check limited companies this way as sole traders and partnerships usually do not make their accounts public A note about the platforms and programs which are mentioned throughout this chapter The digital arena changes so quickly that you may need to check that each product is still in general use and is still the best one available To alert you to the need to check specific elements that may date quickly are highlighted with the word current which is 2023 Engraving by Malcolm Appleby 36

Digital media goals You may want to use digital media to achieve the following Building awareness of you and your business within the trade and to the public Increasing your credibility with customers your peer group gallery owners exhibition and fair organisers Giving customers the information they need to decide whether to make an enquiry Offering customers the means to purchase your products directly from your online shop Communicating directly with your customers Expanding your knowledge of your customers interests and buying behaviours Giving customers a route through which to spread the word about your craft Encouraging social media experts to influence their followers to buy your work Digital media target audience Digital media will help you connect with individuals who have bought your work or who seem to be taking an interest in it It can also link you with organisations and individuals in fields relevant to your work You can target opinion formers such as curators gallery owners exhibition and craft fair organisers or buyers for influential retail outlets this will help to position your work within specific market niches To focus your digital marketing it will help you to ask the following questions Does your target audience fall within a clear age gender or affluence range What does your typical client look like imagining this can give you a firmer grasp of who you are aiming at What will your typical client want to buy What are their aims in buying this item perhaps to display in their home to wear or carry to treat themselves to give as a gift What immediate short term response do you want from your target audience Perhaps to buy your new items To visit a gallery where you are exhibiting To read an interview you ve given to a local paper What long term response do you want Perhaps to keep your audience enthusiastic about you To encourage them to tell their friends To remember your work when buying gifts next Christmas 37

Images For we makers in particular it may be better to major on digital media based around images rather than around words and to focus on the visual rather than the verbal A picture is worth a thousand words So wherever possible include images of you your workshop your staff and most of all your craft Choose quality over quantity it s better to spend time on getting one image right than on posting multiple second rate ones Think of your website or your social media platforms as curated gallery space consider carefully which images to choose and how they will look together And make sure the style of the images you use reflects your business personality perhaps elegant romantic fun or hard edged In particular use images to illustrate the design and making of your products in a way that enhances them in the eyes of your customers The more appealing an item appears the more likely people are to buy An added advantage of majoring on visuals is that if your digital media activity is based on pictures you may only need to write one or two introductory sentences and add the captions Words That said words are important On a website the words you use will likely be fairly permanent changing only occasionally as you produce new items or change your prices You will probably choose to include one or more of these elements An introduction to you An introduction to your craft A statement about the personality of your business Details of how a client can contact you to make an enquiry or propose a commission A list of items available to purchase online and details of how to purchase them 38

Gold and diamond brooch handmade by Paul Nicholls The words on a blog or social media post however are likely to be temporary they therefore need to be very topical You might well cover the following Events Write about exhibitions or fairs where you are showing or offer accounts and reviews of ones you ve attended You might give details of an open studio you are holding or a fashion show for which you are providing the jewellery Problem solving Your clients may be worrying about how to source a special gift for a special person You can provide the answer with a blog or post showing your personalised or bespoke products Diary entries Cover what you are doing on a day to day basis to give customers a window into your world That said be wary of revealing too many personal details about yourself which can seem unprofessional Successes Let customers and industry colleagues know about your achievements and certifications and so enhance your credibility If you are given an award make sure someone photographs you receiving it Q As Write about the most frequently asked questions your customers ask along with your answers For example a jeweller could create a blog post answering customer queries about what to look for when buying a diamond Key words This is a suggestion with a double benefit Take as the starting point for your blog the kind of key words and phrases mentioned later in this chapter as useful for search engine optimisation In this way you are using key words not only as a good source of blog ideas but also to signpost readers to your website For the jeweller mentioned a blog title based on research from the Google Adwords Tool current could be how to buy a diamond or how to commission a piece of jewellery 39

Creating and managing your website Once you ve begun to think about these four top level elements goals audience images words you need to consider how to apply them in the different forms of digital media Let s start with your professional website Your first step here is to identify a name for your site Your initial choice will most likely be your own name or your business name you will find more detail about selecting such names in Chapter 5 You will need to check whether your choice is available as your domain name or website address then register or purchase the address on a listing platform such as 123 reg co uk current If you want to design and create your own website there are many available platforms such as Wix current and programs such as WordPress current which will help you do that The topics covered in this section of the chapter will guide you through the key decisions you need to make about the site though of course after that you ll also need to master the technology If instead you decide to work with a professional website developer the topics covered in this section are those you ll need in order to give the developer a full brief Website design How do you want your site to look and feel What design is going to appeal to your audience Here s an action plan Collect examples of websites which have design features you like Think about the layout colour scheme typography images navigation interactivity and e commerce options Show your examples to others particularly people who might buy from you to see if they respond positively Make sure that the text images and design on your site are compatible with mobile devices If you are working with a professional website designer don t be too fixed in your ideas The vision you have of your ideal site may not be what s possible technologically but nevertheless ask the questions 40

Website features What features do you need on your website Again collect examples of sites which contain these features You may want to include the following Lists of products and product variations under relevant categories prices discount codes for purchase discount codes for referrals payment methods If you have an online shop ensure the checkout procedure is simple quick and convenient Delivery cost calculations shipping tracking insurance returns policy terms and conditions A General Data Protection Regulation GDPR statement reassuring visitors to your site that their personal data is kept private You can download GDPR templates from various internet sites including www gov uk current Search engine optimisation To allow your website to attract the greatest number of visitors you will need to include on the site key words phrases or images linked with your craft or your products Incorporating these key elements will allow the site to be found and listed by internet search engines which in turn will enable clients looking for the kind of product you make to find you quickly easily and ahead of your competitors It is everyone s aim to appear high up on search engine lists and companies often spend large amounts on search engine optimisation SEO in order to do so The Google Adwords Tool current will help you identify key words or phrases that people are using to search for products and services similar to yours and you can then place these words on your website If you are using a web developer they will help you with the identification and the placement Be warned however Even if your key words are chosen and positioned perfectly it may take some time before your site is ranked and even longer before it appears high in the rankings Don t panic if it doesn t immediately appear as the first item on a Google search Be warned site algorithms keep on moving the goalposts 41

Hosting and support Larger website developers often provide a hosting solution for your site Be sure to question whether the provider is taking into consideration the security of your website and the necessity for regular backups Ask for examples of web sites that the developers host and make sure you are happy with how responsive they are to management issues and requests for site updates and technical support Further website thoughts Here are some further elements you should bear in mind when working with a web developer The deadline If you are working to specific deadlines let your developer know so that they can plan their time and resources The development cost Your developer should provide a quote based on your brief The more bells and whistles you ask for the higher the final cost If you wish to keep your costs down be prepared to lose some of the nice to have design or technical features Remember that starting simple is usually the best way to trial your site updates and modifications can be added later The ongoing costs You will need to factor in continuing costs for hosting your site If your website developer is providing the hosting those costs should be made clear to you as part of the original quote Creating and managing your social media Within a generation social media has become one of the most immediate ways of communicating with people we already know as well as of expanding our social and professional circles Using social media raises interesting questions In my opinion using my personal database is fine for promoting events and for keeping people informed of my latest antics But fully exploiting social media opportunities by converting personal contacts into clients and making sales can be more problematic In fact by pursuing a social contact too enthusiastically for business purposes I sometimes feel that I m abusing an existing friendship Plus any network of friends and fellow professionals will be made up of people just like myself so in using social media am I just talking to myself and preaching to the converted 42

I ve come to the conclusion that the best use of social media is to actively seek people outside your normal circle of friends and family using it to expand your closer group and to increase your commercial opportunities Social media benefits For many craftspeople social media is an excellent and low cost way of interacting with their target audience As one ceramicist told me I went full time in 2013 and social media has always played a big role in my success Paramount has been the content and quality of the images I ve posted and also the social aspect of things I began with small numbers but very quickly my audience multiplied now my main income comes directly through Instagram and Facebook sales Being a ceramicist helps You can t rush clay and waiting around for pieces to dry and be fired leaves me plenty of time to get posts out there and to keep my presence on social media current and active Ceramic Goddesses by Sophie Bruen One particular benefit of social media is that it can tell the hidden stories behind your work and create an appreciation of those stories Stories will showcase your skills materials processes traditions which will help potential buyers to have faith in the quality of your work and to understand the work s true value So make your followers feel part of your stories Engage with them in conversation over social media and make your work mean something to them by helping them understand your design and production processes 43

Involve your audience Make it as easy as possible for your audience to get involved List your social media accounts on your business card promotional postcards and leaflets Encourage your social media network to communicate with you Invite them to make comments ask questions and share anecdotes about how much they are enjoying your products Be active but don t over share Too many posts or posts that are too personal may alienate your audience Consider your posting schedule when your audience is most active when you get most responses Never buy followers this doesn t gain a genuine response to your posts and will only reflect negatively in the likes and comments you receive Instead have a strong community of supporters People who enjoy your work and want to see it succeed will motivate you and will help you gain new audiences Utilise the platforms Consider which social media will reach your audience For some clients you might use Facebook for others Instagram Snapchat Twitter etc etc Since writing the first edition of this book many more platforms have sprung up whilst others have fallen out of favour It s a full time job keeping up Don t necessarily use all social media platforms it will be easier to concentrate on one or two and keep them well maintained Choose at least one platform where presentation is mostly visual and through a curated gallery so you can display your products and not worry too much about the words If you aim to sell online then add one platform such as Etsy current which is already set up to provide customers with a convenient route to buying direct from you 44

Silver Jug by Miriam Hanid Creating and managing your blog Many small businesses are yet to appreciate the benefits of this tool and blogging is also time consuming so it can distract you from your craft Even so having a blog is one of the most cost effective ways to promote your business It can drive traffic to your website increase your sales help you reach new markets and establish you as an authority in your industry The secret here is to let your blog reflect the human face of your company Give it personality avoid technical or trade terms that customers may not understand and keep the sales pitch down You ll find that people are more likely to respond to you and to buy your products and services I was reminded of this when I interviewed an artist specialising in collage who had spent perhaps a year trying and failing to write a good blog I would sit down every Sunday night and struggle for hours to put something together It was like being back at school and having to get your homework finished by Monday morning Then talking to a friend about writer s block the artist had a light bulb moment My friend asked where I got the materials for my work I rambled on about how I used found objects and my friend seemed enthralled The following Sunday I simply wrote five little stories about where each of the source materials for my latest piece had come from Much to my surprise I d banged out 300 words in 30 minutes and as illustration I simply added some photos of the found objects I d written about I got more responses on that one blog than I d had for any blog I d done before and now that s how I write little stories about the materials I use 45

Six key blog guidelines Lack of time and lack of ideas are the most frequently cited reasons for many small businesses not having a blog or not publishing a blog frequently or regularly However with a bit of planning you can generate enough ideas in a single brainstorming session to keep your blog running for weeks or even months ahead A blog post should be not more than 400 words if it includes illustrations no more than the equivalent of an A4 sheet If you ve written more than this think about dividing your words between two posts People tend to scan web content so every word and picture needs to count Links are the lifeblood of the internet so help your readers to share your blog The simplest way to do this is by using share icons These are social networking icons that make it easy for people to share your post and consequently to drive traffic and potential sales to your website Opinion is divided on how frequently you should publish new blog posts The key is regularity and consistency don t start a blog and then abandon it A reader who notices that your most recent blog was two years ago will likely lose faith in your efficiency and commitment An added benefit of regular blogging is that search engines are most effective when using fresh content The more frequently you update your blog and therefore your website the more likely it is that your site will climb up search engine rankings and be noticed Pepper your blog with key words for the search engine spiders to find If you really are getting stuck my answers are two fold First create a blog that is image rich and word light so you not only put your products centre stage but also cut down the time and effort of writing Secondly consider outsourcing the work to one of the many blog creation services often AI driven which write around key points 46

Brett Payne in his workshop Measuring success With all digital media it s important to track the impact of what you are doing The most effortless tool for this is simply to notice what happens when you do something When you ve launched your website notice if your enquiries increase If you ve posted a tweet notice if it gets retweeted If you write a blog notice whether your customers or fellow makers mention having seen it Most importantly notice whether as your digital activity rises your enquiries and your sales rise too Then simply do more of what is working You can get more structured about measuring your impact Web analytics will collect report and dissect your website traffic and the activity of customers on your site Social media tools will tell you what response clicking liking following sharing your audience is having to your social media posts Blog analytics will give you a picture of how people are finding their way to your blog and which of your posts are the most popular There are many and varied ways to obtain and analyse these statistics but you don t need to do all this yourself Your website designer for example could guide you to find review and interpret the figures so you know when your digital activity is raising your profile and when it is having no impact at all With that information you can tweak for best effect your words your images your design and your overall marketing activity 47

Follow up work Outline your digital and social media plan What tools will you use Will you have a website Will you use social media Will you have a blog Before creating your outline make sure you ve collected examples of digital media usage that you think would appeal to an audience like yours If possible also talk to your customers about the sort of digital approach they would best respond to 48

Your notes 49

50

egal structur Chapter 4 The Legal Structure of Your Business As your business grows and develops be flexible about the structure according to your situation and your business needs 51

The Legal Structure of Your Business Whether you re making that initial leap to turning your craft skill into a moneymaking business or planning to expand your existing business enterprise you need to consider what legal structure your business should have So in this chapter I ll explain the nuts and bolts of the different legal and financial forms your business can take I m outlining each of the options along with their advantages and disadvantages for your business development By doing so I m aiming to make this chapter useful to you not only if you are starting out in business as a maker but as you progress My conversations with longstanding craftsmen have shown me that business structure is often a series of separate decisions One high profile designer told me At only 20 I was already working for a big studio And though I was doing freelance work in parallel I was wary of striking out on my own But my accountant reassured me that going it alone was not a risk all decision so I registered as a sole trader and gradually my freelance work became profitable It dawned on me only gradually that given my increasing reputation I could involve shareholders at which point my accountant nudged me in that direction This designer believes that he might not have taken the initial leap to owning his own business had he not been able to do so step by step shifting his business format in response to his developing success Which is precisely what I would encourage you to do There are three practical points to make before you continue reading First although the general principles I m offering you in this chapter are sound the specifics can date So check for changes on www gov uk To alert you to the need to check elements that may date quickly are highlighted with the word current Secondly if you are planning to trade between countries or will be trading in a country other than the United Kingdom you should check details of that country s laws and guidelines The USA in particular is something of a minefield and all the rules should be strictly adhered to Finally be aware that while setting up initially can be comparatively straightforward the more complex your business becomes the more complex the challenges of running it will be So do consult a legal advisor with business expertise or an accountant The guidelines this book offers will allow you to consult that advisor in an informed way but you will still need their expert advice 52

Are you self employed The first question to ask as you consider starting your own business is whether you are currently self employed If as an artist maker you re working only and solely for another employer you won t need to consider the options I m raising in this chapter until you start working for yourself at least part of the time Of course you can be employed and self employed at the same time as was the designer mentioned earlier You are probably already self employed if you do one or more of these things Run your business for yourself and take responsibility for its success or failure Have several customers at the same time Can decide how where and when you do your work Provide the main items of equipment to do your work Are responsible for finishing any outstanding or unsatisfactory work in your own time Charge an agreed fixed price for your work Sell goods or services to make a profit including online To be certain whether you re self employed check with Her Majesty s Revenue and Customs HMRC by using the online tool Check your employment status for tax or by calling the number given on the page Employment status both of which are on www gov uk current Are you trading The next crucial question to ask is whether you are formally trading If you only occasionally sell some of your work or if you aren t aiming to make a profit then what you re doing doesn t count as a business venture and you don t need to do anything The downside is that without a formal business framework you can t offset against your tax bill any equipment you buy or any losses you suffer Whilst at this stage you should keep all your equipment receipts as you may well be able to claim back the capital goods relief when you later start formally trading This is why people often pay little or no tax in their first year of trading You re likely to be trading if you carry out any of these activities Make items with the intention of selling them Regularly sell for profit Sell online at craft fairs exhibitions and galleries or through dealers 53

Sole Trader If you re a UK sole trader you run your own business as an individual Being a sole trader is the simplest business structure without complex set up procedures And because sole trading has less statutory reporting the accountancy fees are lower and you can keep all your business profits after you ve paid tax on them You have more control not only over your finances but also over your craft decisions and how you spend your time Plus if you decide to change direction in your craft or to stop trading you won t need to jump through any legal hoops The big downside of being a sole trader is that everything is in your personal name and so you have liability for all the debts and losses the business is you It s normally when this becomes too onerous that sole traders move onto a limited company business structure which offers greater protection from financial liability What might make you move from simply making items as a vocation to declaring yourself a sole trader One route is that you find yourself earning more than 1000 current from your craft in any given financial year April to April which means you legally have to register as self employed However as mentioned earlier you might instead voluntarily declare yourself a sole trader even if you re earning less than 1000 from your craft in order to claim tax relief on your equipment materials and other purchases Here s a check list of what you need to do as you set up and start working as a sole trader Register as self employed with HMRC Decide on a name for your business see Chapter 5 Set up records of what you sell and for how much Set up records of your expenses and identify which of these you can claim against tax Create a spreadsheet that shows you the current state of your finances Develop a basic business plan to focus your initial direction Fill out and submit a Self Assessment tax return each financial year Pay Income Tax on your profits Arrange to pay Class 2 and Class 4 National Insurance current Once you have decided to become a sole trader you ve got three months to formally register with HMRC Just a short note to the local tax office will suffice 54

Business Partnership The next possibility is to form a business partnership You own the business in the same way as you do if you re a sole trader but alongside another person or people Very occasionally you may want to partner with another company perhaps one that is sponsoring or funding you in this case I would suggest you get specialist advice about the legal implications My advice is to choose a business partner very carefully Make a simple Partnership Agreement I would specify roles and responsibilities in general terms covering how mutual decisions are made about the division of responsibilities work load accountability and profit share It s also good to have an agreement on how the break up of the partnership will work a dissolution divorce agreement You ll be very glad of this most partnerships eventually fall apart Good partnerships are normally based on clear responsibilities undertaken by people who haven t got the skills of the other person in other words they need each other Upsides of partnership are very like those of being a sole trader The arrangement is likely to be simple and therefore flexible You and your partner have a shared responsibility for everything to do with the business so if there s stock or equipment to be bought or money to be raised you share the cost In return the profit is shared and the workload divided in whatever way you agree between you you each pay tax and National Insurance individually and as you normally would The business downsides are again similar to those of a sole trader that you are carrying the risks and the costs and so your personal finances are on the line And to put it bluntly if your partner can t or won t step up in a financial crisis the buck will stop with you These are the professional advantages and disadvantages of partnership But as a maker you also need to bear in mind the personal pros and cons Once you form a business partnership you need to take your partner into account and that may mean two people making decisions that will affect your individual creativity and your craft You may find yourself influenced by a partner who doesn t understand your artisan aims or perhaps worse still pressured by a partner who is themselves an artisan but who has different values to yours 55

One maker I interviewed described how when she began to create her embroidered greeting cards at around the time her youngest child left home she was offered an opportunity which seemed absolutely heaven sent Another craftsperson whom she had met at college offered to support her with the administration and accounting of the business She d run her own company for years and had all the knowledge I didn t have I thought this would free me up to do what I love best making They formed a partnership and at first this worked well Over time however she was pushing me into designs that were certainly more commercial but weren t what I believed in or wanted to do Luckily we parted with no hard feelings What this maker reports is that her business and her turnover are now much smaller but that I ve got my energy back and my life The partnership I ve just described didn t work But when a partnership goes well it can result in success and fulfilment for everyone involved If you and a partner get together with common goals but differing skills you can complement each other If you are able to take it in turns to carry the burdens of a business you can multiply your results In order to set up and then run a business partnership you first need to each register individually as self employed and decide on a name for your business as mentioned in the guidelines I gave you earlier in this chapter for setting up as a sole trader I d also advise you to implement these two action points Get professional advice to draw up a partnership agreement Decide which of you the one known as the nominated partner will take responsibility for the partnership s business records and tax returns This task could be delegated if neither of you are eager to take up the challenge Silver vase by Thalen Thalen 56

Limited or Limited Liability Partnership In order to avoid the risks of a simple business partnership you may want to instead opt for a limited partnership which goes a long way to protecting you from forfeiting all your money if the business fails There are two types of agreement In a Limited Partnership LP and there are two types of responsibility General partner s take control of and manage the company they make the business decisions and are also liable for any debts the business can t pay Limited partner s typically contribute money or property to the business when it s set up but are only liable for debts up to that value they can t withdraw their contribution and have no say in managing the business This kind of arrangement might suit you if you perhaps need funding to move to a dedicated studio space but don t want the funder who might be an individual or an organisation to affect your creative decisions day to day Conversely a Limited Liability Partnership LLP is a business structure where partners are not personally liable for any business debts though if you borrow money perhaps to expand your business you may have to give a personal guarantee The LLP structure is particularly suitable for artisans who perhaps create individually but who want to operate together under a professional umbrella as a loose network or team maybe sharing workshop space or equipment The clear legal boundaries and limited liability mean that you are less vulnerable to errors made by others in the team while the less formal more flexible structure may make decisions among partners easier In addition you don t pay Corporation Tax That said you will have to declare your profits and what proportion of them you have each taken and you will be taxed individually on that In addition your accountancy bills may be higher than for a simple partnership and the responsibility may be more for the designated partners who will need to keep business records and keep Companies House informed of any changes This structure will suit you if you want to work alongside another maker or makers where you each take equal responsibility but with some protection against financial problems As with any partnership the success of LPs and LLPs depends not only on talent and creativity but on the fit between those involved Once again I advise you to choose partners on more than just liking and to make sure that you have agreements in place as safety nets in case your liking turns sour 57

To set up a Limited or Limited Liability Partnership you need to do the following Choose a business name see Chapter 5 Have a registered business address this is not necessarily your studio or workshop and is more likely to be the address of your accountant or lawyer Keep a list of partners and appoint ones with specific duties for a Limited Partnership one general and one limited partner for a Limited Liability Partnership one or more partners Create an agreement between all members to set out how the partnership will be run including guidelines on responsibilities decision making profit share and how members may join or leave This is particularly relevant to a Limited Liability Partnership Register your partnership and file an annual confirmation statement at Companies House application forms are available at www gov uk and these can be submitted by post or online Register as a business with HMRC for tax purposes Separately all partners must also register as self employed with HMRC keep records of individual income and expenses and pay Income Tax and National Insurance contributions Limited Company A Limited Company is one that aims to make a profit but whose liabilities are defined and restricted This structure is different from a partnership in that you yourself would be a director of the company but you would probably invite others to support you by buying shares which you would then use to help fund your business If your business prospers your shareholders do too What are the benefits As you can guess the word limited indicates that unless you have borrowed money on a personal guarantee you and your personal assets are protected as they are with other Limited business structures And a Limited Company can seem more professional and therefore more attractive to potential investors Conversely a Limited Company means that as well as having to give your shareholders a percentage of any profits you make you are legally bound to do your best for the company That means that you can t simply take from the profits as you can if you are a sole trader if you pay yourself you have to do so formally either as an employee through Pay as You Earn PAYE or as a dividend 58

You are also as a director subject to a tight company structure with significant formal responsibilities such as avoiding conflicts of interest and significant penalties such as fines and prosecutions For some reason the term Limited Company can seem more formal and intimidating than the term Limited Partnership which somehow sounds more friendly I often hear craftspeople say I m not big enough to have a Limited Company In fact Limited Companies are for anyone there s no minimum turnover and you should make your decision solely on whether the structure gives you the benefits you want That said personally I would stay a sole trader or partnership as long as possible becoming limited can add to your auditing and reporting fees and accountants do sometimes recommend limited company status with little reason just in order to be seen to have given safe advice To set up a Limited Company it is best to get professional help in order to create a company name nominate a company registered office appoint at least one director usually you have at least one shareholder register your business at Companies House and with HMRC draw up a memorandum of association or company rules appoint an accountant who may carry out an annual audit All the varieties of limited business structure offer the significant advantage of certain protections against liability and these can be crucial especially if your craft involves investment in equipment or materials which can make you financially vulnerable I spoke to one jewellery craftsman who as he grew more successful found he was experiencing a gap between paying for his materials and being paid by his clients I was already having difficulty funding my purchase of gemstones to fulfil commissions he told me and then the price of gold went up and my cash flow was under strain I needed to protect myself The answer was to form a limited company and this has worked well for him I like the security and that my shareholders hold me accountable which keeps me motivated They support me too not only with investment but also with professional advice It works for me A final note As your business grows and develops be flexible about the structure you choose for it Each has their advantages and disadvantages and it is perfectly acceptable often a better idea to shift according to your situation and your business needs So take these decisions slowly after consulting with professionals and respected colleagues 59

Other countries Most countries try to make it easy for people to set up as sole traders so search for information online Here are some examples Sole Proprietorship USA A sole proprietorship is the simplest and most common structure chosen to start a business It is an unincorporated business owned and run by one individual with no distinction between the business and you the owner You are entitled to all profits and are responsible for all your business s debts losses and liabilities Forming a Sole Proprietorship You do not have to take any formal action to form a sole proprietorship As long as you are the only owner this status automatically comes from your business activities In fact you may already own one without knowing it If you are a freelance writer for example you are a sole proprietor But like all businesses you need to obtain the necessary licenses and permits Regulations vary by industry state and locality Use the Licensing Permits tool to find a listing of federal state and local permits licenses and registrations you ll need to run a business If you choose to operate under a name different than your own you will most likely have to file a fictitious name also known as an assumed name trade name or DBA name short for doing business as You must choose an original name it cannot already be claimed by another business Sole Proprietor Taxes Because you and your business are one and the same the business itself is not taxed separately the sole proprietorship income is your income You report income and or losses and expenses with a Schedule C and the standard Form 1040 The bottom line amount from Schedule C transfers to your personal tax return It s your responsibility to withhold and pay all income taxes including selfemployment and estimated taxes You can find more information about sole proprietorship taxes and other forms at IRS gov 60

Sole Trader Australia Use your individual tax file number when lodging your income tax return Report all your income in your individual tax return using the section for business items to show your business income and expenses there is no separate business tax return for sole traders Apply for an ABN and use your ABN for all your business dealings Register for Goods and Services Tax GST if your annual GST turnover is 75 000 or more Pay tax at the same income tax rates as individual taxpayers and you may be eligible for the small business tax offset Put aside money to pay your income tax at the end of the financial year usually you will do this by paying quarterly Pay As You Go PAYG instalments Claim a deduction for any personal super contributions you make after notifying your fund As a sole trader you can t claim deductions for money drawn from the business Amounts taken from the business are not wages for tax purposes even if you think of them as wages More information https www business gov au Planning Business structuresand types Business structures For the European Union go to https ec europa eu growth singlemarket services services directive in practice contact_en Follow up work Sole trader Partnership Limited Partnership Limited Liability Partnership Limited Company What will be the legal structure of your business Read through this chapter noting in particular the pros and cons of each structure Which appeals to you most Which seems to fit best with your aims your values your motivations at this point in your career Which do you feel least comfortable with Remember that you can begin with one structure but then change as your business grows 61

Enamelled Snake Box No 1 by Phil Barnes 62

ec Chapter 5 Intellectual Property Protection When you design a piece of work that specification the appearance of the item its shape texture colour contours decoration and materials used is yours from the outset your intellectual property 63

Intellectual Property Protection Traditionally small business owners have tended to rely on informal methods of protecting the formulas and blueprints of their professions it was known as keeping trade secrets Such methods were more familiar cheaper less time consuming and frequently considered just as effective as conventional laws In fact even once business owners started to use the law to their advantage they were often reluctant to bring legal action even where they believed infringements had taken place Nowadays however intellectual property rights are increasingly regarded as a source of competitive advantage for individuals and for companies Small and medium enterprises SMEs such as we artisans often own are often important innovators So you need to protect your creations through formal safeguarding such as registration copyright laws and contractual agreements This chapter helps you clarify your position concerning intellectual property rights These rights are certainly an important part of your business Just set up the systems to protect yourself by registering your name your trade mark and the design and brand look of your company and your products Doing this will not only protect you against plagiarism and theft it will also make it easier for you to gain commercially from your work for example by licensing others to use your ideas I would encourage you to set up intellectual property protection maybe join an organisation like Anti Copying in Design www acid uk com current and then get on with making One thing to note as you read this chapter Although the general principles I m offering here are sound the specifics can date so do check for changes on www gov uk To alert you to the need to check elements that may date quickly are highlighted with the word current Protecting your name and trade mark The first elements of property you need to protect are the name of your company and any trading name or trade mark you use to represent your business personality Clearly it s crucial that the public face of your company is safeguarded When it comes to deciding on an official title you could choose your own name which has the advantage that if your business grows so will your profile and your credibility Or you may choose to name your business for your craft or your 64

product including words such as XYZ Jewellery which will tell a prospective buyer what your wares are Alternatively you might choose a name that conjures up the essence of your product or the personality of your brand As well as a business title you may also have a trading name or trade mark a symbol that sets you and your work apart from others You can use words slogans shapes images colours the aim is to create a distinctive public identity Trading names and trade marks can be the same as someone else s only if the two of you are operating in completely different areas of expertise though I think it s always better to have as unique an identity as possible so your customers can easily recognise you Whatever your choice you need to consider the legal aspects Here are some of the questions to ask before making your final choice of names and marks fuller guidelines can be found in www gov uk current Are the ones you ve chosen too similar to existing ones You can confirm whether any name you want is available by using the checker on www companieshouse gov uk current You can check existing trade marks through www trademarks ipo gov uk current Are any of the words you want to use offensive of a sensitive nature or claiming an inaccurate link with government or a local authority If so you may not be allowed to use those words Do you need to register your choices to make it more difficult for other people to use them For registering a name in the United Kingdom apply to www companieshouse gov uk current For registering a trade mark in the United Kingdom go to www gov uk how to register a trade mark current You will need to register your choices separately for any further foreign market you re intending to trade in be aware that in other countries UK copyright laws may not apply and might be difficult to enforce Depending on what business structure you have you may need to consider these additional questions Are you setting up your company with a limited structure a Limited Partnership Limited Liability Partnership or Limited Company If so you will likely need to include those terms in your business name Do you need to register your name at Companies House Sole traders and partnerships often don t need to limited companies do Is there a legal requirement for you to include your name partners names and your company or trading name on your official paperwork such as invoices and letters 65

When it comes to the trade mark you have in mind it will be worthwhile to check the legalities in detail before registering or to consult a copyright or trade mark specialist It is very common for start up businesses to face challenges about choosing names and trademarks simply because many of the best have already been taken But when you are an established craftsperson the challenge may be to continue to protect a name you already own A graphic designer colleague of mine recently received a curt note from another design firm who claimed that the name of his consultancy clashed with theirs and wanted him to back down His business name was Design Effect theirs was Design FX which may look slightly different in print but sound more or less the same when you say them I also discovered my colleague told me that the other firm was trading just round the corner from my office so not only were our names similar but our locations were too His way forward was to write smartly back with written proof that I d registered my name and my company over two decades ago I also mentioned that I d already consulted a lawyer and asked them to choose another name Which they did Mission accomplished Protecting your design When you design a piece of work that specification the appearance of the item its shape texture colour contours decoration and materials used is yours from the outset your intellectual property The only exceptions are if the item was commissioned or if it was created as part of your responsibilities for an employer in which case the rights belong to the commissioning client or to the employer So how do you safeguard your item against someone taking your idea stealing your design or copying what you have made There are no absolutely foolproof ways of protecting against these attacks especially if the culprit is a large consortium with vast resources who is happy to fight you in the courts But there are several things you can do to make it more difficult for anyone to try to cheat you and therefore to make it less likely they will even try Here are eight safeguards Make sure your design is truly original different in significant ways from any existing or previous design Keep signed and dated records of your work at every stage these could be written notes photos plans videos or models Store these safely perhaps filed with your legal advisor 66

Register your design with the Intellectual Property Office IPO This not only ensures that other people can t legally copy your work but also that they can t claim they thought of the concept at the same time as you did and that therefore it belongs to them The protection given by registration lasts for up to 25 years current and you can display the registration number on your design so warning off any plagiarists There s an added advantage that registration makes it easier to license your design to a retailer or manufacturer and get paid for that For details of how to apply for registration in your particular craft go to www gov uk register a design apply current The organisation Anti Copying in Design ACiD www acid uk com current also offers members the ability to register designs with them free of charge so you have independently held documentation As well as formal registration guard yourself by being as up to date about intellectual property issues as you possibly can be Read up about them attend events and workshops sign up for webinars Shout loudly in person in your marketing materials and on your website about how informed you are on intellectual property rights and how willing you are to take legal action to protect your products Notice who is noticing you When manning a stand at a craft fair or exhibition spot attendees taking photographs of your work or experts casting an eagle eye over your items Keep a diary note of such incidents so that if these people later mysteriously start making products similar to yours you can prove that you were there first Consider taking out a professional indemnity insurance which can also be formatted to protect you against claims if a client sues you because your items are faulty or harmful 67

If someone copies your work If you notice that someone has copied your work you can take action You do need to be the owner of the work and it s best if you can prove that by having already registered it You also need to be sure that what has raised your suspicions is a deliberate infringement and not simply another artisan having the same idea as you had at around the same time If you re certain there is a problem start gathering evidence Have to hand a sample of your product Also have a sample of the infringing work along with your detailed observations about the resemblance between the two It s useful to mark specific examples of unique similarities such as an error that you created in the making which has been duplicated in the copy Also gather supporting documents as mentioned earlier such as notes of your work at each stage of design development and your IPO certification confirming the date you registered the item Then contact the person you suspect of copying with details of your original work and their version the reasons you are challenging them and a reminder that your work is protected under law Request that they withdraw the plagiarised items and give a deadline for them to do so Keep copies of all your letters and emails Particularly if you are asking for financial compensation I would also advise seeking advice from a lawyer specialising in intellectual property issues this will add extra weight to your warning of legal action Very often supported by the force of the law you ll be able to come to an amicable agreement Making sure you aren t copying Of course much of your craft will be based on the work of others because that s simply how you achieve mastery by taking inspiration from established makers and learning from their approaches and techniques So however much you try to be original you may sometimes end up approximating others work In the creative industries as a whole it s getting more difficult to be truly innovative and that may mean that you find yourself inadvertently not just overlapping with but actually recreating another artisan s craft 68

I hope you agree that that s not only professionally unfair but also personally unwise So how can you avoid this dilemma As well as being clear with yourself when you are borrowing you can check out whether your design is similar to someone else s The Copyright House Directory of Registered Works www copyrighthouse org current allows you to compare existing designs with yours if you know the design number or the design owner s name If you don t know either detail then the website DesignView www tmdn org current allows you to view over 16 million designs If you find yourself inadvertently having copied don t panic Sometimes you may be able to make peace and turn the situation to your advantage One of my close colleagues who was attending a craft fair noticed some pots that were different to one of her ranges but had echoes of the same style and when she checked had come onto the market several years before she had done her work My first reaction she said to me was to feel appalled and guilty Then I noticed that the artisan was working in different materials to the ones I use I approached him and luckily he reacted in a spirit of cooperation We ended by selling each other s products on our own stalls at different fairs so covering twice as many outlets and in different parts of the country If a client asks you to copy I hope we re agreed that it s wrong to copy another maker s work for your own gain But what if copying is not only for your gain but is what a client wants They see a piece they like they come to you and ask Could you copy this And of course you could both to please your customer and because if you didn t do it some other maker would and you would lose the business As I ve said I feel very strongly that you shouldn t copy But there are ways forward that I feel are ethical and will also allow you to do right by your commissioning customer as well as by yourself Here s how Begin by complimenting your customer for being clear about what they like and for being proactive in asking you to be involved Once you ve got them onside by pointing out where they ve got it right gently refuse their request by explaining that legally you can t do what they want Then offer an alternative Begin by talking the customer through what it is they like about the item they want you to copy Shape Colour Texture Materials How they feel when they imagine having the item for their own Then explain how you could create an item which would have the same impact but which wouldn t break any laws or defraud the original maker Most customers will feel even better about your suggestion because they will be getting an original and personalised piece rather than simply a copy 69

Follow up work Choose one of these elements that is relevant to you How you will defend against copying plagiarism and passing off someone pretending to be you The name or trading name of your products or professional personality Your trademark The design or look of your products 70

Your notes 71

Silver vases by Thalen Thalen Inspired Exhibition 2016 72

Financing Chapter 6 Financing Your Enterprise look at the product or service you are offering is it competitive in the marketplace This is why you are aiming to become an artist because Picasso didn t charge by the hour 73

Chapter 6 Financing Your Enterprise This chapter firstly looks at the financial challenges of starting a business and the strategies used by craftspeople to get going often called a portfolio life Setting up a business has been done a thousand times but it did astonish me during my researches quite how innovative people are and most importantly how hard they are prepared to work to achieve their ambitions My own personal experience involved help from my parents the bank of Mummy and Daddy along with numerous part time jobs including washingup in a pub My future wife and I grew a market trading business in jewellery we learnt to juggle meagre finances and became innovative at doing deals for little bits of extra credit or goods on sale or return Later in our business life suppliers often commented on Angela s ability to squeeze just that bit extra out of a deal The golden rule was that we always paid our bills on time After looking at such survival strategies this chapter will continue to take you through the essentials of making finances work for you as you start up learn to manage your business and then reach the point of expanding it It may seem daunting to deal with the spreadsheets the projections and the maths But if you break down the problems of issues such as costings and cashflows a carefullyconstructed financial business plan becomes a very useful tool to establish your goals evaluate your success enable forward planning and try to guarantee your profitability One thing to note as you read this chapter Although the general principles I m offering here are sound the specifics can date So do check for changes on www gov uk To alert you to the need to check elements that may date quickly are highlighted with the word current Initial survival strategies When a full time maker sets out on a path to becoming an aspiring businessperson they need to cope with entering the commercial world and meeting the demands of earning a living I ve found through my research that especially if starting directly post college the most common strategy is to set up a studio at home rent a single inexpensive bench in a communal workshop or become an artist in residence at the same time multi tasking at a series of low level jobs while showing at entry level exhibitions or craft fairs Innovative makers also do deals with their former colleges 74

to occasionally rent expensive equipment which is often lying idle for long periods a win win for both sides The most extreme example of the portfolio life that I ve encountered was a maker who worked part time not only in a restaurant and in the Sheffield Assay Office but also waitressing at the local dog racing track Yet she still found time for her creative projects at Yorkshire Artspace working by her estimation an average of 88 hours every week The low level of commitment and the flexible hours that came with each of her side jobs allowed her to periodically exhibit at craft fairs and exhibitions Then if her artisan work increased she would drop one of her part time jobs replacing it with another if and when her creative commitments became fewer None of her part time jobs earned more than the national minimum wage but a full time job would not have given her the flexibility necessary to pursue her craft Audit your situation To work out an equivalent starter strategy for you I suggest you begin with an audit of your survival needs You need to be sure you can meet those needs while also leaving enough time and energy for your creative work which to begin with may not be earning you very much The following are useful questions to ask What are your current personal outgoings Add up the costs of personal accommodation rent mortgage council tax heating lighting and water food travel phone devices TV socialising clothes holidays house cleaning and maintenance financial commitments such as student loans This is your cost of living How can you minimise your outgoings Brainstorm here Move back in with your parents Share accommodation Cycle rather than owning a car Cut back on luxuries such as socialising or holidays How can you create an income in a way that doesn t drain the time and energy you need in order to follow your vocation Should you take a full time job and work on craft during weekends and holidays Put together a portfolio of part time jobs Borrow money from the bank of Mummy and Daddy Apply for an overdraft or get a credit card Often an overdraft takes time to negotiate as the bank will want to see a history of money in and out of the account Overdraft hint go into credit at least once per month You might apply for funding Often funding is found through the organisation or premises where you set up your workshop Many of these organisations are charitably based and it is part of their remit to advise and help grow the businesses which rent from them Trade organisations also have a remit to help starter businesses They also often have mentorship programmes I would highly recommend finding a mentor 75

Your earnings I m now going to cover issues around what you earn from what you make and sell The first step is to work out your hourly chargeable rate which you ll calculate from your costs You can apply this chargeable rate to batch production and small jobs and then consider your large project or bespoke commission rate which may be applied weekly or monthly On a spreadsheet list all your costs for the coming year These are your annual costs your own wages to cover your cost of living as mentioned earlier in the audit section employee wages tax and National Insurance office rent and rates phone insurance utilities water gas electricity exhibitions travel hotels subsistence accountancy bookkeeping and legal fees vehicle running costs maybe van hire too trade association membership A sample annual costs worksheet is included at the back of this book If you ve not been trading long many of these items will be estimates Don t worry we re building a broad picture after one year s trading the figures will be much more accurate So now you have an annual costs figure From this overall figure of costs calculate how many hours you will probably spend actually at the bench each year and divide the two numbers That is your minimum hourly rate For example total annual costs 25 000 divided by 30 hours per week at the bench times 45 weeks worked each year 18 50 per hour current Most people tend to overestimate the amount of time they will spend at the bench try not to Batch production costs These are quite straightforward to calculate They include materials components outworkers tools which get used up during the production process and finally your hourly rate Bespoke commissions These are more challenging to calculate You need to work out what you can reasonably charge for This I m afraid is where the arguments start Does your hourly or daily charge rate include travel time to meetings running around on behalf of the client going to the post office etc etc Do you charge for design time many don t I think that you should charge for all of the above though maybe at a lower rate perhaps but please don t do all these things for nothing 76

Engraved silver by Angus McFadyen A sample worksheet of costs for batch production and bespoke commissions is included at the back of this book This calculation will give you the basic costs and your ideal hourly charge rate which you mustn t go below Then you should try to make an uplift or profit on each job by adding a percentage That will be your company profit For capital expenses such as larger pieces of machinery or kit like computers you need to calculate the original cost of the piece and then divide by the life of it For example a computer costs 1000 and will last five years so put into the annual costs spreadsheet Computers 1000 divided by 60 months so 16 70 per month current Finally look at the product or service you are offering is it competitive in the marketplace This is why you are aiming to become an artist because Picasso didn t charge by the hour Don t panic Most start ups take time to cover their costs let alone to be profitable 77

Sales invoices Traditionally an invoice was a request for payment This can still be the way with one off commissioned pieces where you do the work and then ask the customer to pay you for it Nowadays though an invoice is much more likely to be a proof of payment than a request for it A customer buys a bracelet from you at a craft fair they pay cash and you give them a written receipt A customer buys a necklace through your website and you send them a confirmation that their credit card has been charged In both cases the paperwork is evidence that you ve sold an item and a note of that needs to go into your records as money you have earned What should you include on a sales invoice The basics are your business name address contact details and website if you have one a description of the item and the cost any postage costs if applicable For a simple cash purchase you can get receipt books where you write in the details give the top page to the customer and keep a copy for yourself When you are posting an item perhaps after a telephone or online sale you typically send with it a pre printed invoice into which you type the details including your customer s name and address A digital copy of the invoice could also be emailed to confirm the purchase Note that if the turnover of your business is more than 85 000 2023 each year you need to register for Value Added Tax VAT and add 20 current onto the price of each item The VAT amount on an item should be listed on your invoice the total the customer pays is the item price plus the VAT You should then set aside the VAT you ve been paid as you will need to repay it regularly to HMRC minus the amount of VAT you yourself have paid to your suppliers Selling wholesale Most makers begin by selling direct to the public or through exhibitions or galleries Selling wholesale that is selling direct to retailers who then sell to the public is a completely different way of doing business If you have limited experience or are new to trading be particularly cautious you could be dealing with individuals and companies who may have a tough approach to negotiating Be sure to fully understand the implications 78

You ll need to agree terms and conditions which will be legally binding If you do not sell pro forma money up front you may not be paid for 30 60 or even 90 days Can you stand the financial strain on your cash flow particularly if you are dealing with several retailers paying slowly Sometimes the entire value of the goods sold is at risk if the retailer goes bust If your items remain unsold they may be returned to you after several months with no fee paid Therefore always make sure your mark up covers not just the amount you ve spent in order to make the items but also the extra administration involved in selling wholesale I personally would only go into wholesaling after a great deal of research and reassurance that those concerned are credit and trust worthy Talk to several people you respect and who have direct experience of trading in this way before entering into contracts that may cause you problems In particular dealing with companies abroad needs a lot of research Dealing with nonpayment If many of your sales are more or less immediate that is in cash or by credit card you may not suffer the problems that some businesses experience between selling your item and actually getting the money for it But as I just mentioned this may still happen and such non payment can negatively impact on your cash flow What to do It will help to specify your pay by date monthly or 30 days is usual Include this on any invoices along with a date by which you expect the owed money to arrive with you You could also offer early payment settlement terms which are a great incentive for customers to pay promptly Also regularly check that you have received any money you are owed When there is a problem contact the customer immediately and talk things through if they still don t pay consider taking them to the Small Claims Court 79

Your expenditure Your business spending is what you pay out in order to sell the items you make to turn a profit you need to keep your spending as low as possible It s important to keep an account of all spending so you can offset it against tax For one off informal purchases such as petrol for travelling this means simply filing the receipt while for regular standard purchases such as rent this means keeping or printing off the monthly quarterly or annual bill If you are using an online bookkeeping system you may be able to photograph the bill rather than having to keep a hard copy What will you spend on I ve listed below some of the most common purchasing categories so you can note down everything you spend under the most appropriate heading Your notes could then form the basis of a costs spreadsheet where you keep track of everything you have spent and of a cash flow forecast of what you predict you ll spend going forward Bank charges on business accounts Business phone calls Computer phone tablet printer used as part of your work online charges for broadband and website hosting Employee wages your wages Pay As You Earn PAYE National Insurance Insurance including public liability if members of the public come to your studio buildings insurance if you own your own premises contents insurance employers liability if you have any employees who are not close family members intellectual property insurance to protect your ideas and designs Marketing and advertising cost of marketing materials such as business cards and leaflets cost of website and social media advertising cost of participating in exhibitions and craft fairs Machinery materials tools equipment Overnight accommodation food and drink when travelling Professional books and magazines membership fees for professional organisations training courses related to your job Professional services such as specialist work on your items plus bookkeeping accountancy services legal services 80

Rent business rates water heating and lighting of your studio market stall storage facility office or other premises Remember to account for occasional rent such as stalls at craft fairs or exhibitions Stationery Tax and VAT Travel train bus car parking fees Note that any purchases not associated with your work shouldn t be listed and are not tax deductible Ones that you may wonder about but which aren t deductible are parking fines and speeding tickets childcare clothes worn for work you can argue specialist clothes protection training courses not related to your job If you are a sole trader working from home a proportion of your home expenditure may be tax deductible if that proportion is clearly only to do with your work Dealing with suppliers As your business grows you ll build relationships with a number of suppliers and institutions You ll want to deal with the ones which give you the best product or service at the best price with the best result With this in mind it s always worth doing these two things Getting to know your supplier For some suppliers it s the administration which is the highest cost for others the shipping for others the amount of materials you order or how often My wife Angela has a wonderful question that she would often ask suppliers what is the best way to deal with you Is it best for them if you order in small quantities or large Best if you order daily weekly or monthly Best if you pay in a particular way upfront for example The more you know about your supplier the better you can work with them and the better they will work with you Letting your supplier get to know you Many organisations particularly large ones actually produce internal data which classifies their customers in order to decide which services and goods to offer and at what price One rule of thumb is the smaller the customer the higher the price worth knowing if you are a small customer as many craftspeople are In the same way as it s good to know what s important to your supplier it s also worthwhile actively telling your supplier your situation what you ideally need and how they can get you onside Remember that if they see you as a difficult customer finicky time heavy placing small orders and making lots of returns ultimately it is you who will pay 81

Keeping records Keeping your records is important in two ways First it helps you stay up to date with the finances of your business stay on track of when your customers owe you money know how much to pay your suppliers review your cash flow and forecast your business Secondly keeping records also provides proof of your finances for tax purposes and for funding applications What records do you need to keep Sales invoices showing what you have earned and whether you have been paid Bills showing what you have spent and whether you have paid these bills Stock records showing your making materials your items for sale and what is currently out on sale with an exhibition or gallery Bank account and credit card statements checked against the invoices receipts and bills Any reports you have generated such as cash flow balance sheet profit and loss statement Any predictions of sales and spendings A note of assets such as equipment tools cash property money you are owed A note of liabilities such as loans repayments mortgages money you owe Tax and VAT documents A list of directors shareholders company secretaries and other information This only applies if you are a limited company The simplest way to keep records is to note everything down on paper or on your computer Keep the relevant documents for each financial year separately from each other I also advise that you set aside a regular time to do your bookkeeping and that you try never to miss a week As a business owner you are required to keep and store accounting records for a minimum of six years 82

Six useful records There are other kinds of financial record keeping that you may want to do Reconciliation You compare your bank and credit card statements against your paper or computer records to check that they are accurate and match This is best done regularly often monthly Balance sheet You summarise and compare your assets and your liabilities to demonstrate the financial health of your business and in particular how it is funded You might do this at the end of your financial year Profit and loss statement You summarise what you have sold and what you have spent over a period of time usually three months or a year to show how your business is progressing If your business is a limited company you legally need to produce this report at the end of each financial year In addition to effectively determine the price of your products do set up worksheets to record control and analyse costs As all businesses are unique there is no one particular financial model that will work for everyone for example it may be easier to control the costs for batch production than for individual bespoke pieces Ongoing overheads This should include the costs of tools and core materials It should also list the overheads of running your business rent business rates utilities and the promotional costs website marketing exhibitions Also include your wages and if you employ people the cost of their wages tax and NI contributions This allows you to take into account your continuing costs separate from the time and money spent in making particular items Individual job sheet This should list the costs of materials specific to the piece of out workers and external specialists of your time for design and making This will let you identify the actual costs of making the particular item and the time you have spent in its production Cash flow forecast This should record money in money out and payment projections It could also include allocations for corporation tax personal tax and VAT payments This helps you create an estimate of the money you expect your business to bring in and pay out over time Examples of such worksheets are shown at the back of this book but should of course be tailored to your specific craft business and circumstances 83

Banking Banks can be helpful They keep detailed records of your accounts with bank statements showing inflows and outflows of money And if you are able to build a good relationship with your bank you may also be able to secure an overdraft or even business funding But I do feel that in the modern world banks find small companies expensive and burdensome to deal with so they don t provide great personal support or attention They have become increasingly expensive and often want to charge high interest on your account facilities and on your credit cards That said a bank account is probably necessary Personal or business account If you already have a personal bank account you may feel you don t need a business account and that s understandable as it will cost you extra But there are good reasons why having a business account might serve you well Having personal and business money in different accounts makes it easier and more accurate to work out your business income and outgoings and then estimate your cash flow It also appears more professional and gives weight to any funding applications Plus if you have a limited company legally and for tax purposes you need to keep your personal finances strictly separate from your business a business bank account does that Choosing your bank If you have a good relationship with the bank where you already have a personal account you may want to open your business account with that bank for convenience or because you believe they will treat you well But it s always worthwhile looking around to see if you can do better when it comes to the services offered the fees charged or the advice and support a bank might give you 84

Here are some key issues you need to check What do you need your banking service for specifically Only to deposit and withdraw money for a credit card account for a savings account for business support services Do you want a bank where you can have face to face meetings with your manager and get personal support and advice Do you have an online shop which you need your bank to support What kind of payment methods do you want to offer your customers Cash only credit card bank transfer Paypal current Can the bank you choose deliver these Do you need to access your bank anywhere and anytime for example while at an exhibition or craft fair If so do you want a service which offers online banking What might you need long term and as you grow perhaps a small business loan or the ability to accept payment from other countries Where to get support You don t have to build your business and in particular you don t have to manage the financial side of your business all by yourself Here are some sources of support Her Majesty s Revenue and Customs The HMRC section of www gov uk current guides you through the maze along with videos webinars and online courses www gov uk guidance help and support if youre self employed current Independent website support You ll find financial accounts advice online on the websites of major accountancy firms of many professional bookkeeping firms and of numerous organisations supporting the self employed sole traders and start ups I can t recommend individual sites but the more comprehensive credible and well prepared the website appears the more reliable the information is likely to be Online accounting software There are a wide range of software packages which offer various services These can usually support you with most of the routine bookkeeping can automate the time consuming elements and if you input correctly may produce more reliable figures than you can alone 85

Silver centrepiece by Miriam Hanid Here s what to look for when choosing accounting software Does the software fit your business type is it suitable for a sole trader a partnership a limited company What financial tasks do you want the software to do invoices purchases inventory credit control cash flow forecasts VAT PAYE tax overseas sales end of year reports What processes do you need for example for the software to photograph receipts rather than you having to file paper copies Is the software easy to use is there good online support What are the fees and the ongoing costs When making your decision ask the opinion of your accountants and of other people who use the software Most packages will also give you a free starter version or a trial period Bookkeeping services It is possible to do the bookkeeping for your business yourself You ll save money and crucially you will also be able to keep a regular and close eye on your business But if you don t have the time enthusiasm or accuracy to do your bookkeeping it s better to delegate Maybe a friend or family member has more interest or ability than you have Or maybe you could do the tasks that allow you to monitor progress but then leave the rest to a qualified bookkeeper Accounting services As your business grows or your finances get more complex you may need professional accountancy support for your day to day financial management though this will come at a cost 86

An accountant can also help you navigate bigger business challenges such as writing a business plan preparing loan applications updating you on changing financial regulations or guiding you through an HMRC inspection of your business If you are a Limited Partnership Limited Liability Partnership or Limited Company you have to have your end of year accounts signed off by an accountant Questions to ask when getting support When looking for any professional support research online and get recommendations but then meet in person After all you re appointing someone who ll have a deep impact on your business These are essential questions to ask How long have you been in business Do you have references Will I deal with you or one of your juniors How often would we talk meet What tasks can you help me with Let me show you the way I m already handling my accounts what improvements do you suggest What accounting programme do you work with is it compatible with mine What are your fees Hourly rate Taking the next step If all goes well you ll reach a point where you won t just be surviving but thriving How to measure that Check these things that your business is stable that you re selling well that you re known to customers and to your peers And that you have both the desire and the energy to take the next step and grow your business Your main goal here may well be simply to make as much money as possible though as I explained at the very start of this book your aim may instead be to live a particular lifestyle or develop a particular creative approach Whichever you have three main routes to growth Increasing the number of products you make by raising production or by expanding your range Marketing or publicising more effectively and or to different kinds of customer Adding resources such as new staff new equipment new or specialist skills 87

The problem here is that all these ways forward involve spending money perhaps to pay for more materials more advertising more training So unless you are already making a very healthy profit you may well need funding which may also mean you have to balance risk against reward At a craft fair I chatted to a furniture maker who was developing a range of console tables made from unusual woods specifically ebony and sandalwood It was a natural progression for his business but the cost not only of the materials but also of his time spent on the creative process was far beyond his current cash flow I want to do this he said to me but I m also very wary of stretching myself financially I m pulled between wanting to stay where I am with a small and rewarding enterprise or to borrow the money to expand into what for me will be a hugely exciting new area When I met this maker the following year he had chosen excitement found his funding and the first of the console tables was already on his stand Finding funding Having decided you need funding the first question to ask is whether you want to borrow money debt funding or to raise money by selling part of your business equity funding Debt funding leaves you in charge with no obligations once the money is repaid But you may have to put up money or give a guarantee such as a mortgage on your house and you will need some proven success in your field and a good credit score Plus in the end you have to pay the money back Common debt funding sources are your bank friends and family online peer to peer loan services government and craft industry grants and loans Equity funding allows you to generate funds that you get to keep as a bonus you should also get advice and support from your investors But you wouldn t be able to go this route as a sole trader and you do give away part of your business and lose overall control Common equity funding sources are angel investors venture capitalists crowdfunding enterprise schemes For all these funding sources even friends and family make sure you draw up a written agreement on how much you are borrowing what the money is to be used for the interest rate when the repayments are to be made Plus always consult your accountant and your lawyer about the legal and the financial implications 88

Preparing a business plan To apply for funding you ll likely have to present a business plan to persuade potential investors to back you Here are my golden rules They re not only a checklist for funding applications but also for your own future business planning Explain what you are doing now What are your products What makes them special Who do you sell to how do you sell to them what does that market want What about the organisation and administration of your business and who else is involved Explain why and how you want to take the next step What s making you want to move forward Why now Why in this way Are you planning to expand your products your marketing staff equipment skills Explain the blocks What are your limitations What are the challenges and risks in how you want to move forward What are your competitors doing that might stop you from growing Explain how you plan to overcome the blocks How will you use the funding What will it buy Why is funding the most effective way for you to move forward Include a detailed financial plan with quarterly and annual forecasts of how when and at what rate your sales will increase Explain what you want How much money do you need how will you use it how long do you want it for Don t inflate the numbers funders will spot exaggeration And don t be thrown if funders ask questions that focus on potential future problems it s best to be aware of such problems now so that you don t move forward unwisely and hit disaster Do present all this as a compelling story that makes potential funders want to back you And do ask for feedback on your presentation particularly if funding s refused you need to know how to do better next time Add good images of your work into the document Inspired Exhibition 2015 Silver by Rebecca Hill and Wally Gilbert 89

Follow up work Having read this chapter would you be ready to do the following Prepare quotes for customers Prepare and process sales invoices Chase debt Pay your suppliers Process purchases Complete your self assessment tax returns and relevant end of year company accounts and tax returns or be able to give your accountant the right information to complete these Prepare a cash flow and future projections spreadsheet using the annual costs worksheet at the back of this book You will need to estimate sales and monthly costs Explain clearly what your current financial situation is If you re uncertain about any of these what more support do you need in order to feel confident Where could you get that support 90

Your notes 91

Left to right Miriam Hanid and Tony Bedford inspect an engraving by Malcolm Appleby at the Grand Tully Symposium 92

Chapter 7 Case Studies Make a clear staightforward plan Then turn your attention to the important bits earning a living being creative and enjoying yourself 93

Chapter 7 Case Studies Comparing and contrasting successful makers enables you to look at the personal and business attributes which mark them out from less successful artisans Here are three examples All three of these makers have achieved on their own terms financial and artistic success being recognised both by their peer group and by the other makers in the industry All three have extremely high levels of mastery Their accumulated skills and experimentation underlie their gift to deliver original design in their own voice their work has an authenticity which sets them apart And all three makers have built relationships with dozens of suppliers of materials tools machinery and gemstones and have forged close friendships with outsource workers These makers use superior technique as the tool for expressing their ideas Their designs are highly thought through and as part of the sales process the makers pose the question What does the customer want even though they don t know it yet These artisans share a strong belief in community and in helping fellow makers especially when it comes to the teaching of technique Each gives a significant amount of time to passing on their skills their thoughts on business and their philosophy of being a modern maker Malcolm Appleby A highly respected engraver jeweller and silversmith Malcolm now in his mid 70s was at the age of 23 acknowledged as being a master engraver demonstrated through his engraving work for Louis Osman as one of the craftsmen on the Prince of Wales s investiture crown His grounding was as an apprentice engraver to leading London gun makers his fellow makers being financially hard nosed craftsmen an experience which made him commercially aware His finishing school was the Royal College of Art where he experimented with fusing iron and gold amongst many other jewellery and silversmithing techniques Malcolm is now at the centre of a matrix of artists and makers who create the pieces produced under his name He has worked with some of these people silversmiths and enamellers for over 40 years They all understand his shorthand 94

Malcolm Appleby gold and silver beakers of explanations Do this like we did the XYZ candlesticks Engrave in the style of ABC On a recent set of beakers he stuck a Post It note on which he had written an enigmatic instruction concerning the enamel design reading Art it up Malcolm has an unusual selling regime He rarely exhibits at shows he views his time as extremely valuable and he doesn t enjoy being away from home He may send pieces to an exhibition and simply arrive for the preview he did this at the 2017 Masterpiece exhibition in London to promote his collaboration with Lord Snowdon a former student of his in the engraving of a table He has a strong and ongoing relationship with the Scottish Gallery in Edinburgh as well as with the curatorial department at Goldsmiths Hall which wins him high profile commissions in museums and for institutions and government Through assiduous networking Malcolm nurtures a very strong customer database which includes some of the world s wealthiest people Now his wife Philippa and daughter May make up the in house team effort for selling His workshop and recently built selling area design studio and home are all situated in a bucolic wooded environment with tame and wild animals in situ Both the setting and the animals form part of Malcolm s integrated sales approach Even the chickens in the garden are our ambassadors he says Malcolm is selling himself as eccentric master craftsman conservationist naturalist and satirist He drops current achievements and commissions into his conversation and quotes positive testimonials about himself in his customer mail outs And through beautiful jewellery silversmithing drawings engraved guns and prints he proves every accolade fully merited 95

Sarah Hutchison As with all the makers who use the portfolio approach to establishing their business Sarah demonstrated tenacity grit and the ability to take the longterm view of business After the success of her degree show she worked part time in Scotland s largest silversmithing workshop gaining further experience and then contributed to a large promotional project called Silver of the Stars run by the Incorporation of Goldsmiths of the City of Edinburgh Her work was a diamond set silver teapot My piece was one of the wackiest because I had diamonds on it I wanted something that people would remember I knew a lot of people would see it and whether they saw it in the Victoria and Albert Museum or saw it in a newspaper they would remember it I got a lot of really good press and publicity Following this came the first of Sarah s three selling exhibitions at the Goldsmiths Fair The first show I ever did was Goldsmiths I did it in 2005 2006 and 2007 I think I was spoiled because Goldsmiths is the show where people have money They come they say I ll have it and only then do they ask how much it is At my first Goldsmiths Fair I made eleven thousand pounds in a week more than most students dream of This introduction was followed by five more shows in succession one of which in 2008 unfortunately made a loss Sarah s subsequent crisis of confidence was followed by a job offer in London to run a gallery four days a week As an inspirational role model running a high profile London gallery Sarah then began giving talks to students Because I had done the Goldsmiths Fair all those years I d won a lot of different awards so people listened to my opinion and thought I knew what I was talking about With a great deal of business experience behind her and having seen how other businesses were run in 2011 Sarah took the decision to move back to her home town of Edinburgh and open her own shop SH Jewellery She already had a local network of buyers in Edinburgh so she knew that her new venture would grow through word of mouth recommendation and good customer service which has proven to be the case 96

Sarah Hutchison Silver Pendant Silver Teapot I d always sold well in Edinburgh and I already had a small core of basic clients there but moving was still a big risk You pay for everything For example I had a commercial let with a ten year lease that s a long time a big responsibility If the roof fell in and I had to pay for it I d be bankrupt and that would be the business gone Asked whether she made her decision with or without writing a business plan Sarah said So far up until now I ve never planned anything I didn t write a business plan to open my shop in fact I have never written a business plan in my life Because things never go according to your intentions anyway So I think it s better just let nature take its course Letting nature take its course has resulted in SH Jewellery winning the award for Scottish Independent Jewellery Store of the Year in both 2017 and 2018 Sarah expresses the view of many artisan silversmiths that written planning is not a good use of valuable time in a market of uncertain and extremely variable demand She is an intuitive businessperson who weighs the risks of business through extensive conversations local knowledge and building a picture of the future venture not on paper but in her own mind 97

Brett Payne Brett took the art school route where he was introduced to the basic techniques of silversmithing and learned the rudiments of designing for Silver On leaving art school Brett initially concentrated on designing and producing contemporary jewellery exhibiting around the world and selling his work through high end galleries such as Electrum in London s West end and eventually becoming Designer of the Year at the UK Jewellery Awards in 1995 As a jewellery designer Brett learned quickly the importance of communication often discussing with clients what it was that they wanted the piece he was designing to do for them It gradually became central to his practice to think of design not just as an initial drawing of an idea but as a process embracing all the elements of creativity from the conception of an idea through to the presentation of the final sale Brett recalls that when he was a child his father an artist painter used regularly to visit the galleries of London s West End showing his work Accompanying his father on occasions he witnessed rejections as well as acceptance and began to question whether sub contracting the selling part of the artist s creative life was the best thing to do After conquering the world of contemporary jewellery Brett decided to turn his attention to the design production and direct selling of contemporary silverware Designing pieces that would fit into the homes and lives of ordinary everyday consumers using silver as a modern material to tell a very contemporary story Today his pieces vary greatly in scale and there is a range of prices to suit a variety of pockets but his work is always carefully thought out and designed with the eventual owner and user very much in mind There is no compromise his work is highly polished to a mirror finish allowing no room for faults there is nowhere for mistakes to hide His current business model has been developed over many years and generally precludes dealing with galleries or dealers though he will trade with them if he is convinced that they will add value One dealer described him as a prickly negotiator Instead Brett goes to shows exhibitions and craft fairs In my many informal discussions with him over the last several years he has explained that he looks ahead 12 months to apply to the events he would like to attend carefully considering geographical location dates and quality of potential shows before 98

formulating a preferred schedule for the year That said none of the applications guarantees him being accepted and several fairs take months to respond For those prospective clients who do not already know Brett the first step on the journey to making an often significant purchase is seeing him at one of these shows His stand is differentiated from its surroundings by its clean look and simple lines Generally a personal conversation with Brett himself is the first point of contact Brett uses his website and blog to remind people of his existence for updating them on new designs and for prompting visits to future events It is like a brochure that they can t lose he says The website is also used to allow potential clients to confirm details of the pieces they have seen at a show and are considering purchasing but to make the purchase they will either telephone an order visit the workshop or attend a subsequent show For any given item of silverware he prepares a number of carefully thought out presentations choosing which one to deliver will be determined by the level of interest shown by the person or people in front of him The purpose of a presentation is to demonstrate the benefits and character of the piece being focussed on but Brett may also explain a little about himself his Sheffield workshop or the methods of manufacture It also serves as an introduction to the task of establishing whether the customer is for example celebrating a significant anniversary or event so helping him focus more accurately on giving that customer relevant information At the end of this first encounter Brett will give the prospective client a 4 page A5 booklet A luxury object in itself beautifully printed with very good photography it gives a very brief history of his achievements exhibitions and awards All information designed to inspire confidence in his abilities as a designer and maker Observing Brett at selling exhibitions it is interesting to note the change of attitude and body language displayed by the prospective client when having read the booklet they return for a second conversation they appear considerably more relaxed yet engaged It is also interesting to note the complete and undivided attention which Brett gives his client His eye contact will never waver as if at that moment in time they are the most important person in the world to him He has become their newly discovered master silversmith Many other craftsmen regard Brett as a pre eminent salesman and he is viewed with great awe by younger silversmiths who often just stand and admire his selling technique 99

Silver Fish Dish engraved and enamelled by Phil Barnes 100

So What Next If you re on the wrong bus get off Experiment trial and error 101

So What Next If you have done the exercises at the end of each chapter you will have effectively created a business plan taking into account all your options in marketing company structure intellectual property protection and finances So now work out a strategy which leaves you with the minimum of risk it s called a Lean Startup and a book on this topic is mentioned in the reading list below Create a simple costing system which works for you Do you make in small batches make speculative pieces or work to commission These are very different ways of coming up with your sale prices Start with small steps in every part of your business trial and error What works for you Try to find a mentor Join a trade association Keep up with the latest information on trends exhibitions and the law concerning the type and size of your business For my own part I ve had successes and failures The failures I keep quiet about I know I kept those businesses going too long until my wife explained When you re on the wrong bus get off So be prepared to swallow your pride and move on The successes I ve enjoyed And I hope you will do the same Being in business is hard work but ultimately very rewarding emotionally psychologically and even financially My fondest regards to everyone who uses this book Gordon Hamme 102

Further reading Airey D 2012 Work for Money Design for Love New Riders Publishing San Francisco A fun practical book Boothroyd A updated 2017 Setting up A Successful Jewellery Business Bloomsbury Academic London A very good practical guide to the nuts and bolts of running a jewellery business Branagan A updated 2019 The Essential Guide to Business for Artists and Designers Bloomsbury Visual Arts London Very similar to Angie Boothroyd s book and well worth reading Granet K 2016 The Business of Creativity Princeton Architectural Press New York A hard nosed look at the business of creativity Jacobsen M 2013 The Business of Creativity Harriman House Ltd Petersfield A good read on being in business Ries E 2011 The Lean Startup Penguin Random House London An American book which systemises trial and error preaching that the early shutdown of a failing product line or even of a company is nothing to be ashamed of 103

Silver and glass honey pot and dibber by Adam Veevers 104

Ws s Worksheets Make sure all money in and out is documented file hard copies of your documents make sure your computer copies are safely backed up 105

Financial to do list When it comes to timing your financial organisation there s a clear pattern This checklist will help you organise to do the right things in the right order at the right time For further detail on all these elements go to www gov co uk current Every day Check that you have enough cash available to pay your outgoings over the next week Every week Money in Note and enter into your accounts system the money you have received making sure you have an invoice for each amount Prepare and send invoices that are due for payment Money out Pay your suppliers if that is not done automatically by direct debit or standing order making sure you have a receipt for each amount paid Check that you have receipts for anything you have paid for personally while working for the business so that you can claim expenses Banking check your bank statements and business credit card statements for anything that seems wrong Make sure all money in and out is documented file hard copies of your documents make sure your computer copies are safely backed up Every month Money in Do your debt collection on any invoices not paid Money out Check that automatic payments to suppliers such as heating bills or rent have left the bank Banking reconcile your bank statements Check your cashflow a month ahead to make sure you re not facing problems Check your progress by comparing this month s performance with that of previous months Transfer 25 30 of your income to a savings account so that you can pay your tax bills when they fall due 106

Every quarter Pay your Value Added Tax VAT bill Every year Individually by 31st January current file your individual self assessment tax return and submit it to Her Majesty s Revenue and Customs HMRC Prepare to pay National Insurance contributions on your earnings At your business year end which will vary according to when you started trading check back through the year that your business records are accurate Your records should list your sales invoices and receipts your purchases cheques paid if any a list of unsold stock and uncompleted work a note of equipment and property owned a list of debts loans and investments a note of staff on the payroll All your records should tally with your bank statements If you own a limited company file your company accounts and company tax return and pay corporation tax Where relevant prepare and file your directors report balance sheet and profit and loss account You ll likely want your accountant s help with this Furniture by Ed Wild Silver by Wally Gilbert 107

Batch production bespoke commissions worksheet Batch production Materials Components Outworkers Tools used up Bench time hourly rate Other time taken Hourly rate x hours taken Hourly rate x hours taken Bespoke commissions Design time Materials Components Outworkers Tools used up Bench time hourly rate Other time taken To and from meetings Running around Answering resolving queries Hourly rate x hours taken Hourly rate x hours taken Hourly rate x hours taken Hourly rate x hours taken Cashflow worksheet You can use the annual costs worksheet on the opposite page as the starting point for developing a spreadsheet showing your earnings and expenditure All amounts in this example are current for 2020 1 The amount of money you ve borrowed or saved is say 2000 2 Starting up can be expensive so I m assuming you have set up costs such as a studio rent deposit or the first month s or quarter s rent some new equipment and materials to buy as well as the advance rent to pay on an exhibition in month 2 Your first month s total spend could be approximately 1800 3 Assume that your first month s sales total is 100 4 So your cash balance at the end of the first month is 300 5 You then carry forward the first month s final cash balance to the start of the second month 300 6 Your costs for the second month would probably include materials tools etc and might total 300 7 Assume that your second month s sales total more than the first month s say 550 People are starting to buy you may have done your first exhibition 8 So your cash balance at the end of the second month is 550 Carry it forward to the start of the third month 108

Annual costs worksheet example Employment costs Your wages Employee wages PAYE tax National Insurance Capital expenses Machinery Tools Computers Printers Studio costs Rent Rates Phone Insurance Utilities Water Gas Electricity Exhibition costs Exhibition rents Other exhibition costs lighting power points Travel Hotels Subsistence Professional fees Accountant Bookkeeper Legal Other costs Vehicle Trade assoc membership January February March April To work out cash flow 1 Start up money in 2 Start up costs 3 Sales 4 Balance Month 1 2000 1800 100 300 Month 2 5 Balance from previous month 300 6 Costs 7 Sales 8 Balance 300 550 550 Month 3 550 250 600 900 109

Calculating profits This is a useful table to calculate the mark ups you need to make to make a profit You can use your annual costs worksheet to see what your overall costs are and by estimating annual sales you can see whether your mark up is sufficient to make a final profit Mark up on example 100 Or percentage uplift 10 20 25 33 50 75 100 double cost 125 150 200 treble cost 250 300 quadruple cost Selling price 110 120 125 133 150 175 200 225 250 300 350 400 Gross profit on 100 cost example 10 20 25 33 50 75 100 125 150 200 250 300 Percentage profit 9 17 20 25 33 43 50 56 60 67 71 75 Example calculation 100 example cost percentage uplift selling price uplift mark up price divided by the selling price percentage profit Percentage profit makes calculating the final profit of your enterprise much easier For example if you sell 1000 of goods at 100 mark up your final profit will be 50 or 500 110

Ys Your Notes 111

Your notes 112

Your notes 113

Lightball by Brett Payne That is all well said replied Candide but we must cultivate our garden Candide 1759 Voltaire 114

HOW TO BUILD A CRAFT BUSINESS This is a simple but not simplistic practical guide for craftspeople on the essentials of surviving in business The author understands both craft and business his approach demystifies starting and building a craft enterprise Professor Julius Weinberg Former Vice Chancellor Kingston University Gordon uses a relaxed yet engaging format which created an ideal learning environment for me I made a marketing plan with a focus on social media and devised an action plan I am now refocused and have had many insights into my own brand identity and purpose This course has been an invaluable process Val Deas This book introduces and covers what you need to know about marketing your products yet it is very accessible and easily understood It is clearly laid out and organised in a logical order with high quality illustrations There are interesting relatable accounts of other crafts people s experiences on their journeys and regular follow up tasks to focus and guide personal development This book is a must for designer crafts people and it deserves a place on the library shelves of every Further Education establishment teaching creative design and making Birmingham Assay Office www buildacraftbusiness co uk