LIFES A PITCH//PRESENTATION PART TWO//WHAT IS THE COST?//OUGD502

WHAT ARE YOUR COSTS?

LEGAL COSTS

What legal costs might you incur in setting up your business, on protecting your intellectual property, registering with Companies House ( if appropriate) or using a solicitor to look at your contracts?

RESOURCE COSTS

How much Capital expenditure in the first year?

How much will you spend on materials and goods for sale for the first 6 months ( Direct Costs)

How much will be spent on bills and overheads for the first 6 months (Indirect costs)

What are your outgoings ?

• Overhead costs
• Insurance costs
• Premises costs
• Utilities, Postage & IT costs
• Research & Development costs
• Equipment costs
• Material costs
• Maintenance costs
• Finance costs
• Professional services
• Promotional costs

What is you expected income?

• Accommodation (rent/mortgage)
• Utilities & Communications
• Insurances
• Personal Loan Repayments
• Food 
• Travel
• Esteem costs
• Entertainment
• Holidays & breaks
• Savings & Pensions
• Etc…

What are your prices?

• How have you worked out your prices? State what your pricing strategy is
• How do your prices compare with your competitors?
• Identify 3 competitors and give evidence of their prices.

Total Outgoings

+   Expected Income

      _____________        =    Your Daily Rate

    £15 000

+   £20 000

      _____________        =    £150.21 per day

      233 days

DON'T GET RIPPED OFF

protecting your work

What is intellectual property?

Intellectual property (IP) refers to creations of your mind: 

inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.

Films, games, paintings, photographs, fashion designs, typefaces and even recipes.

• Patents
• Trade marks
• Registered designs
• Copyright 

PATENTS

TRADEMARKS AND LOGOS:

LOGOS:

TRADEMARKS:

REGISTERED DESIGNS:

US Patent number 7966568 
Registered design iPhone is a registered trademark of Apple Inc

COPYRIGHT:

Art, literature, music, animation, film, games,

Automatic 

Date and record your work

HOW LONG DO THEY LAST?

Patents  

- max 20 years

Trademarks and Logos – 

for ever – 

renew every 10 years

Design Rights

Up to 25 years

Renew every 5 years

Copyright

Until 70 years after death

Fair use legislation

"To succeed in a copyright infringement action, a plaintiff must prove ownership of the copyright and copying by the defendant."

WHAT IS LICENSING?

Selling reproduction rights of your work

Controlling its exposure

License the same work for different purposes 

10 points to be included in a licensing agreement?

• Parties

Your details

The licensee’s details

• The work

The details of the specific works to be licensed

• On what or in what the work will be reproduced (e.g. Posters, DVD, book)
• The countries in which the work will be reproduced / sold
• The period of the license – including the time to bring it to market (or surrender the right)
• A termination date for the agreement – usually one or two years.
• An indemnification clause to say will protect you from any lawsuits
• A cancellation agreement in the event they don’t abide by any of your terms
• Details of the payment method (e.g royalties, flat fee up front, staged payments)
• The right to audit their books (at your expense)

DESIGNERS AND ARTIST COLLECTION SOCIETY

LIFES A PITCH//PRESENTATION PART ONE//WHO ARE YOU?//OUGD502

WHO ARE YOU - WHAT DO YOU DO?

• Your Business
• Your Resources
• Your Customers
• Your Costs
• Your Prices
• Promoting Yourself
• Monitoring Success

YOUR BUSINESS

THE BIG PICTURE   or   The Master Plan:

Business name – Who are you?  

Business activity - What do you do?

Mission Statement – What do you aim to achieve?

THE IMPORTANT DETAILS:

Business objectives

What are you plans to achieve your sales target in the first 12 months?

What new products or services will you introduce in the following two years to grow your business?

What is your long term / 5 year goal?

WHAT IS THE STRUCTURE OF YOUR BUSINESS?

Describe the organisation – draw a diagram if appropriate

Who are the people in the business?

How many people are employed?

What are their individual roles? 

What are their individual/joint responsibilities?

THE LEGAL STATUS OF YOUR BUSINESS:

• Is it Limited Company or partnership, social enterprise, cooperative or are you a sole trader?
• Why have you chosen this status – what are the advantages

YOUR RESOURCES:

• Products or Services (or both)
• Describe the range of goods/services you are selling. 
• What percentage of turnover each will provide ( e.g.  – 20% clothing, 60% jewellery, 20% hats) 
• What resources do you require?     (e.g studio space, retail area, storage capacity)
• What equipment do you need?     (e.g. office equipment and furniture, display and lighting for a shop, studio equipment, company car / van)
• How much will it cost (to the nearest £3,000)
• How much stock do you need? 
• Do you need stock to start your business?
• How much will your sales stock cost ?  (to the nearest £3,000)

YOUR CUSTOMERS

• What evidence do you have that anyone will buy your product / service? 
• Is it a popular product / service currently provided by lots of others
• Is your idea completely new?
• Is there increasing demand for your product / service?
• Who are these people?
• Use segmentation to describe your typical consumer or consumers
• If yours is B2B – describe the market sector (e.g. retail, food, leisure, SMEs, local bands, entertainment industry)

WHERE ARE THEY?

(It may help to include diagrams or maps)

WHERE DO THEY GO?

(this could be geographical or virtual)

Where do they want to go?

Where would they go if they could?

How many groups of customers are there?

What are the facts, Figures, Statistics about them?.  

(e.g. population, tourist visitor numbers, number of local bands, number of retail outlets)

Why would they buy from you rather than anyone else?

Provide a SWOT analysis to show that you have analysed your strengths and weaknesses in comparison to your potential competitors 

How much will the average customer spend with you?

How often will they spend that amount with you?

Will your sales fluctuate due to external forces ( e.g. seasons or cultural / sporting events)

How will you advertise your products / services?

(advertising is not compulsory)

What other marketing methods would be effective for you? 

Personal Selling

Promotions

Public relations

Direct Marketing (Targeted marketing)

Online

WHO ARE 'THEY'//PRESENTATION//OUGD502

OUGD502 PPP// WHO ARE 'THEY' PRESENTATION 

WHAT IS MARKETING?
“The management process responsible for identifying, anticipating and satisfying customer requirements, opportunities, profitably & success”. 

MARKETING ROLES 

• Identify customer needs to develop new products
• Develop pricing strategies
• Promote products to a target market
• Identify distribution networks
• Add value to your product through customer benefits
• Monitor the performance of the products 

THE FOUR P'S

• PRODUCT - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible
• service.
• PRICE - The price is the amount a customer pays for the product or the overall cost of a product.
• PROMOTION - represents all of the methods of communication that a marketer may use to provide information to
• different parties about the product.
• PLACE- refers to providing the product at a place or in a context which is convenient for consumers to access. 

BY THE NUMBERS

• 87% of design businesses employ less than 10 people
• 16% of design companies are in the North of England
• Only 23% of design companies are in London
• 57% of design companies say they collaborate with other companies or practitioners on client briefs 

INCOME PATTERNS IN THE VISUAL ARTS - ARTS COUNCIL 2005

WHAT IS A CREATIVE ENTREPRENEUR?

• Only 16% of adults in Brazil are entrepreneurs.
• Only 6% of the people in India are entrepreneurs
• United Kingdom the figure is only 5%. 

WHAT KIND OF CREATIVE ARE YOU?

• EVOLUTIONARY    -    REVOLUTIONARY 
• MANAGER     -    OPPORTUNIST 
• CAUTIOUS    -    RISK TAKER

IDEAS AND OPPORTUNITIES

“Great minds discuss ideas. Average minds discuss events. Small minds discuss people” 

-Eleanor Roosevelt  

WHAT IS AN 'IDEA'?

• Can occur at anytime
• Can occur to anybody
• Can happen anywhere
• Can be inspired by anything 
• Is generally random
• Seldom materialises
• Rarely succeeds 

“In the realm of ideas everything depends on enthusiasm.....in the real world all rests on perseverance” 
-J.W von Goethe


“Everyone is a genius at least once a year. Success comes from having brighter ideas closer together.”  
-Fred 

WHAT IS AN OPPORTUNITY?

• The People are Right
• The Place is Right
• The conditions are Right
• The Time is Right 

• The People are Right
• The Place is Right
• The conditions are Right
• The Time is Right 

THE WRONG TIME

Inventions before their useful time.

• Helicopter
• Flying machine 
• Machine gun 
• Parachute 

WHY DID THEY FAIL?

• Politicians could not see any benefit
• Economics were fragmented 
• Society had no need Technology too primitive 

WHAT WENT WRONG?

• Politicians could not see any benefit
• Economics were fragmented 
• Society had no need 
• Technology too primitive 

Positives & Negatives 

• Political Factors 
• Environmental Factors 
• Social Factors 
• Technological Factors 

WHERE DO THOSE OPPORTUNITIES COME FROM?

• Trends
• Technical developments
• Political change
• Economic boom and slump
• Human need 
• Problems
• Research 

SO YOU THINK YOU HAVE SPOTTED AN OPPORTUNITY?

Skills
– Technical
– Practical
– Conceptual 
– Professional

Aptitudes
– Teamwork
– Collaboration
– Communication
– Project Management
– People Management

HOW DO I KNOW IF THIS IS A GOOD OPPORTUNITY OR NOT?

• Look at your competitors 

– How many are there?
– How well are they doing 
– What do they do well?
– What could you improve upon? 

WILL ANYONE 'BUY IT'?

ASSESSING THE COMPETITION

• What are their Strengths? 
• What are their Weaknesses?
• What Opportunities have they taken?
• What Threats do they face? 

What are their Strengths? 
What are their Weaknesses?
What Opportunities have they taken?
What Threats do they face? 

S.W.O.T ANALYSIS 

STRENGTHS
What are they good at? What makes them good at it?

WEAKNESSES

What are they bad at? What makes them bad at it?

OPPORTUNITIES

What don’t they do? Why don’t they do it?

THREATS

What could go wrong? Why could they fail? 

Your network of friends and associates 
Your Lifestyle

Your competitors and other practitioners 
Your suppliersYour local communityStakeholders 

ACCESS THE QUALITY OF OPPORTUNITY

• For me
• For the customer
• For the planet
• For other skate holders

MARKETING BASICS
PEST ANALYSIS
What are the chances of success?

• SWOT ANALYSIS 
How good is the opportunity?

• PUSH & PULL

• SUPPLY & DEMAND
What do I have what do they need?