22 July 2015
5 essential summer tips for entrepreneurs
As we head into the height of the summer Rasheed Ogunlaru, leading life & business coach, author of Soul Trader and Business & IP Centre partner, shares his 5 tips on how to relax, re-charge and return to your business re-energised.
1) Time for you
Being your own boss with a busy business there can be a huge temptation to plough on through summer without a break. But it’s essential that you take time out. Whether you go on vacation or on stay-cation it’s important that you relax, recharge and regroup. This is one of the few opportunities in the year you may get to catch your breath – so seize the moment. What do you need? Maybe some time by the beach or time to catch up on rest and sleep? Check in with yourself and put time in for yourself in your diary.
2) Time for things you love to do
Getting a business up and running has a way of putting everything else on the back-burner. Hobbies, interests and pass-times can often become an old memory. Summer time is the perfect time to re-acquaint yourself with them. Be it that you love to paint, go for long walks, play sport, make things, bake things – whatever it is get stuck back in. Very often hobbies and pastime have huge mental, physical, emotional and spiritual benefits. They are part of what makes our lives healthier, happier and more balanced. This may be just the tonic that you need to wind down, de-stress and get excited and re-energised again. Far from being a distraction from business these types of activies will actually boost your energy and productivity levels when you return to business.
3) Time for loved ones too
There is that powerful saying that; when all is said and done in your life few people will report that “I wish I’d spent more time in the office". Likewise one of the biggest regrets people say is that they didn’t spend enough time with loved ones. Now is the time to catch up with friends, family and partners. Let them know that you’re glad that they are there and let them know you care, especially if your business has eaten into the time you’d normally spend with them. Schedule time to catch up, be spontaneous and above all spend quality time reconnecting.
4) Time for things you ought / need to do
The chances are that there are a number of things that you may have put off or forgot through pursing your venture. What really needs doing and what will improve your home, personal and business life? Write a very short and focused list. Sleep, exercise and healthy eating often fall into this list. Appointments with doctors, dentists, opticians and health practitioners are others. But it may well also be that clearing out your front room, garden or office and computer will also help calm your mind, feel organised and enjoy your free time.
5) Time for a quick review / preview
The summer slowdown can also be a great opportunity to gently reflect on where you’re at and where you’re going. First of all give yourself credit for all that you’ve already achieved along your business journey? Now ask yourself / write down:
- What’s going well and how can you build on it?
- What are the challenges and problem areas – and who / what can help you?
- What are the 2-3 priorities that would give you / your business a boost
Gently reflect on the answers and they’ll give you a great starting point for when you return after your summer break.
Whatever you do have a wonderful, relaxing and enjoyable summer. Taking time out can actually be one of the most powerful ways of bringing energy, purpose, balance and perspective back into your business.
Rasheed Ogunlaru on behalf of the Business & IP Centre
Build your business through relationships by joining Rasheed for “Networking for Success” his monthly event for new and established business owners at the Business & IP Centre.
20 July 2015
Top 5 Intellectual Property Mistakes Made by Small Businesses
Intellectual Property (IP) law can be a minefield, particularly for start-ups and SMEs that either don’t have the necessary experience or resources. As a partner to the Business & IP Centre and at our firm of patent and trademark attorneys, London IP, we work with small businesses to sort out IP problems that could have been avoided if the right steps had been taken at the right time. So, to help you avoid any problems with IP we have put together a list of our top five IP mistakes (and how to avoid them).
1. Being scared of IP and ignoring it
There is a myth that IP is an expensive business, and no doubt it can be. However, really you can spend as much as you want to. The UK official fees for registered designs are £60, for trademarks fees start at £170 and for patents £230. Indeed, the official fees to obtain a registered design that covers the whole of the EU are only EUR350!
If you use a patent or trademark attorney to help you then you will need to pay their fees as well, but compared to the cost of many other business expenses such as rents and business rates IP isn’t all that expensive. For example, the cost to get a UK patent granted could be anywhere in the region of £1500 to £4000 spread over five years or so. For a potential twenty year monopoly, and a halving of corporation tax (through the patent box tax scheme), that may be a very worthwhile investment.
Also, it’s worth knowing that IP law is actually quite generous in that it gives you free IP rights that you don’t have to do anything to obtain other than create something that is worthy of being deemed to be protected. The most well-known of these rights is copyright, but there are others.
For example, any designs you create may be automatically protected for three years by EU unregistered design right, and for up to 15 years by UK unregistered design right.
That said, unregistered design rights are not as strong as registered rights as unregistered rights (other than the ‘passing off’ right for unregistered trademarks) are only infringed by copying, whereas registered rights provide an exclusive right meaning that they can be infringed even if the original work has not been copied.
Thus, it must be recommended that you register your IP rights if possible.
2. Being fooled by scam invoices
The publishing of applicant and inventor names and addresses is essential to the transparency of the IP system as the public needs to know who owns a particular IP right.
Unfortunately, all this information can also be used by criminals, so if you do choose to register any IP rights then it is almost certain that you will receive one or more very official-looking letters from rogue companies that try to scam applicants for patents, trademarks and registered designs.
These scams can simply be an invoice that appears to be from a ‘patent office’ or a ‘register’. The amounts of money requested vary, but are sometimes quite significant.
The UK Government seems to be generally powerless to stop most these scams as they are often run from overseas
Beware.
3. Not registering IP at the right time
There is nothing more disheartening than a client describing what sounds to be a marvellous invention with a view to protecting it with a patent and the client commenting ‘it’s selling really well’.
To obtain valid patent protection in most of the world a patent application must be filed before any non-confidential disclosure of an invention.
So before you file a patent application for your invention you can’t sell it, put on a crowd-funding website, use it in public, etc., etc.
You can of course talk to third parties in confidence without jeopardizing your chances of obtaining valid patent protection. You may wish to use confidentiality agreements with third parties just so it is clear that everyone understood that the discussions were confidential.
As an aside it is worth noting that all correspondence with patent attorneys is inherently confidential both under common law and their code of professional conduct, so using confidentiality agreements with patent attorneys is quite unnecessary.
It’s not just patents though; many countries of the world require registered design applications to be filed before any non-confidential disclosure of a design in order to grant valid protection.
Furthermore the trademark system in many ways operates on a first-to-file basis so trademark applications should be filed as early as possible to safeguard future use of the mark and to minimize the chances of expensive and protracted disputes with owners of later-filed conflicting trademarks.
Many trademark disputes would never have occurred if a relevant trademark had been registered when use of the mark started.
In summary, IP should be considered at the very outset of any new venture to try to make sure that patent, trademark and design applications are filed at the appropriate time.
4. Ignoring infringement issues
It should be appreciated that IP is double-edged sword and along with protecting your own IP rights you need to careful not to infringe existing IP.
As mentioned above, registered IP rights provide the owner with the exclusive right to use the IP in the territories covered. This means that you may believe that what you are doing is original but you could be infringing an existing right.
This is the case even if what you are doing is in fact original as registered IP rights can be broader in scope than the thing that they were created to protect.
For example trademark registrations give the owner the right to stop use of identical and similar marks, and registered designs protect against designs with the same ‘overall impression’.
Often we see clients obsess about protecting ‘their’ idea with a patent, and ignoring the fact that someone else might have thought of it before (perish the thought!).
So before spending money on branding, prototyping and tooling, try to make sure that whatever it is that you are developing isn’t going to infringe.
If it does infringe and you can’t obtain a license, then unless the IP can somehow be worked around you may need to completely reconsider your project.
5. Not understanding IP ownership issues with commissioned works
If you pay someone to build you a house then you own the house once the work is complete.
IP doesn’t work like that unless the ‘builder’ is legally an employee, so problems regularly arise with commissioned works, where the person doing the work is paid money for a project, but is not an employee.
For example, if you commission someone to design a logo or a product, or to write something for your website then (unless there is an agreement in place to the contrary) the person that does the work will own all of the IP rights when the work is done.
Because this is so counterintuitive a lot of disputes about the ownership of intellectual property arise. Indeed, if the law on this were to be changed a lot of IP lawyers would be out of a job!
It is therefore very important to have a clear agreement at the outset of any commissioning process about who will own all the IP once the work is completed and to ensure that, if desired, any IP rights created are legally transferred to the commissioning party.
David Warrilow, Patent & Trademark Attorney London IP, on behalf of the Business & IP Centre
07 July 2015
How to turn you design business into an iconic brand
Last night we were joined at the British Library by Sophie Conran, founder of design company, Sophie Conran; Safia Minney, founder and CEO of Fairtrade fashion label, People Tree; Antony Joseph, co-founder of homeware brand, Joseph Joseph and Tanya Sarne, founder of fashion label Ghost. As part of our Inspiring Entrepreneurs series the speakers shared the secrets of their success for turning their design businesses into big brands.
Here's their advice for building a successful business from scratch, and tips for how to stand out in the market.
Sophie Conran
The daughter of veteran designer Terence Conran and sister to Jaspar, Sophie grew up in an entrepreneurial environment. Here are her tips for starting and growing your business:
- Be Prepared and always do your homework. Preparation is key.
- Do a thorough business plan – constantly analyse and set yourself goals.
- Be positive and be accountable. Be happy to blame yourself when something goes wrong.Be adaptive – things will never go exactly as you hope they will.
- Operate good business relations. Enjoy the people you work with and find common ground. It is so important to get along with people.
- Make sure your contract with collaborators gives you total control over your designs.
- When taking on your first member of staff as a designer, hire someone for one day a week at first to see how it works out.
- Visit the Business & IP Centre at the British Library for assistance.
Safia Minney
Safia, founder of People Tree and pioneer in Fair Trade and sustainable fashion, started her business to support marginalised artisans in very rural areas and help to alleviate poverty. She gave her top 5 tips for aspiring business owners:
- Get experience in the field that you want to start your business in
- Surround yourself by people who you can trust and are better than you in their different specialisms
- Learn to plan and do your numbers well
- Build strong relationships with suppliers and key stakeholders
- Trust your intuition
Antony Joseph
Like Sophie Conran, Antony was born into an entrepreneurial family. Together with his twin brother they launched Joseph Joseph kitchenware business. They didn’t go into business because they loved cooking, but rather because they loved solving consumer problems. Since they started they have launched over 300 chopping boards into the market along with a wide variety of other kitchen appliances and are now venturing into the waste management market. Here are Antony’s tips for being successful:
- Be careful which distributors you choose: find the right one and you can start to have rapid growth.
- Remain focused: remember who your customer is and what you can sell to them.
- IP protection is expensive. Ensure you can trust your distributors and protect your designs in your key markets.
- If you have your products made in China, don't put all your products through one factory. Let several compete for your business
- Avoid competing with yourself by covering different price points and categories.
Tanya Sarne
Fashion icon Tanya Sarne started in fashion sportswear and then noticed a gap in the market for middle range quality fashion and launched ‘Ghost’. The label quickly expanded and became one of Britain’s best loved brands. She has now delegated her business operations globally and so can focus on her designs for new label ‘Sarne’. Here’s what she learned along the way:
- Be positive and fun with what you do
- Make mistakes but recover quickly
- Proper entrepreneurs need a challenge in their life
- If you are looking to hire someone, try someone out for a year and see how it works out
- Trust your instincts
- Be nice to your staff, suppliers and customers
- Get experience in the business, identify your market and USP, work hard and take risks
- Know you’re going to have to work harder than ever before
- If you have a positive and inspiring atmosphere around you it spreads out
The panel also answered some of your burning questions - watch the video for some highlights:
Come along to our next Inspiring Entrepreneurs event which will celebrate the contributions of Black British entrepreneurs and creative talent in the UK with a panel including: MOBO CEO and Founder Kanya King MBE; June Sarpong MBE, TV presenter and Founder of Lipgloss Productions; Yinka Ilori, Designer and Levi Roots, Reggae Reggae entrepreneur and MOBO nominated musician. Book now.
01 July 2015
Book Review: ‘The Luxury Strategy’ and ‘Kapferer on Luxury’
Several of the businesses who visit the Business & IP Centre are starting and growing luxury brands, in particular those in the fashion industry, but also those in other industries, such as food and drink. These small businesses are presented with a similar issue – how to keep up with the demands of running a luxury business without risking the luxury brand position. Like any business owner, luxury business owners want their brands to expand but because luxury brands are high quality, rare and premium priced this can present many obstacles.
Despite the economic recession in recent years, the luxury goods market remains buoyant and continues to grow. The luxury brand industry does not just refer to products like watches and jewellery, handbags, drinks (think Champagne!), but services too, such as travel, concierge, restaurants and lifestyle management, to name a few.
The Luxury Strategy
As a result of working with businesses in this sector, the Business & IP Centre has recently acquired the book Kapferer on Luxury: How Luxury Brands Can Grow Yet Remain Rare (Kogan Page, 2015). Jean-Noël Kapferer is a thought leader on luxury brands strategy development and marketing and is also the co-author of an earlier book, The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands (Kogan Page, 2009).
In his earlier book Kapferer aims to do two things – firstly to define what a luxury brand is and secondly to provide a comprehensive guide to managing your luxury brand. Kapferer suggests that luxury brands are different in nature to other non-luxury brands and therefore require a more specialised strategy for management and marketing. So what is a luxury brand? Kapferer describes it as: “a different and global way of understanding a customer and of managing a business”.
He points out that “as it is with many concepts, so it is with luxury: everyone understands it, but nobody can agree on exactly what it means, or its contours, its frontiers or its members”.
Kapferer moves to outline how you can develop a strategy for growing luxury brands:
- Understand the luxury fundamentals: Kapferer says that “Luxury is a culture, which means you have to understand it to be able to practice it with flair and spontaneity”. He also outlines the difference between premium brands and luxury brands: knowing the difference is key to your strategy, “Premium is not luxury”.
- How to manage luxury brands: Consider market size, brand equity, brand stretching, pricing, distribution, communication and finances.
- Consider your strategic perspectives: Kapferer outlines different luxury business models, how to enter the luxury market and then leave it; how to learn from the luxury industry, and how to make your luxury strategy sustainable.
The book gives various examples in each section, such as an example of brand stretching for Mont Blanc, or the business model example of the Louis Vuitton brand.
Image by Kili under a Creative Commons license Image by GS417~commonswiki under a Creative Commons license
Kapferer on Luxury
The more recent book, Kapferer on Luxury, addresses the number one challenge of all major luxury brands today: how can these brands pursue their growth yet remain luxurious? How can you achieve growth and preserve rarity? This book consists of a collection of articles, published in various journals such as the European Business Review or Journal of Brand Strategy, specifically addressing the growth challenges for luxury, including:
- Sustaining the luxury dream: challenges and insights.
- Abundant rarity: the key to luxury growth.
- The artification of luxury: from artisans to artists.
- Specific issues and challenges: luxury after the crisis; the importance of non-delocalisation; internet and luxury, consumers’ psychology of luxury prices; sustainable luxury.
- The business side of luxury brands growth: the distinct business models of luxury brands.
Kapferer provides insight into luxury brands that exude exclusivity and prestige and examines economic trends as well as industry investors and great marketers. Not all businesses have reached the Mont Blanc or Louis Vuitton status and often need help to get there. Kapferer’s books are a must read for any luxury brand owner looking to overcome hurdles to achieve growth. His books are not only informative reads, but are also thought provoking, insightful and packed with real life examples. You don’t need to be a luxury brand owner to reap the benefits from Kapferer’s books, they give a unique view into an industry that seduces and fascinates us; a worthy read for any researcher or business owner.
Both books can now be found in the Business & IP Centre reading room.
Irini Efthimiadou on behalf of the Business & IP Centre
21 June 2015
Book review: How to Get Rich by Felix Dennis
‘How to Get Rich’ is by entrepreneur, Felix Dennis, who unfortunately passed away a couple of years ago aged 67. Felix was a very able, successful and well known entrepreneur who created, published and sold popular publication ‘The Week’. At the time he was told by numerous people including some of the WH Smith team that it would never work and that he couldn’t possibly make a success of it. Felix also became the biggest publisher of computer magazines in the UK, publishing the magazine ‘Maxim’ which was a competitor to ‘Loaded’.
Although Felix was a real competitor he was also a drop-out; he never studied and therefore didn’t get a degree, proving that it is definitely possible to be hugely successful without a formal University education. Felix was notorious for a life that wasn’t mainstream, but was extremely good at making money, amassing a fortune of £950 million.
“Making money is a knack, a knack that can be acquired. And if someone like me can become rich, then so can you - no matter what your present circumstances. Here is how I did it and what I learned along the way.” - Felix Dennis
His book outlines how he succeeded in making money during his colourful lifestyle. The lessons contained within the book are hugely valuable to any entrepreneur and discuss fundamental principles of business including: turning up to meetings and interviews on time, thinking about good ideas, producing, building a good team that can deliver and thinking laterally. There are many great lessons to be learned from this book for any entrepreneur or business owner.
If you are looking for a book that will inspire you, want to know how you can make money, want tips for getting your business started from scratch and want to learn the skills not to be daunted by competitors this book should be your guide. On launching ‘The Week’ Felix went against all advice, and believed in his concept and product proving to everyone that they were wrong and verifying his talent for marketing publications.
'How to Get Rich' by Felix Dennis is available in paperback, hardback and electronically, and may also be available from your local Library.
Dr Stephen Fear on behalf of the Business & IP Centre
Dr Stephen Fear is Ambassador to the British Library’s Business & IP Centre and is Chairman and Founder of Fear Group, an international organisation he runs with his son, Leon Fear.
05 June 2015
The importance of trade marks for your small business
At the British Library’s Business & IP Centre we regularly work with start-up and growth businesses with a focus on all things design. I recently attended ‘I Knit Fandango' at the Royal Horticultural Halls, Westminster, London, which is a huge knitting festival and market bursting with lots of beautiful yarns, fabulous fibre and amazing patterns. The vast majority of the exhibitors were small businesses. Most produced the yarn and designed the patterns they sold themselves.
I enjoyed talking to the exhibitors about knitting, a great passion of mine, and about their use of social media and intellectual property for their small businesses. However, I was surprised at the number of exhibitors who didn’t think intellectual property was relevant to them.
Intellectual Property, or IP, relates to creations of the mind such as inventions, music, poetry, paintings, books and designs etc., as well as the signs and symbols used by businesses to indicate the origin of their goods or services.
On a basic level, having a trade mark allows your customers to find you. Whether they are using the internet or social media or just walking the high street they can quickly identify who they are dealing with when looking for particular products or services. Having your trade mark on your website and any social media channels will allow customers to recognise and identify your brand with your products. As the reputation of your business grows so will the value of your trade mark.
Choosing a trade mark
How do you choose a trade mark? Well, that is very much a personal choice, but it is worth remembering that trade marks don’t have to be complicated. Take the image below:
It is instantly recognisable as the Nike tick or swoosh and is also recognisable regardless of the country the product is sold in; no words are necessary.
As rumour has it, the word ‘Kodak’ was devised by George Eastman and his mother mainly because the letter ‘K’ was Eastman’s favourite letter. Coined words, as they are known, have the advantage of being easy to protect due to their distinctiveness, but they may also need greater efforts to imprint them on the minds of consumers.
Creating a trade mark is no easy task and it is not helped by the fact that there are really no hard and fast rules as to what makes a successful trade mark. However there are some things you should bear in mind:
- Firstly, your trade mark has to meet all the legal requirements for trade mark registration in whatever jurisdiction you are intending to register it in.
- Secondly, your trade mark must be distinctive enough to be protectable and registrable with the relevant intellectual property office.
If you are using a text mark you might want to remember the following;
- Your trade mark should be easy to read and pronounce in all languages relevant to your market.
- Your trade mark should not have any adverse meaning in slang (in English or any other foreign language if you intend to trade abroad).
- Your trade mark should not create any confusion as to the nature of your product.
You can work with freelance designers or design companies to create your trade mark, but you need to ensure that all the intellectual property rights to the trade mark are assigned to you as otherwise they will remain with the person/company who created the mark, regardless of whether or not you paid for the service.
Register your trade mark
Once your trade mark is designed you will need to register it. I should say here that you don’t have to register your trade mark but having a registered mark gives you the right to sue anyone who infringes it and to prevent competitors from using/registering an identical or confusingly similar mark. For an unregistered trade mark you would have to rely on the common law of ‘passing off’ for protection and that can prove extremely difficult.
Registering a UK trade mark costs a minimum of £170 if you register online or £200 if you register on paper. Fees are not refundable and do not guarantee registration of your trade mark, so before you register you might want to:
1. Search to see if the trade mark you want to use is already in use
Although it is not requirement to filing an application, in the Business & IP Centre we would encourage you to search the free trade mark databases to see if any marks have already been registered that are similar to your mark. A list of the free search databases can be found and accessed via our website.
If someone else is using a similar trade mark to yours check whether it is being used in the same class of goods or services as yours. There are 45 classes of goods and services and it is possible for proprietors to have the same trade mark, provided they have registered their mark in different classes. An example would be “Polo” mints and “Polo” the Volkswagen car.
2. Think about it long term
Think about where you want your business to be in twelve months or in five years’ time. A trade mark lasts for ten years, and can be renewed every 10 years, so actually has the potential to last forever. When registering your mark you should take this into account, and include in your registration, all the classes that you intend to trade in within the following five years. Why five years if the trade mark lasts for ten? Well, if you do not start trading in all of the classes in which your mark is registered within five years of registration, opponents can apply to the Intellectual Property Office to have your trade mark revoked in the unused classes.
3. Don’t do it alone
Understanding how to protect your intellectual property can sometimes be a minefield. However, there are ways you can access free or low cost assistance to guide you through the process. If you need some help searching databases to see if your logo or a similar one already exists then come to the Business & IP Centre where our Information Specialists will be more than happy to guide you through the free trade mark search databases. We also offer a number of intellectual property and business workshops. Including:
- A Beginners Guide to IP
- Introduction to Trade Mark Searching
- Introducing Social Media for Small Businesses
For advice regarding the fees or the process of registration your should contact the Intellectual Property Office or for legal advice book yourself a free 30-minute advice session with a trade mark attorney in your local area via the Institute of Trade Mark Attorneys website.
Is it worth it?
Many of the exhibitors I spoke with at ‘I Knit Fandango’ hadn’t thought of protecting their brands and one exhibitor even asked “Is it worth it?”. It is worth remembering that your trade mark or brand will be the most valuable piece of intellectual property you will have. This is because we, as consumers, buy into brands as these assure us of a certain level of quality or of service. When we find a brand we like we tend to stay loyal to it and it is the goodwill a company builds up under its brand that gives it its value.
At the Business & IP Centre we regularly help those who have unknowingly infringed another’s trade mark or who have had their trade marks stolen or used incorrectly. In order to protect your company’s identity – protect your trade mark from the start.
Maria Lampert, Information Expert at the British Library
Maria has worked in the field of intellectual property since she joined the British Library in January 1993. She is currently the British Library Business & IP Centre’s Intellectual Property Expert, where she delivers 1-2-1 business and IP advice clinics, as well as intellectual property workshops and webinars on regular basis.
15 May 2015
5 Tips for working with Illustrators by ChattyFeet
ChattyFeet is a quirky brand that makes people laugh with funny sock characters such as Kate Middle-Toe, Prof. Brian Sox, The Sockfather and others, and are currently participants on the British Library’s Innovating for Growth programme. Here are their top tips for working with illustrators based on their own experience with commissioning work for ChattyFeet sock characters.
1. Find references
We look online to find inspiration and discover creative work on sites like Behance and Dribbble, or just do a Google image search on a specific topic or theme. You can also search the British Library’s images online which gives you instant access to thousands of the greatest images from the British Library's collections. It is important to define what you are searching for. Are you looking for a realistic illustration, cartoon, 3D or vector graphic? Putting the style in your search query will help you to get more relevant results. Pinterest can also be useful for collecting references. Finding a reference is important for communicating with the illustrator and explaining what you are after. We had some help from the singer Louise Ashcroft to find the best references for opera singing. This helped the illustrator Dimitra Laskou to come up with the right style for La Diva sock character.
2. Review portfolios and styles
The simplest way to get a design you like is to find an illustrator that has already created work in the style you need. However if this is not possible make sure the illustrator you end up working with can diversify their work. If they only draw in one style it can be more difficult for them to adapt the illustration for your needs. When looking for illustrators we have found it useful to go to conferences and exhibitions to meet them in person and talk about your ideas. We met Captain Kris, a street artist, at an exhibition and as a result he created the characters Commander Awesome and Venus for our collection.
We discovered another talented illustrator, Muxxi, whose beautiful designs are featured on online portfolio platform Behance and we worked with her to produce a collection of four different colorful and fun socks.
3. Write a brief
A brief will introduce yourself, explain why you need an illustration and how it will be used. Be clear about when you need it to be delivered, the format, size and budget. Is the illustration going to be printed, published online or in our case knitted on socks? Do you need it to be created in specific software so you can apply changes yourself? Be explicit about constraints to avoid future frustrations.
4. Develop a contract
Writing a contract is important for making sure everyone is on the same page. While the brief explains in detail what is required in terms of the work, the contract defines the terms of the project. For example, when will the client pay? We recommend an initial stage where the artist produces a sketch rather than producing everything in one go. This will allow you to review that it’s going in the right direction. You should also agree on the amount of iterations or drafts of the work that will be included in the budget. Asking for changes is common but there should be a clear limit to the scope of work covered.
5. Give clear feedback
Sometimes your intuition knows if something is right or wrong, but when working with illustrators you will have to communicate this very clearly otherwise you won’t get the result you want. If you are struggling to write feedback, a phone or a skype call might work better. Try to refer to the brief and to what has been communicated before. If you give new directions that can be very frustrating for the illustrator and you might be asked to pay more for extra work.
We hope that these tips will be useful for you when commissioning new work. You can see the work of illustrators who created funny sock characters for ChattyFeet here. ChattyFeet are on the British Library’s current Innovating for Growth Programme which provides up to £10,000 worth of support for small companies with big ambitions – just like ChattyFeet. If you want to follow in ChattyFeet's footsteps apply for Innovating for Growth by the deadline: 9.00am on Monday 15 June 2015.
Apply for Innovating for Growth here
Innovating for Growth is part-funded by the European Regional Development Fund
04 March 2015
Hiring – The Hardest Choice
When is it a good time to employ someone for your new and growing business? This can be one of the most agonising decisions to make as a business owner and it can feel a risk that outweighs the reward.
In the last three years we’ve supported over 200 businesses on our Innovating for Growth programme at the British Library, and as a Relationship Manager I’ve had the privilege of seeing first-hand how this key decision can be the very thing that allows the business to grow to the next stage.
Why Employ?
There are only 24 hours in a day and we need a few of those hours to sleep, not least other commitments like family, friendships and dare I say some time to enjoy life outside the business! I’ve met a good number of super-heroes that some how juggle the lot, but the reality is that with so many spinning plates, one of them will eventually drop. Just hope that one of those plates doesn’t break the business itself!
So if you want the business to grow beyond being an artisan/owner, it’ll be you that needs to recruit.
Strategy advisor for Innovating for Growth, Uday Thakkar believes that what holds people back from employing people is a perception of too much risk.
“Is employing someone a cost or an investment? Your language often guides your perception of risk. An employee frees you to do more. An employee can do things better in areas where you are uncomfortable or unskilled. They assist the business to grow and increase profits. They should be regarded as an investment.”
Who to Employ?
Writing a good job description is of course vital. It’s the means by which you attract the right candidates and it serves as defining what the job is all about by clearly outlining the required qualifications, experience and abilities you expect from the jobholder. This acts as a safeguard if you find a recruit doesn’t fulfill expectations too.
But it’s not always possible to get recruitment right first time because it’s not just finding a good employee; it’s finding one that fits the values and behaviours of the company itself. Not finding that match can take away time and energy rather than add it. By having a clear expectation of the role means you can measure performance and take action appropriately if needed.
Terry Morgan, Director of Debaere, a business who has been on Innovating for Growth, acknowledges this and says recruiting can be time consuming, especially if applicants aren’t necessarily committed. He has some hard earned advice.
“When we go through this process we try to provide as much information as we can on the style of business we are, the type of work expected and the general conditions of employment.”
But there is an up-side. “When we do get a new starter it does work out for the better. It is good to add new blood to the mix of employees and sometimes they bring new skills or ideas that help the business grow. Patience is definitely required in recruiting and I would suggest using an agency for senior staff as they tend to do all the vetting for you.”
Richard Marshall, owner of Pall Mall Barbers, has grown his business from 1 employee in 2005 to 25 employees in ten years, expanding to three locations in central London with a fourth opening up soon in Liverpool Street. Richard knows all about the difficulties and benefits too and has some sage advice around selecting the right people.
Crucial for him are employees with the right attitude. “Choosing the right person pays dividends and will multiply the time you have.”
How to Employ?
Richard has found that having a robust selection process really helps. He advertises, receives CVs, will find out more about the applicant by phone and then interviews them face to face. By then he’s satisfied he’s got a good match for the business. Richard offers more advice around managing recruitment, “wherever possible outsource. I’ve outsourced my HR functions to a company and receive proper advice on issues if any come up”. This gives Richard the time to build and expand the business which of course helps to safeguard the very jobs he’s created.
Getting it right with the right advice
I mentioned the risk of no return at the outset. Of course taking someone on is not without its risks but seeking out the right advice at the right time will save you hassle and money in the long run.
Uday again has a view on this;
“Most employees are taken on with at least a three month probation period. If someone isn’t performing or is good at disguising major shortcomings, despite CV reviews and interviews, we all reckon that within a few days we can make a pretty good judgment as to whether the person will fit in or not. So the maximum risk to you is 3 months – that is £9,000 even if you are reticent about showing them the door earlier. If you are brave (and you have to be to be a business owner) then you should be dealing with poor performers immediately. The cost is then likely to be a month or less – say £3,000. On the other hand a good employee will rapidly cover their “cost” and generate profits.”
There is, of course, help along the way. As a business owner you needn’t take the plunge in isolation. Stay connected with other businesses your size, talk to other business owners who have done what you’re doing. Where needed seek out legal help or HR advice.
The recent Business is Great campaign also provides some helpful guidance around what you need to know.
The Business & IP Centre already has a solid track record of supporting employment for our business users. Based on a 2012 survey we’ve helped created an additional 3,345 jobs, while on the Innovating for Growth programme each business on average has created at least one job and helped to secure their own sustainability. This allows for even more employment medium to long term. A good place to start in the Centre is to check out the COBRA business advice database. It has some useful checklists for first time-employers.
And with a growing network of Business & IP Centres across the country that’s even more reason to check out what help you can receive at your local Centre. And if you’re an established London based business the Innovating for Growth programme could just be the thing for you to take to the next stage of growth.
Micro-businesses’ massive contribution
There’s also something a lot bigger at play here and it has everything to do with the health of our economy. A whopping 96% of businesses in the UK are micro businesses that employ up to 9 people, with small businesses in total making 48% of private sector employment (source: BIS Business Population Estimates 2014).
But we shouldn’t forget that statistics are real people, with hopes and dreams. Employment provides people with a future, an identity, self-esteem and opportunities to progress in life for them and those around them. And working for an SME can be a great opportunity to pick up a broad range of skills and insight if the employee is motivated to learn and be resourceful.
Recruit, yes or no? If you’re running out of hours in the day, am spending too much time on tasks that take you away from what you really want to do then it’s a question that can’t be ignored. With the right advice and timing, employing someone could well be break that brings new talent, time and opportunities.
Jeremy O’Hare is a Relationship Manager for the British Library’s Innovating for Growth programme. Since joining the British Library in 2005 he has worked with countless businesses, facilitating advice and research as well as providing workshops and information advice for start-ups and established businesses.
Innovating for Growth is run by the British Library and part-funded by the European Regional Development Fund
12 January 2015
Avoid catching a “Cash” Cold in 2015
We all know that prevention is better than cure. So, as the New Year gets under way here is a financial fitness checklist to help make sure you avoid catching a “cash” cold.
Time
Take your 2015 diary and block time out for Cash. You will need time for a weekly, monthly and quarterly “meeting” both for personal finance and business finance. The first step in any project is setting the time aside and the trick with finance is to make it a routine. This is so important, which is why I allocated a whole chapter in my book “Understanding your Business Finances” to establishing financial routines.
Personal Budget
One of the biggest causes of business failure is out of control director’s personal expense. I have seen it so many times trash otherwise successful businesses. Sit down with your bank and credit card statements and work out a sensible budget. Here is a good template from moneysavingexpert.
Directors’ Loan Account
If you run a limited company, you can’t just plunder the company bank account for personal expenses. If you have a large balance owed to the company, you need to discuss it urgently. There are significant tax penalties associated with this.
Terms of Trade
Make sure you have written Terms of Trade. These set out your responsibilities, your customers and crucially, when you expect to get paid, and when ownership passes if you are selling goods. If you haven’t got Terms of Trade, get a copy of your competitors to see what kinds of things are included.
Business Agreements
Do you have any business arrangements that aren’t in writing? If so, confirm them by email and consider if they really should be in a legal agreement. I believe more cash is lost through bad documentation than any other reason. This is especially true if you are undertaking a big project e.g. a database. Again, I have seen this spiral out of control without documentation and agreed milestones.
VAT
When you register for VAT you become an unpaid tax collector. However, it is then so easy to see lots of cash in the bank and think “Ok I can splash out!” But it’s NOT your money. You will need that money when you do your VAT return – so why not open separate bank account for VAT and transfer an estimate of what you owe on a regular basis. That way you won’t get caught out.
Price
When was the last time you reviewed your prices? 80% of companies don’t charge enough for what they do. Even a small increase in price can make a massive difference to profitability. Or perhaps mask a price increase by introducing a premium and budget range.
Hire, Don’t Buy
Save cash by hiring equipment rather than buying. Yes, it may be more expensive to hire but you will conserve precious cash resources as compared with buying.
Cash Flow Forecast
Finally, make sure you have a cash flow forecast going out at least 9-12 months into the future. This will give enough time to do something if the forecast shows the business is in danger of running out of money, either because things aren’t working out as anticipated, or the business is wildly successful but needs more working capital (money to fund stock and what’s owed by customers). There is a free forecasting template available at www.johnnymartin.co.uk
If you do nothing else in 2015, at the very least set aside some time to look after your financial health and reduce the chance of catching a “cash” cold.
Johnny Martin FCA is an experienced Finance Director who now demystifies business numbers and jargon for business owners. He is a partner at the British Library Business & IP Centre and runs a regular workshop Get Cash Flow Confident. You can find his tools and templates and also his book “Understanding your Business Finances” at www.johnnymartin.co.uk
02 January 2015
Top tips for 2015: Build your business dreams
This blog article is written by the Business & IP Centre’s life /business coach and author, Rasheed Ogunlaru.
We tend to start each year with fresh hopes, goals, dreams, resolutions and aspirations. But often within a few weeks you can forget them, get side-tracked, lose momentum, enthusiasm or belief. However a few simple steps, actions and habits will help you to set effective goals, get confident, stay focused, take action and build momentum to progress toward them.
Rasheed’s Top Ten Tips life / business tips
- Clarity: know your skills, strengths, mission and values and work from them.
- Strategy: write or revise a SMART (specific, measurable, achievable and time scaled) 2 page strategy/ action plan for your business / life for the next 3-5 years.
- Priorities: Identify 2-3 clear specific essential priorities of what you want /need to achieve in 2015 keep these in mind every day so you stay on track.
- Flexibility: everything changes including our goals – be alert and adaptable.
- Creativity: be resourceful, seek solutions, always looks for ways to progress.
- Connectivity: get out and about in person and online - and build and develop a network of strong relationships to help you, customers and your contacts.
- Reliability: Always provide an excellent product / service – seek to excel.
- Personality: be positive, professional and memorable - stand out.
- Possibility: foster a positive mindset: believe in you, others and your product.
- Opportunity: be proactive seek opportunities and make them.
It’s not all about work to succeed you need balance and perspective. So it’s also important to take time out and have time for yourself, your health and for family, friend and fun.
Top Tip: I actually recommend you put this time in your diary first so that it actually happened. Finally also put in time to regularly step back and review where you are, where you’re heading and what needs addressing.
If you’re looking to set goals, get inspired, take action and boost your confidence and effectiveness in 2015, join Rasheed for his Soul Trader; your life, your business workshop workshop at the Library. Next dates: 10am-12.45 on 21 Jan, 19 Feb or 18 March.
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