DO I NEED A BUSINESS PLAN AS AN ARTIST?
Wondering if artists and creative entrepreneurs need a business plan? Well, you are in the right place. These four guiding questions will answer everything you need to know about business planning for artists.
What is the difference between traditional and creative business plans?
For most small creative businesses, you won’t need the traditional business plan. A traditional business plan has an executive summary, competitive or market analysis, and could include an organization chart of job roles and management flow. A traditional business plan can help convince investors to fund your venture capital. It can also help you get a loan.
If getting a loan or pitching to investors isn’t on your horizon, then I would suggest a different, and more creative approach to business planning. For a business of one, which is the case for most artists, a functional business plan can be a tool to help set goals, track metrics, manage deadlines, and operationalize running your business.
What does the plan look like?
A business plan needs to be a functional and usable tool. Not just something you make and forget about. There are a variety of creative ways to make and use a business plan. Here are a few ideas that you can try. I would even recommend trying multiple methods below for different approaches towards your business. A business plan can….
be simple as a one page document with a purpose of operations and goals
a vision board collage with images to represent goals and strategies
include word of the year that encompasses a clear direction
a large poster of a mind map
encompass an events or selling calendar
be a multipage spreadsheet or include financial tracking and sales
a manifesto or artist statement of business intent
However you decide to make the plan, it shouldn’t cause you a huge learning curve. Just like your creative work, this plan can fit your right-brained thinking, creative style, and the way you manage your business. Ideally, this plan would be a living or working plan to use, alter, and reference throughout the year.
As your business grows, you may want to create an operational plan, especially if you are adding employees or more complex systems. You will want some standard business practices and policies as well as know who is responsible for what job tasks.
Do I need a plan before I officially start a new business?
Its recommended to have some plans and thoughts on paper as you venture into business development. The first business plan option of a simple one page document would be great start to have before formalizing into an official business entity. However, you can, and should, operate as a business without formalizing a legal entity like a Limited Liability Company (LLC). A plan can help professionalize your business and get you functioning like a more formal business model before you are ready to make that official leap.
A word of warning: Sometimes feeling the need to write formal plan can sometimes delay action. Don’t let the lack of a business plan prevent you from moving forward and don’t let writing out a plan be an excuse for not launching your business. The plan needs to be a tool, not a barrier.
When do I make a business plan?
The business plan should be revisited or updated at least once a year; you do not need to start from scratch each time. January is always great to start the year off with some intention, however, I used to plan in July. A non-traditional goal planning day provides less pressure around the idea of maintaining resolutions. Keeping goals is not the same as a New Year’s resolution, so you have permission to plan when it makes sense for your business operations and calendar.
Make sure you set some time to refer or go over the plan. Set monthly or quarterly check-ins to see how you are making progress. If your business has shifted, adjust the plan to reflect the pivot and guide you through your next steps.
A year after your initial goal planning session, make sure you have set aside time to review the past year. Your review can help you plan for the next 365 days by carrying over successful strategies from the past year and learning from mistakes and failures you have already problem-solved.
