GDE730- Week 2 Business Models, Studios, Estimating, Invoicing and Budget Management

The focus in this lecture to go in details about the operational and functional aspects of design practice and business.

Kate Moross

I enjoy going trough the work created by the Moross studio – especially one of their projects about the Parklife festival – the typefaces and the colors that they used are so unique.

https://parklife.uk.com/

Another festival is All Points East Festival ( https://www.allpointseastfestival.com/)


USTWO

USTWO studio started 15 years ago only with 2 people – Matt Miller and John Sinclair. Now  they have seven studios around the world, 250 employees across those studios and they’re from 29 different countries.


Lovers

Lovers is a design collective based in London working internationally.


Theo Inglis 

He worked couple years in a design studio but then he become a freelancer.

“Pitching can be good, even if you don’t win, because you meet people, make connections. It doesn’t necessarily have to be bad, even if you do lose. When you find clients they usually lead to more work and the best projects. Also, to look for sectors where people need designers. I didn’t necessarily think when I got the pitch in the first place, that I really wanted to work with poets but this ended up being a really exciting place to work and somewhere with quite a lot of projects, and people appreciate working with you. “


https://www.theoinglis.co.uk/AE-Manifesto


Panel Discussion

Very interesting and informative discussion.

Neef Richmen share that sometimes disadvantage with working with big clients is that changing even small bits of design, you have to go through multiple layers of approval, and multiple stakeholders before you do it.

Kate Morros share her worries that if she is not well or for some other reason absent, that will affect the functions of the studio because she is the one that has to overlook everything and approve everything. She also try not to take. too much work (just enough to keep the business and the employees financially stable). “If we’re really comfortable in a month, I won’t push harder to take on projects that might use up more resources. I’ll just say no to those jobs. But we have quite a significant amount of money, for us anyway, that we have to turnover to reach our budget every month and that affects our workflow. We always have some months that we know are quiet and some months that we know are busier. 
I read a great quote recently that was, “Your business isn’t your family. A good business lets you go home to your family.” This slightly toxic idea that your business is your family, I think we definitely push back on that heavily. We are a collection of humans with mental health problems and challenges and lives and experiences and we are very open in talking about those and accommodating those things. 
I think the main reason I started a business was because I didn’t want to work alone. I’ve always felt much more comfortable with a group of people and found myself to be more creative with a group of people, let alone all the creative things those people can bring to your business. “

For Lisa Arsmtrong the biggest challenge is the amount of paperwork (they have many people working on different projects from many places in the world – it is complicated). They use the project manager tool called Scoro,  She also said “I do get a bit conflicted that every night everyone does what they want. If they want to go home, they go home. If they want to stay and stick around and hang out, they do. We all get plenty of opportunities for people to do either, so I think that flexibility is really useful. But in terms of mental wellbeing as well, there’s this company called, Full Disclosure, we have invested in, that provide mental health coaches inside the workplace. We work with them quite a lot in our London studio and they’re always there on hand to deal with any issues that, privately, that any of our employees have. One thing that’s actually been really important is to have an independent third party come in and be really respectful, and help our employees take care of their mental health in a different way, that is removed from the day-to-day working, sort of people. That’s been really important from the mental health
perspective.  “

What I learned from the discussion is that you can start with certain type of buisness but afterwords, you can change direction to something that is on demand and you find that you are able to do it. For example Kate said “I started mostly in just graphics and working in visual design for the first I’d say two or three years. Then there was a more of a demand as music became more digital, as YouTube became more of a platform for music. Then we moved into motion, music videos etc. Now screens and LED are affordable, people take them on tour, and now we’ve got loads of that to do. But I think the biggest changes for our business have been in TV. We hadn’t worked in TV before, in broadcast design, and it was mostly something done by big post houses and we realised we could undercut these big expensive post houses by quite a large amount of money and do the same work with four people, that they were maybe doing with four people but pretending they were doing it with 40 people, or charging like they were doing it with 40 people.”




“Keeping clients long-term will enable you to do more effective work for them. It will also contribute to increased profitability, as well as reduce the acquisition costs of new clients.”

We should always try to gather feedback from our clients – we learn from the mistakes and focus on things that need to be improve.

Communication Elements

“Create an orientation kit that includes contact information , sample
forms , places to store project updates , and typical procedures.

Provide the client with proactive updates (as in “unprompted “).
Preferably these will occur weekly , in writing , and will emerge from
management · software.

Watch for information in the news that would interest your client and
send an occasional fax or email to demonstrate that you are thinking on
his behalf.

Be sure that the client has ready access to someone who knows the status of his projects . If that person is not available , indicate when she will be and provide a backup contact if the client can’t wait.

Conduct organized, agenda driven meetings that indicate a sensitivity to
the client ‘s busy schedule .

Confirm the results of those meetings in writing. This will preserve organization and communicate that the details are being handled.

Manage deadlines and budgets. That doesn’t necessarily mean meeting them, but rather anticipating which ones will be met, and then arriving at a plan suitable to the client for those that will not be met.

If you use an auto attendant for your phone system, make sure that calling for the operator (pressing “zero”) always results in someone answering the phone . The caller may not be able to talk to her first choice, but she, she should always get a real person if she wants to.

Keep the client ‘s work confidential.”

Leadership Elements

“Know the client’s field.

Have an opinion. Express your point of view. Don’t just take orders.

On the other hand, be collaborative. Let the client win whenever he should.

Surprise clients by doing more than you promise.

Personal Elements·

Support client causes, even if only to a limited extent.

Ask the client how you are doing. Your performance is not as important as your interest in getting the client’s perspective.

Be human, but not too human. Be vulnerable with personal stories, dress comfortably, and use first names. But don’t share more than clients need to know, and don’t pursue client friendships.

Be likable. No client will tolerate an unusually difficult person unless there is no other choice.

Stay sober at any function where there is alcohol present. A client will quickly lose confidence when control is absent.

Don’t get involved in client politics.

Be passionate about the client brand, contributing enthusiastically for· great collaborative results.

Don’t neglect out of town clients, assuming that in person visits are not expected.

Pay your bills so that word of your financial difficulty doesn’t work its way back to the client. There are no good explanations in the client’s eyes.


Title: AIGA professional practices in graphic design pp. 31–36
Name of Author:
Eva Doman Bruck & Crawford, Tad & American Institute of Graphic Arts.
Name of Publisher: Allworth Press

“THERE ARE THREE fundamental conditions to consider during the process of setting fees . One is the cost of staying in business (overhead), second is a best estimate of the nature and complexity of the proposed project ( variable costs), and third is knowing the intrinsic value of the final product (market conditions).

Included in the overhead category are rent, utilities , equipment leases , office supplies , business insurance, salaries, taxes an d benefits, accounting and legal services , and the cost of nonbillable time devoted to self-promotion and administrative chores . Don’t forget to include profit in this equation ; a healthy business should aim to generate about 20 percent of annual profit after all expenses have been paid.

Some design companies want to know how much time is spent on every aspect of an assignment, from briefing meetings to print/fabrication supervision. This information is useful in tracing the relative levels of job costs phase by phase and can also be used to help price similar assignments in the future.

All outside services need to be documented . Whether it ‘ s for retouching, illustration and photography, model making, outputting, or independent contractors and freelance personnel, there has to be a written record of what is being requested , by when , at what price.

The difference between a good estimate and a bad estimate is the difference between profit and loses. The key to an accurate estimate is a thorough understanding of the project specifications as well as the production process.

Negotiation is an ancient human activity (hobby to some people) and the nature of it is such that one always expects to get a little more for a little less.



Title: AIGA professional practices in graphic design pp. 14–153
Name of Author:
Leonard D. DeBoff & Crawford, Tad & American Institute of Graphic Arts.
Name of Publisher: Allworth Press

Sole proprietorship

“The simplest form of business is a sole proprietorship. This is the name given to a business that is owned and controlled by a single individual. Little need be done to create a sole proprietorship. All you have to do is obtain a business license if it is required in your jurisdiction and, if you are using a name for your business other than your own, register that as an assumed business name or fictitious name. This simple business form has a major downside though. Sole proprietors have full personal liability for all debts of the business. This means that your house, car; personal bank accounts, and the like will be exposed to the risks of your business.

Partnerships

“When two or more individuals join together for purposes of engaging in a business, then the relationship between them is known as a partnership. No formal acts are necessary to form a partnership, although it is always a good idea to put
all of the parties’ agreements regarding the business into writing so misunderstandings can be avoided.”

Limited partnership

“A type of partnership that can afford so file partners’ limited liability is known as a limited partnership”

Corporation

“One of the most popular business forms is the corporation. It is a separate legal entity apart from its owner(s), even if it is owned by one individual. The corporation is responsible for all of its business activities and the owner generally is not.”


Title: AIGA professional practices in graphic design pp. 291–293
Name of Author:
Allan Haley & Crawford, Tad & American Institute of Graphic Arts.
Name of Publisher: Allworth Press

“FONTS ARE CREATIVE, intellectual property, similar to designers’ creative work or a proprietary business product.

There are four good rules that guide ethical practice in font licensing:

If you are using a font, whether it’s on your computer or that of someone else, make sure you have a license to use the font.
If you want to use a font that is not installed on your computer, you must ensure that you or your employer has a license to install the font on your computer, or else acquire a license to use it.
If you have any questions about your font license, contact the foundry or supplier of the font. (If you do not know the foundry or supplier, almost any foundry or supplier can help you identify the source.)”


This site has information about all the creative agency in England. Has a information about how many employees they have and what is the focus of the companies.


https://fo.am/activities/ibex/


Week 2
Assessing the core operational aspects of a design studio, organization or freelance business. Mapping out a hypothetical resourcing model for a new business which utilizes your unique design expertise.



I think I want to explore the idea of creating a website for learning the basic tools of the Graphic Design software.

The name should be “Graphic Design 101”. I have been to couple schools for graphic design courses and we always jump to some kind of projects (sometimes having briefly description of some of the main futures of the Adobe software – mainly Photoshop, Illustrator and InDesign) but never going deeper to the tools of each one of them. I know there are many sites out there, where you can learn by yourself but most of them don’t go to details and I think this is important. I think if we know the abilities of the tools better, we will be creating much better designs.

this is idea for the first page

I think the website can be subscription based – but maybe just 2$ a month (I know is very little but is going to be for beginners -so, I don’t think most of them can afford much).

This is a link to the Figma framework file (how the landing page will look like)