NESTA Creative Enterprise Toolkit

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NESTA’s creative enterprise toolkit is a pack of tried and tested materials specifically tailored for creative individuals considering setting up in business. Used by creative entrepreneurs across the UK and internationally; it provides guidance, activities, downloadable content and case studies which challenge individuals to consider their creative and personal motivations for enterprise.

These slides introduce the toolkit; and go through the toolkit activities and approaches. Many of the images are clickable and should link/take you back to the relevant sections online.

Published in: Business, Technology

NESTA Creative Enterprise Toolkit

  1. 1. Nesta’s Creative Enterprise Toolkit Encapsulates Nesta’s tried and tested approaches Specifically tailored for creative business start-ups and those who support them Flexible tools engage participants at an individual level to explore personal values and motivationswww.nesta.org.uk/enterprise-toolkit This work is licensed under a Creative Commons Attribution Non-commercial Share Alike (3.0 Unported). Uses are thus permitted without any further permission from the copyright owner. Permissions beyond the scope of this license are administered by Nesta.
  2. 2. Toolkit Contents: Handbooks: Practical handbooks assist the creative entrepreneur to shape the creative idea into a business that suits their values and aspirations. Worksheets: Each handbook contains two or three worksheets to help explore the key issues about the business through modelling techniques.
  3. 3. Toolkit Contents: Case Studies: Featuring successful entrepreneurs who have built sustainable businesses with the help of the methods and tools. Tutor Notes: For tutors, trainers and advisers who are supporting creative entrepreneurs. Considers one-to-one and group approaches and includes suggested lesson plan timings.
  4. 4. Arrivals and destinations 01 Getting off the ground 02 Who this guide is for and how it can help Business Facts Do you have a good idea or a good business idea? Why it’s different from other business guides Intellectual Property What to expect to get out of the process How to identify, protect and exploit IP What kind of company to set up Values Identify your values and summarise Links to useful organisations the impacts you want Case studies Evidence Modelling Illustrate what success will look like Customers Marketing Mix and Plan Determine who is buying your How to apply this mix to your product and why business needs. The main elements you need to consider when planning Your business process marketing activities The different elements that make up your business Relationships Financial Modelling The different associations you have to recognise and Including the vital role of cash flow to ensure your develop to ensure your product or service reaches your business makes enough money to continue trading in the customers way you desireChoosing your path 03 In it for the long haul 04
  5. 5. Fashion Start-up Guide Created in partnership with Centre for Fashion Enterprise Identifying and approaching buyers Major fashion trade fairs Working with manufacturers Sources of advice and support Available to download online at: www.nesta.org.uk/enterprise-toolkit
  6. 6. Nesta Peer Mentoring Guide Peer mentoring involves near peers with one or two years more business experience than their mentees. Nesta’s Peer Mentoring guide contains: On overview of the programme structure Practical points and case studies for those considering setting up a peer mentoring scheme The impacts for both the mentors and menteesAvailable to download online at:www.Nesta.org.uk/enterprise-toolkit
  7. 7. 01Book 01 – Contents:Arrivals Who this guide is for Why it’s different from other business guides How it can help What to expect to get out of the processDestinations What kind of company to set up Links to useful organisations to help move on to the next stage
  8. 8. 01Arrivals and DestinationsThree key questions to consider throughout… What should I do to make my business work? Why should my customers care and how will they benefit? How can I make money to allow my business to be sustainable?
  9. 9. 02Book 02 Contents:Business FactsDo you have a good idea or a good business idea?Intellectual PropertyHow to identify, protect and exploit IPValuesIdentifying the values that underpin your activitiesMission StatementSummarise the impact you wantEvidence ModellingIllustrate what success will look like for you
  10. 10. 02Your Values Aligning your business with your personal values will help you to assess your business idea; test how your work/life balance needs to be adjusted; stay inspired; keep on track and communicate why someone should care about your business… Think of a product or service that you really admire. What is it about it that you really like and value? This will give you an insight into the qualities or values that are generally important to you. Now apply that to yourself and your work, and think about: What is it about your own idea that you like and admire?
  11. 11. 02Your Values: Worksheet Use the worksheet to help you identify and prioritise your values and build them into your plans for your business. On stickies write down the values that are important to you. Try to have a maximum of five values in the ‘Always Important’ column. - Refer to Worksheet 02a
  12. 12. 02Your ValuesPassions, Talents and Economic Drive What is your business driven by? Achieving a balance between passions, talents and economic drive is important. Jim Collins studied the qualities and drivers that distinguished great companies. Excellent companies are focussed on activities that ignite their passions, fully utilise their skills and talents, and have clear insight into how to most effectively generate sustained and robust cash flow This illustration was developed and profitability. from ‘Good to Great’ by Jim Collins.
  13. 13. 02Evidence ModellingYour business idea: What does is enhance? What does it replace? What does it revive? What might be the backlash/ flip into? - Above, an example of a completed evidence model - Refer to Worksheet 02b
  14. 14. 02Future Evidence Creates evidence for future success Persuasive visual argument to support your idea Helps clarify and implement your vision1st image - Dean Brown created this mock webpage in 2008 - His vision was to sell his products in the DesignMuseum Shop, London.2nd image – Director of the Design Museum with Dean’s products in 2009, ordering stock for the store.
  15. 15. 02Book 02: Learning and Outputs You’ve used a number of exercises to help give shape to your idea in terms of its business potential, including: Basic business facts that will help you succeed Identifying, protecting and maximising your IP Considering your personal values, energy and ambitions Balancing your passions, talents and economic drive Mission statement summarising aspirations for your business Evidencing the impacts of your business Illustrating what success will look like for your business SWOT analysis considers your business strategic positioning
  16. 16. 03Book 03 Contents:CustomersTo determine who is buying your product and whyYour business processThe different elements that make up your businessRelationshipsThe different associations you have to recognise and develop to ensure your product or service reaches your customers
  17. 17. 03Your Customers: WorksheetUse this worksheet to build apicture of your potentialcustomer groups. You shouldaim to complete one for eachcustomer group.This will help you record andestablish viable incomestreams for each customergroup. - Refer to Worksheet 03a
  18. 18. 03Promise TriangleOne way to understand how a business works and think about contractualobligations is to think of your business activity in terms of promises: You promise your customers that you’ll deliver either a product or a service Your customers will have an expectation that this promise is going to be kept, and You work with others to enable that promise to be delivered
  19. 19. 03Blueprint Modelling Developing Your Business Blueprint There are three rules to blueprinting: Do it in small steps Map the entire process Include as much detail as possible Current Future Your business journey Reality History
  20. 20. 03Blueprint Modelling - example
  21. 21. 03Blueprint Modelling - example
  22. 22. 03Onstage and OffstageActivities take place either in frontof the customer, which we call‘Onstage’, or out of sight of thecustomer, which we call‘Backstage’.Areas shaded in grey are thingsthat can’t be directly charged tothe customer: you can’t bill yourclient for market research,promotion or the cost of selling tocustomers. - Refer to Worksheet 03b
  23. 23. 03Relationship ModellingUnderstanding the various rolesrequired in any business is key Generator Realiserto identifying which people you Originating, design, Manufacturing,need to build relationships with. directing and producing product, developing services & Realiser experiences Customer Distributor Buying, utilising & Delivery, sales and experiencing your marketing business - Refer to Worksheet 03c
  24. 24. 03Relationship Modelling – questions: Thinking about your business, ask yourself: What’s appealing about your business for the people you need in this relationship? What can you currently offer them? What are you going to have to do to make that happen? What additional resources, skills, people and information might you need to get there? What impact will that have on your finances and planning?
  25. 25. 03Book 03 – Learning and Outputs The activities and guides in this handbook have helped you: Identify your customer base Understand the interrelation of the business, customer expectations and the qualities of your product or service Turn your draft operational plan into a more detailed picture Consider the different types of relationships you need to develop in the four key areas of business activity: Generator, Realiser, Distributor and Customer Consider the contractual details for the payment terms that suit your needs
  26. 26. Book 04 Contents:Marketing MixHow to apply this mix to your businessneedsMarketing PlanThe main elements you need toconsider when planning marketingactivitiesFinancial ModellingIncluding the vital role of cash flow toensure your business makes enoughmoney to continue trading in the wayyou desire
  27. 27. 04Marketing Mix: WorksheetThe 7 ‘P’s of MarketingExploring these 7Ps can helpensure your product or serviceis in alignment with yourcompany’s business andmarketing plans:01 Product02 Place03 Price04 Promotion05 People06 Process - Refer to Worksheet 04a07 Physical Environment
  28. 28. 04The 7 ‘P’s One of the most important ‘P’s is Price The price of the product or service generates income and, most importantly, profit, whilst all the other elements in the marketing mix incur costs. It is vital that you understand the relationship between price, cost and profit. This is outlined below.
  29. 29. 04Critical Marketing Tasks A marketing plan is a clearly defined, detailed route to delivering your marketing strategy and should mirror the objectives contained in your business plan. To help you plan, list all the marketing activities to be carried out, along with associated deadlines and individuals responsible for achieving them. Costs of - Refer to Worksheet 04b carrying out the activities will be included in a budget.
  30. 30. 04Financial Modelling To be in full control of your business, you need to be aware of the financial impacts of decisions before you make them, and also how changes in the business environment will impact on your enterprise. You will also need to measure the performance of your business, in terms of profit or the surplus that you’ve made after deducting your wages, overheads and costs. Consider your answers to the following questions - these deal as much with your lifestyle as your work or creativity. Your views are likely to change with time: How much money do I want to earn a year? How hard do I want to work? How do I feel about employing others or working with partners? What is my attitude to taking risk? How self-disciplined am I likely to be in building my business?
  31. 31. 04Basic Survival Budget Living Costs Monthly Yearly £ £ Now that you have considered what Rent / mortgage / service charges Electricty, gas, water, heating you hope to achieve from the business, Council tax consider your own lifestyle – how Telephones including all mobiles Food, housekeeping, repairs much are your own living costs? Clothes Insurance: personal, property Car: tax, petrol, insurance, repairs Transport eg. travel card A survival budget will help you assess Events: christmas, birthdays, weddings Holidays how much money your business needs Home entertainment: dvds, tv, games Other entertainment: meals, parties, drinks to make in order for you to survive. Loans Credit cards Pensions / savings Other  Total living costs Your income Employment Benefits & tax credits Pension / investment Other Total earnings
  32. 32. 04Basic Cash Flow Refer back to your blueprint model to help you think about your business’s cash flow. In this illustration you can see the various categories of money flowing in and out of a business Note that this does not deal with VAT or Corporation Tax, should your business generate sufficient revenue.
  33. 33. 04Cash Flow Spreadsheet Key: Light grey area: Cash inflow Light red area: Cash outflow or costs Dark grey area: Finance costs/receiptsAbove: an example of a business that makes and sells products and also generates income fromlicenses and services.
  34. 34. 04Book 04 – Learning and Outputs To summarise the information and examples in this handbook have allowed you to: Create a framework to consider the key elements that should be in place for you to connect with you customers Develop a marketing plan that allows you to prepare your communications strategy to ensure you maximise impact Introduced the vital role of finance to allow you to control your business activities Cash Flow is a tool to let you understand how money flows into and out of the business. By understanding this you can be in real control of your business finances to ensure you keep a healthy and sustainable business that meets your aspirations.
  35. 35. 04The Start of the Journey! Now you have the main tools to shape, define, explain, communicate and control your business. But this is just the start of the journey – now you have to make it work! You will find information on different types of company structures and a list of organisations that can offer assistance and support with setting up your business in the Destinations section of Handbook 01: Arrivals and Destinations. www.nesta.org.uk/enterprise-toolkit

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