B. Unit 1 & 2 (t10) - My creative enterprise

T10 – My Creative Enterprise

Task 1 - Business Analysis Tools

SWOT Analysis

For my own creative enterprise as an independent music journalist, I will be faced with many challenges. However, there are also many strengths which are unique to my enterprise. For example, being self-employed means that I will have the charge over my finances and debts. This also means I don't have to worry about employment of others and the responsibilities that come with that - I can focus on my own intellectual property. As well as this, as an independent business, there will be more opportunities available to me due to the flexibility of my work; independency means I can write about whatever I feel like, meaning that the incorporation of my own opinion may be necessary, which makes it immediately distinguishable from other publishers.

 However, this also poses many weaknesses. Being an independent music journalist means that the amount of work available won’t always be enough. Moreover, work will be based upon more of a first come, first serve basis, so you must be extremely active online and make your online presence known and to attract an audience, as my work won't be as appealing if the subject has already been read about. As well as this, it is dependable on the music industry, and so a lack of new releases will massively affect the amount and quality of work I produce. 

Opportunities that may become available will be unique to independent publishers only, as it means communicating and coming into contact with a lot of different people, and therefore creating a wide range of connections – this can be useful when it comes to seeking future work as more opportunities will be picked up along the way. Opportunities available to me can also include things such as collaborations with non-competitive publishers which will be unique to that industry only. 

Lastly, threats will be a major issue while working as a music journalist. Being a journalist means that competition is tough, as most of the time, audiences will usually stick with a publisher they are familiar with and trust, which are usually bigger publishers such as Alternative Press, who have been around for a while. Therefore, it is key that I offer something different from these bigger publishers, which I will do by engaging more thoroughly with my audience in order to establish a connection and build a rapport.

PESTEL Analysis

In terms of PESTEL analysis, my role as a freelance music journalist will be crucial to applying these terms. As journalism is quite focused on politics (whether music or not), it is important to be completely unbiased as this may pose an issue towards my career. This can be the make or break of my career, so is probably the most important factor in PESTEL for my business. Economic issues will also come into play with my work, as I will be releasing pieces which are socially and economically relevant. Thus, I must be extremely familiar with economic issues before I start any piece, so that I can back my claim of being reliable, honest and transparent. Like economical issues, social issues are another external source which will be vital in my career. Music will usually be historically relevant to social issues, so I must be familiar with them and their effect on music as this is something that readers may potentially be interested in.

Technological problems must be updated, as I will be relying on technology to get me by and to broadcast my work. It may be important for me to upgrade my equipment in order to ensure I produce my best quality work. In addition, this can also be something to consider in my work itself as technology is constantly changing, meaning that music and music production will change with it. Environmental relevance will not be as important since I won’t be working in the environment or writing about the environment. The only thing I would have to consider is my effect on the environment, which will be minimalised as I will be online based - but it may be something that I choose to write about to be more proactive in the ever-progressing world. Although it may be something to consider when reviewing tracks that could be inferred to have environmental relevance, such as climate change issues. Lastly, I will also have to worry about my legal consequences as I will be working potentially against the government at some points due to the controversial nature of some of the music I will be writing about. Thus, it will be important for me to remember the legal consequences of my writing to stay out of trouble. I must also run my business entirely legally as an sole trader, so I will need to get insurance and pay taxes. Copyright is probably the most important in this, as I will need to ensure that both my work is my own and that it is copyrighted to protect it from others and potentially damaging my income.

Brexit

In terms of the effect Brexit will have on me as a freelancer, it shouldn’t be an issue for me as being online based will not interfere with this. If I decide to move away at any point during my career, then Brexit may come into play in my work. The UK is a leading country when it comes to the creative industry, and so work should never be lacking and I should perhaps find better/more work through staying and working in the UK. The only effect it will have on my business is the actual work within it, as the nature of Brexit may be influential on some of the music I write about. However, I must consider the political effect here and try to remain as neutral as possible. Later on in the life of my business, when I decide to sell and distribute products such as printed copies and merch, then I will have to calculate the extra costs that will come with exporting/importing as a result of Brexit.

 Task 2 - Types of Businesses in the UK

 As for the type of business I will be, it appears as though being a sole trader is most relevant to me as an independent music blog – I will have complete control over my business and finances, and investors will not be relevant to my business. Payment from clients/partners will be upfront and at the start of my work, I will not use an accountant or agent unless the time comes for it. However, the type of business can change, so I may end up needing to seek an investor/s at some stage to support my business - it could potentially end up being a partnership.

Task 3 - Business Plans and Models

 I will need to refer to a business model from the start of my career, as this is what I will use as a basis for my business to start it up. The business model is relevant throughout the whole of the business, and so I must start this up before setting up my business. As for the business plan, this is something I will create in the early stages of my company, once it is set up. This is because I will then have a rough idea about what is going on with my business, and this will be something that is constantly changing and which I will have to refer to and stick to strictly to regulate major factors such as income, staff and resources.

 Task 4 - The Brand 

Mission Statement

As for my mission statement, it will be important for me when attracting customers. I will need to make it clear and be transparent about what I aim to do during my work as an independent journalist and publisher so that I can attract the right and enough attention. As I will be online based, my mission statement will be the first thing that readers will see, which may or may not attract them to my business. I should spend quite a lot of time creating my mission statement, which will be difficult unless I base it off of my portfolio. I must tell them exactly what I do, what I write about and the activities/services I offer to preserve my honest and transparent reputation. It is important to include in your mission statement the current state and purpose of your business, rather than your future plans with it, as to not get confused with vision statement. 

Brand Positioning

As for brand positioning, I will need to form connections and partnerships with similar businesses in the music journalism industry, but I must form connections with non-competitors only. This way, I could potentially present some of my work on their site to be seen be a wider and different audience, as such to grow my own. Moreover, I will have to consider general online advertising which will be where the majority of my funds go to. I could also advertise in hard copies of other music magazines so that I cater to and attract a range of contrasting preferences which I can build my business upon.

Business Drivers

In terms of my company, I will need to monitor a constant business driver. In terms of my company specifically, the most important factors to measure will be traffic to my website, as well as reactions to online/social media engagement. This is to be assessed and monitored constantly in order to improve interaction and interest. Later on down the line, however, it will be necessary to monitor funding as a driver when I start to make a profit from my business, in order to assess the most popular items and content.

Marketing

When it comes to marketing my business, as it will be mainly online, I will just be focusing on marketing it there, as this is where my target audience will come from. Therefore, this should be the most efficient and simplest way to advertise my business as the internet is easily accessible. I should create and regularly use multiple accounts such as LinkedIn, Freelancer and Twitter as another way to demonstrate my abilities in the creative sector. Moreover, it may also be necessary to create an Instagram account as this is one of the most popular social media platforms for younger people, alongside Snapchat, although I will refrain from using this due to the fact that it is meant more for personal use and is ineffective when it comes to marketing. Lastly, advertising is another key technique to market my business. Through paid advertising or partnerships from connections, I can ensure that my brand is reaching the audience I want it to, using relevant platforms to advertise on. 

Business Blueprint

I will need a business blueprint when starting up my business as I will need to know how to correctly start up and run my business from scratch, while also knowing how to maintain it. This can help me in terms of my starting funds and paying back the loans I may borrow when starting up (to pay for my domain). As well as this, using a blueprint can be another way to keep track of my work and audience engagement/purchases, which I will need when it comes to self-assessment each year. As an independent brand, I feel that it is extremely important to have a business blueprint as I do not intend to hire any other staff, and so I will have to manage everything myself; having a blueprint can help with this as I can organise what needs to be done/what I have done so far as to not overwhelm myself.

Task 5 - Legislation and the Creative Industries

Intellectual Property

I will have to gain rights to my own intellectual property when it comes to producing a piece of work. As a music journalist, each piece will be my own, and so I must ensure that my work is not copied and is purely my own. Thus, I will have the copyright over my own work unless I grant otherwise, so it can be enforced that my work is purely my own and safe from fraud and theft. Therefore, this is important to consider. Copyright is the most important factor and point to monitor for my business, being as work online is much easier to copy or steal rather than physical work. However, this also works the other way and so I must also ensure that I do not steal or copy work from other writers/publishers. Moreover, intellectual property is the driving force for the start-up of my business, as I will not be offering any physical property just yet, so it is vital to protect it at risk of loss interest in my brand.

Talent and Location Releases

If I am interviewing someone for an article, I may have to produce a talent release in order to announce that they had given their full permission for the interview to be released publicly. However, I will not have to worry about location releases for the time being as I will be working from my own home or office, so there shouldn't be the need to go anywhere else, even for interviews which I would prefer to hold either in my own workspace or remotely. As I am music-focused, a talent release is vital in ensuring that if I do produce online videos (which I might do considering I will be a publisher), that the subject is comfortable with having their work published and expressed by myself.

GDPR - General Data Protection Regulation

I will have to take into account the GDPR when maintaining my business due to the fact that as my business progresses, the distribution of physical property will require the use of customers' data for payment. In addition, I will also use a 'submissions' option on my blog to allow readers to submit their own work/article, which will require some minimal information such as an email address and name, so it is key that I keep in mind the GDPR when handling this sort of information.

The Competition Act (1998) and The Enterprise Act (2002)

The Competition Act (1998) is an Act passed to ensure that bigger businesses do not abuse their superior position to make it impossible for competitors to advance their business, as this makes the whole act of competition in business pointless and unfair. This is something to bear in mind when maintaining my business as in music journalism, competition is extremely prominent, especially with bigger music publishers already existing. Therefore, they are in a position to potentially rule me out if they disregard the Act, in which I could then prosecute them for this.

Similarly, The Enterprise Act (2002) means that businesses cannot collude with one another in order to rule out competition and put themselves at a greater advantage. This is important to consider when maintaining a business due to the fact that although you can form connections with non-competitors, you should not take it any further that that, in which I mean contribute to each others' growth illegally, usually financially, to appear more successful than competitors.

Task 6 - The Creative Economy

Industries in Creative Enterprise

The industry I hope to work in as a music journalist will be placed in the writing and publishing category, as that is what I will be doing. The proportion of journalists across all specialities in the UK has risen from 26% to 52% online, while it has fallen regarding hard prints (data since 2012). Therefore, it is suitable for me to focus on working online rather than working on hard print in order to remain relevant and also best represent myself online. However, if I do choose to create hardcopies, I could then perhaps be considered as a hard and online copy journalist, making up both proportions of the data above. Moreover, this falls under the digital sector in the DCMS, of whom revealed that in 2018, the digital and tech sector of the creative industries contributed the most to UK economy, so it is extremely beneficial for me to be working online to be considered to come under this sector as a digital journalist.

SOURCE - Journalists in the UK (ox.ac.uk)

Task 7 - Regulatory Frameworks

IPSO

 As I will be working in the journalism industry, I will have to be aware of the Independent Press Standards Organisation (IPSO), who are the UK’s regulator of newspapers and magazines. Therefore, I must follow the Editors’ Code, which sets out the rules that newspapers and magazines must follow. There are 16 main rules that must be followed set out in the Editors’ Code; Accuracy, Privacy, Harassment, Intrusion into grief or shock, Reporting Suicide, Children, Children in sex cases, Hospitals, Reporting of Crime, Clandestine devices and subterfuge, Victims of sexual assault, Discrimination, Confidential sources, Witness payments in criminal trials and Payment to criminals. These are terms which are vital to be abided by by all journalists, and so must be remembered and checked when maintaining my business.

ASA

I must also be aware of the ASA if my magazine/website contains ads to ensure that I am displaying my ads legally. If I break one of their policies – online ads being most important – I may be landed in legal trouble, and so I must gain awareness of the ASA’s policy. As well as this, adverts will be my main source of revenue in the early parts of my career, and so my knowledge of the ASA must be prioritised and a major influence on my business. I will also create my own ads to promote my business, which increases the importance of ASA policies further.

Task 8 - Other Considerations for Business

Financing

 When it comes to financing, my best option will most likely be the Arts Council of England, as they offer up to a £100,000 grant to a variety of creative industries, most notably, journalism and publishing. I will use the start-up money received to create and distribute ads in order to start attracting an audience. Most financial providers will offer a similar amount of money as a start-up fund, which the client can pay back later when they have the chance. Other financial providers who I could use are Arts Impact Fund and Innovate UK, who also focus on offering funding for the creative industries. My later source of revenue will come from merchandise and subscriptions, and so this loan will only be temporary (hopefully). 

Insurance 

In terms of insurance, I have a few options to consider; for example, if I choose to borrow instruments or host a show promoting my brand, I may have to pay get insurance to cover any equipment used as well as venues. Therefore, I must also have theft insurance as I may also need my own space/office to work. Lastly, it may also be crucial to have worldwide travel insurance as I may have to travel abroad for the sake of interviews or developing connections/promoting my brand name as well as my own name.  

Business Rates 

As mentioned above, it may be necessary eventually to rent or purchase my own office to work in if more staff are employed in the business, and so myself as the owner will have to calculate and pay business rates for the property. However, there are conditions which can lower the rates needed to be paid, which is there to be considered depending on the finances at the time.

Task 9 - Cultural Policy 

DCMS 

As my business is in the creative industry - more specifically the media sector - the DCMS will be of the most importance to me as they are arguably at the centre of everything - funding, regulating etc. In order to protect my business legally and financially, I will need to seek help through the DCMS from organisations such as Arts Council England, as well as relying on them as a regulatory body. Thus, cultural policy is extremely relevant and important to my business.