Different firms;
- sole trader
- partnership
- limited partnership
- limited liability
- public limited liability
All of these firms need to manage costs
They have a need to develop a profit, thats the reason for the company
Profit is what is left over after trading
Costs are the expense necessary to do a job
10% is regarded as the average, reasonable amount of profit.
The higher the profit taken is more risky. Less profit means less risk.
tax man will look at your profits, and take proportion of it. It is not taxable on costs.
Tax examples
- income tax
- corporation tax
- VAT
- National Insurance
- Capital Gains Tax
- personal benefit taxes
- business rates
Costs
Broken down in the distinctive group
-general costs (often noted as overhead)
e.g. heating, lighting, non project staff costs
-project costs, are specific
e.g. time on project
design costs for project
design costs for project (including staff)
bought in aspects
Make sure to apportion costs correctly.
Value
self employed designer: £35 per hr
student/ junior mac work: £18 per her
The value may rise if you merit it. Special jobs for big clients.
Perspective
E.g. earn £40,000
Thats 1143 per year
and then 22 hours a week.
at 35 per hour.
Considerations
think about the client demands
end-user demands
- lighting, type; daylight, artificial, bright, dark
- direction of light; side, front, back
- time of year
- UV aspects
- impact on print type (inks)
- screen size (glare)
- location; media type, static, mobile, tv, web
- speed of passing traffic, or footfall, static or dwell time
- multiple sites
- attention competition, is your ad besides others
- guerrilla advertising
Project issues;
- size
- requirements
- time management, how many projects can be on the go at once
- routine work or constantly new projects
Who provides a service to you?
- photographers
- illustrators
- printers
- studios
- rendering farms
Research in to these, so that you know who is available to help undertake clients demands.
Business set up
- geographical location
- what you need
- transport links
- market you are aiming at
- financing
Employers undertake all these elements, even if you are just an employee you need to be aware of this.
Behaviour
Professional behaviour is essential, being outgoing is fine, but must remain professional.
mental approaches between employers and designs may vary.
Divergent thinkers need to present work that fit in with convergent minds.
Creative solutions should be able to be justified.