Start & Run a Graphic Design Business

Start & Run a Graphic Design Business
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There are minimal costs involved in starting a graphic design business which makes it an attractive opportunity for anyone with an artistic eye. All that is required is a computer, an Internet connection, and design skills. It’s the kind of business that can easily be run from your home! The graphic design business has changed significantly over the past few years. The popularity of photo- and art-sharing websites and social networking sites, and the low barriers to setting up websites have driven a demand for fresh new graphics and provided numerous opportunities for graphic artists to reach new markets and customers. This book will show you how to capitalize on these opportunities, market your business, find clients, and stay organized. Like all books in the Start & Run series, this book is written in an easy, step-by-step format. The included download kit has forms and worksheets that will help you develop a successful business.

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Michael Huggins. Start & Run a Graphic Design Business

START & RUN A GRAPHIC DESIGN BUSINESS

Introduction

Running the Business

Part I: Your New Business Adventure

Part II: Setting up Shop

Part III: Marketing Your Business

Part IV: Doing the Work

Appendixes

Part I. YOUR NEW BUSINESS ADVENTURE

1. Getting Started: Understanding the Basics of the Graphic Design Business

1. What Is Graphic Design?

2. Understanding the Three Forms of Media

3. Who Buys Graphic Design Services?

4. Graphic Design Specialties

5. Can You Make a Living in the Graphic Design Business?

5.1 What can you expect to earn?

2. I love Understanding What It Means to Be a Design Entrepreneur

1. Working on Your Own or with Others

1.1 Working on your own: The solo entrepreneur

1.2 Having other people work for you

2. The First Step to Becoming a Design Entrepreneur

3. Your Start-up Costs

3.1 The need to make money and be profitable

4. Dealing with Insecurity

5. Are You Cut out to Be Your Own Boss?

3. The Pros and Cons of Partnerships

1. Should You Form a Partnership?

2. The Problems with Partnerships

2.1 Things don’t get simpler — they get complicated

2.2 Partnering with friends

2.3 Measuring responsibilities and talents

2.4 Businesses evolve and change

2.5 Most business owners who have partners warn against it

3. A Positive Spin on Partnerships

4. Keys to Building a Successful Partnership

4.1 Enter into partnership slowly

4.2 Clearly outline your performance requirements and standards

4.3 Talk money

4.4 Talk it through

4.5 Make sure the person has support from his or her significant other

4.6 Base the partnership on compatible values, drive, and work ethics

4.7 Hear the person’s heart’s desire

4.8 For better or worse — partnering with your spouse or life partner

5. Write a Detailed Partnership Contract

6. Alternatives to Partnering

6.1 Forming a strategic alliance

6.2 Talk to other design business owners

6.3 Business and coaching groups for entrepreneurs

6.4 Thought-leadership groups

Part II. SETTING UP SHOP

4. Setting up Your Business Structure

1. Types of Business Structures

1.1 Sole proprietorship

1.2 Partnership

1.3 US limited liability company (LLC)

1.4 US Corporation

1.5 Incorporating in Canada

2. Business License

3. Employer Identification Number or Business Number

4. Open a Business Bank Account

5. Hire an Accountant

6. Insurance

6.1 Health insurance

6.2 Disability insurance

6.3 Business insurance

6.4 Errors and omissions insurance

5. Creating an Identity

1. Your Company’s Name

1.1 Seven characteristics of a good name

1.1a Longevity

1.1b Differentiate your business from your competitors

1.1c Connect with your target market

1.1d Reinforce your company’s position

1.1e Communicate size and stability

1.1f Be simple

1.1g Be able to register it

1.2 The importance of choosing a good name

1.3 Getting personal with your business name

1.4 Discovering your business name

1.5 Picking a web-friendly business name

1.6 Registering your business name

2. Your Company’s Unique Marketing Message

3. Your Company’s Professional Standards

3.1 Your business standards

3.2 Your creative standards

3.3 Your relational standards

4. Your Company’s Visual Image

4.1 Logo

4.2 Business cards

4.2a Always carry your business cards with you

4.2b Have your business cards ready at every introduction

4.2c Bring a big supply of business cards to networking events

4.2d Never count the cost of your business cards

4.2e Make notes on the back of the cards you receive from others

4.3 Email

4.4 Voice mail messages

4.5 Your dress code

6. Office Location

1. Your Work Space

2. Working at Home

2.1 Advantages of working at home

2.2 Disadvantages of working at home

2.3 Tips for working at home

3. Working at an Office Location

3.1 Advantages of working in an office outside the home

3.2 Disadvantages to working in an office outside the home

3.3 Finding the best office space

4. Leasing Office Space

5. Subletting an Office Space

6. Making Your New Space Pay You

Part III. MARKETING YOUR BUSINESS

7. Finding Your Niche in Graphic Design

1. What Type of Design Will You Do?

1.1 Generalization

1.2 Specialization

2. Overview of Niche Markets

2.1 Packaging

2.2 Website

2.3 Marketing communications

2.4 Annual reports

2.5 Publications and editorial

2.6 Trade show displays

2.7 Signage and POP displays

2.8 Way finding or environmental

2.9 Branding and corporate identity

3. What Is Your Niche Market?

8. Targeting Your Market

1. Attracting Prospects

1.1 Marketing is a process

2. The Four Types of Marketing Strategies You Need

2.1 Awareness marketing

2.2 Lead generation

2.3 Conversion marketing

2.4 Repeat and retention

3. Your Target Market

3.1 Selecting a target market

3.1a Begin with a marketplace need

3.1b Create services to address the market need

3.2 Marketing to more than one market

3.3 List your selected target markets

3.3a Your in-house list

3.3b Associations and meetings

3.3c Compiled lists

3.3d Directories and databases

3.3e Rented lists

4. Unique Marketing Message

9. Creating Your Marketing Plan

1. Situation Analysis

1.1 Current strengths

1.2 Past experiences

1.3 Other skills and experiences

1.4 Limitations

1.5 Competition

2. Research Your Target Market

2.1 Survey research

2.2 Published research

2.3 Hands-on research

2.4 Select your best opportunities

3. Strategies and Tactics

4. Measurable Goals

5. Budget

5.1 Face time

5.2 Planning time

5.3 Calculating your cost per lead

6. Putting Together Your Marketing Plan

10. Your Online Marketing

1. Your Website and the Internet as a Marketing Tool

2. Domain Name

2.1 Website domain hosting

3. Building Your Website

3.1 Important components to include on your website

3.1a Homepage

3.1b Who we serve page

3.1c Portfolio page

3.1d Client list page

3.1e Lead-capture forms

3.1f Contact us page

3.1g Testimonials

3.1h Adding links and resources

4. Getting Found on the Internet

4.1 Key words

4.2 Relevant content

4.3 Update your content frequently

4.4 No Flash introductions

5. Optimize Your Internet Marketing

5.1 Drive traffic to your website

5.2 Track the activity of your site

5.3 Separate your prospects from your visitors

6. Email Marketing

6.1 Email marketing strategy

6.2 Preparing to send email marketing

6.2a Adding prospects to your list

6.2b Adding people to your list using offline methods

6.2c Using email broadcasts

6.2d Using email auto-responders

6.2e Using personal emails

6.3 Delivering on your promises

6.4 Create offers to get offline information

6.4a Tip sheets

6.4b Case studies

6.4c Portfolio samples

6.4d Articles

6.4e Pricing and budgeting guides

6.4f Recent success stories and examples

6.4g Thank-you notes and special offers

7. Pay-per-click Advertising

7.1 How to create good PPC ads

8. Blogs

11. Your Portfolio

1. Three Essential Portfolio Presentation Steps

1.1 Step 1: Describe the challenges you faced

1.2 Step 2: Show your prospects the creative process

1.3 Step 3: Show your final design solution

2. Four Goals of Your Portfolio

2.1 The highest level of your design and creative abilities

2.2 Solving problems through design

2.3 Communicating to various target markets

2.4 Your expertise with specific media

3. Creating a Project Synopsis Outline

4. Target Your Portfolio for Impact

5. Putting Samples of Your Best Work Together

5.1 Beware of too much diversity

5.2 Volume or quality?

6. Getting Samples for Your Portfolio

7. Archiving Your Samples

7.1 Keeping and archiving your concept work

8. No samples? No problem!

8.1 Pro bono work

8.2 Work for reduced rates with companies that represent your target market

8.3 Create mock-up versions of the type of design work you want to attract

9. Displaying Your Portfolio

10. Organization Is the Key to a Strong Portfolio

11. Creating Various Format Versions of Your Portfolio

11.1 Creating your portfolio for the Internet

11.2 How many pieces should you display on your website?

12. Your Portfolio Is Not a Pricing Tool

13. Showing Off or Persuading the Prospect?

12. Your Capabilities Kit

1. What to Include in Your Capabilities Kit

1.1 About you

1.2 About your company

1.3 About your staff

1.4 Your list of services

1.5 Your company benefits

1.6 Your client list

1.7 Your corporate brochure

1.7a Design the format and style to match your target market

1.7b Cover the highlights of your presentation

1.7c Make your headlines and subheadings benefit driven

1.7d Stay focused on your core message

1.7e Divide into logical sections/breaks

1.8 Your design process

1.9 Case studies

1.10 Articles

1.11 Samples of your work

2. Designing Your Kit

Part IV. DOING THE WORK

13. The Proposal

1. Before You Write Your Proposal

2. Request for Proposal (RFP)

3. Request for Qualifications (RFQ)

4. The Size of Your Proposal

5. What to Include in Your Proposal

5.1 Cover letter

5.2 Project outline

5.3 Project objectives

5.4 Scope of work

5.4a Exploration

5.4b Conceptualization

5.4c Implementation

5.5 Fees and timing

5.6 Terms

5.7 Exclusions

5.8 Time expiry

5.9 Signature

5.10 Disclaimer items

6. Draft the Proposal

7. Present the Proposal

8. Close the Sale

9. Sometimes Only an Estimate is Necessary

10. The Difference between a Proposal and a Contract

14. The Contract

1. Your Intellectual Property Rights

2. The Importance of a Signed Contract

3. What to Include in Your Contract

3.1 Outline exactly what you will do and what the client should expect

3.2 Outline exactly what the client must do and what you expect

3.3 Outline the creative process

3.4 Outline the authorized use for the work

3.5 Outline who owns the work

3.6 Spelling out additional services

3.7 Agree to the structure and timing of the project

3.8 Outline expectations regarding confidentiality

3.9 Client approval

3.10 Third-party contracts

3.11 Clearly outline the terms of payment

4. Be Open to Negotiation

15. Repeats and Referrals

1. Provide Good Quality Work

1.1 Have a clear objective

1.2 Apply active listening skills

1.3 Establish your client’s expectations

1.4 Attention to detail

1.5 Deliver beyond the expected

2. Provide Good Service

2.1 Good service is relationship based

2.2 Attitude affects outcome

2.3 Be process driven

2.4 Be proactive and a problem solver

2.5 Build relationships

2.6 Avoid arguments

2.7 Manage your projects effectively

3. Things to Do to Get Repeat Work

3.1 Follow-up calls and emails

3.2 Happy holidays

3.3 Remembering birthdays

3.4 Client appreciation programs

3.5 Thank-you cards

4. Referrals

4.1 How do you get referrals?

4.1a Be on time

4.1b Be known as a finisher

4.1c Be courteous

4.1d Follow through on your promises and commitments

16. Dealing with Client Problems

1. The Formula for Dealing with Problems

1.1 Face your problems

1.2 Commit to reaching a resolution

1.3 Listen before offering a solution

1.4 Keep your client updated on the progress

1.5 Thank your client for alerting you to problems

2. Avoiding Problems — Speculative Work

17. Your Creative Process

1. The Creative Brief

1.1 Client name and contact information

1.2 Project description

1.3 What the client is promoting

1.4 Project objective

1.5 Identify the target market audience

1.6 Describe the target audience in greater detail

1.7 Support material

1.8 Presenting your creative brief to the client

2. Creating a Timeline

3. Managing Your Revision Process

4. Getting Feedback

4.1 Don’t make it personal

4.2 Be objective

4.3 Be opinionated not obstinate

4.4 All things are negotiable

5. Obtaining Design Approval

6. The Mechanical Process

7. Working with Content

8. Tracking

9. Project Creep

10. Using a Docket System

11. Email Communications

12. Improve Your Design Skills

12.1 Build a swipe file

12.2 Library of resource books

12.3 Create and use best practices

18. Hiring Photographers and Illustrators

1. Finding Photographers and Illustrators

2. Rights to Completed Work and the Cost

3. Tips for Working with a Photographer or Illustrator

3.1 Experience can be used to your advantage

3.2 Interview effectively to find the best fit

3.3 Distinguish ability from style

3.4 Assess their equipment to your needs

3.5 Ask about their credentials and do a reference check

4. Tips for Art Directing

19. Pricing Your Services

1. Pricing Strategies

1.1 Low price and high volume

1.2 High price and low volume

1.3 The psychology of pricing

2. Charging a Flat Fee

3. Charging by the Hour

4. Quick Methods for Selecting Your Fees

4.1 Base your fees on pricing guidelines

4.2 Base your fees on professional rates

4.3 Base your fee on your pricing matrix

4.4 Find out what your competitor charged

5. Calculating Your Hourly Rate

5.1 Value factor

5.1a Rush projects

5.1b Projects that give clients more control and future cost savings

5.1c High profile projects

5.1d Projects that produce a traceable result

5.1e Projects that produce an ROI (return on investment)

5.1f Projects that have a high production count

5.1g Other items to assess value

5.2 Putting it all together

6. Finding Your Client’s Budget Number

6.1 What’s the big budget number?

6.2 What did the client pay the last time?

6.3 Who did the client hire to do this type of work in the past?

6.4 If all else fails, triangulate

7. Basic Components to Base a Quote

8. Presenting Your Quote

9. After You Have Submitted the Quote

10. Negotiating Your Fee

10.1 Ways you can win over price objections

10.1a Build negotiation into each proposal

10.1b Offer a discount for projects paid in advance

10.1c Break the project into phases

10.1d Combine more projects for a reduced rate

10.1e Offer reduced rates in exchange for longer lead times

10.1f Alter your creative process

10.1g Other reasons to drop your fees

11. Invoicing

11.1 First time clients

11.2 Exceptions to invoicing rules

Appendix 1: Outfitting Your Office

1. Business Phone Line

2. Internet Access

3. Email

4. Fax Machine

5. Choosing a Computer System

6. Desktop Computer versus Laptop

7. Computer Servers

8. Backup Hardware and Software

9. Software Programs

9.1 Accounting software

9.2 Time management software

9.3 Project management software

9.4 Design software

9.4a Illustration programs

9.4b Photo-based programs

9.4c Page layout programs

9.4d Web design programs

9.4e Utility programs

9.4f Purchasing the programs in a bundle

10. Purchasing a Printer

10.1 Black and white printer

10.2 Color printer

11. Purchasing a Scanner

12. Calculating the Costs of Outfitting Your Office

Appendix 2: Hiring Freelancers and In-House Employees

1. How to Find Freelancers and In-House Employees

2. Hiring Freelancers

2.1 Freelancers working in-house

2.2 Freelancers on their own

2.3 Benefits of using freelancers

2.4 Freelancer frustrations

3. Hiring Full-Time Employees

3.1 Hiring is risky business

3.2 Hiring family or friends

3.3 Hire trustworthy people

4. The Hiring Process

4.1 Accepting résumés

4.2 Interviewing

4.3 Reviewing portfolios

4.4 How to select your employees

4.4a Skill set

4.4b Complementary skills and talents

4.4c Potential talent and growth

4.4d Character

4.5 How the employee will be paid: Hourly or salary wages

4.6 Making an offer

4.7 Trial period

5. Company Policy and Procedures

5.1 Hours of operation

5.2 Overtime

5.3 Eligibility of benefit plan

5.4 Vacation time

5.5 Sick or personal days

5.6 Leave of absence

5.7 Statutory holidays

5.8 Evaluation of employees

5.9 Termination policy

5.10 Noncompetition

5.11 Nondisclosure

6. Acceptance of the Offer and Training

7. Don’t Hand Over Your Responsibilities

Appendix 3: Follow-up Equals Fire Power

1. Follow-up Is about Building Relationships

2. Create an Effective Follow-up Program

2.1 Create a list

2.2 Keep your list relevant, current, and clean

2.3 Make contact regularly

2.4 Ask for a response

2.5 Use a variety of media

2.6 Leverage your current projects

2.7 Leverage your expertise

2.8 Delegate your follow-up

3. Focus on Generating Leads

3.1 Qualify and categorize your leads

Appendix 4: Interviews with the Pros

Interview 1

Interview 2

Interview 3

Interview 4

Interview 5

Interview 6

Appendix 5: Tips to Improve Your Business

1. Investment Tips for the Design Entrepreneur

1.1 Invest in your vision and goals

1.2 Invest in your personal growth

1.3 Invest in your marketing

1.4 Invest in delivering outstanding service

2. Focus on Closing Your Open Loops

2.1 Unfinished projects

2.2 Administration

2.3 Callbacks

2.4 Verbal commitments

2.5 Marketing support

3. Becoming More Like a Consultant

3.1 Always educate your client on the best design approach to take

3.2 Be current and relevant

3.3 Be the “knowledge center” for what you do

3.4 Keep a list of resources ready

3.5 Focus on the end result with every project

3.6 Demonstrate you understand the client’s goals and desired outcome

3.7 Evidence the invisibles

3.8 Define your process

3.9 Inform before the client asks

4. From “Distraction Jackson” to “Action Jackson”

4.1 Determine your best part of the day

4.2 Plan your projects in stages

4.3 Be specific about your tasks

4.4 Build in a buffer

Appendix 6: Additional Marketing Tools

1. Cold Calls

1.1 Know your target

1.2 Have a script

1.3 Be authentic

1.4 Don’t apologize

1.5 Call early

1.6 Know who you are looking for and qualify

1.7 Know what you want to happen next

2. Networking

2.1 How to engage others when you network

2.2 Networking tips

2.2a Be positive and approachable

2.2b Be in demand

2.2c Don’t be desperate when you connect

2.2d Always have time for new work

2.2e Be ready to demonstrate and respond

2.2f Get their contact info

2.2g Follow up

2.3 Networking done right

2.4 Where to network

3. Sales Letters

3.1 Making an offer in your sales letter

3.2 Creating the sales letter

Step 1: Headline

Step 2: Salutation

Step 3: Problem

Step 4: Solution

Step 5: Proof

Step 6: Action

Step 7: P.S. statement

Glossary

Dedication

About the Author

Other Titles in the Start & Run Series

Notice to Readers

Self-Counsel Press thanks you for purchasing this ebook

Contents

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Being a self-employed graphic designer has been quite a journey for me. It’s been challenging, stressful, tough, rewarding, exciting, invigorating, lucrative, and hugely satisfying. One thing it hasn’t been is dull. In fact, it stands as one of those big events in my life, right next to marrying my wife, Anita, and having children. Just like those events, it’s been an eye-opening and life-changing experience. I’m sure it’s going to be one for you, too. I’d like to help you make it fun, rewarding, and lucrative as you go.

If you’re holding this book in your hands right now, you probably find yourself in one of the following positions:

.....

In a recent poll of design entrepreneurs on ForGraphicDesignersOnly.com I asked how much other design business owners make each year. The answer was that 47.7 percent said their salary ranged between $50,000 and $129,000 yearly.

In the US, the AIGA (American Institute of Graphic Arts, the professional association for design) reports graphic design business owners’ salaries ranged from $65,000 to $140,000 per year in 2008, with the median salary at $95,000. These salary ranges don’t include other compensation such as benefits, bonuses, and various business write-offs you can include in order to be extremely profitable.

.....

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