Starting Your Own Business

A PUBLICATION OF THE GRAPHIC ARTISTS GUILD

Starting Your Own
Communication Design
Business
Guild Webinar available
for members to view.
www.graphicartistsguild.org

LARA J. KISIELEWSKA

Starting Your Own
Communication Design
Business
by Lara J. Kisielewska

A Publication of the Graphic Artists Guild

OUR MISSION STATEMENT
The purpose of the Graphic Artists Guild is to promote and protect
the social, economic and professional interests of its members.
The Guild is committed to improving condItions for all graphic artists
(including, but not limited to: photographers, designers, illustrators,
and digital artists) and raising standards for the entire industry. The
Guild embraces graphic artists at all skill levels.

All content © Lara J. Kisielewska unless otherwise stated.
Graphic Artists Guild
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Contents
Introduction...........................................................................................4
The Business Plan:
Always Necessary, Even If You’re A One-Man Band..............................5
Financing Your Business:
Even More Important Than Your Logo!..................................................9
Business Relationships:
It’s All In Who You Know......................................................................11
More Numbers To Memorize:
Your EIN And Duns Numbers..............................................................13
Buyer’s Remorse Is No Fun At All:
Acquiring The Right Equipment...........................................................14
Who Needs Headhunters?:
Attracting Top Talent............................................................................16
Nuts & Bolts:
Pricing, Contracts, and Other Paperwork............................................19
If You Build It They Will Come:
Actually, It Doesn’t Really Work That Way…........................................24

Introduction
I never had dreams of owning my own business, growing up. And I didn’t even plan on it, while at
school. Yet it happened, as a side venture grew into a career, almost as I wasn’t looking. Since I had
no formal training I made every mistake in the book, and my errors followed me around for more
than a decade. For this reason I remain passionate about sharing what I have learned along the way,
in hopes that I can prevent other designers from making the same mistakes and paying as high a
price as I did to get where I am today.
A bit of background on my company: Optimum Design & Consulting is a midtown Manhattan
firm with a playful, energetic staff that specializes in graphic design for print and web, with a niche in
technologically complex websites. I started the business in 1992 and we initially also offered prepress services for other graphic designers as well as Macintosh tech support and database customization for other creative firms, but we stopped servicing those markets in 2003. Our staffing levels
have varied through the years between four and 16, and currently we’re at six. This article is based
on a workshop I teach called “How to Start a Graphic Design Business,” which is offered periodically through the Graphic Artists Guild, among other venues.

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STARTING YOUR OWN COMMUNICATION DESIGN BUSINESS

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The Business Plan:
ALWAYS NECESSARY, EVEN IF YOU’RE A
ONE-MAN BAND
As much as we artists might enjoy dreamy conceptualization, real world providers of capital and
services often want to know that we have a concrete plan for building and managing our businesses. Potential partners and advisers will also feel more comfortable coming aboard when they know
a well-thought out plan exists. But the most important reason of all for having a business plan is that
it is the very first step you can take down the path that defines you as a small business owner rather
than just a freelancer. It forces you to think things through and answer tough questions at the outset, which will help you better position yourself in the marketplace before you invest much time into
creating a corporate identity. A business plan should always come before starting a business.
There are many tools available to help you write your business plan, from books to software
programs to people you can hire to write it for you. A good resource for sample business plans (and
marketing plans, too!) is www.bplans.com. Make sure you follow some sort of guide, rather than
winging it on your own. Typical business plans usually include the following six sections:

1. Executive Summary:
The Executive Summary defines who you are, what you do, and why you should exist. What about
your studio is different than all the other design firms out there? It should have a succinct mission statement defining the purpose of the business and a positioning statement, just as succinct,
which defines the special assets of your business, and why you are unique in your field. This section
should never be more than one page. It is the snapshot of your business, and can also function as
your sales pitch.

2. Company Strategy/Management Team:
How are you going to get your business to where you want it to be? Are you qualified to get it there?
This section speaks to the credentials of you and your management team. For start-ups without
staff, this section can include a team of qualified business associates or advisors (which would actually really impress whoever is looking at your plan). Business associates can be your accountant,
your lawyer, your banker, and your insurance agent (yes, you need these people right from the start,
even if you don’t think so — more on this later). Business advisors can be a small group of industry
experts and other business owners who you can meet with every six months to pick their brains.
You can discuss your challenges and get invaluable feedback and suggestions from them, even if
it means treating them at a dinner meeting in exchange for their time. Don’t be afraid to ask questions — that’s what they’re there for! A good mentor early on would have prevented me from having
significant heartache…

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3. Product/Service:
What are you going to sell, and who will you be you selling it to? Be specific about what you are going to design. Are you going to be a logo specialist? Do you like editorial design, posters, websites,
product packaging? Know what you are really good at. Although you may capable of doing all of the
above, there are surely some areas in which you really excel. Identify them and be prepared to focus
on these services. Most successful companies develop “niche” markets. Niches can be defined by
company size, type of company, or design focus (ie, annual reports). Develop materials for a dozen
law firms, educate yourself on their needs, and you may suddenly develop a reputation as the go-to
person for law firm marketing materials. Learn the industry, learn their needs and think of creative
ways to fill them.
One friend of mine specialized in websites for not-for-profits. As she was adding bells and
whistles to her sites she discovered that her clients needed faster computers to be able to properly
view them. She knew a colleague who was updating his own equipment, and when she arranged
for him to donate it to her not-for-profit client it sparked an idea — she would offer another line of
services, helping her not-for-profit clients obtain used equipment for a broker’s fee. Although this
might be too much of a stretch for you, this is a good example of how to create additional revenue
streams for your business. Diversifying your income sources will help you survive during the lean
years — I’m speaking from experience here! Other ancillary services you could provide might include creating branding guidelines in addition to just delivering a logo, providing copywriting or
retouching services, or doing market research to support your design work.

4. Your Market and Your Competition:
Guess what? There are other people out there doing what you do. Find out how many and who they
are. Do a scouting report. Learn about their customer service and pricing. Get copies of their marketing materials. Believe it or not, the best way to do this is either to pretend to be a student doing
research for a class project, or to pretend to be a potential client. Ask five other design firms for an
estimate on the same set of specs, and see what you can learn — how do they treat potential clients? How quickly do they turn around a quote? How high or low is their pricing? How detail-oriented is their estimate? What was the customer experience itself like? Use this information to figure out
how you can do better. Then, restate your unique selling proposition in more detail — what makes
you different among all of your competition?

5. Sales and Promotion:
If you don’t already have one, you’ll need to create a marketing plan for your company. The sales
and promotion section of your business plan is a synopsis of the marketing strategy that you’ll outline in more detail in your marketing plan, which should also include specific implementation steps,
target goals, a timetable, and a budget. There are many books, websites, coaches, and seminars on
marketing, including events offered by the Guild. Start thinking about how you are going to get business and how long it is going to take you (this will also figure into your cash projections, the next
section of a business plan).
At least 10% of your time should be spent marketing, or you’ll get distracted trying to meet client
deadlines and be taken by surprise when your current project ends and there is no new project ready
to start. Remember that each new contact is a marketing opportunity, and develop your “30-second
elevator pitch,” which should summarize what your company does and why it is unique in one or
two sentences — roughly the length of time available to tell someone you meet on the elevator about
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your business before the door opens on your
floor. The elevator pitch is designed to pique
interest and spur others to ask questions that
might generate potential leads. It is important to
realize that word of mouth alone cannot sustain
your business in the early years, and that business is not going to magically fall into your lap.
You are going to have to actually market to
make things happen!

6. Financial Considerations:

FINANCIAL CONSIDERATIONS
You’ll need to include the following financial documents
with your business plan. Check with your accountant to
be sure you’ve covered all bases. In general, you’ll need
to include:
PROFIT AND LOSS STATEMENT
CASH FLOW PROJECTION
TAX RETURNS FROM PREVIOUS YEARS

ACCOUNTS PAYABLE LIST
There are several financial documents that
you’ll have to submit along with the narrative
ACCOUNTS RECEIVABLE LIST
part of your business plan, including a profit
LIST OF ASSETS
and loss statement (P&L), cash flow projections,
tax returns from prior years, an accounts payMONTHLY BUDGET
able list (AP), an accounts receivable list (AR), a
list of assets, and a monthly budget. There isn’t
THREE YEAR FINANCIAL PROJECTIONS
space here for me to go into detail on how to
prepare all of these, it’s best to work with your
accountant. But I figured I could touch on the basics of how to put together a monthly budget and
prepare your projections — often considered the most difficult financial statements to create.
First, list your monthly expenses. This means that you’ll also have to look at annual and quarterly expenses and divide by 12 or four in order to get the average monthly amount due. Some
expenses are obvious, such as rent, insurance, and supplies, but take some time to think about the
hidden costs, such as life insurance and occasional legal expenses, and make sure that you leave
yourself a marketing budget too. Don’t forget to take a salary for yourself, and include not only the
salary, but also all appropriate payroll taxes in your expense list. Employee payroll taxes are different than self-employed taxes, so be sure
to consult your accountant. I can’t overemCALCULATING YOUR MINIMUM
phasize the importance of taking a regular
BILLABLE RATE.
salary rather than just dipping into your
business account whenever you need to
1) List your monthly expenses: rent, business insurance,
pay your personal bills — you’ll never have
supplies, life insurance, health insurance, legal expenses, marketing budget, salary, taxes, legal fees, etc.
a clear handle on the profitability of your
(Note: if you have employees, you’ll need to include
business if you don’t include your salary.
their payroll taxes. Self employed taxes are different
Even if you can’t afford to pay yourself
than payroll taxes.)
during the lean months you should always
2) Estimate your billable hours per day. Be realistic, and
take into account the number of hours you’ll spend
write that cheque anyway, and just put it in
on non-billable duties, such as invoicing, paying bills,
a drawer until you have the funds to demarketing, etc. Multiply this number by 23 to calculate
posit it.
your billable hours per month.
Secondly, you’ll need to estimate
3) Divide your monthly expenses by your billable hours
per month. This will give you the billable rate you’ll
your billable hours. Ask yourself how many
need to charge to just break even.
hours a day you think you will be able to
bill, given that a large portion of your time
monthly exp ÷ (billable hours/day x 23) = min. billable rate
will necessarily be involved in a myriad of
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unbillable activities such as marketing, invoicing, dealing with correspondence, paying bills, traveling, etc. Multiply that number by 23 (the number of working days in an average month) to get your
billable hours per month. Theoretically, your monthly expenses divided by your billable hours per
month should give you your billable rate (or at least the minimum rate you should be billing at in
order to break even). You may find that you will have to work more hours than you’d like to in order
to bill at a rate that feels comfortable to you. Or, you can aim only for top tier clients who can afford
to pay those rates. Unless you are very lucky, you will probably have to make choices between time
and money, or commit to working more hours initially to get the business off the ground, and then
look to hire an assistant to help with the workload once it’s feasible. Congratulations, you’ve just
completed your monthly budget.
To create financial projections, make a spreadsheet that lists costs down the left-hand side,
and the next three years across the top. Fill out your Year One column to be the annual version of
the monthly budget you just created (meaning, multiply your monthly figures for each expense by
12). Then start with a copy and paste for your Year Two. Next, examine your costs one by one and
figure out which ones will increase in the second year of your business. For example, will you need
to spend more on salary because you’re planning on hiring a part-time assistant in your second
year? If so, then alter that line item in your spreadsheet and annotate it with a footnote at the bottom that explains why this particular number is changing from Year One to Year Two. If you anticipate increasing marketing in Year Two, assign a higher dollar amount, and then explain why in a
footnote. Do this with each expense, and you will have a collection of footnotes at the bottom of
your projections. These are called your assumptions.
Now you will need to estimate your growth, and assign a rate of growth — 10%, for example —
to your income projections. Hopefully, after plugging in all of the numbers you will end up with more
revenue than expenses in Year Two, but if not, go back and readjust your assumptions and/or your
projected rate of growth until you do. Just make sure your anticipated growth rate is believable!
Repeat the process with Year Two to obtain projections for Year Three. Generally, three years of
projections are considered standard.
Financial Projections 2012-2014

expenses
rent 1
health insurance2
salary3
payroll tax4
business insurance5
telephone & utilities
office supplies
computer equipment6
software upgrades6
marketing & advertising7
TOTAL

2012
$
$
$
$
$
$
$
$
$
$
$

24,000.00
4,200.00
48,000.00
12,000.00
1,440.00
1,800.00
600.00
1,000.00
2,400.00
95,440.00

2013
$
$
$
$
$
$
$
$
$
$
$

24,000.00
4,830.00
50,400.00
12,600.00
1,440.00
1,800.00
600.00
1,000.00
2,800.00
99,470.00

2014
$
$
$
$
$
$
$
$
$
$
$

26,400.00
5,500.00
52,800.00
13,200.00
1,680.00
1,800.00
600.00
7,000.00
3,000.00
3,200.00
115,180.00

1

lease agreement includes 10% increase in rent in third year
projected increase in health insurance based on previous history
3
projected 5% increase in salaries per year
4
reflects increase in payroll
5
reflects increase in insurance due purchase of new computers in third year
6
projected purchase of new computers and software in third year
7
marketing plan projects increase in outreach to growing prospective client base
2

FIG 1:

Financial projection
spreadsheet

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Financing Your Business:
EVEN MORE IMPORTANT THAN YOUR LOGO!
So now you’ve got your business plan, including impressive financials. Now what? Well, you have
to make sure that you’re properly funded from the start (not doing this for my own business was
one of the biggest mistakes I ever made!). From your cash flow projections determine how much
money you’d need to maintain operations for three to six months if you didn’t have a single client.
This amount is called your working capital, and ideally you want at least three months’ operating
expenses in the bank before you even open the doors, even if you have to borrow money to do this!
Drumming up new business while providing excellent service to your clients is hard enough without
also needing to worry about keeping the lights on due to slow-paying clients or jobs that take six
months to finish (and bill!).
The best time to seek money is when you have money. That may sound crazy, but most loans
need to be collateralized by existing assets — CDs, homes, pension plans, etc. — on a one-to-one
ratio, meaning that if you want a $25,000 loan, you’ll need to have $25,000 worth of collateral to
secure it with. There are exceptions, of course, such as an SBA loan (more on that below), but let’s
examine the traditional bank loan first and foremost.
The Five Cs of Credit will help determine how your loan application will be reviewed:

> Character:
Who are you, are you reliable, and do you pay your bills on time? Do you know what you’re talking
about when it comes to your business (ie, can you speak intelligently about your business plan?)
The best way to make this asset work for you is to is to find a decision-maker in the application approval process who you can get to know and who will go to bat for you. I have been able to obtain
financing with less than stellar financials on multiple occasions due to the relationships I developed
with the loan officers, and how collaborative I pushed for the process to be. If the person you are
dealing with doesn’t believe in you, find
someone else.

FUNDING OPTIONS

> Cash Flow:
Lenders will look at historical and projected
cash flow to make sure that you will have
enough money to keep the business afloat
and still make your loan payments.

SELLING ASSETS (SECOND CAR, STOCKS, BONDS)

> Collateral:

SMALL BUSINESS ADMINISTRATION (SBA) LOAN

If the business itself does not have enough
collateral, the bank will look to personal assets (see above).

LINE OF CREDIT

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BANK LOAN

HOME EQUITY LOAN
GRANT
FACTORING: SELLING YOUR ACCOUNTS RECEIVABLE

CREDIT CARD (USE ONLY AS A LAST RESORT)

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> Capitalization:
This refers to the basic resources of the business, including owner’s equity and fixed assets.

> Conditions:
Outside factors will also be taken into consideration, such as government regulations, industry
trends, and economic predictions. Know your industry!
Unless you’re looking for $250,000 or more you’ll have better luck trying to get loans from smaller,
independent banks rather than larger, national banks. But what do you do if you just can’t swing a
loan? Sell assets (stocks, bonds, a second automobile). Take out a home equity loan – still a viable means of financing if not abused. Try for a grant, although typically they are given to qualified
not-for-profits or to for-profit companies doing something worthwhile (such as developing environmentally friendly business practices). If you have outstanding invoices from regular clients you
can pursue factoring — selling your accounts receivable for immediate cash less a percentage fee
— with a firm such as Prestige Capital (www.prestigecapital.com). Go for an SBA loan. Many banks
offer loans backed by the Small Business Administration (SBA) for 80–90% of the value of the loan,
which makes the loans less risky for the bank and therefore allows the bank to grant loans to higherrisk candidates. In addition to backing loans, the SBA provides a wealth of business start-up information on their website: www.sba.gov.
Another option — and one set up specifically to help manage unforeseen cash flow glitches —
is to obtain a line of credit. A line of credit is a set amount of cash that you can use part or all of if
and when you need to, and you only have to pay interest on the portion that you use. For example,
if a bank extends a $15,000 line of credit you may use only $5,000 over the course of five months
before you are able to repay it, so you would only have to pay interest on $5,000 over the fivemonth period. Most lines of credit do have to be fully repaid for at least one day per calendar year,
but if you can manage this, they are very helpful for immediate and unpredictable expenses, in addition to being interest-free when you’re not dipping into them.
So are you confused yet, with all these funding options? If you need help thinking through your
business plan or deciphering the maze of funding opportunities, there are several free sources of
aid. Service Corps of Retired Executives (SCORE) is a 11,000-member volunteer association composed of retired businesspeople who donate their experience to assist entrepreneurs with business
problem solving. There are SCORE offices throughout the country, and you can find the one nearest you at www.score.org. Like SCORE, Small Business Development Centers (SBDCs) are funded
by the SBA and offer free managerial and
technical assistance to small businesses.
FREE RESOURCES
Located primarily within college campuses,
SERVICE CORPS OF RETIRED EXECUTIVES:
SBDCs combine MBA-qualified consultants
Volunteer association of retired business people who
with a wealth of governmental programs
donate their business problem solving experience to
and services. SBDCs are particularly adept
entrepreneurs.
at helping clients seek out and apply for
www.score.org
non-traditional funding options (meaning
SMALL BUSINESS DEVELOPMENT CENTERS:
that you need access to capital but don’t
Centers funded by the SBA which offer free managerial
qualify for traditional bank loans). Check
and technical assistance to small businesses.
them out at www.sba.gov/content/smallwww.sba.gov/content/small-business-developmentcenters-sbdcs
businessdevelopmentcenters-sbdcs.
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Business Relationships:
IT’S ALL IN WHO YOU KNOW
Carefully set up your business relationships at the outset, and you will be rewarded by years of good
advice down the road.

Lawyer:
You may not think you need one until you get in trouble, but a little bit of wise counsel before you
make certain business decisions can go a long way towards business security. Look for a lawyer or
a boutique firm that specializes in small business law and see them at the outset to obtain advice
on the best method of structuring your business. The Graphic Artists Guild has a lawyer referral
resource for members. Another resource is The American Bar Association (www.abanet.org), which
offers information for those who want to handle part or all of their legal situation on their own, information on hiring a lawyer — including a legal referral service — and a pro-bono service for certain
qualifying applicants. Legal Shield (www.legalshield.com) is an interesting alternative, supplying
plans offering various amounts of legal advice for less than $100 per month — although you will not
be able to maintain a relationship with any one particular individual in the organization as a “personal” counsel. Another low-cost online alternative is Legal Zoom, which offers legal services a la carte
(www.legalzoom.com). A great source of legal self-help can be found at Wise Counsel Press (www.
wisecounselpress.com).

Accountant:
Find one who doesn’t charge you to call with questions between visits, so that you are free to utilize
their expertise whenever needed. A good accountant can be invaluable in recommending legal ways
to distribute your income to lighten your tax load. The Professional Association of Small Business
Accountants (www.smallbizaccountants.com) provides a wealth of resources including a small business toolkit, and can help you find a local accountant from their database. It is perfectly acceptable
to meet with and interview several accountants before settling on one. Draw up a list of
WHERE TO FIND WHO YOU NEED
interview questions and call their referrals, as
if you were hiring an employee. In many ways,
LAWYER:
your relationship with your accountant is the
• Graphic Artists Guild Legal Referral Service (for Guild
single most important business relationship
members)
•
American Bar Association – www.abanet.org
you will have.

Banker:
This may seem like a less important relationship at the outset, but try to form a good
relationship with your banker when you set
up your business account. Inevitably, you will
face a cash flow problem, hit a glitch, or need
a special favor. Bankers can do a lot more
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• Pre-Paid Legal Services – www.legalshield.com
ACCOUNTANT:
• Professional Association of Small Business
Accountants – www.smallbizaccountants.com

INSURANCE AGENT:
• Independent Insurance Agents & Brokers of America –
www.iiaba.org

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than tellers can to resolve issues favorably, especially if a pre-existing relationship exists. They can
also advise of new products or services offered by the bank that might be a good fit for your account
activity, but again, only if they know you and your business fairly well. And when it comes to seeking
financing, although your banker may not be the same person who handles your loan, they can direct
you to a proactive loan officer and will certainly provide a good character reference for you.

Insurance Agent:
Finding the right broker can help you negotiate the arcane world of insurance. You may be aware
of the need for life insurance, health benefits, disability insurance, and Worker’s Comp., but have
you thought about employment practices liability insurance or key employee insurance, and do you
know the difference between property and casualty insurance? Unless you are in the business, it is
easy to make incorrect assumptions about which types of insurance are required vs. suggested. A
broker can not only advise on what types of insurance are needed by your small business, but can
also help find you the best coverage for your budget. The Insurance Information Institute provides
some good basic information at www2.iii.org/business-insurance-general. The Independent Insurance Agents & Brokers of America (www.iiaba.org) is a good place to locate independent agents,
who each represent many insurance companies and compare those companies’ products to find
you the best combination of price, coverage, and service.

FIG 2:

The Professional Association of Small
Business Accountants website includes
valuable resources through their Small
Business Toolkit.

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More Numbers To Memorize:
YOUR EIN AND DUNS NUMBERS
An Employer Identification Number (EIN), also commonly referred to as a Federal Tax Identification
Number, is a nine-digit number that the IRS assigns to business entities. It is your business’ social
security number, and will be required on all legal, tax-related, and financial paperwork. Getting an
EIN takes about five minutes and is free, so there is absolutely no reason to use your own social
security number for your business, especially in these days of identity theft when you’d rather not
have that number on every form you need to fill out. Simply call 800-829-4933 or visit the the IRS’s
Apply for an Employer Identification Number (EIN) Online webpage to obtain your EIN.
Dun & Bradstreet (D&B) is the TRW/Experian/Equifax of the business world. They will establish
a credit report on your business regardless of whether or not you seek them out, so you might as
well contact them and make sure that they’re reporting accurate information about your company to
the outside world (www.dnb.com). Additionally, when you initiate your D&B report you get to choose
which vendors D&B uses to check your payment history (once you supply them always make sure
they are paid on time!), whereas otherwise D&B chooses their own vendors to consult. When you
open up a credit report with D&B they assign you a unique DUNS number to track you by, and after
they establish your credit report, they assign you a credit ranking. The DUNS number and D&B
credit ranking can be requested when applying for credit at banks or with larger vendors.

FIG 3:

The IRS’s EIN Assistant
prompts you through applying for an EIN number online.

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Buyer’s Remorse Is No Fun At All:
ACQUIRING THE RIGHT EQUIPMENT
One of the most exciting aspects of starting a business is the new top-of-the-line computer you
now need to buy for work, right? Well, if you can afford it, sure. But why not start out in a more modest way and keep that capital for a cash-flow glitch? Trust me, someday you’ll be glad that you did.
Think about what you’ll be using your computer for, and what your employees will be using them for
as well.
If your work is primarily in InDesign and you rarely use multiple applications, you might not
need as much RAM as you drool over. If your office manager is only working in MS Word and Excel,
chances are he won’t need a dual-processor machine. Be sensible about what you need vs. what
you want. And it never hurts to comparison shop, you can check for bargains at www.dealcatcher.
com and www.pricegrabber.com.
You might consider purchasing used equipment as well — I have been doing this for years
with great results. Although eBay is certainly a popular method these days, other sources you might
want to check out are Mac of All Trades (www.macofalltrades.com) and Midtown Digital (www.midtowndigital.com – formerly CPUsed), both of which have warrantee periods for equipment and parts
purchase. Other popular sources are www.rakuten.com (formerly www.buy.com) and www.amazon.
com. Guild members have access to discounts from Apple and other software and hardware companies, and you can always check your local Mac repair shop (such as TekServe, www.tekserve, in
Manhattan) for Apple upgrade trade-in programs for your older equipment.
Another option is to lease your equipment, especially if you need to purchase multiple desktops, a server, and printers all at once, which can be quite an expensive proposition. As well, some
leases allow you to upgrade every few years so that you’re always able to use the latest equipment without constant significant capital outlay. Apple’s own financing program is a good one, but
if you’re interested in integrating third-party peripherals into your lease, you’ll need to either find a
third-party equipment lease from a company such as Rent a Computer (www.rentacomputer.com),
or locate a company which provides equipment financing from any vendor, such as FiGETTING WHAT YOU NEED
delity Capital (www.fidelitycapitalonline.com).
Like any type of lease, computer leasing
REFURBISHED COMPUTERS:
•T
 he Apple Store – http://store.apple.com/us/browse/
terms are often negotiable, and you should
home/specialdeals/mac
compare a variety of computer leasing
•M
 ac of All Trades – www.macofalltrades.com
vendors to determine which offers the best
pricing and terms. Be sure to watch for any
COMPUTER RENTALS:
Apple:
hidden costs that some vendors may attempt
•A
 pple – http://www.apple.com/financing/business.html
to add in, such as end of term computer dis•C
 heck with your local certified Apple repair shop.
posal fees, for example. Regardless of where
Many offer either rentals or trade-ins on old Macs.
you lease from, however, Apple’s website is
Non-Apple or third-party peripherals:
• Rent a Computer – www.rentacomputer.com
handy for educating yourself on various com• Fidelity Capital – www.fidelitycapitalonline.com
mercial lease options. Apple compares the
Fair Market Value lease, the 10% Purchase
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Option, and the $1 Purchase Option, each of which is best suited for a specific mix of technology
strategies and tax advantages (www.apple.com/financing/business.html).
Office supplies will often cost more than you think they will, especially once you factor in all the
ongoing disposables, such as toner or ink. Take your time to set up business accounts at places
where you get freebies or credits for bulk purchases. Staples, for example, offers free delivery on orders over $20. Business accounts for supplies, services — even local eateries — save a lot of time,
allow the bill to be paid when it’s convenient, and make it less necessary to keep massive amounts
of petty cash lying around. Always look for time-saving options, even though they might cost a little
more. Chances are if you do the math, your hourly rate — or even your assistant’s hourly rate — is
higher than the cost of using a messenger service, or leasing a scale so that you can weigh small
packages in the office and not have to stand on line at the post office just to find out how many
stamps are needed. Pitney Bowes leases postage machines, scales, and all sorts of neat postal
equipment on a quarterly basis. Automation is a wonderful time-saver for the understaffed small
office — any kind of automatic debit or online bill-pay, for example, should always be utilized, and
might just qualify you for a lower interest rate on a loan payment.

FIG 4:

Apple’s Commercial Credit
webpage includes information
on different leasing options:
Fair Market Use Value, 10%
Purchase Option Lease, and
$1 Purchase Option Lease.
Apple also offers a Reuse and
Recycling program, which may
entitle you to compensation
for your outdated hardware.

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Who Needs Headhunters?:
ATTRACTING TOP TALENT
Even more important than your hard assets, however, are your soft assets, or your employees and
contract freelancers. I’m sure you’ve heard the saying that you’re only as good as your weakest
link, and never is that more true than in a small business. Chances are that you won’t be able to
do everything yourself, there just aren’t enough hours in the day unless you plan to regularly work
80-hour weeks. So the first decision you need to make is what role you will play as your business
grows. Will you be the lead creative, and hire others to cover your administrative functions? Will you
spend most of your time in business development, and hire a top creative director you trust? Will
you grow to the point where you oversee everything, and rely on department heads that each head
up the different segments of your business? Think about the role that you want to play in the future,
and start building that infrastructure now. Keep in mind that each position has advantages and disadvantages, and consider how each would fit into the lifestyle you wish to develop for yourself. For
example, being the main client contact will make it hard to have a flexible work schedule. Spending
lots of time in sales and marketing probably means a certain amount of travel.
It might help to write job descriptions of each of the positions you would like your company
to someday have, paying attention to division of duties and the reporting structure. Although you
might need to start out by wearing several hats and hiring one or two others with similar talents, it is
important to establish clear paths for both yourself and your staff that progress towards your ideal
employee structure. Plan salary increases and title upgrades accordingly, right from the beginning.
Attach revenue goals for adding staff (make sure that the revenue is sustainable and not simply
peaking due to one particularly large project) and establish a regular system for employee review
and raises.
When thinking about adding your first employee, don’t fall into the trap of thinking that parttime is a better way to start because it will be cheaper. At a part-time rate of $25 per hour, you’re
paying $500 per week for a 20-hour week, or about $26,000 per year. You could probably hire a fulltime worker for less than $52,000, and get not only double the amount of hours worked, but also a
lot more stability. There are certainly times where part-time help is appropriate, but think it through
and do the math!
Look first within your own networking circle for potential hires…circulate your job description
and see if anyone you know knows someone
looking for a job. This is often the best route,
BEFORE YOU HIRE...
since the hire will feel obligated to live up to
• Determine what role you will continue to play in your
their billing since it came through a mutual
company.
acquaintance. Another option that allows
• Create job descriptions for future employees – the one
you to “try before you buy” when looking for
you’re about to hire, and the ones you’ll have when
you’ve achieved your dream company.
entry-level help is to offer unpaid or stipend•
Plan out future salary increases and title upgrades.
based internships, and make a job offer to
• Attach revenue goals for adding new staff.
a particularly wonderful candidate. Creative
• Establish a regular system for employee review and
internships can be posted at city art schools,
raises.
and administrative internships at city busi© L ar a J . K i si e l e w s k a
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ness schools or programs that help displaced
THINGS TO ASK DURING THE
workers return to the workforce. Two such
INTERVIEW PROCESS
examples are Global Employment Solutions
(www.gesnetwork.com – formerly Career
•H
 ow does the interviewee see his/her career growing,
Blazers) and Welfare to Work (www.opm.
and does it match with the growth path you’ve set for
gov/wtw), which can provide tax credits and
your company.
•W
 here does the interviewee see him/herself in three
free training as well. Outside of that, a great
years?
Five years?
source of creative talent is Creative Hot•W
 hat did the interview like the most about his/her last
list (www.creativehotlist.com), and you can
job? The least?
always post in Craig’s List or the Graphic Art•D
 oes the interviewee have outside interests?
ists Guild’s own JOBline News, a job listing
for creatives (https://www.graphicartistsguild.
org/Membership_Benefits/professional-services).
What should you look for in an employee? Well, to a certain extent, if they’re going to be doing
design work, your decision rests on talent. But for production folk or administrative personnel, consider hiring on basis of work ethic rather than skill level. Sharp, driven, trustworthy self-starters can
easily learn new skills. Talented, lazy, unfocused scatterbrains always need to be managed carefully
and kept in line. Look for candidates with outside interests, who see their job as simply a part of
their life rather than those who define themselves by their job. These people are much more likely
to play well with others, as they are probably far less possessive about things needing to be done
“their” way. And besides, multi-dimensional people are so much more interesting to work with!
During your interview process, make sure that the growth path you have set for your company
intersects favorably with the individual growth paths of your hires. If a stint as your Junior Designer
helps them achieve a job as Creative Director somewhere else
someday, that’s great for both of
you…as long as you didn’t mistakenly assume they’d be with you
forever, or as long as they didn’t
mistakenly assume that they’d
automatically become your Creative Director someday — if you
had actually intended to hold that
title for yourself. When interviewing, both parties should outline their
3–5 year goals to establish the best
fit. Be clear about the role you are
looking to fill, the responsibilities of
that role, and its growth path. Make
FIG 5:

JOBline News, run by the Guild’s New York
Chapter, is a job listing emailed to Guild
members, and is a good resource for finding creative professionals.

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sure to ask questions of your candidates before
PERKS TO LURE & KEEP TALENT
you reveal anything about what you’re looking
for yourself. Many people know how to parrot
• Flexible hours
back what they think you’re looking for if you
• Vacation days or time off
start by defining it for them. If you first ask them
• Training, continuing education, or reimbursement for
skills-related workshops and seminars
open-ended questions about their ideal job and
•
Membership in a trade association
what they liked most and least about their last
• Commission on projects completed for new clients
few jobs and their answers match your mindset,
recruited by the employee
then you know a match is made.
At the moment, you have the luxury of hiring in an employer’s market. But in case that changes, you need to think about what you can offer
to attract and retain prime talent. If you can’t afford top-shelf salaries, can you offer flexible hours?
Plenty of vacation? Money towards continuing education with a bonus upon course completion, or
more modestly, an annual budget for workshops and seminars? Options for unpaid additional time
off? Can you fund and encourage employee participation in a trade association? A commission on
work done for new clients harvested by your employee? Although these are all good up-front incentives, keep in mind how important it is to maintain a good work environment on a daily basis as well.
Read some books on management, if this is a new area for you. Your corporate culture starts the
moment you open your doors and well before you hire your first employee, so make sure you start
it right. First and foremost, look at your own work habits, and ask yourself what kind of vibe your
workplace gives off to the clients and vendors who come in contact with it.
Then, once you have that first employee, ask yourself the following questions: How structured
or easy-going do you want to be? Are there clearly-established policies and procedures for getting
things done, or does the wheel need to be reinvented each time? On the flip side, are your employees doing paperwork just for the sake of doing paperwork, or are they really allowed to focus on
their creative skills? Are your meetings affective? How much micromanagement is necessary? Are
there opportunities for recognition of a job well done? Is everyone clear on their responsibilities and
the responsibilities of others? What happens when you have too much work in one month, and not
enough work the next? And in terms of environment, what is your dress code, your policy on music,
and your feelings about personal phone calls? Do people clock in and clock out on a timecard, or
is it more important to maintain flexibility so that the job always gets done? The more attention you
pay to establishing a good work environment, the more loyal and productive your employees will be.
Another (often-overlooked) component of work environment is the relationships that your employees have with each other. Make sure to have regular staff meetings where everyone can provide
input in a safe setting, and issues can be discussed in depth. Encourage opportunities for employees to gather outside of the workplace, so that they can form bonds that will transcend the difficulties of the stressful office during deadlines. Colleagues who understand each other more completely
than simply as in-office co-workers bring an incredible amount of tolerance to the workplace.

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Nuts & Bolts:
PRICING, CONTRACTS, AND OTHER PAPERWORK
As artists, we all hate paperwork. It would certainly be nice if we could just concentrate on doing
beautiful work and allow the money end of things to take care of itself, but unfortunately, life doesn’t
work that way. Design firm owners will probably need to spend as least as much time on estimates,
contracts, invoices, and marketing as they will on actual design work.
Let’s look at pricing first, as the primary component of an estimate. There are two ways to price
your work, on an hourly basis or on a per-project basis. An hourly basis is always more fair for both
you and the client, unless you are really, really good at estimating the amount of time it will take you
to complete a job and have clear clauses for price increases for out-of-scope work. The difficult
thing about billing hourly is knowing what to do when the hours start to add up and the job remains
far from finished, but in this section I will give you some tips on how to handle that scenario. You’ll
find it easier to bill hourly once you get comfortable with monitoring both time and budget, and
practice keeping an open dialogue with your client about the same, throughout the life of the job.
When I first started out I found that I frequently forgot to bill for little things, for example, the
amount of time it took to deal with the printer on the phone throughout the job (now part of our
standard “consulting and tracking” fee), or the shipping from the printer’s plant to my office, which
would show up when the printer’s bill arrived on my desk — usually a few weeks after I’d billed the
client. To compensate for forgetting to bill certain items, I made a master list of all possible things
that I could (and should remember to) bill for,
and when I prepare my estimates I run down
CALCULATING AN ESTIMATE BASED
this checklist each and every time. It even
ON AN HOURLY RATE
reminds me to build an hour into each job to
compensate for the time it takes to deal with
1) Calculate your billable hourly rate (see page 5)
the associated paperwork, and to ask myself
2) Estimate the number of hours you will need to comhow difficult a client is to work with, which
plete a project
impacts the number of revisions that par3) Multiply your hourly rate by the number of hours to
ticular client would most likely need to see,
get your labor portion of the estimate
as well as how long meetings with that client
would take.
billable hourly rate x # hours required = labor portion
When you’ve determined the total num4) Total up the outside costs for the job (photography,
ber of hours you will need to spend in order
illustration, copywriting, font purchase, supplies, etc.)
to complete a job, multiply it by your billable
5) Calculate a mark-up on the outside costs – typically
hourly rate (see page seven), and you’ve got
10-20% – and add it to your totaled outside costs
the labor portion of the estimate. Then total
all outside costs for the job and add a markcosts + (% markup x costs) = outside costs portion
up for yourself, generally between 10–20%.
6) Add the labor portion of the estimate to the outside
When you add the two figures together, you’ll
costs portion of the estimate.
get your total fee, which should be similar
whether billed hourly or per project.
labor portion + outside costs portion = estimate

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Each job is identified by a unique
estimate number...

ESTIMATE NUMBER: 31-1-C.2631
DATE: 13 April 2012
DESIGNER: Rebecca Blake for
Optimum Design & Consulting
I.D. No. 26-3437659

CLIENT: SmartChoice Communications
OF: 16 West 45th Street, 7th floor
New York, New York 10036

CONTACT: Elisa Caro
JOB: Folder/brochure + inserts

... as well as a simple job name.

ACCOUNT NUMBER: 22SCC.1466P

The Assignment Description
outlines the specs of the job and
describes the look and feel the
client is searching for.

ASSIGNMENT DESCRIPTION: Design and produce a 9x12” folder with two inside pockets and seven 8.5x11”
insert sheets (two single-sided and two double-sided), all in four-color and
consisting of client-supplied logo, text, and images. Design should be bright,
colorful, and eye-catching, and match branding set by new website.

ITEMIZED EXPENSES
DATA ENTRY OR COPYWRITING
ILLUSTRATION
PHOTOGRAPHY
SCANS
IMAGE MANIPULATION
DESIGN
MANUAL OR ELECTRONIC PRODUCTION
STATS, FILM AND SLIDES

$360.00
$0.00
$120.00
$0.00
$0.00
$1,020.00
$170.00
$0.00

PROOFS
MATERIALS AND SUPPLIES
PRINTING AND FINISHING
SHIPPING AND MESSENGERS
MAILING PREP AND POSTAGE
TRAVEL
CONSULTING AND TRACKING
SALE OF RIGHTS

$0.00
$0.00
$2,672.00
$50.00
$0.00
$0.00
$255.00
$0.00

DESIGN AND PRODUCTION FEE INCLUDES:
Creation of folder and seven inserts based on client-supplied logo, text, and photographs;
presentation of up to three comprehensive layouts showing format; production of final digital files;
and coordination with chosen printer.

PRINTING FEE INCLUDES:

500 9x12” folders with two inside pockets (card slit in front) plus 250 sets of seven 8.5x11” inserts (two
single-sided and two double-sided), all printing in full color on 16pt CS2 white gloss stock.

DESIGN AND PRODUCTION FEE: $1,975.00

Outsourced costs such as copywriting are included with markup.
In-house costs for design,
production, etc. are based on an
hourly rate. The client is not
apprised of either the rate nor the
length of time estimated.
The “...Includes” field lists the specs
in detail, including the number
of comps and coordination with
outside vendors. “Printing includes”
lists the final printed product specs.
Printing cost includes Optimum’s
markup.

PRINTING FEE: $2,672.00
PLEASE MAKE CHEQUE PAYABLE TO: OPTIMUM DESIGN & CONSULTING

Please sign both copies of this estimate and return one to Optimum Design & Consulting.
Half of this fee is to be paid upon signing this document, the remainder upon delivery.

THANK YOU.
FOR OFFICE USE ONLY: MC V
AE
CHEQUE
DEPOSIT:
T.E.
CASH

Optimum prefers to itemize costs,
but it is equally valid to provide a
simple flat fee.

ACCT.#:
DATE:

EXP.:
CHEQUE #:

SWIPE

The contract is printed on the back
of each estimate, and the client
is instructed to sign and return a
copy. Payment terms are listed on
both the contract and the estimate.

FIG 6:

Example of an estimate for the design and printing
of a marketing folder with insert sheets.

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The plus side in billing per project is that
GET IT IN WRITING
once the client agrees to the fee, you won’t
need to revisit the pricing again and again.
• Put in as many details of the project in writing as you
On the minus side, you do have to be able to
can in your estimate.
accurately anticipate many future scenarios
• Be sure you’ve anticipated and included all the time
you’ll need for the project, and all outside costs.
or else risk giving up an opportunity to bill
•
Have your client sign a contract which defines the
for additional revisions or unexpected new
scope of the project and fee, and establishes ownerdirections that the project may take. With an
ship of the final artwork and payment terms.
hourly situation you have more leeway to bill
• Have your clients sign off on the final project, indicating their approval.
for the amount of time you actually spend,
but you also have to be aware of how close
or far off you are from your original estimate,
and be able to have an interim conversation (or two!) along the way to explain that the additional
four pages your client added are going to add $X to their final fee. Always make sure to have this
conversation and get their permission to alter the estimate before the additional work is done.
This brings me to a critical piece of advice concerning creating your estimates and proposals:
put as many details of the job in writing as you possibly can. If you’ve detailed that the job entails an
eight-page website based on five digitally-supplied photos and final text, and you end up with a 12page website with ten photos that you have to scan yourself, text that you’re expected to copy-edit,
and hey, eCommerce functionality (where did that come from?), having the original scope of the job
spelled out in writing right on your estimate makes it very easy to turn to the client and ask for more
money to complete the job. In fact, depending on your relationship with that client, if the specs of a
job change so drastically you may want to get them to sign off on a whole new estimate, or at least
a printout detailing the expected change in fee based on the stated change in specs.
Which brings me to the importance of signatures and contracts (see how all this paperwork
stuff is interrelated?). Once you and your client agree on a fee, it’s imperative that the client sign a
contract which not only defines the scope of the job and includes the fee, but also stipulates who
owns the finished work, states the expected payment terms for the job, and provides protection in
the event of a dispute. Once you have a long-term relationship with a client you can choose whether
or not you always want to have a signed contract before you start any job. Some designers will
waive this procedure for longer-term clients and just bill jobs after they are completed, or strike a
balance and invoice smaller jobs but require a signature on jobs over a certain dollar amount. It’s up
to you what makes you feel most comfortable.
Whenever possible use your own contract rather than sign your client’s contract, but if you
must sign theirs, read it carefully and know
that it’s okay to ask them to alter clauses that
COMMON PAYMENT SCENARIOS:
make you uncomfortable, especially anything
that resembles work for hire or work on spec.
a) • 50% up front
The best guideline to either writing your own
• 50% billed net 30
contract or understanding someone else’s
b) • 33% up front
is The Graphic Artists Guild Handbook of
• 33% at completion of job and before file is released
Pricing & Ethical Guidelines, published by the
• 33% billed net 30
Guild. It is included with Guild membership or
c) • 50% of labor up front
can be purchased in bookstores for approxi• 100% of outside costs at completion of job and
before file is released
mately $40, and includes sample contracts.
• remainder billed net 30

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The contract protects the client
from any unauthorized increase in
fees or expenses.

}

}

A link to Optimum as the website
creator, and usage of the website in
Optimum’s portfolio are stipulated.
Ownership of original artwork and
usage are defined.
Modifications to the estimated cost
or specs must be written, unless
given orally to expedite a job. However, Optimum prefers to have all
changes requested in writing.
If original artwork is to be created,
the transfer of rights is outlined
here.

The 50% deposit or “advance” of
the estimate total is listed here.
The estimate number and job
description are repeated.
The client is asked to sign the
“Consented and Agreed To’ line
and date the signature below.

The contract is signed by both
Optimum’s web developer as well
as Lara, as the firm’s founder.
These clauses outline the time for
payment, cancellation notice (with kill
fee), and notice that the client shall
be responsible for attorney’s fees,
should a default in payment necessitate a court case.

FIG 7:

Example of a contract for a website design. Contracts are coded back to the
estimate by the estimate number. When given in hard copy, contracts are
printed on the back of the corresponding estimate. Optimum’s contracts were
developed from the standard contract provided to Guild members, and printed
in The Graphic Artists Guild Handbook: Pricing & Ethical Guidelines.

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Most importantly, when negotiating contracts don’t be afraid to stand up for yourself and your
rights as an artist. Don’t fall into the trap of thinking how lucky you are to land this particular job,
and that you don’t want to make a fuss about contracts because you don’t want to lose the client. If
you’re a Guild member, remember that it’s not just you against a mammoth corporation, but that the
Guild stands behind you, and that your membership empowers you to negotiate from a position of
strength.
Likewise, even though you are a small business, you are still entitled to be paid in a timely
fashion, and there are several steps you can take to protect yourself. Figure out what credit terms
make the most sense for you and ask for a deposit before you start the job. Three common payment scenarios are: a) 50% up front/50% billed net 30; b) 33% up front/33% at completion of job
and before file is released/ 33% billed net 30; and c) 50% of labor up front/100% of outside costs at
completion of job and before file is released/remainder billed net 30.
Additionally, you can decide if you’re willing to extend credit to a client in the first place. If you
end up needing to twist a corporate arm to get a deposit, you can inform your client that the balance has to be paid COD for their first three jobs with you. Or you can have your client fill out a
credit report (yes, you can create one yourself) and you can check their D&B ranking and credit references. Sometimes just asking a client to fill out a credit report will underscore that you’re serious
about getting paid on time. Another option is to open a credit card processing account, take your
client’s card number, and obtain a signature that allows you to run the balance due on the card if the
bill isn’t paid within allotted terms.
Another important signature to collect is the one that a client should provide once they deem
the job completed to their satisfaction. This signature is every bit as important as the signature on
the contract, because it provides proof that the client accepted the job, in case the client should
later try and claim fault with the work in order to avoid payment. Ideally, a “job approval form”
should be attached to a hard copy printout or enclosed along with a PDF of the final file, and should
include an approximate invoice price (which may be different than the estimate price, if the scope
of the job changed at all along the way). Getting a signature of acceptance not only for the design
work but also on the anticipated amount due provides as foolproof a way as possible to be able to
collect on the invoice after it is billed. Make sure to get this signature before the job is sent to the
printer or released electronically to the client — otherwise you’ll have no leverage to collect the signature at a later date.

Job ApprovAl

330 W. 38th Street #801 • New York, NY 10018
telephone: 212.221. 7559 • fax: 212.221.1413
www.optimumdc.com

Date

FAX SHEET
Customer Name

aCCouNt #

estimate/iNVoiCe #

DesCriPtioN of Job

FIG 8:

A job approval form establishes
that your client has signed off on a
project and was made aware of the
approximate invoiced price.

VersioN #
estimate PriCe
aPProximate iNVoiCe PriCe

To:

Replace Copy
Company:
Replace Font
Date: Quality of Art
Improve

Replace Art
Replace Color
Time:
Other

Fax:
Phone:
This job is
complete to my satisfaction. I authorize Optimum Design
&
Consulting to bill me for the full design, production, and printing costs
of the job
as listed above, and I will submit payment within net terms.
From:
# of Pages

Notes

(including cover):

sigNature

Comments:

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If You Build It They Will Come:
ACTUALLY, IT DOESN’T REALLY WORK THAT WAY…
It would be nice if it did work that way, wouldn’t it? But honestly, just because you’ve put the finishing touches on your brilliant website and have a clever company name, why would your phone
suddenly start ringing? Just like every other small business in the world, you’re going to have to
continuously market your business in order to obtain and maintain a robust client base. But don’t
despair…you have a leg up on the competition already simply because you already know how the
value of good design.
Think about how you can apply your corporate image across every piece of communication
that reaches a client…obviously your website should match your print brochure and your letterhead,
but the same look and feel should also apply to your estimates, invoices, contracts, 9x12” envelope
labels, eNewsletters, postcard mailers, and even to an extent, your holiday cards. Identify a corporate font set and corporate colors and use them always. Be as strict with your own logo usage
guidelines as you are with your clients’. Every opportunity to touch your client is a marketing opportunity.
God, that’s a lot of work, isn’t it? Good thing you can print things out as you need them, right?
No!! Make a deadline for yourself to complete your print marketing materials, and send them off to
a professional printer. Too many designers are always working on their website or brochure, never
willing to call them complete because they can always be made better. Or perhaps unwilling to
spend the money for professional printing and justifying the delay by thinking that leave-behinds
printed from an inkjet can always be updated. This is a crucial error in judgement — find a way
to finish your internal projects! If you’re stuck on the words because you’re a visual person, find
a copywriter and barter working on each
other’s marketing materials. Find the budget
FORMULATING A MARKETING PLAN
to pay for offset or even digital printing on
• Brainstorm with your employees or colleagues on
good quality paper because the difference is
creative marketing tactics.
noticeable, and potential clients will expect
• Capture the ideas in a list. (Give it some time, and
the quality of your own materials to reflect
come back to it if you feel tapped out.)
the quality of theirs. Commit to an annual
• Organize the lists into short-term (implemented in one
month or less), long-term (six months or less), and
review of your materials and the budget to
ongoing projects.
update them as necessary, send those files
• Prioritize each list in terms of potential return for time
off to the printer or sign off on your website,
invested.
and move on.
• Break down the top few ideas in each category into
specific step.
Okay, now that you have all these great
• Assign the number of hours required to complete each
materials, how exactly are you going to use
task, and the budget for non-labor costs.
them? First and foremost, you need a self• Calculate the number of hours you’ll need to dedicate
promotion plan. Some may call this a Mareach week to your marketing plan, and schedule them
on your calendar.
keting Plan, but if that sounds too scary and
• Assess your progress each week. If you fall behind
out of your league because you never took
schedule, adjust your plan.
a marketing course, you can think of it as a
• Stay committed!
self-promotion plan. Start with a brainstorm© L ar a J . K i si e l e w s k a
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ing session with everyone in your company, or with several other small business owners (including
at least one seasoned design firm owner). Commit to two hours of free thinking, and keep going,
even when you think you’ve thought of everything already. Capture the thoughts in lists.
Narrow the lists down into short-term (can be implemented in one month or less), long-term
(six months or less), and ongoing. Ongoing? Yes, you need to be prepared to devote a percentage of your time each week — not less than 10–15% — to marketing. Prioritize each list in terms
of potential return for the time invested, and break down the top few tasks in each category into
the specific steps (action items) necessary to complete them. Assign a number of hours required to
implement each task, as well as a budget for outside (non-labor) costs. In general, you should be
spending 5–10% of gross income on marketing, including labor costs at the same hourly rate you
charge your clients.
Think about how many hours per week or per month you plan to spend on marketing, and grab
a blank calendar. Slot in the ongoing activities, see how much time you have left, and try to work
on one short-term idea each month, as well as at least one long-term idea. Put each of your action
items down separately, on a week-by-week basis. Mark down when funds will need to be spent and
keep that in mind as you manage your cashflow. Sit with that calendar every Monday morning and
look at what needs to be done over the week, and make sure that everything that was scheduled
to happen the prior week did, or can get included in this week’s activities as well. And if you fall off
track don’t get frustrated, just adjust your plan and alter your expected outcomes to accommodate
the extra week or two. But without looking at your plan on a weekly basis and holding yourself accountable for its implementation, it will never happen. Half the battle is actually being committed to
a long-term plan.
Keep in mind that you need to get your name across a prospect’s desk at least six times before
it will start to sink in and become memorable. Being top of mind at the exact moment when they
need to purchase your services is key; sending an annual mailing and leaving it at that isn’t going
to cut it unless the mailing is just so amazing that they’ve pinned it up to their bulletin board and
haven’t covered it up all year with something else.
A mix of methods and media is best. Plan quarterly postcards, a bi-monthly eNewlsetter, and
two phone calls per year, for example. Or, an annual direct mail piece, a monthly eNewsletter, a clever “Thank You” card at thanksgiving, and one phone call per year. Spice that up with a few speaking
events, a semi-regular column in a trade publication, unique and inexpensive gifts at the holidays, a
referral bonus program, walking the floor at a trade show where your clients will be exhibiting, joining a leads group (a networking group
of noncompetitive businesses), sending
MIX YOUR METHODS AND MEDIA
your best client each year a customized
plaque, or anything unusual that capGet your name across your prospect’s desk in a number of
tures attention, if only briefly. You’re a
ways. Ideas include:
• postcards
creative person…you can do this!
• eNewsletters
A key component of your market• phone calls to touch base
ing should be participation in trade
• annual direct mail pieces, such as a holiday card
associations and networking events. I
• speaking events for local business networking groups or
trade associations
can’t emphasize this enough: people
• a column in a trade publication
do business with people they know,
• referral business program
and people they like. It doesn’t happen
• attending trade shows where your clients are exhibiting
because you handed your business card
• joining a leads or business networking group
• attending trade shows where your prospects are exhibiting
out to 20 folks at a networking event. But
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it might happen if you pay more attention
NETWORKING: STANDING OUT FROM
to the cards you collect than those you
THE CROWD
give out, and follow up with each person
you meet on an individual basis. Send
• Ask open-ended questions of the people you meet about
your networking contacts a note saying
their business and any problems they might have.
how nice it was to meet them. Give them
• Have your elevator pitch prepared.
• Send to anyone whose card you’ve collected a note or
a follow-up call and inquire after a probemail saying it was nice to meet them.
lem they mentioned they were struggling
• Make follow up calls.
with when you spoke (which means, of
• Make a date for coffee.
course, that you should be spending
more time listening than talking about
yourself, and that you probably took notes on the back of their business card once you stepped
away). Make a date for coffee with three people who might have networking circles that are complimentary with yours.
Many people dislike or feel uncomfortable with the idea of hard sales. But if you attend networking events looking for the opportunity to help everyone you meet, you’ll be surprised how much
easier and more comfortable a role that is. Introduce yourself but shift the conversation to the person you are speaking with, and ask them some open-ended questions about their business and the

Corporate Design
• Client:
Intercap M&A

WEBSITE

LOGO DESIGN

• Industry:
Financial –
The logo was designed
using contemporary fonts
Mergers and Acquisitions

Home Page:
The home page was designed as a graphical
introduction to the website, with little content.

paired with an old-style
ampersand. A lined pattern
superimposed on the
“M&A” evokes engraved
currency notes. The color palette —
forest green and soft grey — is conservative, solid and
soothing, and again evokes money.

Logo Variations:

2

• Solid grey and grey tint

330 West 38th Street #801
New York, New York 10018

• Reversed “M&A”, for printing on
light colors
• Pale grey, for printing on dark colors

1

• Grey “M&A” and reversed company name,
for printing on dark colors

3

1: Home page leads to three subsections:
• For Sellers
• For Buyers and Investors
• For Attorneys, CPAs, and Financial Consultants
2: Page features a simple animation of key words –
strategies, Resources, and Education – fading up.
3: Quotes are introduced as a key design feature.

Spot Logos:

FIG 9:

Low cost marketing: A booklet created for a networking meeting presentation was designed
to reinforce Optimum’s ID, and was printed in-house, creating a low-cost leave-behind.

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specific problem(s) they are grappling with
CURRENT AND PREVIOUS CLIENTS:
at the moment. Perhaps they’ve been dying
SHOWING APPRECIATION
to pitch their product to Chase Bank and
your cousin is a branch manager there. Or
• Refer your clients when you come across someone
they’ve been looking for a good real estate
who could use their services.
broker and you know just the right person.
• Return calls promptly.
• Proofread comps carefully before presenting them.
Or they haven’t been able to figure out how
• Be realistic with estimates; don’t get in the habit of
to choose an ISP and you can help.
invoicing higher than the estimate.
Practicing this method of networking
• Be polite and responsive.
doesn’t mean that you won’t take advan• Send thank you cards when a project is completed and
paid for.
tage of opportunities to promote your own
•
Send a special gift – a creative plaque, or something
business at all; in any networking converyou’ve created – to your best client.
sation it is expected that you provide an
appropriate introduction to your business
as well, so learn to make the most of it. Prepare your 30-second “elevator pitch” — how you would
describe your business in the 30 seconds it might take to ride an elevator down to the ground floor
before your captive audience disperses — and practice it until your pitch rolls off your tongue and
you sound confident. Make sure you focus on the benefits you provide your clients rather than the
services you provide (i.e., “I help my clients attain their dream jobs” versus “I create resumes”). Arm
yourself with one or two 60-second stories of how you did something outstanding for a client, and
tell it in terms of results the client realized or customer service above and beyond the call of duty.
But keep in mind that meeting people once at a networking event is only the beginning of your
relationship with them, and that you’ll be able to promote your business to them in subtle ways over
the course of the coming years. Did you figure it out yet? The people you meet at these events are
the ones you’ll be adding to your database and marketing to in all those inventive ways you identified in your self-promotion plan.
Another group of prospects that should not be forgotten are your current and previous clients.
It’s so much easier to keep a client than to go out and find new ones all the time. So don’t forget to
keep reaching out to your current clients as well. You can even ask them for help in building your
business. When you’ve completed a job for them and they are raving about how wonderful you are,
that is the perfect time to ask them if they know anyone else who could benefit from your services.
People love to be helpful, and will appreciate the opportunity to help their colleagues be just as
ecstatic with your work as they are. Many times, the only reason a referral isn’t given is because
nobody asked for it.
One last word on keeping clients: customer service is key. At least once a quarter take some
time to think about the experience your clients receive from working with your company. Do their
calls get returned in a timely fashion? Is their work proof-read and accurate before it is presented?
Do their estimates end up realistic, or are their invoices always significantly higher? Are they satisfied with their conversations with you? Every little thing you can do to deliver great service with a
smile will go a long way towards client retention, which is key to building client base.

Lara J. Kisielewska is a past President of the NY Chapter of the Graphic Artists
Guild (2000–2004) and the NYC Chapter of the National Association of Women
Business Owners (2004–2005). She founded Optimum Design & Consulting in
1992, and has been National Guild Secretary since 2005.
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p u b lis he d b y G r a p h i c A r t i s ts Gu i l d | VIS IT | L IKE | F OL L OW | JOI N



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