5: Business models for CCIs

This step involves laying out your company’s strategies to create, deliver, and obtain value. You will learn different business models, monetization strategies, and price definitions. Utilizing technology will facilitate these processes.

In other words, it will help you define the strategy and select the tools to align your business finances with your growth goals. Understanding the role that technology plays will help you integrate business strategies and develop a network of activities and resources to aid with scaling up your company.

But what is the difference between a business model and a business plan?

According to Osterwalder & Pigneur (2014): “The business model is a simplified representation of the company’s logic, how the company creates, delivers and captures value.”

Again quoting Osterwalder & Pigneur (2014): “when you have designed and thought through your business model, you will have the perfect foundation for putting together a good business plan.”

Suppose you did not previously have a structured business model. In that case, this is the time to thoroughly review your costs (those associated with the creative or cultural process, operational, administrative, logistical, and legal such as copyright, etc.) and sources of income.

You must consider tax and accounting requirements. If you are not an expert, please consult an expert to frame your business model, considering the regulatory frameworks of the markets you are operating or intend to enter. Legal and financial feasibility is essential to thriving in business.

Suppose you are exploring a new paradigm for doing business in which no previous example exists. In that case, you will face greater risk and uncertainty, in which case, you should start by determining your business model and afterward plan to scale up with a business plan.

Now, it is essential to consider the nature of your activity; is it a non-profit or a business? Cultural projects tend to lean towards non-refundable investments, which is challenging to scale up. Experts commented that it is increasingly difficult to access public funding and subsist with donations, so they have begun to migrate to models that generate profits, allowing self-investment and managing private investment.

The CCIs are a crucial sector for the economic development of Tijuana; however, their business models are mostly based on traditional structures such as sales and distribution in physical spaces, pricing based on a percentage of retail, and other conventional schemes. These aspects and the transformation of consumer behavior are making these sectors unprofitable or even obsolete.

This step aims to identify the best way to create value with your product or service through a specific business model and to design a solid and effective value proposition. The main challenge is to develop a strategy that allows you to be profitable while remaining competitive in the market.

To meet these challenges, some companies have begun experimenting with new ways of creating value with innovative business models. There are many alternatives: free online services with a premium scheme, such as the freemium business model, free payment schemes to define by the audience (pay what you want), and gamification mechanisms based on reward systems. There are collaborative exchange platforms where users can exchange goods or make them available to third parties, such as the sharing economy, and even collective financing models through digital media (crowdsource).

In addition to the examples provided, you can study other business models to integrate the most functional elements and design your own unique, competitive, and scalable business model.

A recommended reading is the book Learning Entrepreneurship (Castro, R. et al., 2017), particularly chapter 13, Entrepreneurship in electronic commerce. Why is it a good idea to think about marketing your product in e-commerce? (Jáuregui, 2017). We also recommend informing yourself about technological megatrends, such as the metaverse, augmented reality, and immersive reality, to detect possible opportunities for your business model, given that there is potential for cultural and creative industries.

Finally, the Business Model Canvas is a practical tool for envisioning this step. There are many manuals to assist in generating a graphical representation of a business model. Review chapter 5: The essence of planning in the book mentioned above. Managing business models (Moncada, 2017).

6: Development of a creative portfolio

This is essential for any project's sustainability and increasing its impact. Create a portfolio by documenting the different projects and activities carried out; having a record of creative endeavors is pivotal to measuring and analyzing impact. Use digital technology to make a creative catalog available to a public audience.

Keeping an updated catalog is a critical asset for any company, especially in the field of creativity. Successful marketing firms keep a record of meetings with clients and copywriters for various reasons; on the one hand, it is the log of a creative project; on the other, the same notes can be the basis for new projects. So keeping an organized file will be an asset to a scale-up project.

A well-organized portfolio allows one to make presentations, retrieve projects, and create new ones. Create content for social networks or build an online store based on a comprehensive repository. Expand the possibilities by having your file at hand. By documenting your work and trajectory, you will be prepared to tell your story and make yourself visible to the audience. Keep in mind that digital technology facilitates archiving files and provides different tools and platforms to make your content attractive and accessible.

Artwork files should document every piece with a label and a photograph, the itinerary of exhibitions, its current location, and whether they are in public or private collections. Sometimes art curators are interested in works in the hands of collectors, and these, along with the artists, can benefit from being included in an art exhibition.

In the fashion industry, catwalks bring together influential people, especially the guardians of taste or trendsetters, whose opinion influences key decisions in the sector. Public events, such as gala dinners or concerts, can be occasions to present new creations, as they attract public figures, artists, or athletes with whom to make agreements. It is also essential to consolidate a business presence through an establishment (which can be your own or a collective one), an online store, or via social networks.

The Bravo brothers, Hector and Jesus, began a business importing clothing from the United States. However, the compliance with customs and the burden of audits were reasons to opt for a domestic supply; from that moment on, they focused on being the best menswear brand in the state. Currently, they manufacture and market their brand. The quality of their products competes with international quality standards, and they have branches in Baja, California, Sonora, and Chihuahua. It has been hard to reach this point, but their road vision was pivotal to their continued growth. The store's online catalog is available at the following link: https://concrete.com.mx/ (QR1)

Initially, the Baez family opened a leather workshop to cater to the tourism market on Avenida Revolucion. Over the years, they had the opportunity to expand their production for the international market. At that time, the most popular items were leather jackets, bags and slippers. However, international trade changed with the influx of China's products, making their primary line unfeasible. To face these challenges, they decided to specialize in original and customizable designs while at the same time following fashion trends. Lissy Baez points out, "The fashion industry is tricky, the trends generally come from Europe, and you have to be up-to-date to design locally. For example, if textures and prints are coming in, you must have them in stock to produce."

Exclusivos Baez creations are renewed every two or three months, although they have essential products, such as slippers, that are constantly sold at the store. Most of all, it is a business that has kept innovating to make leather designs using airbrushing techniques, beading, or laser cutting. It requires craftsmanship to enhance features of texture and color in leather. The complete line of creations for men or women can be accessed in the online store's catalog, as well as to request a custom order. Go to https://exclusivosbaez.com/ (QR2)

In addition, consider registering creations before the corresponding agency to protect intellectual property and commercialization rights. For further information, please consult the National Copyright Institute (Indautor) website. Visit the site: www.indautor.gob.mx (QR3)

7: Intellectual Property

In recent years, around the world, several studies have pointed out the relevance of cultural and artistic companies to economic development. Such as job creation and wealth; this contribution tendency is led by tech-based, distribution, and media companies that play a part in producing, distributing, and consuming goods and services. Intellectual property registration has become more frequent in our vibrant regional, cultural, and creative ecosystem.

This step aims to provide relevant material for creators and administrators of cultural and creative companies to increase their management skills and ability to care for and expand their heritage in addition to serving as a tool to understand with precision the creative market and the main difficulties faced in terms of intellectual property asset management.

In short, copyright law gives the author or creator of a work a diverse set of exclusive rights to their work for a set time. These rights allow the author to control the economical use of the work in several ways and to receive payment to prevent copying. Copyright law also recognizes "moral rights" that protect an author's reputation and integrity.

There is a marked difference between copyrights and patents. Copyright protects the form of expression of an idea, while patents protect the idea or invention itself. Copyrighted creativity is the creativity inherent in the choice and configuration of various works. Copyright laws protect a copyright owner from those who copy and use the form in which the author expressed the original work.

For example, the company Péndulo Cero, based in Tijuana, mounts original works created mainly by choreographers and dancers belonging to the group, for which each one retains the moral and copyright rights of their creations, making use of agreements with the company. However, when they have toured internationally, especially after the success of Ballenas history of giants, they chose to register intellectual property to take care of the creative heritage of the organization. This dance is considered hypermedia, thanks to integrating 3D video technology resources with the choreography. This production toured three continents: America, Europe, and Asia, reaching various locations in Korea and China. The business model that made the massive exhibition of this work feasible was the international co-production with dancers from Spain. In the same way, protecting intellectual property and corresponding registrations in INDAUTOR was essential to carry out the international tour; the itinerancy was facilitated by including guest dancers and technicians.

The dissemination of the creative catalog is essential to make yourself known; although the Péndulo Cero company uses the YouTube channel to broadcast demos or video memories of their staging, they have also ventured into video dance; in this regard, Miroslava Wilson points out: “We made two productions with cinematographic quality in collaboration with Empírica, however, for their diffusion we have to participate to festivals, you know, be glued to the computer and usually each application costs around 30 or 40 dollars, so, no, it is not enough to produce the play, you also have to mobilize funds for its dissemination.

The complete work is only accessible through private channels, such as Vimeo, to protect intellectual property. You can access a personal viewing of selected works by purchasing a germinable card (to distribute music and seeds) through the Sowing Music initiative. More information at: https://sembrandomusica.com (QR4)

Management of copyright and intellectual property

As an entrepreneur in the cultural and creative industries, developing a culture of innovation is crucial. This culture must be constant at all times because it is what will make a remarkable difference in your economic sector, thus generating great value in the market niche you are targeting. Once you have defined the market niche for which you will carry out your project, it is essential to protect all the new products and content you generate with intellectual property rights before exhibiting or marketing them. This will allow you to obtain the copyright and intellectual property rights of your brand and your works so that only you can decide how your work will be exploited economically.

¿What can be registered as intellectual property?

For general purposes, only certain elements can be registered as intellectual property. Among the main ones are trademarks, patents (inventions of new products or technologies), utility models, industrial designs, literary works, musical works, cinematographic works, illustrations, documentaries, phonograms, animation, dance, radio and television programs, animated characters, and computer software.

Instances and organizations for the protection of copyright and intellectual property

In Mexico, two public bodies are responsible for managing the registration processes of works, trademarks, and patents, for the protection and safeguarding of copyright and intellectual property of the interested parties, which can be entrepreneurs, business people, artists, professionals, or general public content creators. These organizations are linked to the World Intellectual Property Organization (WIPO), a central body of the United Nations for the protection of works and the human intellect. See www.wipo.int/portal/es/ (QR5)

1.- Mexican Institute of Industrial Property (IMPI –Instituto Mexicano de la Propiedad Industrial): This body is a dependency of the Ministry of Economy. It supervises, coordinates, manages and administers everything related to the Federal Industrial Property Law (LFPI). See www.gob.mx/impi (QR6)

2.- National Copyright Institute (INDAUTOR): This body is a dependency of the Ministry of Public Education. It is responsible for ensuring the Federal Copyright Law (LFDA) copyright protection. In the same way, it promotes creativity and the general development of culture. See www.indautor.gob.mx (QR3)

Which organization should I approach to register my intellectual property?

The choice of instance will depend on the type of product you want to register

IMPI: Trademarks, utility models, adjustments, processes, patents (inventions, technology, etc.), industrial designs, integrated circuit traces, diagrams, and slogans, among others.

INDAUTOR: Literary works, musical works, songs, dramatic works, choreographies (dance), drawings, paintings, sculptures, plastic pieces, caricatures, comics, architectural, cinematographic, audiovisual, radio, television and computer programs, photographs, art applied, and databases.

Importance of correct copyright and intellectual property management, remember that each of the ideas you generate belongs to you from the moment you conceive them in your mind. Still, they must be transformed into something tangible to be legally registered as assets. Once this is done, your ideas can benefit your business by generating a wealth of intellectual property that allows you to continue promoting it. Also, do not forget that each new idea generated in your business must be protected since it will not be enough to develop a competitive advantage with innovative works and original stories if they are left unprotected so that anyone can imitate them and exploit them economically.

Steps for the registration and protection of works by copyright and intellectual property

Once your creative idea is organized and classified, continue with the following steps:

1.-Turn it into something tangible: If it's a brand name, turn it into a design; if it's a story, write it down; if it's an idea for a song, record it. It has to be physically expressed.

2.-Select the instance (organization) where you will register. Remember that the choice of this will depend on what you want to register.

3.-Enter the website and download the registration forms www.gob.mx/impi (QR6),www.indautor.gob.mx (QR3)

4.-Review technical details with your partners in case creative credit has to be shared. You usually collaborate to develop new ideas, so it is crucial to reach general agreements for a fair distribution of participation percentages. In case you are the only creator, skip this step.

5.-Follow the registration instructions provided by the website of the chosen instance. If you have doubts, approach an advisor for a better resolution and successful registration.

6.-Your registration process will be finished only when you have obtained your certificate. This document is critical because this is how you legally prove and protect your copyrights (brand, art, patent).

The correct management of your copyright and intellectual property implies that you give legal value to your creations in such a way that you consider them at all times as assets that can generate wealth and a competitive advantage in the market chosen for the venture.

Industries that are protected by copyright according to the World Intellectual Property Organization

Creative Industries

Handicraft Products

Market segments

Clothes /Accesories

Interior and Exterior Decorations

Household Items

Gifts

Stationary

Visual Arts

Artistic Crafts

Painting

Perofrming Arts

Dancing

Live Music

Sculpture

Theatre

Photography

Design

Fashion

Audiovisual Media and Cinema

Movies and Videos

Recorded Music

Radio

Multimedia Literature, Books and Edition

Digital Arts

Advertising

Communication

Circus Street Performances

Internet

Transmisions

Education

Entertaining

Source: WIPO: WIPO (2004), National Studies on Assessing the Economic Contribution of the Copyright-Based Industries, WIPO, Copyright Industries: Report No.1. author, WIPO, Copyright Industries report no. 1).