The First Year
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BUSINESS BRAINS WE’RE HERE TO HELP YOUR CREATIVE BUSINESS THRIVE Do you need to expand your team? Invest in marketing? Purchase stock or equipment? With your own business advisor and access to loan finance from £2,500 upwards, Creative Industry Finance can help you achieve more. Find out more at creativeindustryfinance.org.uk Follow us on
Mary-Alice Stack Chief Executive, Creative United OUR CREATIVE INDUSTRY FINANCE programme launched across England at the end of September 2014, following the success of a two year pilot programme that ran in London and the Yorkshire and Humber regions. 12 months later, we’ve been able to understand a great deal more about the challenges and opportunities currently facing creative enterprises looking to develop and grow. Our programme is designed to support a diverse range of creative businesses, from early stage micro enterprises, through to established charitable organisations from within the subsidised arts and cultural sector. We have already provided support to nearly 100 businesses across England and hope in the year ahead to enable more than 500 organisations to strengthen their skills and confidence in considering loan finance as an effective means of achieving their ambitions.
Mary-Alice x SEPTEMBER
2014
ÂŁ500,000 was invested in the provision of free business advice for creative enterprises through the delivery of the programme
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CREATIVE INDUSTRY FINANCE LAUNCHED
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Clients received over 700 hours of business support and tailored advice
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Freelance business advisors Creative Businesses referred to one of our specialist business advisors
Over 50 creative enterprises were provided with business advice and skills development
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Profile
Darren Henley Chief Executive, Arts Council England
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The creative industries are the fastest growing part of the UK’s economy and innovation is an important part of that success. But innovation cannot happen without support. Creative Industry Finance is an important initiative, providing small to large sized organisations with essential access to business advice and finance so that they can make their ideas become a reality. I look forward to seeing it go from strength to strength as more organisations benefit from its support.
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Fyodor Golan Hi both! Tell us about Fyodor Golan.
Fyodor and Golan: Our label is very exuberant and has a sporty adolescent feel to it but it’s still very contemporary at the same time. As designers, we are really influenced by art, colours and textures . Using all these different aspects creates garments that feel really intimate and personal. When a woman gets into one of our dresses, we hope she has an immediate emotional connection to it. Your clothes do evoke a lot of emotion. So how did you meet?
F: I studied fine art in Latvia for four years, then moved to Antwerp where I studied fashion. I then moved to London, where I was working and then I went to Japan for a little bit to work there. It was around that time I met Golan. Where did you meet?
G: No we met right before that, like a year before [Laughs].
and when the time was right we decided to start using funding. Working this way was much more personal and supportive for us. There is much more understanding about where you’re coming from as a creative business. Very different from a bank where they literally want to see the numbers and invoices first. What did that money help you achieve?
F&G: Mostly towards financing specific projects. We had a pop up store in Selfridges in London, a very special collaboration with a store in Florence and we are now actually launching a pop up store in Hong Kong. How did you find it working with Stuart, your business advisor? Who remembers the dates the most [Laughs].
G: He remembers the dates the most [Laughs and points to Fyodor]. I remember events but I am very bad with dates. I also come from a fine art background and moved from Israel, to study fashion design in an Italian school here in London. Then I worked at Alexander McQueen whilst Golan was working in Japan. After that I had a short time as a tailor at Net a Porter, and then we launched the business. So how many people do you employ today?
F&G: Well it changes from season to season. We work with a lot of freelancers and interns but generally we have about ten people for each season. Right now it’s a little less but it’s just the beginning of the season. It’s constantly changing, but generally the team is about thirteen people and that’s what it takes us to build a collection. Ok great. So how did you find out about us?
F&G: After winning Fashion Fringe, we also got in to the Centre of Fashion Enterprise venture programme . One of the advisors from the CFE introduced us to Stuart [our business advisor]
F&G: It gave us an opportunity to look at our business completely inside and out. A lot of things we could find out ourselves, but we wouldn’t necessarily have the chance to clear out a few days in our schedule to do this. What is Fyodor Golan’s proudest moment to date?
F&G: I have a really silly one. I love that we were on the Fashion police. [laugh]. Especially before Joan Rivers died. Chrissy Tiegen was wearing our designs. What did Joan say? Was it good or bad?
F&G: It was generally good but the print was a bit too much for her. I was almost disappointed she didn’t hate it. But it was a funny moment! Finally, what are your ambitions for the next 5 to 10 years?
F&G: We would love to launch a men’s and children’s wear line. We would love to branch out a little bit more in to accessories for women’s wear and we’d love to do more collaborations. Maybe with films or internationally and... I don’t know a lot more exciting things! Creative Industry Finance [05]
Sarah Thirtle
Head of Business Lending, Creative United Finance programme – the A YEAR ON since the These three outcomes hard work of our Business programme launched across are the foundations of our Advisors and financial input England, I am more energised creative economy. of our lenders – creative than ever to support the Nonetheless, times are businesses are realising growth of creative enterprise, a-changing, and so are the and to build on the great needs and means for creative their ambitions to connect with larger and more diverse work achieved so far. Over and cultural enterprises audiences, export their 650 creative enterprises have products into new markets, registered on our website, increase their digital and our Business Advisors capabilities, purchase have been busy studios, and more. supporting nearly Looking ahead I’m 100 companies excited about our so far - ranging new initiative in from a music partnership with development the Music Venue charity (and NPO) Trust to provide to a contemporary up to £40,000 blacksmith, and an worth of business architecture firm advice and skills to a film lab. Then, development for our of course, there is the small music venues. I’m loan finance – £200,000 also looking forward to and rising - that without announcing more specialist our efforts these creative partnerships across the businesses might not have sectors, which will support been able to access. to generate income. New the growth and impact of It is right we celebrate our business models and the creative industry, both country’s successful creative innovations in technology economically and socially. economy (the latest DCMS offer the opportunity for Most of all, I’m figures put it as looking forward 5% of our overall Times are a-changing, to capitalising on economy), but and so are the needs and all that we’ve this should not be means for creative and learnt from at the expense of our supported pressing home the cultural enterprises to business, advisors, impact of our many generate income lenders and publicly-funded partners so we arts and cultural can enable even more organisations whose aims are organisations to expand and to create, educate and bring diversify. With the assistance great companies to achieve even more. people together. of the Creative Industry
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Industry partner
The One, Two Project Beverley Whitrick, Strategic Director Music Venues Trust
In spring 2015 MVT launched its Grassroots Investors Programme to identify organisations that both fully understand what we do and can contribute to our goals. Enter The One, Two Project - a investment of £40,000 in GMVs. Through the project, the offer includes tailored, music venue focussed 1:1 guidance and workshops on business planning and skills development, and access to loan finance enabling music venues to invest in their buildings and businesses. GMVs have suffered from years of under-investment so working to support skills development and assess what funds may be required to strengthen them as businesses is key to their survival. The partnership will help us protect and strengthen venues, ensuring that they can continue developing the UK’s musical talent.
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MUSIC VENUE TRUST (MVT), founded in 2014, is a registered charity that seeks to preserve, secure and improve the UK’s network of small to medium scale, mostly independently run, grassroots music venues (GMVs). We have a long term plan to protect the live music network. Once we started working on this we quickly realised that GMVs have a whole range of immediate challenges that we would need to get involved in tackling for them to survive long enough for our strategic plan to be of benefit! A key part of this current work involves identifying partners that understand not only the vital role that GMVs play in the music industry ecosystem, as hubs for research and development, but also as early training grounds for arts professionals, from sound and lighting technicians to future arts managers, promoters and marketers.
We have a long term plan to protect the live music network
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I have worked with a number of incredibly interesting creative business owners, including several fashion labels. Helping them work through their business strategy and deciding what finance they really need is very rewarding. The programme gives creative businesses access to advice and assistance that would be out of reach for most small businesses. Nigel Rust, Business AdvisorÂ
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‘‘ It’s incredibly rewarding to work with creative businesses through Creative Industry Finance and help them understand the nuts and bolts of turning their ideas and talents into growing enterprises. Whether it’s a 20 minute advice session or an in depth business planning meeting, it’s fantastic to engage with creative business brains and play a part of their successful future. Tracey Johnson, Business Advisor
I’ve enjoyed worked with film & TV production businesses, each at very different stages of growth & investment readiness. All are ambitious businesses that have benefitted hugely from being part of the programme. Chris Spurgeon, Business Advisor
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Industry partner
Tracey Clarke Talent Development Manager, Crafts Council
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Council has worked with CIF to develop THE CRAFTS COUNCIL through Injection– and deliver focused continuing professional our business development scheme for development opportunities for makers established makers, has been an industry to enable the development of sustainable partner with Creative Industry Finance business plans through increasing capacity, (CIF) since its launch in May 2012. Injection this often requires access to finance and CIF provides established practitioners working have provided an accessible supported option. in the craft sector with greater confidence to One of the tangible benefits of the partnership approach funders or investors to grow their has been our ability to identify makers who business potential. It does this by providing are approaching or have achieved “investment tailored support and mentoring over the readiness” for the purposes of loan finance course of the programme. Injection recognises and supporting their approach to CIF. One the continuing financial challenges faced of the successful within the sector, We have worked with recipients during especially given the pilot phase the reduction in Creative Industry Finance to of the Injection traditional public ensure craft makers develop programme was sector funding to a good understanding of the Catherine Tough support creative range of options available to who through loan development. The finance was able to Crafts Council has them... grow her business worked with the and develop new ranges. Another successful Creative Industry Finance team to ensure that outcome has been to advocate on behalf of craft makers develop a good understanding of the sector, raising awareness of the financing the range of options available to them in terms needs of creative businesses to build resilience of financing their practice. The partnership to enable future growth. We look forward to has raised awareness of the opportunities to the future of this continued relationship which access finance and additional advice through no doubt benefits the craft sector and the shared promotional opportunities, providing makers within it. workshops and exchange of ideas. The Crafts
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Genevieve Pace
Programme Manager, Creative United I’VE BEEN MANAGING the Creative Industry Finance programme for almost 2 years now and it’s been inspiring to see the impact we’ve had on so many creative businesses across England. I feel that one of our foremost achievements this past year is that we’ve been able to offer our clients a tailored approach to business support, and empower them with new business skills and acumen by delivering over 700 hours of advice. I’ve been involved in running a creative start-up and had my own small design business, so I know firsthand that managing a business is something that doesn’t come easy to many creatives. We try to make this transition easier. Part of my job is kind of like a match making service; finding the right advisor for each client. Getting this step right is important as the relationship of a client with their advisor
is the cornerstone to their development on the programme. Working with an advisor has allowed many businesses to take a step back and look at what they do through someone else’s eyes. It’s a very holistic process; as well as helping achieve objectives such as identifying business opportunities and articulating financial plans, advisors act as sounding boards which many businesses embrace and often leads to a self discovery phase. Without a doubt the most fulfilling part of my job is the people I get to interact with every day. I work with an incredible network of business advisors on the programme; every one of them is committed to our mission of supporting creative and cultural companies to achieve growth and sustainability. Getting out and about at events around
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Working with an advisor has allowed many businesses to take a step back and look at what they do through someone else’s eyes.
England and engaging with designers, musicians, craft makers, performers and artists, hearing their individual stories and their vision to push their businesses forward is really exciting. It is great to be part of that journey with them and to know that we are helping them take their business to the next level. We’re constantly connecting with potential partners and clients and looking at new ways we can develop our offer, so I’m excited about what’s in the pipeline and for the year ahead.
Business advisors
Stuart Balmer
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Business Advisor
A CONVERTED METAL cargo container in a Dalston parking lot, a life size replication of a rainbow coloured “My Little Pony”, A Samurai Chef and a 1950’s pin up in a bathing suit. And Oh! Did I mention the Samurai Chef is actually a monkey that hosts a TV channel? Not a scene from a surreal David Lynch movie but just some of the elements that are to be found in the business plans of four of the creative businesses that I have had the pleasure of working with recently as part of Creative Industry Finance’s [12] Creative Industry Finance
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Creative enterprises apply to become clients of the scheme through a dedicated website which allows our team to evaluate their business needs and the quality of their creative output. Applicants who are successful are then referred to one of our specialist Business Advisors. The creative business will receive up to 12 free hours of business advice and support with a view to enabling them to successfully apply for a business loan from one of our Lending Partners. We work with a network of 22 freelance Business Advisors.
Make sure you get the right advice and support to ensure you are getting the best out of it
programme to help creative businesses grow. As someone from a design background myself I am very used to unusual ideas that emerge from the imaginations of the excellent designers and innovators that this country produces. But there can be many obstacles to face when turning these ideas into a cash generating business, especially when it comes
Remi Harris Business Advisor
to funding As we know the traditional banks do not tend to be as visionary when it comes to lending on such projects. Debt funding is not something to be taken lightly but my role as a business advisor is to help and advise on the robustness of the business plan and financial illustrations so that the viability is fully understood. When fashion designers conceive an idea they produce a costing of the parts that are needed to produce that garment, “X” amount of cloth, “ X” amount of trimmings, an amount for the manufacturing etc. Well, cash is just another commodity needed to make that garment, make sure you get the right advice and support to ensure you are getting the best.
I HELP CREATIVE businesses and arts organisations to prepare their business plans and cash flow forecasts so that I can then introduce them to suitable lenders who can provide loans to fund their growth. My clients (an inspiring lot who have been in business from 18 months to 18 years - or more) are planning to hire new staff, secure premises, promote their business or provide set-up costs for a new, income-generating project. I always start off by going to meet them face-toface in their workplace to get a feel for who they are, how they think and talk about their work and their approach to their business – it is a very personalised program. We meet up or speak regularly and exchange numerous emails, links, drafts of documents and ideas over the course of several months. Through this process we often find ways of making the business’ finances more efficient which reduce the amount of borrowing the business requires. We’ve reduced the credit period, secured deposits and payments up front, manufactured stock in smaller batches and reduced overhead costs. This grows turnover, but in a more profitable and sustainable way. This means they are ready to implement their plan the moment they get approved for their loan and therefore can start to generate increased earnings sooner. The biggest transformation is in confidence. Clients move on from the programme with a definite, costed plan that they can take forward and implement over the next several years, I can’t wait to see how they all grow. Creative Industry Finance [13]
Profile
High Six Media Hi guys. How did you start High Six Media?
Luke and I started High Six Media in 2011 whilst we were both still studying. Making films had always been a passion of ours and by that point in our lives we’d both gained some good experience working freelance in the industry. Soon after we graduated, then we flung ourselves into the adventure of running our own company. Where did your passion for film come from?
How did Creative Industry Finance help you?
We came to Creative Industry Finance when we were desperate to grow but the banks were still reluctant to lend to small businesses. The support we had from Remi [our business advisor] was invaluable, she gave some great guidance on our application. Also she was really good with helping us deal with slow paying clients and other problems. It was a proud day when we were told our business idea had been approved for a loan. What is High Six Media’s proudest achievement to date?
We’ve had some great highlights - working with Nike and creating music videos for our favourite bands, but honestly the best thing is just being in charge of our own business after 4 years. There’s something amazing about setting our own agenda and goals every Monday morning that really doesn’t get old. [14] Creative Industry Finance
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We’ve been making films together since we were 11 or 12 years old. Gradually they’ve got more professional and we’ve managed to turn them in to a career. We compliment and challenge each other a fair bit with our separate creative skills and being twins we can have quite a handy creative shorthand when working together making films.
The support we had from Remi was invaluable, she gave some great guidance on our application
Our lenders We partner with a specially selected group of lenders
Who is Creative United?
What has been your biggest challenge to date?
Cashflow. Plain and simple. Where do you see High Six Media in 5 years’ time?
Right now we’re both working hard to gain lots of experience and improving our skillset so that we can take on bigger and better films. One day the dream is to collaborate on a feature film and who knows, perhaps become the next Cohen Brothers....
Creative United provides a range of financial products and services designed to enable the growth and development of the UK’s cultural and creative industries. Our mission is to provide creative entrepreneurs and organisations the support they need in order to achieve their ambitions to become sustainable, ‘investment ready’ businesses. In doing so, we help the creative sector to understand how best to take advantage of the finance opportunities open to them. We provide creative businesses and cultural organisations access to a range of commercial tools, finance options, business skills and marketing channels designed to drive up sales revenues and allow them to maximise their commercial potential. As a Community Interest Company, our focus is on delivering a combination of strong social and financial returns.
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www.creativeindustryfinance.org.uk 020 7759 1114
Creative United is a registered trademark of Creative Sector Services CIC, a Community Interest Company registered in England and Wales under number 08280539. Registered office: 10 Queen Street Place, London EC4R 1BE. Authorised and regulated by the Financial Conduct Authority