Welcome to topic 2 – Develop an industry focus. The purpose of this topic is to allow you to explore the graphic design industry and to determine a range of approaches to improve your own professional development, business relationships and practice. It involves engaging with professional networks and building meaningful contacts in the graphic design industry.
You will be introduced to the following topics:
- A range of current and professional opportunities for graphic design practice
- Determine key professional relationships for graphic designers
- Evaluate graphic design business practices, and
- Engage with industry networks and sources to acquire connections for professional practice.
As a graphic designer it is important to establish both current and future potential professional opportunities within your career. You can ensure that you are making the most of the opportunities around you right now, whilst also planning for where your goals may take you in the next few years.
Learning
Knowledge has to be improved, challenged, and increased constantly, or it vanishes.1Peter Drucker
The more you learn about your field, the more doors will open for you. Take advantage of conferences, seminars, online learning, but other less formal sources such as mentors, coaches, colleagues, managers, or learning on the job. Seek others’ guidance on your projects, your skills, and your long-term goals and they will keep developing. Not only will these sources enable your professional and technical development, but they could also potentially open up networks for you that may lead to exciting new projects, discovering new interests or new jobs and work opportunities.
Career
You may have opportunities to get into further fields that branch off graphic design. These opportunities could allow you to discover a new passion. Look at the following graphic design career opportunities:2
1. Graphic designer
Graphic Designers create visual concepts to communicate information. They create everything from posters and billboards to packaging, logos, and marketing materials. Graphic Designers use elements such as shapes, colours, typography, images and more to convey ideas to an audience. Graphic Designers can work in-house, creating designs specifically for one brand, or at an agency or as a freelancer, where they work with a variety of clients.3
The role of Graphic Designers varies depending on where they work. Some tasks that designers may work on include selecting photos and typefaces, developing layouts, and designing logos. Graphic Designers may specialise in a particular area, such as motion graphics or print media.
Graphic Designers often need to communicate with clients and consumers to develop designs that portray an intended message. They also collaborate with other graphic designers, marketers, business analysts, writers, and programmers to create successful products, campaigns, or websites.
2. Creative director
While this position involves various assignments, their work is mostly tied to a boardroom. Creative directors oversee meeting clients, upper management, and team members. For instance, let's say you have a client who wants to hire you for a billboard ad campaign. A creative director is the one who asks questions about the client's vision and what they want to accomplish with the ad.
After the initial meeting, the creative director will gather the team, brainstorm ideas, and find a suitable advertising solution. Once this idea is approved, they can finally start working on a project. Throughout the lifecycle of a project, the creative director oversees every aspect of the creative process and makes sure team members follow deadlines.4
3. User experience (UX) designer
UX designers work to make products, processes, and services seamless, enjoyable, and intuitive for users. They think about how the product feels, and how users will use it. They ensure the product flows from one step to the next. UX designers might run user tests, refining any bumps or confusion in the process. This career involves tons of out-of-the-box thinking, creative intuition, and a natural appreciation for smooth design. This design discipline is often found in web design, where organisations are placing an increased emphasis on ensuring their website designs are both visually appealing and simple to use.
While user experience design has been around for much longer, Ruane notes that the role of UX designer really started to grow in popularity around ten years ago. When that happened, many of his fellow graphic design classmates transitioned into UX careers. This is an excellent role for technology-savvy designers as it often requires a blend of design and web technology skills.2Ar
4. User interface (UI) designer
UI design is often considered a subset of UX design and has similar overall goals. User interface designers focus on how the product is laid out. They design each screen and each page, ensuring that the layout visually works with the overall path a UX designer has charted.
UI designers design each screen or page a user interacts with, ensuring that the UI visually communicates the path a UX designer charts. They might decide where content should go on an analytics dashboard or what tools make the most sense for the user navigating a page. They also pay close attention to style coherence and ensure the product remains consistent. 2Ar
5. Production artist
A production artist assists teams in the production of graphic material, packaging, display and advertising projects, and more. They may collaborate with graphic designers to format artwork, ensure print quality standards are met, and will often collect, process and organise files.
While an art director or graphic designer will oversee the entirety of a project and direct the theoretical and creative direction of a piece, the production artist is in the trenches making the design deliverables happen. They are also responsible for troubleshooting problems that may arise with a piece and coming up with creative solutions to make sure things happen the way they’re supposed to.5
6. Product developer
Product developers are responsible for developing new products or improving existing products so that the company can meet customers’ needs more effectively. They may work as part of a team, collaborating with marketing, technical and manufacturing specialists throughout the product-development process. A product developer combines design, business and engineering skills to create products that meet both market and production requirements. Product developers conduct research, develop proposals, and supervise the design process.
When the project team has agreed on the specification, the product developer carries out or supervises detailed design work, preparing working drawings and a prototype if required. The developer collaborates with engineering and technical specialists to ensure that the design takes advantage of the latest materials or technologies. A developer working on an industrial machine, for example, would aim to build in materials and components that reduce maintenance requirements and prolong machine life – benefits that would be important to customers.6
7. Art director
An art director is a professional responsible for visual style and images in a project. They can work with TV networks, animation studios, publishing companies, ad agencies, theatres, etc.
Art directors oversee the making of promotional videos, magazine covers, and other projects that require visual input. This role is quite flexible and covers a wide range of industries.
When it comes to creative processes, the art director decides which photo is ideal for a magazine cover, what should be included in a video shoot, and what type of visual elements to include. They work closely with the design, animation, illustration, photography, and video department. The art director will coordinate the roles of design directors, animators, photographers, and videographers.4Ar
8. Marketing specialist
A Marketing Specialist keeps their eyes on marketing trends and works with companies to create advertising campaigns, pricing strategies based on demographic data and targeting specific customer demographics.
Marketing Specialist responsibilities include:
- Conducting market research to find answers about consumer requirements, habits, and trends
- Brainstorming and developing ideas for creative marketing campaigns
- Assisting in outbound or inbound marketing activities by demonstrating expertise in various areas (content development and optimisation, advertising, events planning etc). 7
9. Multimedia artist or animator
Multimedia artists and animators design complex graphics and animation using computer animation or modelling programs. They think about story development, visual impact, and platforms to create media content that will meet their employer’s objectives. More brands and organizations are looking to increase their online video presence—and that’s been a boon for graphic designers with animation and motion graphics skills.2Ar
10. Freelancer
While it’s not a unique design job, most of the job titles mentioned above can be performed as a freelancer. Designers who have some experience on their resume, a stunning portfolio of work or expertise in niche areas of design, marketing and graphics could build a career finding freelance projects. But freelancing is also excellent as a side-gig that can bring in some extra cash—and boost your expertise.2Ar
Editor
Editors plan, revise, and coordinate material for publication in newspapers, magazines, books, or websites. They review story ideas and determine what material is most likely to please readers and offer suggestions to improve the product and suggest headlines and titles.8
The relationship between graphic designer and editor is critical to producing high-quality content on time. Therefore, this relationship must function smoothly.
Professional communication is key, especially when conflicts arise. It’s also about respecting each other’s knowledge and skills and, knowing that the ‘no’ is sometimes the best answer.9
How can graphic designers work best with editors?
- Give options so they can see what you’re picturing to help them get on board.
- If something is out of the scope of the project or its timeframe, explain that rather than saying it’s impossible from a design perspective.
- Trust in your own opinion. You were chosen for this role for a reason!
Client
Benefits of building relationships
Having a decent connection with your customer implies you’ve gone past only being their aesthetic architect. It implies you’ve become the individual they can go to for any consultation and get inspiration from.
Additionally, whenever you reach this point as a designer, the possibilities are they won’t look somewhere else with regards to your services and products you can offer them. At the point when you have a relationship with a customer, both of you are at an advantage.
In addition to the fact that you gain a comprehension of their business and how they work yet, they additionally figure out how you do things which can help you in future projects. You each gain a perception of the designs and strategies you utilise that will help you when conceptualising thoughts.10
How do you build relationships?
Make sure that you communicate openly and use the following strategies to build your client relationships:
Show Respect
Let your client explain things, even if you already know what they're talking about. If your friend started telling you all about a movie you've already seen, you wouldn't tell them to stop because you already know the movie. You would let them talk. Give the client the same opportunity.11
Be Honest
If a client asks you something that you are unsure of, don't be afraid to tell them so. Tell the client you don't know, but that you are interested to learn and will follow up on it for them.
Be Patient
Some clients have a hard time getting their ideas across. Especially if they are unsure of the direction they want to take. Be patient and let them gather their thoughts as they try to explain things to you. Offer your advice and opinions only once they're done.
Listen
Listen to EVERYTHING the client has to say. Not just about the project you are discussing but everything they talk about. If they talk about their children or mention an upcoming trip, take note and bring up the topics in future conversations. This will show that you cared enough to remember that detail and ask about it.
Ask Questions
You should be asking questions about the project you are working on, but you can also ask questions about your client’s life. If you're at a client's office and see a photo of a dog on their desk, ask about them. If you also have a dog talk about it. Knowing you're a fellow dog lover can help solidify the relationship you are building.
Colleagues
Alone we can do so little; together we can do so much.12- Helen Keller
The field of design is all about observing, understanding, collaborating, and communicating. This makes it vital for designers to work in collaboration, not just with each other but with other teams as well. The most acclaimed and sought-after designers have two important skills, in addition to those fundamentally required for design — good communication and the ability to collaborate.13
The importance of having solid people skills transcends industry and profession; so, whether you lead people, aspire to lead people, or work within a team of professionals, you need to apply people skills to achieve your objectives.14
So, how good are your people skills? Take this short quiz to assess your current skill levels.
See if there are any areas you could improve on, then read on to learn how best to build on your relationships.
How to Build Good Work Relationships
As you'll know from your oldest friends, building close connections with people can take time and effort. But there are also some simple things you can do to forge better relationships with your colleagues.15
Identify Your Relationship Needs
Do you know what you need from others? And do you know what they need from you? Understanding these needs can be instrumental in building better relationships.
Develop Your People Skills
Good relationships start with good people skills. After you have completed the Mindtools quiz linked above you can determine how well you collaborate, communicate, and deal with conflict. The quiz will also point you toward useful tools to improve any weak areas.
Focus on Your EI
Emotional intelligence (EI) is your ability to recognize your own emotions, and better understand what they're telling you. By developing your EI, you'll become more adept at identifying and handling the emotions and needs of others.
Practice Mindful Listening
People respond better to those who truly listen to what they have to say. By practicing mindful listening, you'll talk less and understand more. And you'll quickly become known as trustworthy.
Schedule Time to Build Relationships
If possible, you could ask a colleague out for a quick cup of coffee. Or give a "one-minute kindness" by commenting on a co-worker's LinkedIn post you enjoyed reading or sending them a quick message to check in with how they're doing. These little interactions take time but lay the groundwork for strong relationships.
Manage Your Boundaries
Make time, but not too much! Sometimes, a work relationship can impair productivity, especially when a friend or colleague begins to monopolize your time. It's important to set your boundaries and manage how much time you devote to social interactions at work.
Appreciate Others
Everyone, from your boss to the intern, wants to feel that their work is appreciated. So, genuinely compliment the people around you when they do something well. Praise and recognition will open the door to great work relationships.
Be Positive
Focus on being positive. Positivity is contagious and people gravitate to those that make them feel good.
Avoid Gossiping
Office politics and gossip can ruin workplace relationships. If you're experiencing conflict with someone in your group, talk to them directly about the problem. Gossiping with other colleagues will only exacerbate the situation, accelerating mistrust and animosity.
It is to your advantage to build a reputation of being great to work with.
There are some things you can do to improve your working relationships specifically in the design world, whether it be file management and naming conventions, keeping to branding guidelines and being open to others’ styles and ideas.
Check out the following guidelines to see whether you are a harmonious or hellish design team member:16
A harmonious designer | A hellish designer |
---|---|
Establishes project ownership and intellectual rights in writing beforehand | Doesn’t bother with contracts and risks expensive consequences |
Open to new opinions and ideas | Never considers their own opinions might be wrong |
Punctual and respects the time of others | Respect no one's time |
Keep project files organized | Creates messy layers and nonsensical filenames |
Communicates promptly | Avoids direct communications |
Submits on time | Misses deadlines |
Takes responsibility for own mistakes | Blames mistakes to others |
Shares recognition with fellow designers | Takes all the group's credit |
Creative Director
Let us look at the differences in the roles of Creative Director and Graphic Designer:
The Creative Director translates goals into strategies, drafting a creative brief for each project, then reviews and approves concepts from creative teams; whereas the Graphic Designer executes the vision, focusing more on the details using design programs to ultimately tie the output to the strategy.
As a Graphic Designer, you will often work closely with the Creative Director, especially in a smaller company. They will provide you with direction, and the brief of the project so that you can ensure you are staying on track. They will oversee the project strategy but may provide support to you as you carry out the work.
Communicate
It is important to keep up good communication with the Creative Director and ensure you ask any questions you have throughout the project – the earlier the better so that you know you’re both thinking along the same lines.
Have regular check-ins
Schedule regular meetings to show your work so far, ask any questions you may have and receive any other updates on the project status. This limits any time wasted completing work that needs redoing.
Don’t be afraid to ask for – or give advice
Extra opinions are always valuable on projects and it’s a great idea to get your Creative Director to look over your work and provide feedback on it. If you are deciding between fonts or layouts; get their opinions. They will have a different perspective than most of your graphic design colleagues as they will be more focused on the big picture and will probably be happy to have been consulted. And remember that you also have your own unique perspective that is worth offering up. If you get ideas throughout the project that are outside of the original scope – it could be worth running them by the Creative Director. You have seen the inner workings of the project and probably have a better grasp of the programs that you are using to create these works, so your thoughts and suggestions are valuable. The Creative Director will probably be impressed by your initiative and enthusiasm.
Marketing Specialist
You will work closely alongside a Marketing Specialist in many Graphic Design jobs. The role of a Graphic Designer17 and the role of a Marketing Manager offers a different set of pressures that each has to deal with.
As a Marketing Manager, you’re used to working within certain guidelines, whether it be financial restraints, deadlines, restrictions or you are dependent on specific resources. Marketers want to be as efficient as possible, which limits their scope. Everything must be measured, researched, and strategic. The purpose of a Marketing Manager is to deliver quantitatively or qualitatively positive results and proof that the customer’s experience is improving.
On the other hand, you have the Graphic Designer who is given the same constraints as the Marketing Manager, however, Designers are more in tune with emotional and ethereal results rather than what’s tangible. A great Designer will place themselves in the shoes of the consumer in their research and will consider what triggers their instincts and will naturally persuade them to make purchasing decisions. Designers are more interested in aesthetics and the user’s emotional experience. Designers will focus on what the consumer’s expectations and needs are, whereas Marketers focus on the company that’s selling products or services.
What are the challenges that can arise between Marketers and Designers?
- Often the marketers serve as the middleman between the client and the design team so there can be a tendency for messages to get lost in communication.
- Marketers might feel as though Designers lack practicality, while on the flipside Designers may feel inclined to resist amendments that compromise the quality of their work.
How can Marketers and Designers collaborate?
- It may benefit Marketers to bring Designers into a direct conversation with the client. One of the most off-putting requests that a Graphic Designer can receive is changes to a design without understanding why that change is being asked for. It’s possible that the Graphic Designer can get to the root of the problem, and instead of simply making the change, the designer can take a more physiological approach and offer a different solution to the problem than what the client might have thought of.
- To ensure a successful marketing campaign, both disciplines should bring their points of view and expertise forward from the beginning. Both Marketers and Graphic Designers have strong collaborative skills that can work together to solve complex problems, just like the right and left sides of the same brain. Design can inspire a marketing campaign rather than take direction from it. You might be amazed at the mutual respect that a more positive cooperation relationship can form.
- If the Marketing Specialist insists on following the outline in a design brief down to every letter, then this may compromise the Graphic Designer’s flexibility and creative freedom. It may be more effective to release some of the control and to bring the Designer into discussions with the Client from the start so that they can better understand what the client wants to achieve.
- Everything should be documented and noted, including phone conversations. You can follow up with the client through email with a bullet-point list of what was discussed. At all times, everyone should be on the same page so that if a problem arises, all parties can go back to look at the documentation to figure out what was agreed upon. This will help you know what to add to future contracts to assure clarity about the scope of work that’s being performed.
Many designers prefer to work for themselves. It has been estimated that up to half of all designers will only ever work for themselves as the ‘hired gun’ called a freelancer. Others will work for a studio before eventually setting up a studio of their own. There are issues associated with working for yourself, from working out how much to charge to set up a business. You may feel that you only want to work as an employee of a design studio; however, even if this is the case, understanding a little of the business side of design will help you progress to more senior positions within a design business.18Ar
Establishing a successful design business involves the following steps:
- Develop your brief—in this context, a ‘business plan’
- Do your research—talk to experts, lawyers, accountants, experienced designers
- Develop your solution—this includes working out cost structures and a business structure
- Implement your design—register your business and start trading
- Review—revisit regularly your business plan and systems for tracking business health.
From Barnum, Andrew Townley, Suzie Haddock, Astred Hicks, and Felix Oppen. Graphic Design: Australian Style Manual. North Ryde, NSW: McGraw-Hill, 2012. (p. 312)
The real world of commercial design
When starting out in the world of commercial design, the process of approaching potential clients and employers can be difficult. However, a well-developed portfolio with supporting promotional material will help aspiring designers make their first contact. Freelance work involves working for different companies at different times rather than being permanently employed by one company.
Work experience
If you are seeking a work experience placement, be clear about your availability and what you hope to achieve. It is likely that you will have to compromise, but if you can communicate your goals, then the employer will know whether the work experience program can be managed. It is highly recommended that students get work experience early in their design course if possible. Working in a studio on real projects helps to put information gained at a tertiary level into context. Work experience is not paid and, depending on your level of experience, you will generally be given menial jobs. This could include anything from getting coffee for the rest of the staff in the studio to deep etching 40 Photoshop files. The more enthusiasm and effort you put into the work, the more studio managers will be able to assess your potential and give you the opportunity to work on larger and more important projects. Work experience could last a week or six months—that is an agreement that you make with the studio. Many designers start out in studios this way. 18
Internships
Many large design studios now offer internships that enable students to sample the studio environment. Some internships are paid, and some are voluntary. Internships are usually based on a set period of time after which the best interns may be asked to continue with the studio. Try to find out what the studio hopes to achieve from the internship—if they are creating positions to give students a taste of the industry but they have no intention of hiring anyone at the end of the internship period, you should be made aware of this. Although there may not be the promise of a position at the end of the internship, these placements can still be valuable experiences. Make sure that you get a letter of reference and an agreed contact who will speak to any future employers. The design industry is a thriving community and networks of people talk across the country—word travels about good young designers. It is important to work quickly and provide quality work and acknowledge that everyone in a design team brings different experiences, skills, knowledge, and abilities to the studio.
Your first freelance job
Many large design studios now offer internships that enable students to sample the studio environment. Some internships are paid, and some are voluntary. Internships are usually based on a set period of time after which the best interns may be asked to continue with the studio. Try to find out what the studio hopes to achieve from the internship—if they are creating positions to give students a taste of the industry but they have no intention of hiring anyone at the end of the internship period, you should be made aware of this. Although there may not be the promise of a position at the end of the internship, these placements can still be valuable experiences. Make sure that you get a letter of reference and an agreed contact who will speak to any future employers. The design industry is a thriving community and networks of people talk across the country—word travels about good young designers. It is important to work quickly and provide quality work and acknowledge that everyone in a design team brings different experiences, skills, knowledge, and abilities to the studio.
Your first freelance job
Your first freelance jobs will probably come in the form of friends’ business cards and flyers. Every job gives you experience, but free jobs are usually more difficult than paid jobs because your ‘client’ may want to make endless changes as they are not being charged. It is difficult to freelance on big projects if you haven’t had any studio experience, mainly because charging clients for work is an art in itself and understanding how long a specific design job is going to take can be difficult to judge for an inexperienced designer. Always discuss payment at the first meeting or in a follow-up email straight after the first meeting. You might think that discussing payment is difficult with someone you don’t know, but it can get harder the longer you leave it. Misunderstandings are the greatest cause of conflict in business relationships, so make sure all communication is clear and concise.
Establish a professional business relationship by following up all discussions with a confirmation email or phone call. Text messages can be used to confirm meeting times and places, but most business communication is still done by email. Make sure that you have an email address that is simple and business-like. Keep your funny email address for your friends.
Client meetings
Make sure when you go to see your client for the first time that you take a pen and paper, and you arrive five minutes before the scheduled meeting time. Take your portfolio, ensuring that its contents reflect the sort of work that the client is looking for.18
Working in an established studio can give you the opportunity to work with clients and on projects you may not experience as a fledgling freelance designer.
So, you want to work in a large design studio?
When you work for a studio, you can expect to:
- Be treated with respect
- Have your creative input respected commensurate with your skill level
- Be able to ask for help and gain knowledge from more senior designers
- Receive an employment contract
- Be paid a fair wage regularly (including superannuation) for the hours you work.
In return, you would be expected to:
- Work for a certain number of hours per day
- Abide by the terms of your employment contract
- Respect your co-workers within the company
- Contribute positively to the success of the studio by working hard and being involved with any social aspects of the studio
- Actively improve your skills and knowledge of design.
If you are working as an employee for a design studio much of what follows may seem irrelevant. However, it is always a good idea to keep informed of general trends in salary for designers of your experience. It can help with salary negotiation and indicate when it might be time to move on to another design firm. This chapter includes information about setting up a business. To do so in Australia and New Zealand there are certain legal requirements to be met and failure to comply can have serious consequences for the business owner.
The authors wish to point out that they are not legally trained and the information provided is to be used as a general indication of what is needed, and no more. If you are intending to start your own business we strongly recommend that you seek proper legal and business advice from trained professionals.
Getting paid
One of the reasons we all become designers, rather than artists, is that we have decided we would like to get a regular stable income from being creative. The key to this is the contract between the designer and the client. 18
Determining your hourly rate
Before you can get paid you need to work out how much to charge. This is determined by your experience, what other designers are getting, and the prevailing economic conditions. It should increase over time but may need to dip now and then. To determine your rate, you need to do research: AGDA is a good place to start, as are your colleagues. There are, in fact, two rates you need to work out. The first is the actual rate for designing, which will vary depending on whether you are doing conceptualisation or straight layout work. This is the base rate that you use to calculate the charge-out rate. The charge-out rate is the rate you use to calculate your quotes and should be about 3½ times your base rate. Why this figure? It represents one times the base rate for the actual design; plus, one times the base rate for the overheads of the business; plus one times the base rate for profit; and, finally, a half times the base rate for small time over-runs and so that you don’t have to itemise every single print, photocopy, or phone call you made for the job. If you do not allow for the costs of overheads and profit in your quotes then you will go out of business very quickly. Your hourly rate should not include one-off purchases relating to a job such as photography, copywriting or fonts (even if you do them all yourself )—they should be treated separately.
The base rate is the rate for actual design work (conceptualisation or layout). It is used to calculate the charge-out rate and need not be disclosed to the client.
The contract
Contract law is a complex area, so beware. Contracts are legally binding for both parties. If a designer promises to have something completed by a certain date, in a certain form and then does not fulfill that agreement, they could be breaking a contract and therefore be liable for damages. Emails, receipts, order forms, letters, and faxes, which are classed as examples of written materials, may all create an express contract between a designer and the client. An express contract clearly contains the terms the parties have agreed upon and can be achieved through documents, the spoken word or both. Avoid relying heavily on spoken agreements and confirm any spoken agreements in writing.
Design proposal, quote, and invoice
The three main documents that form the basis of the contract between the client and designer are the initial proposal, the quote, and the invoice. 18Ar
The design proposal
This is in fact the written expression of the design brief.
It contains:
- A cover letter briefly introducing the proposal (and thanking the client contact for meeting with the designer—start building a positive relationship early by being polite)
- A brief outline of who you understand the client to be
- An outline of what you understand the needs of the client to be and what they hope to achieve with the design they are asking you to do
- An outline of the scope of work—that is, roughly what design work is involved in total
- A very rough indication of cost involved (this may also refer to the client’s desired budget—you can ask what it is)
- An indication of how long it will take (don’t forget to consider your other work commitments).
Overheads are the costs of running a business beyond the design work done for specific clients. It includes things like rent, insurance, phones, electricity and any non-design staff (accountants, for example).
The purpose of the proposal is to make sure you and the client understand the job and have agreement on what is involved before you start designing. Don’t be disappointed if the first version of the proposal is not completely right; for complex jobs the proposal may require several revisions before both sides agree. It is certainly a lot more efficient, and cheaper, to get the proposal right before you start working.
The quote
Once the proposal (and therefore, the brief) has been agreed on, you can prepare a quote. This provides accurate costings of the job including bought-in services such as printing, photography, and copywriting.
The quote comprises:
- A cover letter pointing out any key points you want to make, especially in relation to the client’s stated budget
- A reasonably detailed breakdown of costings—you might break down the design fees into concepts, layout, and implementation, and then provide a separate cost for each of the bought-in services
- A clear expression of how many concepts and rounds of revisions are included in the fee
- A clear statement that changes to specifications (the brief) may change the costs and re-quoting may be required
- Your Terms and Conditions of Trade.
Terms and Conditions of Trade (T&Cs) are the conditions under which a designer trades, including payment terms and any confidentiality, copyright, or contract issues.
Definitions
These are any services that a designer or design firm does not actually perform in-house. They may also include non-time-based costs that are done in-house. Note, all bought-in services should have a mark-up attached to them of between 15 and 30 per cent.
Because of the fluid nature of the design process, and that during the progress of a job to completion there may be many changes to the brief, many design firms prefer to send an estimate of fees and charges instead of a quote, which is often perceived as being more fixed and unalterable. Apart from the name and title of the document, there is no difference in how you prepare them.
This is a percentage above the amount the supplier charges the designer for the product or service. The designer charges it (to the client) because:
- It covers the cost of briefing and managing the bought-in service
- The client is relying on the designer’s good credit with that supplier, rather than setting up their own credit relationship with them
- The client may only pay weeks after the designer has paid the supplier, meaning a financial cost in terms of lost interest
- It acts as a kind of insurance against bad debt—if the client fails to pay, the designer still has to pay the supplier if the work was completed to the agreed specifications
- It is part of ensuring that a design business remains profitable.
Terms and Conditions of Trade (T&Cs)
The T&Cs document includes the conditions under which a designer trades, including:
- A statement of confidentiality—of the quote and the work to be done until completed
- Payment terms, usually within 7, 14 or 30 days (and what will happen if the client does not pay on time, like charging interest and use of collection agencies)if a mark-up on bought-in services applies, and how much
- A statement about copyright
- A statement about re-use
- What must happen if the project is to be terminated early (i. e, if the contract is broken)
- A statement relating to force majeure (i. e., what happens if a disaster occurs that is beyond the designer’s control, such as a building fire destroying work).
The invoice
At the beginning of the project, a designer issues a quote to the client, which includes all the different components of the project. During the project, the client has been notified of any changes to the timing and cost of the work. This means that the client will not be surprised when the final invoice is sent. To invoice, break a job into all the different components in the same way that they appeared in the quote. This ensures the client can clearly see that they are being invoiced for the work that they have agreed to. Include also:
- Your payment terms
- Your preferred payment method—cheque, direct deposit, credit card, etc.
Depending on the size of the job you may, in fact issue more than one invoice—for large or long-running jobs. The contract only terminates when the very last invoice has been paid in full.18Ar
Avoiding Failure
The harsh reality is that more than three quarters of all new businesses in Australia fail within the first five years of operation. They fail for three main reasons: insufficient capital (money), disputes between the business owners and poor management.
Capital
It is important to have enough start-up capital. Starting a business of any sort needs money, and often there are quite a few initial costs that have to be paid for before you can start earning. It can take up to a year for a business to be earning enough to cover its running costs and wages. Allow for this—try to estimate how much you will need based on an assumption that you will earn nothing for a year (of course you will earn something; but this approach will give you some leeway). Do not assume you can get a bank loan, as banks need proof of successful trading over several years before they will give a business a loan.18Ar
Disputes
Going into business with a partner requires a great deal of trust, honesty, and communication. The relationship is as intense as a marriage (in fact it is a kind of financial marriage); however, stress over money can have a corrosive effect on any relationship. In the excitement of starting a business with a friend, it is still necessary to sit down and write a business contract. This contract is called a Heads of Agreement.
Management
It is important to manage employees (if you have them), clients and the finances of a business properly. Do not be afraid to admit weaknesses in any of these areas. You may need to employ someone to manage these areas—a bookkeeper for day-to-day finances, an account services specialist for clients, for example—or learn the skills yourself. It may cost a bit but getting good advice from lawyers and accountants is also a very good way to avoid failure. Try to find specialists who already have some design clients, as every industry has its own quirks requiring specialist knowledge.
The business plan
A critical step in setting up a business is forming the business plan. This plan should be reasonably detailed but flexible enough to adapt to changing circumstances. It should be revisited and revised every year. The business plan should include:
- A two-to-three-year plan: Where do you want the business to be in two to three years? Be as detailed as you can.
- A five-year plan: Where do you want the business to be in five years? This can be less detailed.
- A long-term plan: What is the goal of your business? This can be a very general indication.
A Heads of Agreement is a contract between the owners of a business. It outlines the differing roles and responsibilities of each owner; the financial stakes of each owner; what happens should more capital be needed; and, most importantly, what happens if the business fails, if the owners have a disagreement, or if one or more owners want to leave the business.
As you develop your business plan, consider the following:
- Business strategy: Plan strategic growth of business, marketing direction, cash flow budgeting (an ongoing process evolving as business develops).
- Insurance cover: This is a vital part of disaster-proofing a business. You can insure both equipment and income.
- Accounting software/management tools: These are vital for tax obligations and essential for proper job and workflow management. Having these tools in place will make items 4–6 much easier to achieve.
- Procedures and systems: Efficient office management, time management, invoicing and effective control over office and administrative operations.
- Proposal letter/quotes: Proposal letters and quotes are a vital part of your business that must be developed with care. See the section on ‘design proposal, quote and invoice’, above.
- Budgeting process: Establish and maintain an effective budgeting process. Keep track of the accuracy of your process by recording actual time spent on projects, and then cross-checking actual times with budgeted times. Keep track of fee structures and timing of instalments, and match revenue to actual time spent at each stage.
- Key performance indicators (KPIs) and benchmarks: Use KPIs and benchmarks for ongoing analysis. This enables you to check quickly on a weekly, fortnightly and monthly basis the health of the company before problems arise and to predict future viability.
- Employment letters: You will need to get legal advice to draft employment contracts for any staff.
- Policies on development of business: Develop policies that detail how you want to go about growing your business, including how much time needs to be devoted to it. Staff need to be kept aware of any policies relevant to them.
- Marketing plan: A marketing plan will cover how to target niche markets, and what types of clients to attract/accept.
- Question yourself: Consider the following: Why am I here? What am I trying to achieve on personal, business and financial levels? Do I want business to grow?
- Projections: Consider items 1, 10 and 11. Cover these objectives by projecting staff, marketing, and financial requirements.
- Revisit key systems regularly: Look for weaknesses, quoting, time recording, billing, marketing, expense approval, recruitment/payroll. Reporting systems need to be good enough to provide KPIs.
- Develop a plan B: You will need a plan B, to counter the failure of any part of your business. This should include insurance, and a well-financed and documented succession plan.
- Structure: Are your current operating and investing structures appropriate on tax, risk, and wealth-creation levels? Protect personal assets from business error.
Business structures
If you decide to set up a design studio, or even if you intend to work as a freelancer, you will need to understand business structures. Business structures include sole trader businesses, partnerships, and companies.18Ar
A sole trader is usually an individual carrying on a business on their own. Sole trader businesses can still employ staff, but the owner/sole trader is responsible for all debts incurred by the business.
Partnerships can be as many as 200 people (large law firms and accountants) or as few as two people. Partners are jointly responsible for all debts. If one partner has debts in the name of the business, and can’t pay them, the other partner will be jointly liable. It costs very little to register a partnership or a sole trader, but in both cases, owners have liability for all debts.
Companies, on the other hand, cost much more to set up but have the benefit of being a separate entity to the owner.
The following table lists the advantages and disadvantages of the three business structures.
Business structure | Advantages | Disadvantages |
---|---|---|
Sole trader | Formation is simple Trader retains control Trader retains all profits Tax benefits with small profits Dissolution is simple |
Management problems Limited expertise Limited capital Unlimited liability Limited existence Tax problems with large profits |
Partnership | Ease of formation Diversity of management Flexibility in business Sharing profits and losses |
Unlimited liability Limits on size/expansion Limits on capital Liability for actions of partners acting within authority No separate existence |
Company | Separate legal entity May conduct business in own name May hold property in own name Limited liability Fundraising capacity Taxation advantages |
High establishment costs High compliance costs Loss of control/takeover threat |
Registering your Business
Setting up a business to sell your graphic design services requires you to not only learn how to deal with clients and understand the complexities of running a design studio, but also to learn what legislation is applicable. Regulatory compliance issues on starting a business include compulsory registrations, accurate record keeping, business licences and local government approvals.18Ar
Core areas of legislation applicable to most businesses include:
- Civil liability and other mandatory insurances: particularly relevant if someone comes onto your property and injures themselves (you are at risk)
- Revenue, including income tax, superannuation and state taxes
- Employment, antidiscrimination, and privacy
- Fair trading, Trade Practices Acts and consumer protection
- Contract law. We recommend that all graphic designers aiming to set up a design practice read the ACCC publication ‘small business guide to trade practices compliance programs’.
You can use your networks to your advantage in a career in graphic design, not only for meeting new clients but also for building a roster of peers who can be turned to for support or collaboration.19
“As an entry-level individual, networking can help you connect with vendors and reps who will become a vital asset to you as you grow in your career and will share in your success,” says designer Brynn Olson. “As the owner of my own firm, networking with my fellow designers, architects, and builders has been an entrepreneurial lifeline for me throughout the years. Understanding we’re all in this together, rather than competitors, has been a true blessing while feeling my way through the ins-and-outs of owning a business.”
Of course, the pandemic has thrown a wrench into traditional networking tactics, such as attending conferences or show houses. But the industry’s recent pivot toward the virtual might not be such a bad thing for networking. “While it sounds sacrilegious to say, I find that online networking can actually outperform what happens when you put a bunch of people in a room and hope that they’ll engage,” says professional meeting planner Lee Gimpel, founder of Better Meetings. “A number of online conferencing platforms better allow people to know who’s in the room and with whom they should connect, as well as keeping people moving and ensuring they’re meeting new people not getting stuck in a corner talking to someone who’s not helpful."
Gimpel also points out that the virtual world removes geographical hurdles. “If you think the architectural scene in London is really interesting, nothing stops you from dropping in on an event there, the same with checking in on design gatherings in Johannesburg or Sydney,” he says. “You could actually form an inspiring, valuable, helpful cadre of colleagues around the world in a single evening.”
And beyond helping you to get to know your peers, networking during the pandemic can be good for business—and not just by introducing you to new clients. “I have pivoted from using networking to find clients to using it to find long-term referral partners and vendors that I may not be aware of,” says Jerith Bailey, senior designer at contractor Mahogany Builders. “As craftsmen are heavily booked right now, networking allows me to broaden my little black book of business contacts for things like flooring, wallpaper installation, and even custom cabinetry. The solid network I’ve built has allowed me to take on even more work during this busy time.”
Social media
You can expand your reach on social media by having accounts with multiple social media providers. By exploring online social media resources to improve your graphic design networks ensures that you have a clear strategy in which to engage with your networks online.
You need to create accounts across many different social media platforms. The goal should be to create a strong web presence that allows anyone to click on any individual account, it provides road maps to your entire network. Try to make each platform slightly different from the next, as repeating information can be off-putting.
Make sure your bio is on any platform where you might meet professional contacts, is appropriate and sets out who you are and what you do or make. Engage with other people’s work, and when you find other people’s work on social media that you admire, share it, like it or leave comments about why you find it inspiring.
Linked In Learning has a short course that you can access to improve your skills in this area.
Select Specialised Sites
Start accounts on graphic design networking sites. These sites create a forum for information sharing and generating communication within your field of interest. You can also update your profile with your education and job details and a summary. There are graphic design forums that are free to join, and you can contact other specialists in the field.
Make sure that the specialised sited you join is appropriate for your needs at any point in your career. An online community is meant to inspire and help creatives. Though you may feel you are on your own, you don’t have to be. Making solid connections among fellow graphic designers or other professionals in the creative field is the objective, and they may feel just like you.
Linked In Learning has a short course that you can access to improve your skills in this area.
Be Proactive
Ask around. People know people, so start asking for recommendations about whom you should reach out to. It is sometimes best not to contact the most senior person listed, like the executive creative director or editor-in-chief, as they may be the busiest. Instead, look for a person that shares your skill set or interests.
It is essential to email people rather than places. If you don’t have someone’s email address, try asking them for it on social media via LinkedIn, Twitter, or Instagram. Make sure you explain why you want their email address and take note of their biography so that you know their viewpoint or ethos, and up-to-date contact details.
Linked In Learning has a short course that you can access to improve your skills in this area.
Attend a Network Event
Most of these are documented on social media, and through images, tweets and hashtags, you can find people, add them, follow them and send them a message introducing yourself. Be courteous and proactive. Don’t be disappointed if they do not get back to you. Make a note to follow up in a designated timeframe.
It is best to follow up as soon as possible after the meeting. You can do so by sending an email or LinkedIn message or even by making a phone call. Express your appreciation for their time and include details pertaining to the conversation you had. Note all the contacts you made at a networking event.
Linked In Learning has a short course that you can access to improve your skills in this area.