Cog Blog

Arts Councils and Government Business Development Schemes.
There is a lot of advice out there, and a lot of financial help, most of which dries up by the time you've been established for a couple of years so you should take advantage when you can.
Talk to Business Link and The Prince's Youth Trust about general start up help, and people like The Crafts Council for Arts specific help. Then there is the Arts Council (they are only any good for community projects, and so on - If you want to involve a bunch of deaf and blind kids in a photography project in Outer Mongolia you are sorted, if you want to get some money out of them to turn the shed in your Mum's garden into an all singing workshop you'll have to do a bit more singing.)
You might also want to look at your local and national guilds, as even though they may not be handing out money, they may be offering other help - free or discounted courses etc, marketing and exhibition opportunities.

Applying to anywhere, but particularly the establishments that are judging you more on your work than your business plan you need to develop a thick skin. It is a widely known fact that selection committees are made up of eejits.
The first time I applied to be a member of the Devon Guild I was rejected because my work had 'Too many words". I was making wall hangings at the time, and was transcribing poetry. I wasn't interested in having Ever-So-Pretty, but inherently unreadable parts of text, I was using the entire poem. (Not mine; old classics like Browning and Shakespeare. If it had been my poetry I would have understood the rejection.) The only thing that stopped me crawling into a hole after that rejection was one of my stockists had just had a record month. There's nothing like a five thousand quid cheque to boost the morale.
It was some years until I could bring myself to apply again, I submitted some coasters. Some coasters I might add that I was particularly proud of and I was sure this time they would not be able to find reason to fault. (And just in case, they only had one or two letters on them ;). It resulted in another rejection. This time the reason was "We thought they might break". It was lucky the woman who broke the news to me was on the telephone, else she would have seen just how hard you could throw one of those coasters WTHOUT breaking them. I resisted the urge to ask her if she drank out of a plastic beaker.
After that I decided the Devon Guild was probably not for me.

Whilst any amount of free money shouldn't be sniffed at, you need to assess whether the pain is worth the gain. There is no such thing as free money. They don't hand you out prizes on a plate. I know artists who play the game, know exactly how to fill out the forms and get grants from every European Development Project along with the local Support Our Starving Artists appeals, but these come after a great deal of time spent jumping through hoops. You may be better off saying ~~"bollocks to 'em"~~ ... ~~"stuff 'em"~~ "I would rather spend my time making work to sell."
A case in point was when I filled in a form for help with costs on a trade show. The form was obfuscating, to say the least, and they needed lots of details that I couldn't readily get my hands on. It took two days to fill in the form and I got £220 towards the stand. If I had gone into the workshop I could have made £600 worth of stock in that time.

Basically, you've got to get the balance right. There's a bit of chicken and egg involved - you can't start up a business without money, and to make money you need stock, and to make stock you need time, AND money.

The first port of call should always be your family and friends.
Blood is thicker than water, and all that.
Depending on how affluent your family is (and how well you get on with them), your first port of call for any kind of loan should be them. No forms. No interest. No hassle. (just a little bit of pride swallowing). They may surprise you, it doesn't hurt to ask and they will be much more understanding when you are a few days late paying back too.
Don't just think of your family in terms of money, either. Do they have connections? An Aunt with a shop where your work can sell? A publisher? Could your sister do your photography? Does your Grandad have a load of old tools that you could have? Does your neighbour have a shed you could use? .... You get the idea.

Beware of the bank.
As Mark Twain said, "A banker is someone who lends you his umbrella when the sun is shining, and wants it back the minute it rains." And it's no mild coincidence they rhyme with ~~wanker~~.
Sometimes though, the bank is the only option. Don't just go to your bank for a loan. Shop around, the variation on rates is astounding, and check online too. Bear in mind though, each time you apply for a loan it goes down on your credit report, and the more applications there are, the more the institutions will frown.
Don't believe the hype that you have to have a business account. If you don't feel you need one, don't get one. Personal accounts are free, business banks are usually not (The co-operative being one exception). Every cheque you pay in, every time you take cash out, even pay cash into the bank they want to charge you. That 18 months of free banking will soon pass. If you want to keep your accounts separate from your personal spending you can always open a separate personal account. It is only when you get bigger and need merchandising capabilities will they insist you change it to a business account.

The Sale or Return Trap
Try not to do it. Seriously. Try not to EVER do it, because once you are in it is very difficult to get out. There is the old adage that you can't sell it if you haven't got it. Meaning if it's not there on the shelf no one can buy it. True, but don't use this to the extreme that galleries all over the country have your work for free. Your accountant will scream "STOCK CONTROL!". It is not good practice to have all your money tied up in stock. Be selective. It's ok to have one or two places, especially if you are testing a new product and that is the only way you are going to see if people will buy. Make your selection selectively. Some galleries (especially the state funded ones) have a policy that they never buy work outright, and if that place is prestigious enough it may be for your benefit with other outlets (buyers are not known for their risk taking, and so telling them you have your work in The Tate Modern can be a deal clincher. They are, essentially all sheep.)
If you have a good product which you know sells there is no need to allow outlets to hold it without paying for it. Sale or Return also costs you in time and administration, and it is hard work to keep tally on who owes you money for what. If you need to do the hard sell you can be creative with your marketing. Offer them a one month no quibble money back guarantee, or free postage, or whatever... just resist the giving away of your hard graft to the first pretty face offering shelf space.

Not had enough of my ranting?

For an insiders (some might say cynical) view on the would you/should you and workings of a Craft Show go HERE

DISCLAIMER: All views are personal to Bess Hills, who was ASKED to rant on the sticky subject of running a business. Whilst having a certain amount of experience, Bess is not by any means an expert in the field. Any slandering was done without malicious intent and should be seen with the tongue-in-cheek tone it was intended. If you have a problem please contact the complaints department.