Graphic design and budgets

I've always been an artist. I was the stereotypical hyperactive child drawing on the walls even when mom told me not to do it. I was even doing in my 20's and 30's.

One thing I can tell you about most artists is that we make crappy business people. For the most part, we have our heads so far in the clouds, the mere thought of creating a sales process or an operations manual or accounting forces us to run, hide and put our heads somewhere where even the sun can't get at us.

Nevertheless, I've finally succumbed to the notion that if I want to keep my head in the clouds, I'm going to have to spend a little time here on earth.

Coming back to reality started last week when I began to work on our company's budget for 2010. This is the first time I have ever done this and the artist in me began throwing in numbers and creating these lofty projections for next year where I was making a quarter million dollars by the end of 2010!

When I looked at year's past however, reality set in and I realized there was definitely a mismatch.

A lot of people question our prices. They often claim they are too high. I would say that's the price you pay for high-quality graphic design work.

After studying our company budget, however, I realized it takes a lot more than a big ego to run a business. Do you know that it costs just over $10,000 for our St. Petersburg office to break even every month? Considering very modest expenses and a staff of one, that's a shitload of money! The reality is I can't have my head in the clouds when when we're talking that kind of money each month.

I love my job and if I could do it for free, I would. Truth is folks, I need to eat and pay the rent just like everybody else. If you are looking for a good deal, please ask someone else, because I'm not going to give it to you. However, if you are looking for a graphic design team to deliver premium marketing solutions for your company, then let's talk business.

Budgets

Someone I had met through a networking event some time ago contacted me about opening a laundromat and needed some corresponding promotional materials produced.

The budget? $150.

It strikes me as odd that someone would spend all sorts of money on equipment, a store front, incorporation, and leave nothing for marketing.

Here's the deal. Your marketing is an essential piece of the business pie. You can't expect to be successful if you are giving yourself a budget of $150 for the launch of a new business.

A good rule of thumb is take your expected yearly gross income from your business and put aside 10% for your yearly marketing. For some it may be less and others more. Generally, 10% is a good figure to start with especially if you are a new business. This will be a figure most marketing firms and design agencies can and will work with. It will also be a catalyst to your business' success.


©2009 David Scott | Cosmic: Advertising & Design