Task 2- Types of businesses in the UK

Sole traders

A sole trader is 'a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses', though can have employees. They are self-employed with the business having no legal identity separate to its owner. There are many financial responsibilities as they have to keep records of the business' sales and expenses and send a 'Self Assessment tax return' every year. The sole trader also raises all of their own funds as there are no shareholders.

Advantages:

• Full control of the business 
• Changes can be made quickly and easily
• Can be closer with customers
• Fast and simple to start business
• Low setup costs

Disadvantages

• Personally responsible for any debts or liabilities
• Often perceived as 'less professional'
• Limited finances
• No partners to work with 
• Difficult to keep a work-life balance

Example: Freelancers (e.g. designers, artists, photographers, media consultants)

Limited companies

A limited company is a business which is 'legally separate from its owners (typically shareholders) and managers (formally called directors)'. All of the finances are separate from the business owner's personal finances. 

They can be limited by shares or limited by guarantee. Limited by shares companies are businesses that make a profit, which they can keep after paying tax, and have shareholders involved. Limited by guarantee companies, on the other hand, usually aren't for profit as the money is invested back into the company. There are also guarantors and a 'guaranteed amount', meaning there's an agreed amount of shares the business owners pay to the guarantors. 

Advantages

• Limited liability
• Gives an appearance of credibility and prestige
• Often can provide greater tax efficiency
• Can easily change ownership of the business

Disadvantages

• Additional reporting and filing requirements
• Potentially higher legal, accountancy and other administrative costs
• Information about the company is available to the public

There are numerous different types of limited companies:

• Public limited company (PLC)
• Private company limited by shares (LTD)
• Private company limited by guarantee

A public limited company (PLC) is owned by its shareholder/s and run by its directors, who technically could be any members of the public. It is the only kind of company that can offer its shares to the public to raise funds for commercial use. The ability to raise funds from the public is a driving reason that many choose to create a PLC.

Examples: Burberry, BT, Tesco

A private company limited by shares (LTD) cannot be owned by any members of the public and is instead owned by a non-government organisation (NGO), with the sale of company shares being handled privately. They are one of the most common types of companies as it combines the potential to share in profits with a clear restriction on personal financial liability, meaning shareholders' personal assets wouldn't be at risk if the company faced financial difficulties.

Examples: Iceland, Wilko

A private company limited by guarantee is a structure often used by non-profit organisations without shareholders, such as charities and community projects. Any surplus income is typically re-invested back into the company or is used for promotional purposes, instead of distributing the profits amongst the members. Typically a group of guarantors agree to contribute a sum of money to help start up the company.

Example: PGA European Tour, Oxfam

Contrasting with limited companies are unlimited companies (Unltd) which have no formal restrictions on the sum of money the shareholders have to pay if the company were to go into 'formal liquidation' (closure of a limited company where its assets are sold and distributed). 

Example: C. Hoare & Co, The Equitable Life Assurance Society

Partnerships

Partnerships are businesses owned by two or more people. A contract called a 'deed of partnership' is drawn up, detailing what type of partnership it is, how much capital (wealth) each party contributes and how profits and losses will be shared. A partner doesn't have to be a person; for example, a limited company can be counted as a 'legal person' and act as a partner. 

Both partners will work in pursuit of the business purpose for which the partnership was created, contributing capital, skills and time, often in different areas of the business. 

Advantages

• Fewer legal obligations
• Easy to start
• Shared responsibility between partners
• Collaborative decision-making
• More privacy
• Easy access to profits

Disadvantages

• No independent legal status
• Unlimited liability (partners are personally liable for debts/losses)
• Perceived lack of prestige
• Potential differences and conflict
• Profits must be shared
• Limited access to capital

Example: Pret A Manger, Whatsapp, Carphone Warehouse

There is a type of business known as a limited liability partnership (LLP) but they aren't legally recognised as partnerships in the UK. For a business to be an LLP, some or all of the partners have to have limited liabilities, meaning they are only responsible for their own misconducts.

Social enterprises

Social enterprises are businesses, often independent, that have a social mission, such as giving back to the community, the environment or encouraging positive social change. They reinvest their profits back into the business or donate them to charitable causes, putting the interests of people and the planet before shareholder gain. Unlike charities, they need to make a surplus or earnings to keep up as they don't rely completely on donations. They exist in nearly every sector from consumer goods to healthcare to creative agencies. They also create jobs and and opportunities for the more marginalised groups of people, providing them with training and employment opportunities. 

Advantages

• Have a positive impact on society
• Option to get financial help from the government or private investors
• Draw more attention from the people and the media
• Benefit the economy by creating new jobs

Disadvantages

• Competition with enterprises that have the same social mission
• Strict rules and regulations
• Must constantly monitor the market to appeal to customers and address new social matters

Examples: The Big Issue, the Eden Project, TranSanta, TOMS

Charities

A charity is a business with 'charitable' aims such as preventing poverty or advancing the arts, culture, heritage or science. They cannot make any profit as all of the money they raise must go towards achieving their aim, meaning they can't have owners or shareholders benefiting from it. They must be established exclusively for public benefit, which means their work must have a positive effect that outweighs any negative side effects or consequences, and it must benefit members of the public in some way (specific target audience depends on their aim). 

Advantages

• Don't have to pay income/corporation tax, capital gains tax or stamp duty
• Pay 20% maximum of normal business rates on the buildings they use
• Special VAT treatment 
• Easier to raise funds compared to other non-charitable bodies

Disadvantages

• Strict rules that apply to trade
• Trustees receive no financial benefits (e.g. salaries, services)
• Rely on volunteers working for them
• Have to be conscious of charitable and personal interests conflicting
• Limits to the extent of political and campaigning events a charity can take on

Examples: Theatre Support Fund, The Actors' Benevolent Fund

Unincorporated associations

An unincorporated association is an organisation set up by two or more people for non-profit reasons with an agreed upon purpose (e.g. voluntary groups, societies, clubs). They don't need to be registered and don't cost anything to set up, though individual members are personally responsible for any debts or contractual obligations. They are governed by their own rules with no legal obligation to have a written governing document or constitution.

Advantages

• Little/no set up costs
• Cheap and easy to run
• No formal registration requirements
• No detailed procedures to follow in meetings
• Less intimidating structure for those who've never run a business before

Disadvantages

• No separate legal personality
• Management committee are likely to be personally liable for debts
• May be seen as 'less professional' by potential funders
• Little/no financial gain

Examples: drama clubs, art clubs, volunteer groups

Websites used:

https://www.informdirect.co.uk/business-management/what-is-a-sole-trader/

https://www.gov.uk/set-up-sole-trader

https://www.informdirect.co.uk/business-management/sole-trader-advantages-for-business/

https://www.informdirect.co.uk/business-management/disadvantages-of-a-sole-trader-business/

https://sjdaccountancy.com/resources/becoming-contractor/sole-trader/#:~:text=Some%20popular%20sole%20trader%20examples,delivery%20drivers%2C%20tutors%20and%20nannies)

https://www.informdirect.co.uk/company-formation/what-is-a-limited-company/

https://www.gov.uk/limited-company-formation

https://www.informdirect.co.uk/company-formation/public-limited-company-what-is-it/

https://www.companyaddress.co.uk/post/38

https://www.informdirect.co.uk/business-management/company-limited-by-guarantee-what-is-it/

https://theartsdevelopmentcompany.org.uk/resources/what-is-the-best-business-model-for-my-social-enterprise/

https://www.informdirect.co.uk/business-management/general-partnership-uk-what-is-it/

https://www.socialenterprise.org.uk/what-is-it-all-about/

https://www.socialenterprisemark.org.uk/what-is-social-enterprise/

https://honestproscons.com/social-enterprise-advantages-and-disadvantages/

https://howcharitieswork.com/about-charities/what-is-a-charity/

https://hlca.co.uk/resources/advantages-and-disadvantages-of-being-a-charity/

https://www.gov.uk/unincorporated-associations

https://www.netlawman.co.uk/ia/unincorporated-associations

https://scvo.scot/support/setting-up-a-charity/decide-on-structure/voluntary-or-unincorporated-association

https://www.bbc.co.uk/bitesize/guides/zdc6mfr/revision/1

Task 1- Business analysis tools

SWOT and PESTEL analyses- what are they and how can they be used?

[See SWOT and PESTEL analyses posts]

PESTEL analysis- what current factors are impacting businesses and ventures in the UK?

• Political factors: tax (e.g. raising/lowering corporation tax, which impacts profits), laws (e.g. changes in the National Minimum Wage, which impacts profits and employment rights), political stability (e.g. Brexit, which will impact trading)
• Economic factors: economic growth (more jobs created and more tax to be paid), interest rates (affects how much money businesses borrow/invest), unemployment (determines employee's wages), inflation (affects cost of goods), exchange rates (impacts how much can be sold to/bought from abroad)
• Social factors: demographics (changes in the population e.g. birth rate, life expectancy), lifestyles (e.g. people prioritising health, more vegetarians/vegans), tastes and trends
• Technological factors: ICT (need to keep software and hardware up to date), research and development (developments in technology e.g. 3D printing, smartphones, new apps), automation (replacing employees with machines e.g. self-scan checkouts), e-commerce (more firms going online, which increases customers and lowers the costs of production)
• Environmental factors: climate change (e.g. increasing heat, more extreme weather conditions, more awareness concerning carbon emissions), weather (e.g. seasonal impacts, natural disasters), recycling (customers want to buy from companies who are more environmentally aware), pollution (need to aware of their carbon emissions and environmental impact)
• Legal factors: health & safety laws, licenses and permits, equal opportunities. consumer rights and laws, product safety, trade regulation and restrictions

What does/might Brexit mean for the creative industries?

Brexit has already started to have an impact on the creative industries. For example, musicians and other cultural professionals have a loss of movement between other countries, which affects touring and important travel which is necessary for some creative sectors (e.g. filming on location for media productions). This also makes transporting goods such as musical instruments props more difficult with 27 different systems put in place. It also costs hundreds for a temporary visa to stay elsewhere in the EU, meaning it isn't financially viable for many creative workers to travel. Also, it is more difficult for EU workers to come to the UK, and they make up 6.7% of the UK's creative industries workforce. The lack of travel will mean a loss of diversity in these sectors, which is already a huge issue in the UK. This means that more 'home grown' talent will be needed, meaning there needs to be more encouragement for young people to pursue creative careers and support provided to help them. 

Brexit will also impact the funding provided for many creative projects in the UK with a loss of access to many European funding organisations that greatly supported the arts and culture sectors. For example, between 2014-2020, the UK received €68 million in direct funding from Creative Europe. Now the UK will have a reduced relationship with this organisation, likely leading to less funding being available. 

Cultural policy- what is currently happening in the UK?

Cultural policy is 'the government actions, laws and programs that regulate, protect, encourage and financially (or otherwise) support activities related to the arts and creative sectors'. They put in place processes, legal classifications, regulations, legislations and institutions that promote cultural diversity and creative expression in of art forms/activities. 

The creative industries took a large hit due to the COVID-19 pandemic, especially during the lockdown periods. The government had to provide a lot of support to help the arts recover as many jobs and a lot of money was lost. An emergency furlough scheme was put in place to reduce the number of workers being made redundant but that has since ended, meaning the number of job losses increased again. Venues have been able to open but with social distancing measures put in place. This has reduced how many people are able to visit them, so it isn't financially viable for many of these places to stay open. Some smaller creative businesses even had to permanently close down due to financial issues.

SWOT- conduct a personal SWOT analysis

[See SWOT analyses post]

Websites used:

https://www.mindtools.com/pages/article/newTMC_05.htm

https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-right-with-examples/

https://www.bbc.co.uk/bitesize/guides/zgfrpbk/revision/1

https://ukandeu.ac.uk/brexit-impacts-on-the-arts-and-culture/

https://www.thisishome.co.uk/brexit-and-the-creative-industries/

https://en.wikipedia.org/wiki/Cultural_policy

https://www.culturalpolicies.net/covid-19/country-reports/uk/

My vision, mission and value statements

Vision statement: To transform theatre into a welcoming and inclusive industry for all.

Mission statement: To create original theatrical productions which are highly accessible, with diverse casting and crew members so everybody feels represented both on and off stage. 

Important values

• Diversity (definitely non-negotiable)
• Accessibility (definitely non-negotiable)
• Originality (will strive for-more difficult to achieve)
• Impact (more aspirational)
• Inspiration
• Collaboration

• These values must be shared by both the cast and staff involved in every production
• My business will only work with those who agree with importance of these values and incorporate them into their propositions- willing to negotiate and collaborate effectively
• Behaviours: need to be able to negotiate with others, work well in a team, treat everybody appropriately and respectfully, understand the differing needs of others, willing to try new things/put themselves out there, take feedback and apply it to their work
• Work with those who present interesting, original ideas that adhere with the core values and are willing to develop them alongside the team 
• Aspired impact: to inspire people to create whatever they desire, to encourage them to continue working on ideas they may not have faith in, to leave audiences with an important message/something to think about after watching our productions, to make everybody feel represented and understood, allow everybody to enjoy theatre 

Examples of a value statement

 The Old Globe

• Transformation: Theatre cultivates imagination and empathy, enriching our humanity and connecting us to each other by bringing us entertaining experiences, new ideas, and a wide range of stories told from many perspectives.
• Inclusion: The communities of San Diego, in their diversity and their commonality, are welcome and reflected at the Globe. Access for all to our stages and programs expands when we engage audiences in many ways and in many places.
• Excellence: Our dedication to creating exceptional work demands a high standard of achievement in everything we do, on and off the stage.
• Stability: Our priority every day is to steward a vital, nurturing, and financially secure institution that will thrive for generations.
• Impact: Our prominence nationally and locally brings with it a responsibility to listen, collaborate, and act with integrity in order to serve.

The Limelight Theatre

• Accessible – convenient (local), with good parking facilities and disabled- friendly
• Inclusive – for all people, groups and ages
• Affordable – reasonably priced membership, and an affordable night out.

Enchantment Theatre Company

• Originality
• Imagination
• Transformation
• Community

'Back To The Future' Foley task

Branding analyses

Team StarKid

Team StarKid's main demographic is younger adults, likely aged between 18 - 30, as suggested by the adult content in the majority of their productions (e.g. swearing, death). The colour scheme is also bright and eye-catching, consisting primarily of purple and yellow. Purple often carries connotations of royalty and luxury, but I believe the lesser known association with creativity better fits the unique content StarKid creates. Yellow's connotations of optimism and joy, which works well with the comedic and light-hearted nature of the majority of their shows. Also, brighter colours often appeal to a younger audience as they're usually too harsh and 'obnoxious' for older eyes. However, there is also a nostalgic factor involved in StarKid's branding that may appeal to an older secondary demographic. The logo uses the well-known font from the popular franchise 'Star Wars' which is loved by people of all ages from all over the world. It means feelings of connection and adoration will be unlocked when audiences see the logo, automatically creating a positive bond between them and the company. This increases the likelihood that the audiences will interact with them, finding out more about them and engaging with their content. Furthermore, many of the musicals StarKid has created are parodies of pre-existing media such as Batman and Harry Potter, which further emphasises their reliance on nostalgia as a marketing technique and to appeal to a larger audience. StarKid's content also appeals to people of all genders, races and sexualities, which is expressed through their thoroughly diverse cast and team members, as well as the characters featured in their productions. This is evidenced in the photos and videos on their website and social media platforms, shown on a large number of their pages, so those who haven't seen their shows are still able to recognise the team's diversity. StarKid's large online presence also means that their content is able to reach people from all over the world, increasing their demographic. However, it is more accessible for those who are English speaking, as all of their content is in English. A wide range of subtitles are available on their videos though. In terms of psychographic profiles, mainstreamers would likely engage with StarKid and their content. It isn't an extremely well-known company, so a lot of their publicity relies on people talking about it and recommending it to others. StarKid's shows are also available online for free, so fits with the typically cheaper taste mainstreamers have. 

Royal Shakespeare Company

The Royal Shakespeare Company's projects appeal to a variety of ages due to the timeless nature of Shakespeare's work and the fact that everybody learns about his works in their life. However, the plays are usually better understood by older audiences because of the complexity of the language and the mature themes often featured. Although, the RSC do have a specific focus on young people, especially those in education, because they want to make sure each new generation learns about Shakespeare. Their primary demographic is likely British people as they're most familiar with Shakespeare's work and the RSC is UK based. 

Their primary colour scheme consists of red and white, which are the colours of the English flag, emphasising the company's British roots and their use of British source material. The colour red fits perfectly with Shakespeare's plays, with its connotations of tragedy and love often being present in his works. White contrasts nicely with the rich red background so the text stands out and easily catches the viewer's attention, which is also achieved through the boldness of the font. A sans-serif font is used to portray the RSC's reputation as a professional and successful company, whilst also demonstrating the modern take they have on such traditional works. They've chosen to emphasise the abbreviated version of their name as they're easily recognised by this name, and it means the viewer has less text to process when they first look at the logo. Overall, it's highly simplistic but they're so well known that they can easily be recognised by their name alone with no need for images and an overcomplicated design. In terms of their website, everything is very plain and minimalistic with primarily white webpages. This allows the important information, conveyed through text and images, to stand out. There are highlights of grey and yellow which both contrast against the white. Yellow evokes joyous reactions out of viewers and compliments the dark greys used. 

The psychographic profile that best fits the RSC's demographic would likely be explorers because their audience is seeking new experiences and the RSC always aim to present Shakespeare's works in exciting, different ways. Also, explorers are typically young people, who the RSC want to appeal to. They see the productions so they can learn and discover new things, allowing the RSC to fulfil their aim of inspiring and 'transforming' lives. 

The Marina Theatre

The Marina Theatre's main demographic is families as they house shows for all ages, allowing them to encourage a range of generations to engage with theatre consistently. This ties in with the community aspect of the theatre's work as they aim to interact primarily with the local people. There are likely lots of families within the Lowestoft area so it's highly likely that they're engaging with most of the community by appealing to families. 

Their primary colour scheme consists of navy and white. Navy's typical connotations are of power and authority, which could be relevant to the theatre in that they want to give more power to theatre and use the colour's authoritative nature to really convince people to be more involved. The white is eye-catching and illuminative, standing out clearly against the dark background to highlight the name. Most of the font used it bold, but the 'M' at the start of the name is noticeably different. This could be to attract the viewer's eye straight to it, so they'll then be encouraged to read the entire name as people always read from left to right. A shooting star is also incorporated into the name to dot the 'i'. This has many possible meanings, such as being a symbol of hope for theatre, joining the fight to the art form alive. It could also suggest the Marina is always aiming for the stars to give their audience's star-quality productions and experiences. However, it could also mean that they want to make people's wishes come true whether it be bringing a well known show to a local stage, giving life to new theatre productions or bringing the local community together for creative projects. 

When it comes to psychographic profiles, the theatre likely appeals to mainstreamers as their events and productions aren't too pricey and they're a family brand. They also try to keep up to date with new shows, encouraging even the West End to stage their productions there.

PESTEL analyses

Definition 

A PESTEL analysis is a strategic framework used by business owners to analyse and monitor the macro-environmental (set of conditions that exist in the economy as a whole) factors that will have an impact on their business.  

The acronym stands for: 

• Political- how and to what degree a government and their policies intervene in the economy 
• Economic- factors that impact how the business is run and how profitable it is 
• Social- understanding customers (e.g. beliefs and attitudes) and what drives them 
• Technological- how technological advances will affect a business, especially in marketing and management 
• Environmental- refers to how environmental factors (e.g. climate change) will affect businesses 
• Legal- concerns what a business is and isn’t allowed to do 

 

SWOT analyses

A SWOT analysis is used to identify the strengths and weaknesses of a business, as well as the opportunities available and the threats it may face. This can then be used to devise a successful strategy for the future of the business, helping to improve upon its weaknesses and overcome the threats.  

• Strengths are what a business does well and how it distinguishes itself from its competitors. Something is only a strength if it gives the business a clear advantage over others (e.g. quality of products, location) 
• Weaknesses focus on the areas in which a business could improve, looking at features such as people, resources, systems and procedures (e.g. lack of resources, poor financial management) 
• Opportunities are the chances of something positive happening for a business, and usually arise from situations outside of it (e.g. changes in social patterns, area growth) 
• Threats are anything negative that could affect a business from the outside. Business owners need to be able to anticipate and take action against them, so they don’t have such a significant effect (e.g. supply-chain problems, shortage of recruits) 

My personal SWOT analysis

Vision and mission statements

National Theatre

Vision statement: To make world-class theatre, for everyone.  

Mission statement: We create and share unforgettable stories with audiences across the UK and around the world - whether on our stages on London's South Bank, on tour, in schools, on cinema screens, or streaming at home. We aim to be as inclusive, diverse and sustainable as possible. 

National Theatre's vision statement is fairly simplistic but clearly communicates what they aim to do. It emphasises how they want the productions they show to be the best quality possible, whilst also making it appealing to all people. This suggests that they value diversity and accessibility as this would make sure 'everyone', regardless of race, gender, ability, etc., can enjoy the productions shown there. This is further emphasised in their mission statement, stating explicitly that they 'aim to be as inclusive, diverse and sustainable as possible', which also shows that they're conscious of the environmental impact of their shows. They are making sure they can attract a larger audience globally, and thus increase sales and engagement with the public. 

Royal Shakespeare Company

Vision statement: 

• For Shakespeare’s plays to be enjoyed by a truly diverse audience, representative of the population of the UK and beyond.
• To foster a culture which is confident that Shakespeare is relevant and resonant and a society which recognises that we are all richer if everyone has access to great theatre.

Mission statement: 

• To inspire and captivate audiences and transform lives through amazing experiences of Shakespeare's plays and of great theatre.
• Relevant, resonant and accessible, made in Stratford-upon-Avon, shared across the UK and around the world.

RSC's vision statement establishes that diversity is something they keep at the core of every one of their performances, modernising the cast and characters so the audiences of today are still able to see themselves in shows that have existed for so many years. This then allows them to fulfill the second part of their vision statement, keeping Shakespeare 'relevant'. Updating his plays to fit the modern world means people can still relate to them and will be more likely to pay attention to what they have to say. The same sentiment is carried over into their mission statement, though it explains how they also hope to inspire their audiences as well 'through amazing experiences'. This applies a lot of pressure onto the RSC as they are relying on themselves to make their productions as high-quality as possible so Shakespeare's works can still be enjoyed. Keeping them updated and accessible for all makes this possible as the population now is very different to that of Shakespeare's time. 

The Marina Theatre

Vision statement: To create and deliver an inclusive and entertaining cultural offer for the people of Lowestoft and the immediate region, and to play an active role in the lives of everyone in our town, enabling all to realise their potential and feel part of our thriving community.

Mission statement:

• Provide a cost effective and varied programme of entertainment and cultural activities for the people of Lowestoft and beyond
• Ensure a varied and high-quality live stage programme that reflects the Theatre's capabilities and the demands of the audience
• Ensure the future sustainability of the Marina Theatre as a live performance venue for the region
• Maximise the potential of the Marina Theatre to present further touring productions and work in partnership with other venues and producers
• Develop, promote, maintain and advance community engagement in the arts and culture and raise the theatres profile in delivering such outcomes
• Realise the Marina Theatre's auditorium capabilities as the East of East Anglia's hub for commercial mainstream populist programming 

The Marina's vision and mission statement suggest that their local community is highly important to them, mentioning 'the people of Lowestoft' specifically. Many of their events are for the community and they want to use their resources to connect the locals with the theatre. They want to involve as many people as possible in their events and activities so they can expand their audiences, and receive more publicity through word-of-mouth techniques. 

Ghost Hunters- Induction task

Case Studies