Business for bohemians by Tom Hodgkinson

One of my guilty pleasures over the years has been reading the books of Tom Hodgkinson. I read both How to be Idle, and How to be free while I was studying and working in a relatively competitive environment and found them to offer both light relief and an idea about a different way of living. I may have not quite got to that different way of living, but the idea persists for me, a number of years later.

I was pretty intrigued to know what he would do with a ‘how to’ book of business. The core theme of Hodgkinson’s body of work has concerned working out how to do not very much at all, and how to ensure that what you do do is enjoyable and mind enriching. Tax returns and VAT aren’t either of those things, so I imagined it would be a stretch to continue in the same light style.

Business for Bohemians is actually a pretty sensible, pretty amusing book about starting a creative business. The book is in part an instruction manual, with very sensible advise about writing a business plan and keeping accurate and up to date accounts. But in the main it is memoir of his own attempts to publish a magazine, run a coffee shop/book shop, organise cultural events and run online courses. His style is self deprecating and aside from the numerous name drops, funny. He is generously candid about all of the mistakes he made along the way. The message, I think, is something along the lines of ‘look at the mistakes I made so that you don’t have too’. Anyone looking for serious advice about accounting, tax and VAT should look for something far more specialist. As a guide to beginners thinking about what it is they are trying to do, and what they are trying not to do, it is I think very helpful.

Cool artsy stuff with Jade Herriman

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A few weeks ago I came across the blog of Jade Herriman. It looked like she was doing something interesting but it wasn’t until this morning that I had time to take a bit of a dive into her blog to see what was going on.

I really like her site. Jade is based in Australia and has set up an arts and mental health based business. The talented lady is also an arts therapist and a life coach. I particularly like a series of blog posts she has written about the effort and struggles it takes to set up a successful business, for example this one here.

Last week I wrote a bit about how, among other things, I’m not very comfortable with the current trend of calling colouring books or origami books therapy. They may feel therapeutic, but they aren’t what you would get from a skilled therapist. Turns out Jade has some similar thoughts, and can speak to this from the point of view of a professional.

Anyway, I really like what she’s trying to do, so go check her out.

Business bites: Ethics and affiliate marketing

When I set up this blog one of the things I was interested in learning about was if it was really possible to earn a living by being ‘online’. I’ve been exploring how to do that and have read one or two (badly written) books about earning ‘passive income’ that didn’t really help me that much. I’m not going to name names, but I felt that had probably been written at speed, possibly as an attempt to create a passive income product in themselves, and lacked practical detail.  Both had an underlying passive aggressive tone that suggested that anyone who wasn’t trying to set up their own online empire was basically an idiot. This is of course rubbish. There are many splendid and enjoyable ways of making a living that don’t involve owning a website.

In the last 2 weeks I’ve been looking at the idea of affiliate marketing and found a bit more concrete information. The idea is that you can sign up for an account with programme like Amazon associates  and they will then pay you a small commission every time they sell something through a recommendation you make on a blog or other social media platform. For Amazon affiliates the process is that you open an account that will allow you to search for products that you have used. It will then generate a link for each product that you select. The link has a special bit of computer code in it that will connect to you and your account. You can then use this link in your blog posts – if anyone clicks through from your blog and goes on to buy the product you get a little kick back.

The psychological principle behind this is a simple one. People are more likely to buy something when someone they know and trust has already tried it, liked it and recommended it. I studied the principles of persuasion through my PhD and I think the evidence then (8 years ago now) was pretty strong in suggesting that personal recommendations will be far more successful in selling a product than advertising alone. So the psychology behind this is pretty straight forward, however it does leave the affiliate with an ethical problem. The more things you link to, the more your earning potential increases. This in itself isn’t ethically problematic, but it leads to the temptation to link to just anything you happen to see while browsing. Given that the principle is based around trusted recommendations, it’s a breach of that trust to link to things that you’ve not tried, or that you don’t like or didn’t find helpful. So I think it is possible to be an ethical affiliate, and but it takes a little thought about what you are linking to.

I opened an account last week (it was very simple to do this – I’ve linked the site above). I’m going to be using affiliate links in the blog to see whether in reality you can make much money this way. My blog currently generates very little traffic so I’m not setting high hopes for this experiment, but will update you if I turn out to have been wrong on that. My ethical line on this is that I’m only going to link to products or books that I have used or read myself AND have found helpful.

 

Business bites: bank accounts

I’ve gained a load of new followers this week. Hello! So lovely to see you over here. For the who are new (which is the majority) one of the threads running through this blog is a exploration of how easy it is to start up an online creative business from scratch, and from a very small initial financial outlay. I had been experiencing quite a lot of anxiety at work and was looking for ways to reduce my hours and put at least some of my working efforts into my own creative projects.

As someone who has always worked for someone else, I have no previous experience in business, so am learning as I go along what is possible, what is difficult, what is confusing. I’m taking a social sciences approach to the research, reading books and talking to people. This week I’ve been getting myself snarled up in the finances side of things. At the moment I’m not making any money, so I’m not too worried about the confusions here, but there is a lot of confusion. I’ve been reading this book ‘Refreshing simple finance for Business’ by Emily Coltman,which is very helpful, and I have learned the following;

Running a tiny business on my own which brings in at the moment very little money (nothing at all) means I can set myself up as a sole trader. This means I don’t have register as a limited company at companies house, or get an accountant. It does mean I have to register my self for tax purposes after the end of the tax year in which I started the Magpie, and will need to do a self assessment, pay tax on my income, and probably some extra national insurance. So far, so clear.

However, this book, along with others, advises that while you can probably use your own bank account, it’s better to have a separate one to keep you business transactions separate from your personal ones which will make the end of year accounting much easier. This is where I hit problems. Most basic current accounts don’t let you use them for ‘business purposes’. So I looked at ‘Start up’ business accounts, and there are several that will allow you to bank with them for free for the first 18-24 months while you are getting up and running. However to apply for one of those you need to give an estimate of your anticipated annual turn over (um…) and have a business plan (should probably have thought about one of these) and you need some tax reference numbers that I don’t understand (possibly don’t have yet). So I’m going to need to go to a bank and talk to someone about what I need to do. I will let you know how I get on.