Starting your own Business – 3D Framework
Starting your own business is somewhat one of the problems you create for yourselves when you decide to do so. The guys at 3D Framework have gone through all this and have decided to share the experience with us during a session.
Richard Jones from 3D Frameworks (now works for ADH) gave some interesting and humorous insight into starting your own business. The complications involve adds more strain to the thought of it.
As described by Richard the thought of it must come from a reason, and he highlighted that it must be a strong reason as it is the most common place to start a business. Other reasons involve your client list. If you have a lot of contacts with numerous clients or a single large company this is one way to go and do so.
Benefits for starting your own business are the control over the work and time. With Richard, he and Tim Ash both brought up the company as they were very specialised in 3D and concept arts. What they learn is also up to both of them to decided.
It’s all fair when you have a good reason behind a company but that’s just the beginning of it obviously. You’ll need to get the company up and running, get clients, and start getting income from your work.
Richard then explained a few ways in starting a business. One of which is that one can start their own business as a Sole Trader. Setting up a business on your own has balancing pros and cons. Obviously it’s easier to setup and you have the skills need for the job. You keep track of sales and get the profit directly from them. One of the problems is that there’s no legal separation between you and your company. Products made by the company (you) that result in faultiness in some way will be held directly responsible and the sue case can cover the assets from your company and personal belongings, i.e. your house. With other types of company such at Private and Public Limited these are guaranteed safe if things do happen badly. Below is table summary of the types of business:
| Type of business Organisation | Possible sources of finance | Key issues for consideration |
| Sole Trader | Owner’ savings, banks, suppliers, government grants and loans | · Security for those lending funds
· Loss of control by owner · Evidence that business has potential to develop · Financial history of business/owner |
| Partnership | Partners’ savings, banks, suppliers, government grants and loans, hire purchase and leasing companies | · Problems of introducing new partner
· Lack of collateral · Potential expense of raising large sums of money · Should they form a limited company? |
| Private limited company (ltd) | Dependant upon the size of the private limited company, suppliers, banks, factoring, leasing and hire purchase companies, government grants and loans, venture capital institutions, private share issues | · Disagreement amongst existing shareholders
· Difficulty of finding suitable shareholders · Loss of control by existing shareholders · Lack of collateral and security for those lending funds · Element of risk in the loan |
| Public limited company (plc) | Suppliers, banks, factoring, leasing and hire purchase companies, government grants and loans, venture capital institutions, public share issues via the stock exchange | · State of economy and stock market
· Ability to move to area receiving government aid · Recent financial performance · Reputation of company and senior managers |
| Non-profit making organisation | Charitable donations, lottery money, government and EU grants | · Public profile
· Relationship with government |
You can start up with a company on your own or as a team. With a team a lot more work can be done and the company will be capable of bigger projects. The work place will be more interesting and motivational as you’re working with other people. Evenly the problems are that it’s not easy to secure a finance and possibility of team members falling out.
A company must also need a secured finance and its one of the crucial process involved. As Richard calmly explained, that you will need to have a good and realistic business plan so you can receive finance for your company from banks. Richard explained, humorously, that he managed to awe the banks into supporting his company through complicated spreadsheets. Other means of finance are from other companies your business has associations with. Usually a larger company to carry the business from the beginning. One of the problems here is that you’ll have to break your own rules to tend to the needs of the company supporting your business.
Most businesses start with very little turnover in their initial year. If the annual turnover is below £70,000 you’re company can apply for a VAT registration, but when your company exceeds that amount annually it is by law that you have to apply for one. Many will ask if the company is VAT registered. This will initially tell possible supporters how much they can get from you and how big the company can be. VAT charged on your products can be claimed back in purchasing from other VAT registered companies.
Having no idea how to get started, Richard explained that its a lot more easier to get in touch with accountants, solicitors, similar companies, lawyers and keeping note of any recommendations and opinions they provide you.
As a sum up to the session, with respect to Richard, the experience he had on setting up a business relayed very well. Although throughout the whole speech it never did change my whole perspective of setting up my own business. In fact it’s made me think that this will be the last time I would do.
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