Nest Financial Planning Series for Maker and Artisan Businesses Building a Healthy Financial Strategy to Grow Your Creative Business building a new handworker economy www.buildanest.org Contents Introduction Part 1: Basics for Small Business Part 2: Accounting for Small Business Part 3: Business Planning & Strategizing Part 4: Seeking Financing & Investment | Financial Planning Series for Maker and Artisan Businesses Introduction If you are ready to take your maker business from a hobby to a full-time career or to grow your established artisan business, having a solid financial and business plan is so important for the success of your business The Financial Planning & Investment Strategies Series for Artisan & Maker Businesses gives you information on four key topics related to financial planning and strategies for small to medium sized businesses like yours: Basics for Small Business, Accounting for Small Business, Business Planning & Strategizing, and Seeking Financing & Investment The series is designed to help you build the foundation of a healthy financial strategy by equipping you to track the financial success of your creative business and prepare you to seek financing and investment opportunities to grow your business, when you are ready for it Developed by Lisa Grobar, Professor of Economics at California State University, and George Grobar, Chief Operating Officer at Penske Media Corporation, the series brings best practices for business planning and accounting It is a series of short videos which can be paused and rewatched at your own pace Each video also includes downloadable slides, and some videos have self-guided quizzes with an answer key to test your knowledge Where applicable, downloadable templates are also available Nest recommends viewing the series in order, as later videos in the series build on concepts introduced in earlier sections Businesses who have a firm understanding of the early concepts may choose to begin at a later section MEET YOUR EXPERTS L ISA G ROB AR Professor of Economics, California State University Lisa M Grobar is a Professor Emerita of Economics at California State University, Long Beach Dr Grobar received her Ph.D from the University of Michigan Her published research spans the subject areas of economic development, international trade, and regional economics Her professional writings have appeared in a wide variety of scholarly journals including Journal of Development Economics, Economic Development and Cultural Change, International Journal of Cultural Policy, and Contemporary Economic Policy Dr Grobar began volunteering with Nest in 2016 Since that time, she has worked on a number of projects for Nest, including fellowships in Eswatini and The Philippines G E ORG E G ROB AR Chief Operating Officer, Penske Media Corporation George Grobar is Chief Operating Officer (COO) at Penske Media Corporation (PMC), with responsibility for overseeing the company’s operating units and business plans George joined PMC in 2009, and has helped the company go from a start-up to the 6th ranked internet media company in the U.S with a leading portfolio of brands in entertainment, music, fashion, lifestyle and sports, and over 200 million unique visitors to its websites each month He was actively involved in the planning and integration of many new acquisitions for the company, including WWD, FN, Rolling Stone, Variety, Robb Report, Billboard and The Hollywood Reporter He also played a hands on role in building and managing a joint venture operation in India, managing PMC’s banking relationships, and supporting capital raising initiatives In addition to his role as COO, George is also currently a Director on the PMC Board George has over 30 years of financial and operational experience in new media, consumer products and technology enterprises at PMC, The Walt Disney Company, and Unisys Corp George has an MBA in Finance from the University of Michigan | Financial Planning Series for Maker and Artisan Businesses Part 1: Basics for Small Business Part lays the foundation for the rest of the series In this section you will gain a basic understanding of the most fundamental aspects of managing finances for your small artisan business, including how to keep your finances in order; how to maintain basic accounting system including margins, income statements, budgets, and projections; and how to develop a business plan that will help guide financial planning decisions for your business If you’re in the planning stages of your business, have recently launched, or feel it’s time to get your accounting in order or overhaul your systems, start here! Getting a solid footing in the basics covered in this section will make integrating more complex systems and methods smoother when the time comes BASIC FINANCIAL MANAGEMENT MARGINS Essential Viewing Essential Viewing Watch the Video Watch the Video Download the slides Download the slides Download the worksheet INCOME STATEMENT: BASIC CONCEPTS BUDGETING & FINANCIAL PROJECTIONS Essential Viewing Essential Viewing Watch the Video Watch the Video Download the slides Download the slides Download the template WRITING A BUSINESS PLAN Essential Viewing Watch the Video Download the slides | Financial Planning Series for Maker and Artisan Businesses Part 2: Accounting for Small Business Get grounded in accounting systems and challenges commonly faced by small businesses In this section you will learn about the two main accounting systems, cash accounting and accrual accounting, and how to select the one that is right for your business This section also covers how to use and maintain essential accounting tools including the balance sheet, basic accrual accounting systems, and cash flow statements Choose one accounting system and stick with it! Having one accounting method, whether it’s cash accounting or accrual accounting, will allow you to build a harmonious accounting ecosystem from your very first day of business Even if you’ve been in business for years, it’s never too late to streamline your accounting systems! ACCOUNTING FOR SMALL BUSINESSES: ISSUES & METHODS BALANCE SHEET: BASIC CONCEPTS Watch the Video Watch the Video Download the slides Download the slides Download the worksheet and answers Download the template ACCRUAL ACCOUNTING: BASIC CONCEPTS CASH FLOW STATEMENTS: BASIC CONCEPTS & METHODS Watch the Video Watch the Video Download the slides Download the slides Download the worksheet and answers | Financial Planning Series for Maker and Artisan Businesses Part 3: Business Planning & Strategizing This section will teach you how to calculate profitability for your business You will learn how to calculate your overhead costs including fixed costs and variable costs and how this affects your overall profitability; how to a break-even analysis which will help you project when your business will become profitable; and how to build these calculations into your business planning process Do you know if your business is turning a profit? No matter what stage of business you are at, it’s essential to understand your overhead costs—from rent on space to materials and your labor—to understand whether your product sales are surpassing what you are investing back into your business UNDERSTANDING YOUR BUSINESS COSTS CALCULATING YOUR BREAK-EVEN ANALYSIS Watch the Video Watch the Video Download the slides Download the slides Download the worksheet START-UP PLANNING AND CALCULATING YOUR BURN RATE Watch the Video Download the slides | Financial Planning Series for Maker and Artisan Businesses Part 4: Seeking Financing & Investment If you have solid accounting systems in place and an airtight business plan, you may be interested in seeking capital to help launch or grow your business This section covers the facts about seeking financing for your business, what to anticipate and prepare for, and how to put together a professional pitch that you can send to potential investors Although the average small startup business requires $10,000 of startup capital, only 0.05% of small businesses receive startup venture capital funding while 77% of small businesses in the US rely on personal savings to cover startup costs Learn how to beat the stats and seek external financing for your business! SEEKING FINANCING FOR YOUR BUSINESS Watch the Video PITCHING YOUR BUSINESS Watch the Video Download the slides | Financial Planning Series for Maker and Artisan Businesses Thank You! Get in touch with us artisans@buildanest.org This workbook is produced and distributed by Nest This workbook cannot be redistributed upon download for resale or altered and redistributed upon download for other means | Digital Marketing Strategy Handbook for Artisan Businesses