6.3 Business insurance
You’ll need general business coverage insurance to protect your business and equipment from fire or theft. Although some homeowner policies will cover some of these items up to a certain amount, it’s a good thing to check with an insurance broker to ensure you have enough insurance to cover your business. In the event something happens to your office or equipment, you could suffer a set back if you have to pay out of your pocket to get back up and running at full speed.
Don’t overlook getting liability insurance, too. If you have clients or business people coming to your home or office, you’ll need liability coverage. This covers you in the event someone is injured at your office. Or if damage is done to the property you are renting. You’ll need to discuss your specific needs and requirements with your broker depending on your current situation.
6.4 Errors and omissions insurance
Another kind of insurance you need is errors and omissions insurance. This insurance covers you in the event you are ever sued by a client for the work you have done for him or her. In the design business, because you are dealing with many different types of communications media, various content, and revisions, there is a high probability that from time to time you will have errors in your work. In some extreme cases these errors can seriously damage your client’s reputation or affect his or her business, and the client may seek compensation from your company. Because the potential costs could run into the thousands (even millions) of dollars, depending on the size and reach of the project you create, you could be in a very tough position if you are not insured.
To protect yourself against this, talk to your insurance broker. The cost of this insurance is based on the type of work you do and the impact it could have on your client. Your insurance broker will want to know some details about the type of work you do and why exactly you want this type of insurance, so be prepared to answer a few questions. They may even want to know who will be working on the projects in your place of business, the scope of the work you do, and maybe even some insight into your proofing and quality control processes.
5
Creating an Identity
Your corporate identity is a way of identifying your business from other businesses. Your corporate identity is important because it is a big part of your brand. Having a positive brand image in your marketplace can make all the difference between success and failure.
Your brand has to do with everything from your business name to the signage on your building to your business card. It includes all of your marketing material and even the way you answer the phone and conduct meetings. Your brand is the sum of all the parts of your business.
Essentially a brand is not what you say it is — it’s what other people say it is. That’s why creating a corporate identity is so important.
Your corporate identity is your action plan to get people to think about your business the way you want them to. It’s a collection of elements that help you control how you are thought of and identified in the marketplace. Although you can’t ultimately control how people view your business, you can greatly influence them. Especially when you focus all your efforts into one very clear, concise look and message. That’s the advantage of a great corporate identity.
Your corporate identity has 4 main components: your company’s name, unique marketing message, professional standards, and visual image. Let’s look at each of these in a little more detail.
1. Your Company’s Name
Your business name is how you will be identified. It’s how people and businesses will distinguish you from all your other competitors. Your name becomes your brand “container” for your business. Whatever impressions people receive from your business, they will attach them to your name.
You should put thought into creating a name that matches the image you want to portray rather than just choosing any old name. Having a name that doesn’t connect with your audience (or worse, is too close to a competitor) could seriously affect the growth of your business right from the start.
Developing a business name can potentially be a big stress point for many designers. It was for me. You want to make sure that you select a name that will contribute to the success of your firm, not work against it. Here are some questions to consider when naming your business:
• Should your business name be focused around you (e.g., Michael Huggins Design)?
• Should you make it about you but imply you are more than one person (e.g., Michael Huggins & Associates)?
• Should your name be about a generic or fictitious person (e.g., The Design Guy)?
• Should your name be focused on what you deliver as a final product (e.g., The Website Design Company)?
• Should you have a purely creative or fictitious name (e.g., Mindwalk)?
• Should you have a creative name that explains what you do (e.g., Mindwalk Design)?
• Should you have a creative name that explains and qualifies what you do (e.g., Mindwalk Design — B2B Design Solutions)?
This is a lot to think about. At first, you may not be sure what direction is best for you so you might be tempted to not do business until you’ve got your name figured out. You shouldn’t let your business name stop you from doing work now. The most important thing you can do for your business is to get started on creating work and getting paid. Some designers don’t get started in their business until they have that “perfect name.” Don’t worry if you’re not sure what type of name to select at the beginning, naming your business can happen as you continue to do the work.
1.1 Seven characteristics of a good name
While naming your company may seem like a purely personal and subjective exercise, there are a few things you should consider when developing your name. The following are some elements that every good name should exemplify.
1.1a Longevity
Ideally a name for your company should last you the entire life span of your company. Depending on the vision you have for your company that could be 15 to 25 years or more so choose a name that will have that kind of longevity.
Avoid cute, quirky, or fad-driven names. Also avoid names that you might become bored with in a couple of years. Your goal is to have a company that builds brand equity (value) as the years progress. You want to attach that equity to one name year after year because all that equity could potentially be lost if you ever decide to change your company name.
1.1b Differentiate your business from your competitors
The more memorable and distinctive your name is, the more your clients will be able to remember it and distinguish your services from your competitors. You want your prospects to recall and remember your name when they are ready to buy your services. Not an easy thing to do when you consider the thousands of company names that bombard people on a daily basis. Try to develop a name that is unique and sticks in people’s minds.
1.1c Connect with your target market
Like most things in your business, your firm will be about attracting others, not just about pleasing your wants and desires. Put yourself in the client’s shoes and ask yourself if you would work with a company name like yours. If it seems too far fetched, maybe you need to consider another