Three tips for launching a company in the creative sector

The creative industries offer a great opportunity for digital, gaming, music and film ventures, but your product or service must stand out from the crowd.

This week, Creative England – the not-for-profit organisation that supports creative industries companies in the UK – released its annual CE50 report, in which a panel of industry experts reveal what they believe to be some of the brightest and best businesses operating in the sector right now.

Here, three SMEs from the “Class of 2017” offer advice on starting a company in the creative industries.

Don’t rush in

In a sector that's constantly changing through technology, it’s essential to start slowly, explains Paul Brooks, co-founder of Twile, an online service through which users can creative visual timelines of their family history. “Take the time to research the market. Talk to prospective customers and let the concept evolve over time.”

Key to this, he says, is keeping costs low and taking a nimble, lean approach to every part of the business, so that if the core concept has to change, it can be done speedily and without pots of cash already having been wasted. “Don’t spend or do anything that isn’t absolutely essential. The time for ping-pong tables and expensive hotels will come, but at the beginning, your job is to make the money last as long as it takes to work out what you need to build and how.”

Only approach investors who know your niche

Knowing where to find funding can be a challenge when launching a company in this space, says Steven Cottam, founder and chief executive or Antstream, an on-demand service for video games. “Access to funding in the creative industries is tough,” he says. “Getting noticed is especially difficult, as investors are bombarded with dozens of great ideas each day.”

Antstream’s solution is to approach investors who are already passionate about or have an deep understanding of your product or niche. Do your research and don’t necessarily say yes to every meeting or opportunity.

“We burned too much time courting investors who had no knowledge of gaming,” explains Mr Cottam. Those who came to support the company had a shared passion for gaming – “people who got it from the outset”.

Prove the product early

Funding was also an issue for games developer, Coatsink. “Finding investment is always tough for start-up companies,” says senior project manager Eddie Beardsmore, who advises other businesses to focus on building and proving the product as early as possible.

“Until you launch that first game, it’s difficult to be taken seriously.
But once you've done that, you can demonstrate to investors or potential clients that you have the technical ability.”

For Coatsink, that was a mobile game called Pinch. But even then, it was tough to stand out from the myriad other games. “Building recognition by attending industry events was hugely beneficial for us,” adds Mr Beardsmore. “But when you do get that opportunity to speak to one of the big guns, make sure that you’re ready.”

All three SMEs agree on one thing – that the creative industries are a great place for small businesses to be. “They’re one of the best opportunities that Britain has,” says Mr Brooks. “We have a fantastic track record in areas such as digital, gaming, music and film.
We’re proud to be a part of it.”