BUDGETS

A budget is an essential tool for any artist planning a new project, making a funding application or drawing up a business plan. This guide from the cultural enterprise office in Glasgow offers straightforward advice on how to construct and manage a simple budget. GOOD PRACTICE A budget is a practical plan that balances the cost of a specific project, outlining the total amount of money needed to make your project a success. A good budget will prepare and organise the realisation of your project, and prevent you from running at a loss. It is a breakdown of what you will need to spend money on during the course of your project, and will balance these figures with the total amount of money your end product is expected to generate. BAD PRACTICE Artists are often tempted to prepare budgets by costing that their work, time and materials at best deal, cheapest located cost or well within budget, in the belief that if the costs of their project are kept to a minimum, they are likely to receive funding. The opposite is often true you are far more likely to receive funding due to: The strength of your proposal Your reputation and past successes Accurate research into costs

Its a common misconception that once youve won the funding your budget may be creatively adjusted to direct funds to other sources eg the purchase of unrequested resources or equipment, or the downscaling of allocated fees to technical support or project managers. This is bad business planning and accountancy practice. Dont be tempted to do this make sure that your original budget is properly researched. MONITORING BUDGETS Be aware of the value of tracking your own personal form against working to budget. Its important to truthfully audit your personal budgets and past history. If you have previously worked to a budget on projects, but found that you continually overspend in either money or time, you need to ask yourself the following questions: Are you investing too much outlay into the purchase of equipment or materials? Are you under pricing yourself or the worth/value of your project? Are you falling behind schedule? Do you need to adhere to a strict timetable? Are you unnecessarily wasting money? If so, how, why and where?

THREE-BUDGET PLAN This is a useful system for planning a new project. Though time consuming it is worth the effort on many levels. In the long term it will assist in the realisation of your project, and provide invaluable experience in budgeting and preparing proposals for various agencies and funding bodies. It will help achieve your aim to create your work without artistic compromise. Budget A This is the budget that considers the best possible scenario, including payment for a period of research and development, the running costs of the creation period, administration and an ample budget for material costs and fees. Ideally this would be the form of budget to be included in your business plan, or submitted to funding bodies for support. Budget B This is a reworked budget from the first, showing how you could achieve some savings while making no compromise in the original aims and intentions of your proposed project, the quality of work or projected artistic content. Budget C This is the budget at which the project could just about be realised without any artistic compromise. The ultimate goal is to create your vision of the proposed work on a minimum budget, whilst not compromising artistic integrity or allowing the creation of a sub-standard work. Too many projects are begun without securing the finances to create even budget C. Without the appropriate funds to realise this minimum budget the initial aims, artistic quality and content of the work is bound to suffer. If you dont have minimum funding secured, question if you should progress with the work at this stage? Should this particular project go ahead at all? Could an alternative project that can be realised without compromise, be considered in its place? BUDGET HEADINGS Here is a brief rundown of some of the most applicable categories for an artists budget. Some or all of the areas might be included in your initial plan under expenditure your total outgoings and income the monies you expect to come into the project. EXPENDITURE This could include: Salaries wages you pay yourself or other employees. Professional and technical fees eg for video production, framing, construction. Production costs including the rental of studio or workshop. Materials costs of any materials essential to your project. Equipment purchase hire of essential equipment. Administration eg project manager, office space, postage, photocopying, telephone, insurance, etc.

Marketing photography, design/production of catalogues, leaflets, etc. Delivery costs including transport of art works to galleries.

Research and development money invested in project development period. Contingency finance should always be calculated into the budget to deal with the unexpected usually 5-10% of the total cost of the project. Total expenditure at the bottom of your expenditure column, the sum total of all the outgoing money for your project. INCOME This could include: Grants eg from a funding body, local authority or trust, including matched funding Personal contribution investing some of your own earnings into the creation of the project. Earned income eg ticket sales, workshop, talk and exhibiting fees. Sales of work remember to calculate and deduct any commission charges if you are operating through an agent or gallery. Sponsorship-in-kind the value of services or materials provided to your product, that are given without charge, eg workshop time, studio space, materials or free advertising. Donations monies from individuals, organisations or companies to assist the project, without expecting a return on their contribution. Advertising income from selling advertising space on your flier or catalogue. Total income at the bottom of your income column, the sum figure for all the monies that you predict your project will earn. Balanced budget.

All budgets differ in their content, for each artist, organisation or project. The only rule to remember is to try to cover all aspects of financial outgoings in one chart, balanced against all aspects of potential income in another chart. If, when completed, your total expenditure for your project matches your total income for the project, you are probably on the right track. For your first-time budget, seek advice from other artists, local arts organisations, funding bodies or business support agencies. The writer: Fiona Pilgrim The cultural Enterprise Office is a business support initiative for Glasgow-based cultural enterprises, providing advice, information and training for artists and other freelancers.