Without structure, creatives will have funding problems – Uade Ahimie, Co-founder, Hiwee’s communication
The creative industry could be the third largest industry after electricity, oil and gas, worth billions of dollars. People in this industry range from full-time workers with a sideline, to full-time freelancers, part-time workers, software developers, designers, artists, actors, singers, artists and others in the industry. the entertainment and communications sector. For an industry worth trillions of dollars, industry players earn a lot, especially those in the top percentile.
Unfortunately, many of them do not structure their finances as part of doing their job within a structure and inadvertently this begins to affect their finances. Uade Ahimie, Co-founder of Hiwee communication studios, spoke about the need for financial structure among creatives during the Nairametrics Business Half hour.
“If you ask fashion designers to make you a dress, they give you a figure in mind. Some of them get down to business and find that the cost they gave you barely covers the cost of making the dress. That’s what happens with a lot of creative people, from graphic designers to show hosts and so on. They barely have a structure for pricing and delivering their services and that affects their finances ”, Ahime explained.
He noted that even for those earning big numbers, lack of financial literacy leaves some of them still fumbling with their finances.
Financial literacy doesn’t stop with making money. This goes as far as maintaining regular income, saving, investing and making it grow. Hiwee Communications Studios are positioning themselves to help creatives unlock the enormous economic potentials of the sector, through enhanced financial literacy that will bring long-term economic sustainability in a variety of interrelated industries.
As an industry with active people in every business, the financial literacy gap among creatives needs to be bridged, which highlights the void that Hiwee Studios want to fill. Creatives have huge earning potentials, but according to Ahmie the questions are: “How do they earn money regularly? How do they save money? how do they make their money grow? “ By connecting players in the entertainment and communications industry, Hiwee studios hope to transcend the inefficiencies that are holding back these industries in Nigeria and Africa.
Structured pricing and terms of service provision
Ahmie suggested that creatives could start by having a structured pricing system that they use to transact with their clients so that they don’t end up rendering their services at a loss. With this structure, every transaction or contract is properly analyzed and broken down before a price is given.
“If, for example, you pay someone a fee to produce a movie within two weeks, have you taken into account any additional costs that might arise? If you are there and it rains for a whole week so you cannot shoot any scenes, how will the extra costs be covered? Has value added tax also been taken into account?
“What service do you sell? How do you cost it? Do you have a list of what you need to be in place? What are the transaction fees? How do you take into account unforeseen events and delays in your costing? Miscellaneous expenses? How do you manage the processes? These are all things that creatives must necessarily take into account in the development of a financial structure ”, he explained.
He added that verbal agreements should be avoided and all conditions for service provision should be spelled out. “What happens when one of the parties fails? If your event is at 10 a.m. and I show up before 11 a.m. as MC, what should be the next step? What if the event is at 10 a.m. and I’m there and it doesn’t start until 12 p.m.? These things have to be spelled out to put in some form of structure. Define your standards and respect them at all levels ”, he said.
Attracting funding to creative startups can be difficult as investors might become skeptical about investing their money in an abstract idea or talent. Structuring the finances and terms of service delivery is a small way of structuring what is usually unstructured. If financiers can understand how the creative ecosystem works, they might be more inclined to invest.
While creatives do well exporting their services and skills and generating income, it doesn’t necessarily reflect on the economy. One way to attract financiers to this industry is to keep accurate cash flow records and to contribute to the economy through taxes.
“Every business or self-employed person needs an accountant and a lawyer to keep financial records up to date. It’s part of your financial structure, even when you manage the money that comes in. You should be able to understand and explain your flow of money to anyone. You don’t have to wait for the law to follow you. Ahimi said.