Running a graphic design business has its perks. Graphic designers have the freedom to set their hours, work from home (or the coffee shop down the street), and be their own boss. They also have a unique opportunity to make money doing what they love.
Sounds good, right? It is! But there are some caveats, too.
Are you a self-starter? If you want a paycheck, you’re the one who’ll be bringing it in. Do you have marketable talent and skills in graphic design? Without them, the competition will be tough. Do you have the business acumen and discipline to run your own business? If not, these are areas you will need to master or your business will struggle.
What is a Graphic Design Business?
Graphic design covers a wide range of visual arts. It’s not just logos or website design, but also print design, package design, editorial/publishing, and more—basically anything you see that has a graphic element to it.
But what defines it as a graphic design business versus simply freelancing?
The main difference as far as this article is concerned is in the way the graphic designer sets up their entity, what intentions they have for scaling their design business, and how many clients they intend to serve.
To start your own graphic design business, you’ll need to understand the steps involved.
In this post we’ll cover:
As a professional graphic designer and business owner for many years I now have the pleasure of helping other designers start their businesses. I hope this article helps you to reach your own graphic design business goals!
Let’s get started.
1. How to choose your graphic design business name
It’s important to choose a business name that is unique and memorable. A graphic designer may choose to create a unique and creative company name or use their own full or partial names as their company name. For example, Joe Schmo’s company name could be Joe Schmo Graphic Design or simply Schmo Graphics.
There are pros and cons to using your own name for your graphic design business:
Pros
- If you use your whole name, it appears more personalized. Clients may believe (correctly or incorrectly), and like the idea that you’re a freelancer, and therefore more approachable than an agency with a hierarchy and a gatekeeper.
- Using your whole name without a modifier such as graphics, etc., also allows you to pivot to other sectors without pigeonholing you into a specific category.
- Using your name may also make things easier for your clients or customers — there’s less potential for confusion as to who they’re dealing with or who they should be paying.
Cons
- If your name is common there could be other businesses already established under your name. This becomes problematic when trying to establish your website or other business identifiers.
- If your name changes through marriage or divorce it could be confusing.
- Unfortunately, some people also make judgments if your name is associated with a certain ethnicity or religion. It’s not fair, but it happens.
Ultimately, much of your decision will depend on what your actual name is. How common is it? Is it hard to spell or pronounce? Is the dot com domain of your name already taken?
Once your name is chosen everything else hinges on it, so make sure you settle on a name that’s appropriate, unique, and memorable.
2. Registering your graphic design business name
Now that you’ve chosen your graphic design business name it’s time to register it. If you are using your given name you can skip this part. But if you are using a fictitious name you must register the name with a government agency—usually your state or county clerk’s office.
Although business name registration varies from state to state, it’s usually a fairly easy and inexpensive process.
The US Small Business Administration (SBA) has a section dedicated to business name registration and is a good place to start. If you are located outside the US check with your government entity that oversees business development.
3. Choosing your business entity
When starting your own business, you’ll need to decide which form of legal business entity you want to establish. Your business entity determines which income tax return form you have to file, so you will want to speak with a tax advisor before committing. The most common forms of business are the sole proprietorship, partnership, LLC corporation, and an S corporation.
4. Write your business plan
Many new graphic design business owners jump right in without a well thought out plan. But this would be a mistake.
A business plan is a roadmap for your business, laying out what you want to achieve and how you plan to do it. It’s not something that has to be perfect from the start but should be revisited and updated as your business grows.
Items to include in your business plan:
- Market research – do people want what you’re offering?
- Target market and customer segments – who will you be serving?
- Your unique value proposition – what services are you offering?
- Your cost structure – what are your revenues and business expenses?
- Market analysis – How saturated is the market and who is your competition?
- Marketing – How do you plan to find graphic design clients?
- Operating model – How do you plan to get it all done?
- Key vendors and resources – Who is going to help you get it done?
One of the biggest benefits of creating a detailed plan is that it forces you to think about your business and its future. Going through the process of writing a plan can reveal problems in your business model, potential risks, and gaps in your knowledge.
You don’t have to spend thousands of dollars on legal professionals to write a business plan for you. A simple business plan is something you can do yourself, the important thing is to take the time to do it, and to think it through clearly.
The SBA has examples on its site of traditional business plans, as well as what they call a lean startup plan. A tool called the Business Model Canvas (BMC) can help you create a lean startup plan. You can search the term “Business Model Canvas download” on Google to download a blank BMC and even watch videos explaining how to fill it out.
The SBA also has free mentors through SCORE who can help you navigate the Business Model Canvas as well as other business guidance.
To register with SCORE simply visit their website and signup to work with a mentor. SCORE connects small business owners with mentors who can help with business challenges such as creating business plans, acquiring business loans, and other business matters.
5. Accounting and banking concerns
Banks offer different services to small businesses, so it’s important to do your research and find one that offers the best rates and services for small business owners.
There are plenty of invoicing and accounting programs available that are ideal for graphic design companies and new business owners. These five are a great starting point in your quest to find what works best for you.
You can also ask other business owners to see which accounting tools work best for them, especially if the company you’re asking is another graphic design company.
6. Choosing the graphic design services you want to offer
New graphic design business owners can find themselves tempted to accept every project that comes along no matter how diverse. And in the beginning, this approach can be beneficial. You’ll be getting money in the door, getting experience, testimonials, and learning which projects you do—and don’t—like to work on. But in the long run, specialization is better.
Specializing offers several benefits:
- Faster turnaround – You’ll finish projects faster because you’ll be following a proven framework.
- Less acclimation time – You already know which tools, vendors, and processes you’ll be using, so no need to start from scratch each time.
- Easier to quote – When you do the same types of projects over and over it’s easy to know exactly the amount of time it will take.
- You become the expert – Instead of being fairly good at many things, you become great at only a few, or even just one, depending on your niche.
- You make more money – Specialists typically can charge more because they are experts at what they do.
If you are already a freelance graphic designer, you’ve probably already determined which services work best for your skills and interests. Once you are operating as a scaleable business, you may want to clarify your services even further, initially sticking to those you enjoy and do best, then expanding your service offerings as you hire new people.
7 . Defining your business pricing structure
Your business pricing structure can depend on many things, including your location, how long you’ve been in business, and what type of graphic design services you offer. But to be clear, pricing your services is highly subjective. There are no rules—your prices are whatever you decide they are, combined with your talent, skills, and ability to acquire quality clients at those rates.
When pricing graphic design projects there are a couple of options to consider: cost-per-hour and cost-per-project.
Cost-per-project is the most popular option because clients want to know how much they will pay up-front. There’s a chance of sticker shock if you use cost-per-hour since the price is undefined.
Whichever pricing structure you decide upon, be sure you have a clearly defined, well-worded, and legally solid contract for any graphic design jobs you do. If you start a graphic design business without a solid contract structure in place you run the risk of losing the revenues you worked so hard for.
8 . Create your logo and branding strategy
For a graphic designer, logo and branding strategy should be easy, right? Ironically, however, many graphic designers do a great job creating brands for other businesses but struggle with a branding identity for their own business. It usually doesn’t have anything to do with lack of skills, but rather a tendency toward getting it “right.”
My advice here is to not get too bogged down with perfection, especially in your first year of business. Create a respectable logo and branding strategy, yes, but don’t get “analysis paralysis” spending long periods of time in contemplation and indecision.
Of course not all graphic designers are logo and branding specialists. If this is you, consider hiring a fellow designer who specializes in these areas, or educate yourself by reading or watching videos about how to brand your business.
9. Acquiring graphic design clients
A strong marketing strategy is required for any new business to flourish. To acquire your first graphic design clients, you must identify your target audience and devise messaging that appeals to them. You’ll also need a solid strategy for how you intend to reach these people.
Strategies for acquiring graphic design clients:
- Build an impressive portfolio: Even if you are just getting started with your design business, create a graphic design portfolio and add projects that reflect your area of expertise. Your portfolio can stand alone or be included on your business website.
- Establish yourself on social media: Twitter, LinkedIn, and Instagram are excellent places to promote your work, join design-related groups, and establish connections with potential clients. When you start a graphic design business social media should be one of the first things you set up.
- Optimize your business website: Your business website is paramount to gaining business online as well as through traditional means. You can start with a basic website, then optimize it by making sure your website is up to date, easy to navigate, and includes keyword-rich content that will help you rank higher in search engine results pages.
- Consider blogging: Blogging can be a smart business strategy. Blogging is not only a great way to share your knowledge and expertise, but when done well a blog can also increase your website SEO.
- Start networking: Get involved in your local graphic design community and attend industry events. Meeting fellow designers in person is a great way to develop relationships that could lead to referrals, collaborations, and unexpected opportunities.
- Direct communication: Don’t be afraid to reach out to potential clients directly. A well-developed email, targeting the right person, written in a friendly, engaging manner could be just the right leverage you need to get on their radar.
- Consider some beneficial printed materials: When you start a graphic design business you don’t probably don’t need any printed materials other than a well-designed business card. But you might also want to consider a brochure or flyer to leave with prospective clients—this way you can show off your design skills while leaving relevant marketing materials.
10. Create your graphic design client contract
As a graphic design business, it’s important to have a contract when you work with clients. The contract does not have to be complicated. It can be as simple as a “Project Estimate and Agreement” form.
Having a contr