Being involved in the creative industry can be an endless source of excitement and novelty. You can be part of creating something new, meet people from all walks of life and build a lasting legacy.

However, being a creative entrepreneur isn’t easy. For starters, you need to determine if your business idea is creative enough and have a realistic and comprehensive business plan. You must also consider what your definition of a creative business is.

So, what is a creative business in 2022 and what kind of creative challenges might you might face as an entrepreneur today?

Defining a creative business in 2022

Conventionally, creative businesses are thought to include industries like design, visual arts, publishing, music and media and architecture. Many small-scale industries like handicrafts, fabric designing, fashion, and figurines also appear in the creative industry.

However, with immense diversification in almost every professional field, it is time we reevaluate the definition of a creative business. Today, you can define any business as creative if it is offering an innovative or creative product or service.

Here are some examples of creative businesses in 2022. Diamond Foundry, a synthetic diamond production company, uses solar tech to create sustainably produced diamonds. Similarly, Stitch Fix, a fashion styling company, uses data science algorithms to determine what is trendy in the fashion world.

While these businesses aren’t exactly artistic, no one can deny their creativity in the products they offer. The boundaries of what can be considered a creative business have broadened significantly, redefining the concept of a creative industry into a creative economy.

In 2022, anyone can become a creative entrepreneur as long as they can think outside the box and offer creative products.

What are some common challenges you would face while starting your creative business?

Even if you have an excellent creative idea for your business, sustaining it in a competitive environment can be difficult. Here are some of the potential creative entrepreneur challenges that you might have to face as a new business owner.

  1. Arranging the start-up capital: Starting any creative business often requires substantial capital, which can be difficult to arrange. Even if you want to apply for a bank loan, you might need a guarantor or mortgage on your existing property or investments.
  2. Finding new clients: As a new business, your start-up wouldn’t have any visibility or clout in the market, which can make it difficult to find clients initially.
  3. Finding new ideas: There is a lot of competition in the creative industries today. You can find hundreds of businesses offering similar services or products competing with each other for the public’s attention. Therefore, it can be difficult to come up with a unique business idea or approach.
  4. Ensuring positive cash flow management: Most new entrepreneurs struggle with delayed invoices from their vendors or customers, which leads to problems in paying the bills on time. Ensuring a positive cash flow is often one of the most pressing issues for a creative business owner.
  5. Hiring talented employees: The right talent can elevate your business but is often elusive. The hiring process can be long and draining – sifting through profiles, interviewing candidates, and deliberating on their performance can eat up a lot of your time as a business owner.

Other creative business challenges for creative entrepreneurs include delegation of tasks and deadlines, effective time management, creation of a realistic budget and dealing with self-doubt.

These challenges form just the tip of the iceberg for a creative entrepreneur’s journey. However, in-depth knowledge about the creative industry, well-developed managerial skills, and perseverance can go a long way in helping you overcome them.

A great place to start would be to enroll in a business management course that can teach you how to grow a new business. It can also help you make industry contacts which can be useful to you as a new entrepreneur.

The London College of Contemporary Arts (LCCA) offers a great BA (Hons) Business Management programme that is ideal for an aspiring entrepreneur. The foundation design and creative course can take you through different aspects of managing a business in the creative industry and its challenges.

The foundation business course allows you to develop an impressive portfolio of entrepreneurial skills like critical thinking, creativity, problem-solving, and leadership. You will also learn how to sustain and grow your creative business in a competitive space through this foundation degree.

Click here to enroll in this comprehensive business management programme at LCCA.