If you've decided you want to start up your own business - perhaps even in partnership with other people - you will need to write a business plan. Remember, the business plan is for you and is designed to answer one of three questions:

1. Is this a mad idea or could it work?
2. Now that I've started, how do I prove to everyone else that I am in control?
3. Am I in control and is it all going to plan?

However impressive your document though, if it does not help you to answer these questions it is not doing its job. Writing a business plan is not rocket science but like all planning it does require careful thought and the ability to do sums. Spreadsheet skills are a godsend. A simple start-up business plan will usually cover the first 3 years and is divided into two sections - the first describing the aims of your business and the second covering financial aspects.

If well thought out, your plan will give you credibility and an air of professionalism by providing hard evidence that your business will be viable.

Remember, your business plan should be a map, not a strait-jacket. Things will change and you will need to respond. You will need to be flexible and to adjust your plans regularly to keep them up to date. Often new funding or commission opportunities come out of the blue, but your plan should help you to stop being totally opportunistic.

Marketing is not the same as selling and promotion; it's about getting to know your customers or audiences and letting them know what you are doing. If people don't know what you are offering you might as well be singing in the shower. You need to show that you can provide something of quality and at a price that allows you to survive and thrive. Ideally, your marketing should refer back to strategies described in your business plan but, equally, do not underestimate the potential of opportunistic networking at a meeting or a party. In your early days you will also probably need to spend a fair amount of time (usually around 20%) on marketing - i.e. getting new work in. For many arts freelancers, though, the best kind of marketing is delivering good- quality work in the first place - there is nothing like word-of-mouth recommendations.

Taking control of the money side of your work or business may seem like a tedious task, but it is essential if you are going to be a success. This doesn't mean that you have to become a financial wizard, but it does mean you need to be in charge of your finances. At its most basic level, taking control of the money is about keeping records. If you are self-employed, then you will need to keep records that satisfy the Inland Revenue. The amount of tax you pay will be based on the difference between your income and expenditure. To calculate both these figures, and in order to prove them to the Inland Revenue if requested, you will need to keep accurate records of all your transactions.

These basic records can also be used to help you manage a business. They will be able to tell you if you are currently making any money, and help you to project into the future.

A contract is defined as an agreement between two or more parties to do something in return for something of value. They can be oral or written. Whilst there are countless tales of people and organisations within the arts working successfully on verbal agreements, it is not perceived to be good practice. A written contract has a number of advantages - specifically, you do not want to rely on people's goodwill for your financial state; staff can change, and people conveniently forget things in the heat of the moment. Contracts protect you if things start going wrong.

Yes, it does matter! To sort out insurance policies you can talk to your union, bank or a reputable insurance broker in the first instance. Remember to shop around as costs can vary widely depending on the company and type of insurance you need. And whilst insurance may appear to be an expensive cost, as a freelancer or a small business you should look upon it as an integral business cost - effectively you are paying someone else to take the risk for you. Don't think that insurance is optional either. Many contracts that you enter into will stipulate which insurances you must have and how much cover they should provide.

By making sure you have all the basic, good business practices in place you will ensure you build a solid foundation from which to let your creative side flourish and succeed.

For further information visit the following websites:
Artsadvice: www.netgain.org.uk
EQ: www.thinkeq.org.uk
Creative & Cultural Skills: www.ccskills.org.uk
Inland Revenue: www.hmrc.gov.uk
Business Link: www.businesslink.gov.uk