From live music to film production, the creative industry is notorious for moving at a dizzying speed. Demands are constantly changing, priorities are always shifting, and businesses are often forced to react quickly to unexpected curveballs.
However, while companies need to stay agile in the creative sector, they also need to ensure that their finances are managed properly - and this can present a big challenge. While it’s vital for creative businesses (and particularly start-ups) to avoid financial pitfalls, hiring full-time staff can feel daunting when the industry is so unpredictable.
This is where financial contractors can play a vital role.
Contractors offer a level of flexibility and cost-efficiency that can be hugely beneficial to creative businesses. Not only that, but they can also bring specialist financial knowledge to the table, whether it’s in live events, film, TV, or music.
Let’s examine why the creative sector has such specific requirements for finance professionals - and outline how financial contractors can help their clients thrive in a highly turbulent industry.
The unique financial requirements of the creative industry
The sheer unpredictability of the creative industry can be very exciting - but it can also be tricky for companies to navigate.
Business opportunities frequently swing based on seasonality, market trends, and economic conditions. For example, the recent Hollywood labour disputes led to highly disruptive strikes which caused major slowdowns in work for many companies. However, with an agreement now reached for SAG-AFTRA, creative businesses are readying themselves for a sudden influx of new projects.
Now more than ever, creative businesses need finance specialists who are cost-effective and able to adapt to rapidly changing requirements.
On top of this, as we approach the festive period, many organisations will need financial support on short notice to help them budget effectively for upcoming projects in the new year.
These dramatic shifts between quiet and busy periods make it very difficult for creative businesses to hire full-time staff, particularly in start-ups where cash flow is more limited. Unsurprisingly, this presents financial contractors with a big opportunity to step in and provide companies with much-needed support during critical moments, without the pressure of long-term contracts
What are the main benefits of financial contractors?
Financial contractors are becoming increasingly popular across a wide range of industries,
especially for smaller businesses looking for more agile solutions.
Below are some of the primary benefits that financial contractors can offer to their clients:
Cost-effectiveness
Since contractors only charge for the time they’re needed, they can be a very cost-effective option for businesses. This is a massive benefit, particularly for ambitious start-ups looking to maximise efficiency, accelerate growth, and cut unnecessary costs.
Flexibility & scalability
Contractors can be brought in based on very specific requirements, meaning they can assist with both larger time-intensive projects and smaller, more basic tasks. If businesses need more or less financial resources, they have the option to adjust quickly.
Specialist expertise
Many financial contractors will have specialist knowledge in a certain industry, so they can hit the ground running when they join a business. On top of this, since they’ll usually have experience with similar clients, they can also suggest new ideas and proven best practices.
Reduced training costs
Financial contractors are often highly experienced and specialised in a particular area. That means businesses don’t need to invest time or money into training them - instead, they can just start benefiting from their expertise right away.
Entrepreneurialism
Many financial contractors are naturally entrepreneurial, and are often looking to develop their skills, take on fresh challenges, and identify new business opportunities. This future-facing entrepreneurial spirit can align perfectly with smaller companies hoping to grow.
It’s easy to see why financial contractors are being utilised by so many different industries. However, these professionals are particularly valuable in the creative market, where all of these skills can help businesses to adapt, evolve, and grow.
Why are contractors so useful in the creative industry?
We’ve already covered a few of the key benefits that financial contractors offer their employers - but why are these experts so in demand for creative businesses?
One of the major selling points of finance contractors is their knowledge of specific industries, which is particularly handy in the creative world. Solid financials can make the difference between success and failure in the creative sector, so contractors play a pivotal role in keeping businesses moving in the right direction.
For example, many creative businesses can struggle to access the finances they need to drive growth, and contractors can be a game-changer in this department.
A skilled financial contractor will help companies secure the funding they need for certain projects, whether that’s a film production, a theatre show, or a music album. They can often tap into an established professional network to attract investment, and even identify promising grant opportunities for creative endeavours.
Tax can be another hurdle for many creative businesses, and experienced contractors will know how to manage everything from royalties to residuals and self-employment responsibilities. They can also help artists and creatives to minimise tax liabilities while still complying with regulations.
Beyond fundraising and taxes, financial contractors in the creative industry will also be able to tackle more nuanced tasks.
For instance, contractors can help businesses to value (and more importantly, protect) their intellectual property, as well as identify opportunities for monetization. They can also support companies in establishing licensing/distribution agreements, which is crucial for unlocking long-term revenue streams.
Finally, a contractor will be able to manage cash flow for creative clients, which is absolutely essential in a turbulent industry. Many companies will find themselves dealing with irregular income due to the nature of the business, and forward-thinking cash flow management can be crucial for survival during quieter periods.
Case Study: Harmonic & Frieze
Frieze is one of the most influential contemporary art magazines in the world, and in 2017, we partnered with the brand for the first time to help them discover the perfect interim financial contractor.
In 2017, Frieze had a turnover in excess of £35 million and urgently needed a candidate who could begin work within just 7 days. Utilising our expertise in contractor recruitment, we connected Frieze with a skilled finance professional who could fulfil multiple responsibilities in this fast-moving business.
Since then, we’ve continued to help Frieze recruit industry-leading contractor talent to support their global events, building a strong working relationship that has proven to be extremely successful.
"I’ve worked with Harmonic several times across both permanent and temporary positions. Have always received excellent levels of engagement and understanding of both the company and the position in question, with the team more than happy to keep refining any search to find the right candidate (even when we’re being particularly picky). Definitely now my first port of call for finance hires.”
- Ben Edge, Head of Finance @ Frieze
Financial contractors have established themselves as a highly versatile, cost-efficient solution in the modern creative market.
These professionals offer businesses the flexibility, adaptability, and specialist knowledge they need to maintain profitability in an unpredictable industry. From cash flow management to project fundraising, contractors deliver services that are now seen as invaluable to a huge number of creative clients.
Whether you need help with high-level business strategy or day-to-day finance tasks, you’ll be able to find a contractor that fits the bill. If you’re interested in learning more about the benefits or costs of hiring a finance contractor within the Creative industries, don’t hesitate to get in touch with [email protected] for expert guidance and recruitment support.