Different design businesses work in different ways. Two thirds don’t use any measures to protect their intellectual property, but a quarter say they use copyright.
The majority work on a fixed fee or day rate basis, but a small percentage work on a client retainer. When it comes to winning work and targeting new clients, design businesses of all types say that personal recommendation is more important than marketing. For freelance designers, networking has become increasingly important since 2005. And collaboration is popular – more than half of designers say they work with other businesses. Sustainability has become more important for many design businesses, with nearly half saying they are now trying to reduce waste and just over a third reducing energy consumption.
Download a PDF factsheet full of facts and stats on design business practice in the UK
Intellectual Property
What measures do design businesses take to protect their intellectual property?
The majority of design businesses do not take any measures to protect their intellectual property.
- Don’t take measures to protect IP 66%
- Copyright 26%
- Trademark 12%
- Design registration 4%
- Unregistered design rights 4%
- Patents 3%
- Overseas/International protection 1%
- Other 1%
Fee structures
How do design businesses structure their fees?
Most design business work either on a fixed fee or day rate basis.
- Fixed rate per product/service 68%
- Day rate 58%
- Client retainer 4%
- Fixed fee plus a percentage of profit 2%
- Royalty from intellectual property rights 1%
Winning work
How do design businesses target new clients?
Marketing takes a back seat to personal recommendation when it comes to targeting new clients. Personal recommendation has become increasingly important for design consultancies over the last five years.
What factors do design businesses think of as ‘very important’ when targeting new clients?
Designers cite understanding a client’s needs and having a good relationship with a client as the most important factors when targeting new clients.
- Understanding client’s needs 80%
- Relationship/chemistry 72%
- Creativity 47%
- Reputation 59%
- Price 35%
- Sustainable design expertise 18 %
How have design businesses changed their marketing spend over the last three years?
Despite difficult economic times, a third of design businesses have increased their marketing spend over the last three years.
- Increased 33%
- No change 46%
- Decrease 15%
- Don’t know 6%
Sustainability
What percentage of design businesses have undertaken measures to make their own businesses more sustainable?
- Environmentally friendly use of resources 49%
- Reducing waste 47%
- Minimising transportation 41%
- Reducing energy consumption 36%
- Increasing materials lifespan 29%
- Other aspects of sustainable design 20%
How well equipped do design businesses feel to advise their clients on sustainable design?
Almost 60% of design businesses feel either very or quite well equipped to advise their clients on sustainable design.
- Very well equipped 15%
- Quite well equipped 44%
- Not very well equipped 27%
- Not at all equipped 14%
Motivation for setting up
What is the main motivation for business owners when setting up their design business?
Owners are motivated by a range of different factors when setting up their design business.
- Creative freedom 22%
- To be in control of business decisions 21%
- Being able to decide when/where work 19%
- To provide an opportunity for employment 18%
- To increase income 6%
Collaboration
What percentage of design businesses collaborate with other design businesses?
An estimated 55% of design businesses collaborate with other designers or design businesses.
What is the nature of design businesses’ collaboration with other design businesses?
Half of design businesses’ collaborations with other design businesses are short-term and for specific projects.
- Short-term, specific projects 50%
- Long-term, consistently working together 28%
- Strategic alliance 21%
- Long-term, but irregular 18%
Why do design businesses collaborate with other design businesses?
Design businesses collaborate for a range of reasons:
- Broaden range of design disciplines available 56%
- Increase capacity to work on larger projects 44%
- Stimulate greater creativity 39%
What percentage of designers collaborate with non-design businesses?
An estimated 51% of design businesses collaborate with non design businesses.
What is the nature of design businesses collaboration with non-design businesses?
Unlike collaboration with design businesses, collaboration with non-design businesses is as likely to be long-term as it is to be short-term.
- Long-term, consistently working together 41%
- Short-term, specific projects 39%
- Strategic alliance 17%
- Long-term, but irregular 14%
What proportion of design businesses’ annual fee income or budget comes from collaborative work?
Design businesses earn only a very small proportion of fee income or budget from collaborative work.
- All 2%
- More than half 4%
- About half 7%
- Less than half 64%
- None 12%
How has the amount of work designers outsource changed over the last three years?
Just under a quarter of design businesses have increased the amount of work that they outsource over the last 3 years.
- Increase 24%
- Decrease 9%
- No change 57%
- Don’t know 10%