1. Task 3 – Understanding job roles, career structures and business models.
Krystian Chamela

2. Introduction
I will be analysing four different types of employment to understand the dynamics, pros and cons of each one. The following employment types are:
Self employed
Freelancing
Public/Private Limited Companies
Full time employed contract

3. Sole Trader

4. What is a Sole Trader?
This is the exclusive owner of the business that is entitled to all the profits after the tax reduction. The owner is always solely liable for every single lose. You have to keep records of the sales of the business sales. Create your own tax assessment returns every year.

5. Pros of being a Sole Trader.
You keep all the profits for yourself
The management of the business is on your hands meaning you can implement ideas that can increase your income.
You can bring your work with you anywhere because it’s your own business.
If an issue occurs you can respond to it swiftly because you’re the only person in the company.
All the information about your business is kept private unlike limited companies

6. Cons of being a Sole Trader
Because you’re the sole owner of the company you’re extremely liable to all the lost money and potential bad decisions.
It could be potentially hard for the sole trader to acquire a substantial amount of money to keep the business going.
The pressure of your business can impact the private life of the owner, knowing that every decision can lead to a failed business probably impacting their life's.

7. Development as a Sole Trader
You’ll want to start to create bigger show pieces to potentially interest investors, when you’ll gain finical support you’ll be able to hire better freelancers to produce better products hopefully creating a snowball effect in your company.

8. Threats to work as a Sole Trader
If you’re working as a sole trader you’ll have to ensure that the work you’re producing can compete against other products of other companies. This can become extremely more stressing on the owner as the development of games is going very fast.

9. How to become a sole trader?
The first step is to decide on the name of the business, this will be your brand. You have to register yourself as self employed at the HM Revenue and Customs. Then you’ll have to figure out where is the local authority to pay incoming taxes. When you have finished those things it’s extremely recommended to set up a finical record keeping system to be sure that you’re paying the right amount of tax. If your business has a turnover of more than £60,000 you have to contact HM Revenue and Customs.

10. Freelancing

11. Definition of Freelancing
A freelancer is a person that is self employed offering different specific services. They are usually hired by businesses, very likely they’ll also be working with multiple clients at the same time. The work free lancers can vary making it an extremely fresh feeling job. The biggest benefit of freelancing is the flexibility the job offers, you can work any hours you want where ever you want to.

12. Examples of Freelancing in the games industry
Nearly every single company in the games industry outsources work from small indies to big publishers. The small companies don’t have enough money to hire these people for full time employment while the big publishers have enough money to hire the best people in the industry to create the best experience.

13. Pros of Freelancing
You’ll have extremely flexible hours, meaning you can adjust to different employers however you want whenever you want.
You have control over who you work for and the type of work you provide for them.
If you don’t enjoy a certain business or the job you’ve taken you can simply leave as you’re the boss.
All the profits go directly to you.

14. Cons of Freelancing
You don’t know if you’ll have a steady or reliable workload to keep a good income.
The work could impact your personal life as it could be difficult for a person to distinguish between personal time and work.
If you become a freelancer you won't get any employer benefits, these benefits are extremely useful your current health could impact the decision if you want to undertake the job of a freelancer

15. Development for Freelancers
When you become a freelancer you’ll usually try to establish a connection to different businesses so you get reoccurring business with them. If you’re extremely good with sound design and you get a job with a big publisher, people will remember that you worked on a specific title for a game. Creating a good portfolio of the work you have created and the jobs you have been on will create good reputation for you aswell.

16. Threats to Freelancing
Clients are becoming more picky as time goes on meaning you’ll have to become extremely good at specific jobs or else you’ll get outsourced by somebody who does it better and cheaper. Potential harm to your health because of all the traveling and different environments you’ll be experiencing.

17. Limited Companies

18. Definition of Limited Company
A limited company is a business structure that is completely separate from its owners. It can sign contracts in its own name and will be responsible for all of its own actions both finances and liabilities. The owners of the company will receive a protection called limited liability. This means that they are only responsible for the business debts, up to the value of their investments or the equal value of what they offer to the company.

19. What is a liability?
A liability is the companies financial debt or obligation that arise throughout the time of the businesses operations. These liabilities are settled throughout time when the transfer of benefits including money, goods or services occurs.

20. Different types of Limited Companies.
The two types of limited companies are the private limited company and the public limited company. The private limited company is very often a small business that doesn’t trade shares on the stock exchange. While the publish limited company are extremely large and well known businesses.

21. Difference between LTD and PLC
The shares in a PLC will be sold and bought through the stock exchange and there is no need to discuss this with the owners for selling and buying these stocks. LTDs usually thinks more about the profit from the company from the business while the PLC cares more about the services and goods for the services it provides.

22. What is the process of creating a limited company?
The first step is to register your company at the companies house. The process itself is simple, you can do this yourself or ask your accountant to do it. The most popular method is to use a company formation agent. The agent will allow you to complete the entire process online and can be done in the matter of hours.

23. Full Time Employment Contract

24. Definition of Full Time Employment
This means that you’re employed by a company receiving a set amount of pay and working certain hours or a set amount. This type of employment is extremely useful for people that need a steady incoming of money while gaining experience.

25. Examples of Full Time Contracts
Every publisher is looking for people that can do specific jobs well so they can utilize these people instead of paying for freelancers which will cost more money then somebody who is already working at the company. Specifically publishers can also offer this persons knowledge to companies that are signed with the publisher.

26. Pros of Full Time Employment
There are no liabilities, you know that at the end of a week or a month you’ll receive a paycheck
You have job security for the time of the signed contract, unlike self employment a full time employee knows that he will have work for a set duration.
You don’t have to relocate to find potential work as if you’re doing a decent job you will probably be kept at the company you are.

27. Cons of Full Time Employment
You have very little creative freedom meaning you’ll be forced work onto you that you may not want to do.
If you’re hired for a specific job you can potential get bored from the same stall work and environment.
Usually if you’re not doing something extremely specific your pay won’t be as good as freelancers or a sole trader.

28. Development for a Full Time Employee
This extremely depends on the type of work you do in the industry and the company you work at. If you work at a smaller company you’ll be usually expected to do many different jobs, you’ll usually just progress through the management rather then work status. On the other hand if you’re part of a big company you’ll begin as an intern and then gain a higher rank and more power in the sub department you work. For example if you’re a programmer you’ll become a junior programmer, then progress to become a programmer and after a certain amount of time a senior programmer.

29. Threats to Full Time Employment
People with extremely high qualifications have a difficult time getting jobs, so people with normal qualifications will face even a bigger struggle to receive a job in the industry .