Artists’ Business Plans
I feel that artists, unlike other professions, do not really need to spend a lot of time writing up detailed business plans. Yes, it helps to goal set, but I prefer to keep things more flexible. I have gone the “detailed” route in the past, but a lot that I had planned on never happened, or changed. Sometimes this resulted in a loss of money. Its not that I planned poorly, or did not plan enough. On the contrary, maybe I planned too much. In any event, I have changed my stance to not having things set in stone. To map out ideas, not definitive details. However, I have learned to just put some simple principles into play that are good for any artist to follow.
Projecting Costs
When I decided to turn my art hobby into a business, I looked into a lot of options. I weighed my options between dedicating a work space out of my home vs. renting a space in a more commercial part of town. I looked into having a dedicated business line vs. making my cell my work number. I looked into paying a marketer to get my name out there, being as that I was new and all. I actually really wanted to have a space outside the home, a studio with all the bells and whistles. In the end, I opted to keep my overhead low, and I have one room in my house as my artist space. Ultimately, I have learned it is not necessary to have a brick and mortar commercial studio. With the advent of the web, online galleries, email, facebook, blogs, etc, one can also take care of a lot of their own marketing as well. AND save a lot of money in the long run. I would have incurred a lot more debt at a faster rate the other way. It works for some, but in the end, I am grateful I remained flexible and did not push hard for the other plans, that might have made me close my business doors when the recession hit.
Keeping Overhead Expenses Low
Artists are pretty lucky! These days, it’s not too difficult to keep our overhead expenses low. With a website portfolio, online store, email newsletters, blog and home studio, my expenses are fairly manageable. When I have taught classes, I have done so at a location where everything was set up and all I needed to do was appear! I don’t need that expensive store front, an expensive 800 number. For me, I too have the luxury of not needing artist’s supplies, being as that my fractal art is created with the computer. I do have upkeep of my machine, however, so that in the end does balance out. But all in all, it is fairly easy to keep expenses managed.
I do have to make sure I do have a bit of an inventory on hand, as I like to do art shows. However, I have learned along the way. Tents and grids can be rented, vs. purchased outright. It is a thought to bear in mind that might be more feasible for some. I was lucky enough to find a store that sold used grids. They looked like new, but were half the price! It is not important to have an overkill of prints. Unless you do a lot of shows a year, you do not need to print hundreds of prints. I learned this the hard way. I printed a LOT of prints, but only do a handful of shows a year. I still have inventory from four years ago that has not moved yet. It’s hard to justify printing more, newer items, until the older ones sell. At the very least, I do alternate where I do shows, geographically, so the older images are new in towns I have not had an art show at before. One artist I saw at a show had a wonderful idea. He had a banner printed, filled with his art images. These were available then for special order. On hand, he had lesser expensive items that sold like hot cakes. Everything $20.00 or less. I have done something similar; I have a CD slideshow with my entire portfolio on it that I run on a small DVD player at shows that offer electricity. I can then focus on having some of my most popular pieces available for purchase within the booth, but I can keep my printing expenses lower, by having a visual of all else I have to offer in an eye catching video.
Yearly Projections
Any good business plan begins with an accurate projection of the annual costs to run said business. As an artist, this means how much you will spend on supplies, printing, framing, education, promotion, advertising, showing or exhibiting your work, and keeping in contact with collectors. Try to spend realistically as you are starting out. It is ok to dream big, but do not spend emotionally because of it. If you do not plan out the things you need ahead of time, and keep an eye on your annual projections, you could end up wasting money and overspending. Eventually you will want to make a profit! Sooner than later, preferably!
Being Professional
As stated earlier, artists are blessed to not have to spend a lot on overhead. In comparison to other businesses, our start up costs are minimal. However, if you decide to become a professional artist, you do need to make sure to take care of a few things. Like register your business in the state you live in. Get your tax ID number. Hire a good accountant that specializes in small businesses. This is an investment I would recommend not skimping on. I understand a lot of bookkeeping basics, but when it comes to things you can and can not write off, and keeping it all in order, it is sooo helpful to have a professional make sure that all my ducks are in a row.
There are so many tangents to branch off on; I could write a lot more on this topic. But for now, I will leave you with the above thoughts, and will add more blog entries expanding upon things, should there be a need or a request for it. J
Go out and make it a Fractalicious Day!
~Kimberly
