Art Business Guidelines

 

Before Starting an Art Business

What you need to know to begin

What do you need to know before starting a business?

One of the very first steps to make a living from your art is to build a business. I know that most artisans only need to hear the word business, let alone the sound of a plan to create an urge to withdraw.   Of all things I ever arranged for my art career was to create a business plan. Although this one step I hated the most turned into the most satisfying, clarifying and important step I ever took. I had not a bone of business in my system, hence depended with every step on other people. But once I took things into my own hands, I never looked back. What I once could not stand, became natural and easy with time. It is a great feeling to know what you are doing because it creates independence and gives you clarity. You will be going on a journey that will require some time, the best business plans are taking at least half a year, if not longer.

The times I have heard emerging artists say when attending my business seminars, that all they wanted was to paint and don't have the time nor the desire to learn business is heart-wrenching to me. I try to remind them that they still, after years of dreaming about an art career, remain stuck within a job they don't like to make an income, without ever getting any closer to making a living from their art. It therefore makes sense and is far better to allocate a small period of time and invest it in business planning than not moving forward at all. These are the steps you need to take before even thinking of going into business. The idea is to work on a plan for a few months, to give you time to think and collect ideas. ​When going through the steps below you likely will find aspects of it where you are a total loss. See each step as gain when accomplished and knowledge that stays with you. Make the commitment to take half a year of your life to learn those uninspiring skills of business and find out who you are in this market and who your clients are. It will be all worth it!

Executive Summary 001

A brief of your business and who you are. The timeline for planning your future is a plan that overseas the next three to five years and includes how you expect to generate revenue. You need to include your goals, mission statement, products, and services.  If you are just starting focus on your background and experience. If any of the books stands out as a most helpful resource it would be the publications "What's My Plan?"from the Australia Council for the Arts and "The Code of Practice" from NAVA.

Business Description 002

Describe what is different about your artwork versus others. If you don't know, do some research and try to express the difference in words. Discuss your market and your target groups. For example, do you want to become known as an exhibiting artist, or rather use the merchandise market? You will find the right questions and answers in the book "What's My Plan".

Market Analysis 003

This involves pulling up demographics for the area you will be serving. Learn what comprises the population of the area you will be serving, such as income, age, education. I know that some of the steps seem awkward to you, but believe me when I say that with every step, I learned something new about the art sector. You will find information for Australia at the Australian Bureau of Statistics. If you are from another country find out where your country keeps such information.

Business Management Plan 004

Decide how you are going to structure your management. Will you be a sole proprietor, an LLC, a corporation, a partnership? Information regarding business structures are found at business.gov.au.

Your Artwork 005

What is your type of style or product? Explain your product and/or service and what is different about your art or even an advantage over your competitors. Create a written statement.  If you have no idea where to start with this question "What's my Plan" once again is the best book to work through. It was specifically written for artists.

Marketing and Sales 006

You need to figure out how you are going to get the message out to your target groups. Basically, what is the strategy you are going to use? For more information go to Arts Marketing.

Funding 007

Are you going to look for funding? If so, then discuss how or who you will be using. The business plan is critical if you decide to look for an investor or grant money. NAVA is a great source for grant applications. Then there are Regional grants and the Australia Council. I always got in contact with my local arts development officer. There are there to help you out. Talk to them what is available to you in terms of funding and grants.

Branding and Logo 008

Both are very important. The home page of your website or your name can be your brand. Keep in mind that your brand is the promise you make to your customer. If it is your name, make it stand out - create something catchy. However, don't forget the logo since this creates a visual or image for the customer. The logo represents your business so make it count. Apple is a brand, and their bitten apple is their logo. Think about how that name and logo affects you. If you are not a designer you can go to local colleges and ask if any of their students would like to create a logo for you for a small fee.

Bookkeeping, Accounting 009

Starting a new business is exciting and overwhelming so consider an accounting service, which is a group of experts who can save you time, money, and worry. A good accountant can provide you with some great business tips to improve cost efficiency and save on taxes. There are some great programs around you can use, who combine an art inventory of your work, invoicing and bookkeeping in one. More in my "Organise your Art Business" article. Use an easy invoice system like invoice2go or Wave. The Wave app is for free. I used it for years with my students when conducting art classes.  How to Earn from Your Drawings or Paintings A sketch is just a Mini Movie At the beginning of an arts career you might not be fully aware of all the interesting jobs available that are out there. Here are some ways you can earn a respectable living as a talented sketch artist. Some of these jobs are full-time with benefits. However even if you prefer to freelance, paying work might be available where you weren't expecting it. Sketch artists can earn a sizeable income with advance planning and a good dose of talent. Drawing skills are in demand and some of these fields offer excellent compensation. Be open to the possibilities around you. WORK OPTIONS FOR ARTISTS Greeting Cards Companies Greeting card companies buy poetry from writers year-round. They need artists to create lovely drawings for gift cards. It is possible to work full time in this area, once you realise all the genres of cards they design. Topics that are used all year round include weddings, birthdays, new baby, anniversaries and retirement, as well as get-well, and thank-you cards. Seasonal topics cover Valentine's Day, Mother's Day, Father's Day, High School and College Graduation, and Religious Holidays. Newspapers & Magazines Newspapers publish daily political and editorial cartoons. This type of work is often freelance but can still be financially rewarding. It depends on how many papers contract with you for daily cartoons. The price you negotiate for syndication determines your profit. Some artists produce comic strips for the daily and Sunday papers. This is a highly competitive field at the national level. If you do not have an impressive portfolio with major publications but want to develop a comic strip, then consider starting with local papers, magazines, or online publications. Portrait Commissions Portrait sketching is mostly freelance or seasonal. Beginners in this field can offer their work on markets, shopping malls, and even theme parks. Year-round theme parks might employ you directly or through an agency. Experienced artists do private settings for corporate executives, private citizens, or their pets. Additionally, you might consider an online or snail-mail gig where people send you a photo of their child or pet, and you create a color sketch from it. Commercial Illustrator Working as a commercial illustrator for over 15 years included some interesting jobs at times. My tasks ranged from simple drawings for small businesses such as a dentists or a wheelchair supplier.  Occasionally some really interesting work came along, for example when  I had to paint several large 2x2 metre pop art paintings for Kellog's Pop Tarts, within the Gold Coasts busiest theme parks. But most of my work I received from Graphic Design Companies, who contacted me when they had jobs that fit my particular illustration style. If you try to work on a freelance basis, don't show a large variety of different work in your portfolio, but your individual style you have mastered over the years, unless you are applying for a regular job where versatility is required. Interior Design Firms There are more interior design companies than galleries, as it is a vast market and the need for new art is endless. They don't mind if you lack years of experience, and can be repeating buyers if their style matches yours. It is a good idea to check the trending design world for colour schemes and know what goes with certain colours. Don't be afraid to reach out as designers are in need to complete their work with artworks. Corporate Gifts Corporations often purchase exquisite gifts to give to V.I.P. presenters. The MICE (Meetings, Incentives, Conferences and Exhibitions) market is large. Potential contacts would be conference organisers, public relations consultants, events coordinators, businesses, corporations, mayors, government officials and foreign consultants of embassies. Many years ago I did some paintings of the Parliament House in Brisbane, which were solely used to create gift cards as a limited edition by the Queensland Government.  Industrial Research Manufacturers need new products and upgrades to existing product lines to stay competitive in the market. It doesn't matter if they sell to the public or to other corporations, they need cutting-edge products to maintain or increase market share. Manufacturers employ artists in several departments. The most important department is research and development, also called R&D. This is where researchers design new technologies or products. They depend on sketch artists to draw renderings of these new designs to submit to senior management for approval. Once senior management approves a project, these artists draw highly detailed plans that the production team will use to create a prototype. You should be experienced in sketching from sight and using computer art programs. Moreover, you should enjoy creating technical drawings. Advertising Agencies Manufacturers, retailers, and all sorts of corporations hire advertising agencies to promote their goods and services. Advertising agencies, so Graphic Design Companies depend on creative artists to transform the marketing department's written and verbal descriptions into a series of sketches. The marketing department then presents these sketches to the client as they develop an advertising campaign. Work for an advertising agency is never dull as each campaign is different. For example, you might create a new character for one company, draw cartoon advertising for another client, or show various ways of using a new product for a third client. Book ​Publishers Publishers employ artists for several of their biggest moneymakers, including textbooks for schools. Textbooks are filled with sketches to make it easier for students to visualise new concepts. They are overall simpler in style than the usual children's book. Books for young children have a picture on every page, and their creation can take up to two years on and off work. It is customary that the author submits only the written story, and illustrators send their portfolio to publishers for consideration. As it is the publisher who provides the artwork for cover and story, they are familiar with matching an illustrative style with an authors written text.  Most publishers provide their submission guidelines Online.  I also have prepared an article on the subject of “Book Illustration, the remarkable world of story telling” book to further this subject. Police Departments This job is emotionally demanding but also rewarding when the perpetrator is caught. You would work directly with crime victims to draw a sketch of the person who hurt them or burglarised their home or business. You need excellent listening skills and patience to transfer the victim's description, which might change several times as they remember more, and draw a lifelike sketch of the perpetrator. You can spend several hours with a victim that is emotionally distraught. Additionally, if a home was burglarised, you might draw sketches of the stolen property for distribution to local pawn shops. Visual Effects & Animation If you can draw and have sufficient computer skills you have the option to enter the film industry working in visual effect (VFX), game art, animation and motion graphics. Every major movie these days is using visual effects to some degree. Despite that some may think that the film, television and game industry is almost too glamorous to be reachable, they are in the end normal jobs. Sure they are highly specialised but are jobs like any other. It is big business, good money and there is an ever growing demand. Artwork ​Leasing Artists can lease their work to Corporations who are interested in displaying in their foyers and board rooms. Increasingly businesses are renting artworks to keep their costs down and to create an ever changing new exciting display of works. Dealers, consultants, Hotels and organisations such as Corporate Art Rentals are a good start. Check the Internet and you will find quite a few companies that rent artworks. Never rent your art without contracts.  Court Room Artist For years I have been working as a court room artist for Channel Ten in Brisbane. When a job becomes available you will be called by the network and must be available immediately or they will find another artist for that day. I received a flat fee no matter how long or fast the waiting time at the court turned out to be. Usually you are required to draw the defendant and at times the judge inside the court room. The time for the initial drawing ranges between 10-20 minutes, so you must be skilled in capturing the the essence of face features quickly. I usually began with very quick sketches of the most essential parts of the face, and drew some quick colour references, so that I was able to finish the work at home. Once completed I had to send the work to the network per taxi. Art Therapy If you are interested in both art and psychology, then becoming an art therapist might be the perfect solution. You will work with a diverse group of clients of all age groups. It is often used effectively with people who may struggle to participate in more traditional therapies. You will need qualifications in psychology. Pricing Your Artwork What every artist should know before putting a price tag on their work The pricing of artwork is always a delicate matter for most emerging artists. But when art is your business and income, it should be an important consideration. Knowing what to charge could potentially mean the difference between success or failure of your art business. As it is not an easy task get an overview of the common standard hourly rate for artists in Australia, I have included  the common rates for Australian Artists Fees & Wages from the publication "The Code of Practice" by the "National Association For the Visual Arts".  ​ Australian Artists Fees & Wages BY NAVA Australian Fees & Wages Guideline. DOWNLOAD Recommended Artists ​Rate 2018 REGIONAL ARTS Fair Wages and Conditions for artists. DOWNLOAD Artslog ​Stories ARTSLOG Allows artists to anonymously log working conditions. SPEAK OUT Your Reasons ​For Fair Pay Never Stumble when telling your price, “but be confident in asking what is reasonable for the work you do. I was intimidated when asking even for a fair amount of money when I entered this profession and almost felt guilty to receive what would have been justifiable. Only when I learned what my collegues in the industry were asking for their services did I realise that I was by far underselling my work.  It seems my clients could smell that I was uneasy, hence doubted my pricing as much as I did. The moment I asked for fair prices believing that it was my right and fair, clients seem to have less problems with my price structure and I made more money not less, although being more costly.     It is important that you think your whole situation through. Just to give you an example. If you undertake to sell an artwork for $100 instead of its real worth,  let’s say a $1000, you probably do this because you are convinced that no one will buy your work for the higher price. You feel pressured, because you spend on materials, but money never comes back to you.   There is something substantially wrong with this thinking, as was mine those many years ago. Because when selling an artwork for a thousand dollars instead of a hundred dollars, we can actually loose 9 clients AND SAVE an enormous amount of time, because we won't need to produce 9 more works to get to the same result. To sell it under price is crazy and doesn't make sense.  Today I rather invest my time in learning a bit of marketing and consult with art organisations rather than underselling my work to a pitiful degree. I had to learn to understand why I have a right for a minimum hourly rate especially when working on commissions  and have listed those reasons for you personally and for the education of your clients to understand why you should ask for a reasonable and fair pay:  ​ 1. INSURANCE                       As a professional freelance artist you may need the following insurances: public liability, transit of artwork, damage to artwork, studio content, fire and theft to protect your studio and accident or loss of income insurance, because when you are sick, you aren't getting paid.   2. SUPERANNUATION               To freelance means taking care of your own superannuation, so the usual 9% rate of pay has to be factored into your pricing.   3. WORKERS COMPENSATIONS  As a freelancer you are not covered under the workers compensation act, and whatever happens to you is your own responsibility.   4. ARTS EDUCATION & TRAINING Many artist have put time, effort and money into some form of arts education and some will invest in further education along the way. Your skills have come from an investment you've made, while some of you were studying (full-time or part-time) and otherwise spend time to learn your craft, when you could have made an income within this time.    5. NO PAY WHEN SICK           The usual benefit of paid leave, paid sick days or long service is another reason for fair pay and needs to be incorporated into your budget. 6. HOLIDAYS                           Like every working person, you as a self-employed artist have a right for a yearly holiday. This is as important to you as for your customer, as you have to remember how much a relaxed holiday can recharge an artists creativity. And a well-run business takes this into account.   7. LEGAL CONTRACTS              Contracts or legal advice cost money. Even if you purchase certain contracts inexpensively from the Arts Law Centre, you still paid for them.   8. MARKETING                        You should spend to some extent on marketing. Always! And if it is only through public relations in form of presenting yourself to potential clients and whether successful or not,  even networking takes valuable time.   9. PORTFOLIO                           Being in business requires to present your artwork in a professional manner, whether in form of photographs, prints, copies or  online presentation. To create a professional portfolio can be expensive.   10. STUDIO RENT Whether you have a separate commercial studio or work from home, it is space you pay for.   11. ART MATERIALS                  Unarguable artists do have a lot of expenses for art materials. Just think of what you have spent over the years for your trials and errors  to experiment. 12. WEBSITE Every artist needs a website these days and it cost money and time to keep it updated and moving and alive. Pricing 101 Price your artwork well with thought and common sense. ​If you work on a commission, the norm is to price your artwork on an hourly-rate plus materials basis. However, remember that commission-based work is priced differently from gallery exhibits, which again are priced independently from licensing arrangements. ​Here are some points to consider when deciding what to charge for artwork offered to your clients: ​ KNOW YOUR WORTH Do some research and collect information about what your peers, with similar skills and experience charge. Knowing your charge-out rate is critical in determining how to price your commissions, your licensing fees or exhibition pieces.  Get familiar with the Australian norms of artwork pricing, and base your prices accordingly   ​ EXHIBIT CONFIDENCE Once you have determined that your rates are fair and reasonable, you should be confident in communicating those rates to clients and prospective patrons. If you are confident that your rates are reasonable, you’ll be able to convince others of that confidence too – otherwise your pricing of artwork might seem unreasonable to buyers or exhibitors alike! DON'T SELL YOURSELF SHORT  Just because a competitor undercuts you in pricing, doesn’t mean you have to sell yourself short! True art-lovers recognize the value of a piece of art and reducing your rates will only make them suspicious (or doubtful!) about it. Clients have to understand your work situation and value your status and to understand that payment for freelancing artists should acknowledge that art workers are responsible for their own disability or sickness insurance, are accountable for any faulty work and are not receiving any of the usual benefits an employee has a right to get, such as paid leave, paid sick days or superannuation or long service benefits. To the contrary they have to cover insurance costs, and deal with sporadic cash flow problems. And on top carry the costs of establishing and maintaining a fully equipped studio or work environment regardless if working on commission based work or for exhibition purposes. Finally, the self-employed must bear their own training and professional development costs. KNOWING HOW TO PRICE YOUR COMMISSIONS or determining the price of each exhibit piece, is about believing that ONLY YOU have the talent and skills to do what you do. So why should pricing your artwork be dictated by how someone else prices theirs?   BE CONSISTENT Always price your artwork consistently across distribution channels. If a client finds a piece of yours at an open market sale, that is priced lower than what he/she purchased at an art gallery, your credibility could be irreparably damaged.       DON'T OVERPRICE EITHER! When deciding what to charge for artwork of different types, don’t be tempted to drastically raise your prices – just because you can! If you want to survive and thrive in the Australian art world for a long time, then pricing your artwork reasonably is the key to your art business success     The Ultimate ​Artwork Pricing Resource Whether you wish to learn how to price your commissions ​or what to charge for artworks based on a licensing arrangement;  The Code of Conduct available at NAVA is a remarkable resource that every Australian art business owner should be familiar with.  Plenty of information with valuable tables for all different types of pricing within the arts sector, be it for employment or freelancing situations : Fees for studio space Copyright fees Illustration fees Information for public and new media artists Loan fees Rates for teaching art …and lots more! ​As an art business owner, you may also want to consider a paid membership at the NAVA. You could learn a lot about how to price your artwork, and other topics relevant to art business owners, from your peers at the Association.