Re-establishing an internal locus of control when it comes to finances can put you back in the driver’s seat. Here are five ways to reclaim your power when it comes to art business and finance.
Set Financial Goals in Your Art Business
Artists avoid thinking about money for any number of reasons. For one, many artists have no idea how to place a value on their own work, whereas others “don’t do it for the money” and have an ambivalent attitude towards money and success.
Just because you avoid the subject of money, however, doesn’t mean that money is unimportant. Dealing with money also doesn’t mean allowing money to dictate your life. On the contrary: the reason to set financial goals in your art business is to take back your power of making decisions.
First, establish an annual spending plan for your art business. Creating and maintaining a cash flow analysis will help you clearly identify income and expenses. If you’ve been keeping track of your income and expenses in a spreadsheet or in a budgeting app like Mint or YNAB then this will be a cinch. If not, find a template online with common expense categories and come up with an estimated budget, starting with more expensive budget items.
Next, establish an ideal spending or growth plan. Say you were to hire a part-time assistant, turn over your social media management, or rent a bigger art studio. How much money would you need to make in the next year or 5 or 10 years to be able to do that? Seeing the numbers can help make these choices concrete.
Identify income sources, be they from existing revenue streams or potential new ones. Do some market research–are the prices you are charging for your artwork comparable to other artists with whom you show?
Perhaps you aren’t earning money from your art business: what about your salary from your day job or the products and services you do sell? Where are you due for a raise? Pick out a few main goals or projects, for each quarter of the year that you believe will expand your practice or business. These might match up directly to your income goals or they might be geared toward allowing you to feel more supported in your practice. Prioritize these goals around what will ultimately serve you best, personally and professionally.
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Start Your Plan from Where You Are Right NOW
Especially with social media, it’s easy for artists to have unrealistic expectations. Some in the creative field immediately conjure up images of wild success, and anticipate going “viral” right away on various platforms. The reality is that few people make it to celebrity status. That is why it is important to define success for yourself in your art business. Even among famous artists, a closer look reveals the journey as anything but linear. Stepping beyond the fantasy and getting more familiar with the true story behind an artist’s rise to popularity can both comfort and inspire you when you encounter financial barriers.
Choose a few artists you admire, be they living or historical figures. Learn all that you can about them. Pay special attention to the moments before their “launch”: the chance encounters or day jobs that ended up opening doors for them. Think of these people as your mentors and learn from their example.. Take their experiences into account and then focus on your own situation. This will allow you to start taking informed baby steps towards your own goals. Above all, stay curious. You never know where a new opportunity for your art business might arise!
Fellow artists and creatives: Have you put any of this advice into practice? Do you feel supported in your art practice by utilizing any of this input, or have you found other methods that support your goals? Share these with your peers in the comments below!
