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Achieving Financial Clarity in Your Art Business with “Profit First”
I started my first art business over five decades ago, and I’ve started several other art businesses since then – and I always made money. Or, I should say that I made enough get by, at least for a few years. But I didn’t truly understand what profit meant, so the businesses were never really sustainable.
? Oops – I almost forgot to give a link to the book so you can actually find it. Here it is.
Like many of us, I believed that as long as there was some money left in my pocket after covering costs, I was running a profitable business.
One of the most crucial lessons I wish I’d learned earlier is that an art business should be treated as a separate entity, just like any other business. Blurring the lines between personal income and business revenue can lead to significant challenges – especially when a recession hits, or you see an opportunity for expansion but don’t have the capital to take advantage of it.
The Importance of Financial Clarity
So, what is the key to success for artists and entrepreneurs? It’s understanding your numbers, creating profit margins, and separating business and personal finances. It sounds simple, but so many of us jump in feet-first, without really taking time to understand how it works.
By following the principles outlined in “Profit First,” you can ensure that both your business and personal finances have a safety net. This financial security can come in handy during emergencies or when unexpected opportunities arise.
If you’re thinking about starting an art business, I do hope you’ll read the book. If you’ve found some business books that you think other artists should read, please let us know in the comments below. If you’d like to see another video that explains in more detail why the book is important (and some of the things that it leaves out) here’s another video you might want to watch:
Jonni,
I did run a successful manufacturing business for 15 years. I am struggling with creating art for profit. I love doing the art but not sure it could be profitable.
Enjoyed your post.