Tag Archives: Finance for artists

Financing Your Art Business

Money is the life blood of any business

Money is the life blood of any business. When there isn’t enough you may need to look at additional sources to grow your art business

Every business needs money to operate and grow and your art business is no exception. It is important that you have a basic understanding of the various ways to finance a business that are available. Most artists start(finance) their businesses with their own or borrowed funds and use the money generated from sales to fund future activities. For some artists these funds are not sufficient to fund their growth plans or other obligations and they need to raise money.

In this article I will explore the common ways to finance a business. You don’t need to go to business school to understand the basics of business financing. Learn the basics and you are well on your way to keeping your art business viable and growing! In a future article I will take a look at other financing methods such as grants, fiscal sponsorship and crowdfunding.

Why you may need financing

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Artist Goals 2015 – Create A Budget For My Art Business + Cash Flow Template

Creatives and Business Cash Flow Budget

As your art business grows your need for budgets will grow also

Ok, every business needs a budget – your art or creative business is no different. A budget for your business is sometimes called a cash flow budget or cash flow projection. Typically a cash flow budget covers a 12 month period and is updated over time. The concept is simple – you itemize your anticipated expenses by month and subtract them from the funds which come into your art business from sources such sales or cash injections like loans.

If you have money left over at the end of the month you can apply these funds to future monthly expenses. If you have a deficit at the end of the month you will need to come up with additional funds or possibly defer some expenses to a later date. Budgeting for your art business is really no different than having a budget for your home.

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Financial Advisors For Artists – Who’s On Your Team?

Painting of accountant

Every art business needs good advisors and this starts with your accountant!

The people you surround yourself with play an important part in the overall success of your art business.  The accounting and finance world can be complex and is ever changing so it is important that you get good advice in running your business.  As your business grows, so may your needs for additional or different kinds of financial advisors.  You may need financial advisors for different purposes and in many cases it may make sense to use a specialist.  It is highly doubtful that a good bookkeeper or even CPA can fill all of your needs.

You need to make sure that you have access to and consult financial advisors as you need them.  Whomever you choose to help you with your accounting and finance needs, make sure that there is a high level of trust!  A good financial advisor will explain things to you and help you understand but remember, understanding of what you are getting into is up to YOU.

Types of financial advisors you might need

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