August 10, 2001

Making the psychological shift from being an artist to an artist and business owner is a big one. Many artists sell their work without considering themselves to be in business. But even with all the passion and creative talent in the world, they will not succeed in business without embracing and mastering the fundamentals of business planning.

"Putting art out into the world as a business is very different than creating something and hoping it will sell ... Accepting that I have to cater to the marketplace and all of its changing demands was a defining moment for me," says Leslie Bauer, a Renaissance Center student and owner of Leslie Bauer Photography and Modern Heirloom (a custom photographic and home accessory company, online at www.modernheirloom.com).

Leo Germano, a partner in the mural and large-scale painting company Ewing-Germano (www.ewinggermano.com), refers to those fundamentals he learned in Renaissance Center's business planning classes as the "holy three" -- marketing, management and finance:

Marketing -- who will want it, where are they, what will they pay and how to communicate to them. The client has to be sold on the product or service, and benefits such as price, convenient location, one of a kind, functionality, etc.

Management -- sound management skills create processes and procedures that ensure consistency in operations and the delivery of the product or service. Decide on priorities, negotiate for price and conditions and manage time efficiently.

Finance -- you must know how to calculate the "cost of goods sold," the volume required to "break even" and eventually be profitable, and how to track project revenues and expenses.

Germano initially had little interest or knowledge in finance, but quickly learned how crucial it is to care about and understand the numbers. "My ability to price projects and forecast income and expenses improved 200 percent," he notes. Germano also realized the significance of tailoring his art to the needs of the client rather than to his own need for perfection. He described a telling moment where a job had been completed to the clients' specifications, but he wanted to do more.

"I had to stop and check myself, and then I realized that continuing to perfect the project may have been good for my ego, but it wasn't good for my business," he says.

If you are considering creating a business out of your art, ask yourself these questions: Is there a market for the product or service? What will the start-up costs be and how will they be funded? Do you have the ability to manage time and plan ahead? How comfortable are you with selling? How will you develop the necessary personal and professional networks?

Ceramicists, jewelry makers, photographers, textile designers and muralists can all become small business owners as well as successful creative artists. But it is important to recognize the difference between the needs of business and art for its own sake.

Janet Lees is the Renaissance Entrepreneurship Center Program Director, a nonprofit school based in San Francisco, online at www.rencenter.org/.