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What Does Meaningful Conversation Look Like?

So let us get the elephant out of the room.  No potential client is at your door to be your friend.  They are there because they want you and your creative business to transform their lives. Full stop.

That said, to do the work you are tasked with doing, you actually have to appreciate who the client is and what they truly care about.  If you can value who the client is and what they care about, then you have a chance to create great art. No simpatico, no great art.  You can only do great work for people who care about your vision and vice-versa.

And yet most artists and creative business owners I know skip over the relationship part and jump into here is what we are going to do together.  They get down to business without even having drinks first. What gets communicated then is that this is a product transaction.  Give me your money and I will give you this stuff that will get you what you want. Except that is not what any creative business is selling at all.  The stuff is a means to an end.  The end is emotion, a feeling, a way to reach inside the minds and, I dare say, hearts of clients to move them to a different (and hopefully better) place.

If you begin the conversation with, “I know why you are here, so let us focus on the stuff you need”, you miss out on the higher purpose which is about relationship, a series of trust building exercises to get to the inevitable and enviable end.

While I am all about getting a client to “yes”, I am also all about getting to the right “yes”. Clients have to know what you care about and vice versa.

Try this exercise – for three minutes every time you talk to either a potential client or actual client, do not talk about either the wedding or what your creative business is going to do for them.  Just talk about them and you. Listen to what matters and share what matters to you as an artist.  Some of you might think, easy peasy, three minutes is nothing.  Except when I take away the reason everyone is there it becomes much much harder than you think.

Of course, there is more.  Once you have discovered something about your client or they about you, your art or your creative business, YOU have to relate that “something” to the ethos of your creative business.  You have to refer to your design statement, your process, your contract, your payment schedule, etc. as validation of what you heard being in keeping with why you and your creative business do things the way you do.  Real time. And when you get good at doing it once, do it twice.  For those of you with your employees, have at it with those that are responsible for communicating with your clients.

If you actually write down and track these interactions you will likely find that you will get closer and closer to the deepest desires of what your client seeks from you, your art and your creative business.  In turn, your client will fully understand why they are trusting you the way that they are.  This, by the way, is not transparency, it is uncompromised authenticity.  There is a huge difference. Transparency is a ruse, an excuse to keep hiding; uncompromised authenticity is the foundation of every creative business.

Sharing information that does not matter in the hopes of building trust is a sand castle waiting for the smallest wave to destroy it. My favorite example: if you walk into a grocery store and see that the price of organic bananas is $3/pound, you will probably not ask the manager where she bought the bananas at wholesale and for how much.  Oh, and if you did, the answer would likely be a (im)polite not going to answer. The reason is you either like the bananas for $3/pound or you do not.  Knowing how much the store is making on bananas or if they paid the right price at wholesale is completely irrelevant to the discussion.  If non-organic bananas sell at $1.50/pound, maybe that is where you find value.  Or if you go to the grocery outlet, maybe they are $/pound.  You will find value where you find it at retail.  If the high-end grocer discusses who they source from and why — fair trade growers for instance — maybe that matters to you and you pay the premium.

Therefore, if you think transparency is about sharing information that does not matter to value you are actually doing the opposite of being transparent, you are hiding. Why?  Because likely is you are not talking about what matters to you, your art and your creative business by saying this is the right banana for you and $3/price you need to pay.  Here is what I will do with this banana. Instead, you are distracting with noise and making yourself feel better by being “open and honest” with your clients so they can see how “fair” you are being. Yeah, not so much.  Leave transparency to the pretenders, be better at being radically authentic.  Listen sure, but really work on hearing.

Hyper-Local Does Not Mean Local Yokel

I hear it all the time: “Well, I am not a national name like [insert sacred totem] so I could not possibly charge what they do.” However, these are the artists that routinely take on and are sought after for projects that are at the top of their luxury market — interior design with square foot prices starting at one hundred dollars; events beginning at five hundred dollars per person; architecture with build prices starting at six hundred dollars per square foot.  In short, these creative businesses really matter in their markets and occupy a place as important as those they would consider national names. There is a big reason why.

National names cannot compete with the hyper-local luxury creative business. The local player cares more, is better invested in what matters to that market and can extract the best value for clients looking to complete a project there. Of course, clients fall in love with their artists and bring them with them wherever they go.  Clients also fall in love with the mystique of a celebrity artist and want what that artist offers just because it is that artist (aka, star f…ing).

And yet.

Hyper-local creative businesses routinely lose out to national, even semi-national players all the time because they absolutely refuse to honor their place as the best of the best. They willingly cede that position to the interlopers that would come in and take the best projects because those interlopers look the part.

If Eric Ripert is going to open a Le Bernadin in Kansas City, you can bet the price of the halibut will be the same in either place.  So if you wanted to open a restaurant in Kansas City that you wished to be compared to Le Bernadin, you need to do the same, even if the price of your fish is twice that of any other seafood restaurant in Kansas City.  Luxury spend is luxury spend and if your client’s project is substantial enough to warrant attention from any artist, local or national, they you, the local artist, have to appreciate that if you are trying to sell the “I am just as good, only cheaper because I am here” argument, you will lose every time, even if you get the client.  Why? Local yokel is in the air and you can never ever give it credence else you will be dismissed as just that.

Practically, this means you need to know what those who you would consider “bigger” names than you charge and why they command what they do.  Then you have to be a comparable to them, regardless of what your market would say you are worth.  The entire point is that you are the best of the best if the project is going to happen in your market.  You have to make the point that any decision NOT to use your creative business is based on a personal decision that has nothing to do with intrinsic value and everything to do with emotional attachment.

Far too often, clients believe that, if they want to accomplish their project at the level they seek, they have to go out of market. Sometimes that is, in fact, true.  Most of the time it is not and the reason it happens is self-inflicted pain (i.e., “our market will just support it if I charged $x”). You are only a local yokel if you permit yourself to be.

Learn the metrics of national players in your industry.  Ask yourself where you fit.  Understand that your creative business matters more because you care more on just about every level.  The value of caring in your market is absolute.  Do not give it away because you are determined to play small.  A whale in the pond or the ocean is still a whale.  You do yourself, your art and your creative business a huge disservice if you do not act like it.

Two Commitments For 2018

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Happy happy to everyone.  2018 is going to be a remarkable year. More than ever, there is an ability to see the reality of what was only a fantasy a few years ago.  Things like commercial space travel, 3D/Virtual Reality everything, renewable powered cars and homes, and on and on.  Go watch any 80’s movie if you want to see just how far we have come to the future we now inhabit.

So in the spirit of setting the right tone for what creative businesses need to be focused on to be relevant in today’s future, let us all now commit to two (not a hundred) practices that will reshape all of creative business.  These commitments I have not said (many times) before but always worth retelling:  live and die by your design statement and lose line-item pricing.

Design Statement – This is the ethos of why you do what you do. It is not about pretty, it is about what you think about when you set about your creative process. Your design statement is THE thing you care most about as it defines why you do what you do and how you do it.  Your design statement is meant to be raw and real and profoundly you.  If it happens to look like someone else’s then it needs to be a complete coincidence else you have not gone far enough.  Whether you put your design statement on public display (website, social media, etc.) or share it after you first talk to a potential client is up to you. But share it you must.  What would the world look like if the decision to hire you and your creative business or not was truly based on not just on what you envision (or have envisioned) but on why and how you envision the world you wish to create for your clients? Let us make 2018 all about having clients choose based on who they most relate to and make that choice front and center.  Leave the choosing on price, amount of stuff or services delivered, and false fluffy promises to the amateurs.

Line-Item Pricing – Line-item pricing connotes a world gone by.  A world where absolute and relative value could only be communicated by dollars.  We can all do better than that today with all of the tools available to us.  No more training wheels please. Clients do not know they can get better value from artists until determined artists show what that value is.  Communicating value through depth of feeling and relative feeling is here to stay. No doubt, it is more work.  However, short cuts are just that: they ending up cutting you, your art and your creative business short.  So do the work of having a harder (not because it is, but because it is different) conversation and deliver better value to your clients. Lose line-item pricing to help them trust you more, not less. There will be many that will disagree with the last sentence. Let them. They are wrong. The bastion of those who just want to get to the next step is the crutch of pricing.  Yeah, so not good enough. Teaching clients to demand more will just serve to expose the mediocrity for what it is.  Given the choice to be mediocre or remarkable, I would hope is not a choice at all for you, your art or your creative business.

Why focus on the Design Statement and No Line-Item Pricing? Because they will both force you to be better and by being better I mean more authentic, more exposed as the artist you are and the art you most wish to create. Scarier for everyone?  Sure. More valuable?  Not even close.

With a design statement in hand you will have to own your process.  When you own your process, your contract will tell a story and be a living breathing guide to the journey you will take with your client. Definitive process supported by a vibrant contract sets the stage for profound moments of trust and compels you to do more than just mail it in with line-item pricing. With trust in hand, deep value is delivered BEFORE you ever show up with your finished art. Then, of course, the magic of your finished art is inevitable. Rinse, lather, repeat.

With the new year upon us and selling season close at hand (or, in many cases, already started), be better by refusing to entertain short cuts as anything other than cutting you short.  Rather, do the hard work of speaking a language that matters with today’s future; a language that starts with a Design Statement and No Line-Item Pricing.

Legacy and Evolution

So what if I came to you, one of  my existing clients, with this business proposition:  I want you to pay twenty-five percent more for a new version of my product, my tenth version. As with all of the previous versions, the new version improves things a lot but does not revolutionize anything. More cool, than oh my gosh.  Are you in?

If you are like me, the answer is probably not. The old one works great and I do not need the new new. And you might go even further as to think that it is Krazy to pay twenty-five percent more for a marginally better product that just happens to be the new new.  So when it comes to your creative business, you place a huge premium on being same same. The tried and true, easily digested oatmeal. Bland as bland can be but nutritious nonetheless and ever dependable. Whether someone comes to you five years ago or five years from now your mission is to be easily identifiable and much the same.

Epic fail.

You are not your clients and ALL clients of creative business want to be transformed by the art you will envision and produce.  Even if in other aspects of their lives they want same same, clients seeking out your creative business are the VERY definition of someone looking for the new new, willing to pay a premium for the next version of your “product”, your art.  Clients of creative businesses are almost desperate for innovation, inspiration and excitement.  Ahem, that is why they are at your front door today and yesterday.  If you treat them as those looking for consistency and recognition, you have literally missed the whole point of your existence.

Not so many of these “new new” clients around?  Tell that to Apple. The IPhone 10 was released on November 3rd and Apple is literally finding it difficult, if not impossible, to fulfill demand.  They thought that demand would be for twenty million X phones in the fourth quarter (in case anyone is counting, that is $20 BILLION of phones in three months). It is more like forty million, on top of the forty million older phones. This is for the tenth version of the IPhone!  Revolutionary?  Not a chance. Way better? Sure.  Still there is a line out the door that Apple just cannot satisfy.

Now let us pivot straight over to your creative business. How many of you have legacy clients that you are literally terrified of changing things on? Many of you want to look as closely as possible to who you were when they engaged your creative business last time. Some of you even go so far as to honor the price your client paid last time.  Wowsers.

Then shock of shocks, the legacy client does not work out. Either the client is disappointed with you and your creative business not being the same OR you feel completely victimized. Either way, you are left unfulfilled and bewildered at what went wrong.

What went wrong is that you did not evolve, grow and honor the promise that tomorrow’s version of you, your art and your creative business is, by definition, better than today. Today is your best, tomorrow is better. The promise MUST exist for both your art and your creative business. Why? Creating better art requires a better process.

Knowledge is a wonderful thing.  When you know more about what it is that you do, you do it better. That is true for your art and your business.  A better business process creates better art.  Period. Any client that refuses to honor and respect this promise is simply NOT a creative business client. And that is ok.  I am not a creative business client and you might not be either. Creative business clients though, they REALLY care about what does not yet exist, what it is you will bring to life just for them. Most important, creative business clients are not only willing, but actively seek out the journey you and your creative business will take them on.  A better journey tomorrow than today.

If a client came to you with the intention to honor your creativity and the journey to your art the first time, why oh why would they want to come to you with a different intention the next time? They do not and YOUR REFUSAL to be true to the core of your creative business —the desire to be ever better — is what creates a misfit.

The goal for your creative business then is to look wholly DIFFERENT for legacy clients, to be radically better at what you do compared to the last time (or the time before that).  The punchline: instead of saying to legacy clients, “We are just as you remember”, you need to be saying “Look at what we have built since the last time you were here. If you loved us then, you are going to LOVE us now.”  Be better at being you.  You made the promise for your art and your creative business then. Keep it now.

Why Podcasting Matters To Creative Business

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People like us do things like this.  Seth Godin focuses all of his marketing efforts here and it is the basis of permission marketing.  Permission marketing requires empathy as to who the person is and what it is that they seek from you, the artist.  Of course, you do not have to be your client, you just have to understand how it is that they see the world and believe in your belly that your art will serve their worldview as to bring them more joy (i.e., their return) than what they might have to invest to receive your work.

My focus is not on marketing, but rather on what happens once a (potential) client shows up at your door.  However, I do need to understand who it is that is showing up and what they might be looking for.  More specifically, I need to understand the depth of promises you and your creative business are making to the client to both bring them to your door and to elate them once you are hired to fulfill those promises.  To that end, I am a perpetual student of what you, a creative business owner, do to draw in your clients.

Before we take the journey through time to get to where we are today, let us acknowledge that relationship matters more than anything else today.  There are more than a handful of talented artists that can create for your clients.  The end is clearly defined and noted for just about everything you as an artist will create.  Such is the beauty of the digital age.  What is left then is whether or not the experience of creation as much as the final creation is simpatico between client and creative business.  People like us do things like this.  Which then begs the question as to how any potential client can learn about whether you are the person (or persona) that will get them and what they most desire.

Back in time we go, let’s say twenty years.  In 1997, the internet, of course, existed, as did email, but social media did not, nor did the ability to communicate any idea quickly.  Without these tools, artists relied on referrals and/or gate-keepers to drive clients to their door.  Magazines were dominant and garnered a ton of media attention.  Consumers really could not discover on their own who they liked and why, they had to rely on the statements of others.  No chance for the artist to define who they were and what mattered to them in any meaningful direct way.

Then came the growth of blogging and peer review.  Wedding Bee and Apartment Therapy were two examples of peer review blogs that let consumers get closer to the actual experience of a designer even if not direct.  Blogging and portfolios made the leap to direct communication with clients as to what any artist stood for.  For the most part though, communication remained one way (comments excepted).  Then, of course, came social media and the fourth wall of interaction was broken.  Crafted dialogue happened and continues to happen.  Crafted because the artist is still in control of the narrative.

All of which brings me to podcasting and why it is so important for creative business.  If you believe that relationship is now the primary driver in why you will be hired, then the premium has to be on revealing who you are and what you stand for in a meaningful, engaging conversation where clients and/or potential partners can decide for themselves whether they can relate to your story, your world view.  Podcasts done well force the artist to reveal themselves profoundly and become true dialogue where the artist is no longer able to craft the narrative and the premium for the podcaster is authentic dialogue to keep listeners engaged.  The perfect storm.

Think of the implications for everyone then.  For media players who need advertisers to keep going, adding a podcast which highlights the essence of the artist will become critical.  Businesses that rely on vendor participation will actively support these podcasts to draw attention to the artists who use these business’ products.  And validators who already highlight these artists will need the podcasts to show the human element.

The experience of creation.  The divinity of art.  The spirit of joy.  The vision that brings creation, art and joy to life.  It all begins with the ethos of those who are trusted with doing this work.  We need to know who you really are.  Authenticity is what podcasts make happen and their role is only beginning to emerge as a driver for both artists and clients alike.  Make no mistake though, podcasts already matter to creative businesses.  Podcasts offer a massive opportunity for everyone in creative business or related in some way to it.  Carpe Diem.

Line Item Pricing Revisited And Changing The Dialogue

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A few weeks ago, I had the opportunity and deep pleasure of speaking to interior designers in Boston as part of Editor-at-Large’s Launch series.  I talked about pricing and client management as I have done in New York, Atlanta and Los Angeles several times before.  Everything centers around the idea that value and process drive price, not the other way around.  Of course, the difference between subjective and objective value is critical as is the difference between cost of production and the investment required for the designer to do his/her work.

Then we get to line-item pricing.  I say that it is irrelevant and inevitably there is a “what did he just say” moment.  And then just as inevitably there is the “nice in theory, but you do not know how it works in the real world.  My clients expect to see these prices and would NEVER accept me not showing them.”  To which I say, “if your clients expect you to dance the two-step while presenting to them, are you going to do that too?”

This is our leaping off point.  How do we upend traditions/practices/language that only serve to keep us stuck?  Yes, I talked a little about old terms that need to die in my last post, but this goes deeper.  This post is about retraining both how we speak as creative business owners and also retraining clients to come to have a different set of expectations that will define the value they are paying for.

I happened to watch Back To The Future Series for the 10,000th time over Thanksgiving and what struck me is that the series did not contemplate all that we live with today.  The second movie (not my fave) is based on a stolen sports almanac book.  Actual book. It contemplated that fax machines and paper communications would still exist as they did in 1988.  No email, texting, etc.  My kids love it because it is so silly to them that this would the future someone imagined thirty years ago.  So too with line-item pricing.

Whether or not creative business stops the practice of line-item pricing is far less important than contemplating its value in the creative process.  If you use line-item pricing to justify the value of what you are spending your client’s money on, you are tacitly (or not so tacitly) saying that each investment matters as does the relativity of the size of investment to others (how much was the couch relative to the dining room table, the flowers to the catering).  What you are not saying is to judge the design on its own merits, to define absolute value and relative value by another measure, something other than dollars.

Three things then: first, can you work to convince your clients that using dollars to define the value of design (absolute maybe, but certainly relative) is a VERY bad measuring stick of value; second, can you define what a better measuring stick is; and third, can you be the third person in so as to shift the entirety of creative business?

Of course, where I am heading here is to define the power of the idea, to improve not only presentation but the presentation process, to demonstrate how valuable what you envision is.  This means not just investing in better tools of communication like virtual reality, 3D floorplans, etc., but also in storytelling, presentation skills, expository writing, anything that will bring your vision to life.

Until clients are deeply comfortable with the totality of your vision we will never be able to lose the idea of dollars as the definition of value.  If clients cannot become fully immersed in the story you and your creative business wish to tell with your art, you will be left dinosaur tools like money, the fax machine, mood boards, basic floor plans and table set ups.  However, if clients can be immersed in the story of your vision we can find out ways to value how they feel about what they have experienced from your vision, the way they are asked in just about every other area of their lives today (emojis, likes, swipe left or right, etc.).  And with that definition can they say that they value what they are going to have to invest to get it?  Relativism would then come from the series of moments created not by the price of the couch versus the dining room table, but instead about how they feel about the relationship between the two (i.e., how that relationship makes them feel and the depth of that feeling as you, the artist, would intend).

The whole point is to expose line-item pricing as fundamentally limited as a measure of creative value and offer the alternative of feeling instead.  I am not about to try to convince artists who choose to use line-item pricing as their measuring stick to give it up.  They are happy in their limitations and likely daunted by the challenge of telling a better story.

The creative business owners I seek to change are those who are ready to do the work, to truly go to the next level, to go to the place where we do not need roads (last BTTF reference — could not resist).  It will not happen overnight.  Drip by drip by drip in every market until there are no more fax machines.

Out With The Mullet, In With The Hoodie

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Everything that we have come to rely on for our every day lives is less than twenty years old.  Sure the microcomputer existed in the 1980’s but the dawn of the Internet age changed everything.

And yet.  The language and practices we use are straight out of the 1990’s.  For this post, I will focus on some sacred cows in the event industry, but my hope is that, for those of you not in the event industry, you will see deep parallels in your area of creative business.

For event professionals, some sacred cows that are needing to go away are: Table set ups?  Packages? Underpromise, over deliver?  Great customer service? Excel?

When we rely on language and practices that are wildly unrelated to today’s environment, at best we sow the seeds of confusion and, at worst, marginalize the entire event industry (and possibly all of creative business).

So let us take a closer look:

Packages — Oldie but a goodie that lives everywhere.  A short cut that undermines everything.  Packages focus on stuff and what will be done for the client.  It connotes sameness and choice when neither could be further from the truth.  Package is about process and what matters to you.  Use those words instead.

Live Table Set Ups and Tastings — they mean nothing as they are, most often, completely unrelated to the environment and instance that will actually happen at the event.  Yes, smelling, touching and tasting is fun, but we can do so so much better.  VR, Livestreaming, Edited Video, better rendering work are just the beginning.

Hourly Fees – When your time mattered, hourly fees did too.  Of course, there are parameters to your work, especially on the day of the event and abuses need to be avoided.  However, charging hourly fees is not the way.  Communication and mutual understanding of what is necessary to get done is.  Why a charge for 2 hours of overtime, when a $5,000 do not be a jerk escrow fee might suffice?

Contracts – Why is it ever the first document you send?  Your clients are spending hundreds of thousands of dollars, if not millions and you cannot be bothered to work out a term sheet with them first?  You look like a dinosaur when you start with a dense contract that it not related to your actual work.  Take the time to lay out the 4 W’s and How in a plain language document everyone can agree on.  Then send your contract as a reflection of the letter.

Using Old SoftwareTimeline Genius will create day-of event timelines for a negligible cost.  Slack is the fastest growing work management app, umm ever.  Basecamp or whatever project management tool you enjoy is infinitely better than your Excel spreadsheet.  Information flow is vital to any project and you are responsible for it.  Not embracing technology to help you manage the flow today is like relying on fax machines and FedEx to get the job done. Not quaint or retro.  Worse than useless.

Uncurated Portfolios — Not that there ever was a time to show less than your best work, but today the very idea that you would allow an image of yours to exist that you would not stake your reputation on is tantamount to a confession that good enough is good enough.  Yeah, good enough never is and forever more never will be.

List of Services – If you have to spell it out for a client, they are not your client.  Enough said.

Things You Never Do – If you talk about things you never do and/or do not really want  to do, stop.  Be who you are and celebrate the power of niche.  We are long since past the time when did not fully embrace and understand The Long Tail and its implications.

Line Item Pricing – Completely irrelevant to the client relationship.  None of you are in the get-it-for-less business so the price of the linen only matters in context of the price to create the rest of the space.

Cost v. Investment – Cost is something we have to spend to get what we want with only the expectations we set for it.  Investment connotes a return that is in excess of the investment.

On the other side of the coin, here are terms, concepts and industry norms all creative businesses need to embrace: a design statement, the one thing that matters, cost of production vs. investment in your creative business, and, most important the promises you intend to make to earn trust and deliver your best work.  Your core, yes, is always timeless and eternally resonant; its expression, however, demands that you embrace all that today’s world offers.  Tomorrow’s too.

Fear, Panic and The Addiction To Yes

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Change is really, really hard.  If you intend to move to another place in your creative business, as opposed to just putting window dressing on what you already have (lipstick on a pig?), you are going to have to risk the status quo.  Nobody wants to be wrong or to realize that good enough just is not.  So we invest in staying stuck, impose artificial limitations on ourselves that, ironically, keep us safe.  When confronted with real change, fear kicks in, fight or flight or in many cases stubborn resistance to anything other.  Even if you move your art and your creative business towards the change you seek, the shadow anchor is always there, ready to pull you back whenever there is a shred of evidence of “this will not work”.

It is far too easy to say you have to persist, fight through your fear, believe in the change you seek.  Like telling any addict that you have to have willpower and faith to beat the addiction.  No, you need humility and you need support from those who have been where you are and/or are willing to walk the path with you.  Again, though, too easy to give yourself over to a group or a teacher or a guide to have yourself and your creative business saved.  Nobody has the answer except for you.  Support only matters if you are ready to actually walk the path to another place.

Let’s then get real about fear.  Fear is not about losing business (you never had it in the first place), nor is it about having your creative business fold, nor about not making enough money.  No, fear is about rejection, having someone else see you and your art and say “no thanks”.  Most of us will do just about anything to avoid the raw and absolute “no thanks”.  Our response to the (potential) rejection is to hide.

Here is what hiding looks like: creating art that you are not proud of, for a price that does not work, for a client that does not really care about what you, your art and your creative business offers.  There may be sprinkles of yes in your world (with clients that truly value you and your art), but they are dwarfed by the volume (maybe number, but definitely noise) of those that do not.  Neurosis is acting out behavior you know to be destructive and irrational over and over again.  The momentary high is dwarfed by the reality and scope of the decision.  Feeling the “Yes” from any client overwhelms the notion that you NEVER want a “yes” from the wrong client.

Before you think me condescending, let me say we are ALL scared and fear bites us all at some point.  I have chased more than my fair share of nightmares, all along deluding myself that it would work out if and only.  It never did and it never does.  The wrong client is wrong for the simple reason that they just do not care about what you and your creative business care most about.

We hear all the time about letting go, focusing on your strength, having confidence, faith in yourself and your creative business.  Lovely thoughts that you cannot buy a cup of coffee with.  You need to be rooted in a foundation of why.  Why you are an artist, why your art matters, why you are worthy of the responsibility to create your art for your clients, and why tomorrow’s version of your art and your creative business will always be better than today.  All of these whys are real, tangible concepts you need to live by and forever work on.  You cannot face the fear of rejection without them.  And even with your whys, you may still be bitten by the fear of rejection, it is that strong.

The exercise is this – change happens drip by drip, detail by detail, moment by moment.  You have to go through the Dip to get to the other side.  This means when you actually need to be rejected by someone you care about and who cares about you, your art and your creative business.  You have to ask yourself in this moment if you are hiding in some way.  Then you have to become more raw, not less.  More resolute in your mission not fuzzier. You will be afraid, you will panic, you will think your world might end.  It will not, certainly not the world you truly wish to inhabit at least.

The specific work is this — what is the one thing you absolutely have to have in your creative business — maybe a minimum budget, size of project, type of project, type of client.  The one thing that you just have nothing if you do not have.  Write it down and then figure out how many places you can insert this absolute need into the fabric of your business — website, social media, contract, client conversations, etc.  Let’s say no less than five places and then do it.  Today.  Standing for something is what matters when it comes to getting through your fear only if it is front and center for everyone to see.

The Three Changes That Matter

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None of you sell the thing you create.  No creative business does.  You sell the process of creating the thing.  The experience, the journey, the story of creation matters far more than the thing.

Lauren Grove wrote this post about the death of the wedding industry last week.  She could just as easily been writing about interior design, fashion, photography, just about every industry in creative business.  I will not comment on Lauren’s argument or whether her solution is accurate or not.  What I will say is that it begs the wrong question.  The very notion that you cannot tell the difference between good art and great art is a fast and easy way to overgeneralize and therefore excuse the hard work of saying, “I made this for you.  People like you buy, use, engage things/services/people like this.  I did not make it for these people and that is ok, they are not my people.” Huge nod to Seth Godin here.

If someone can “side hustle” her way into competing with you who have chosen to do it for a living, it has nothing to do with price, it has everything to do with the notion that your creative business “losing” to the side player is doing everything to hide.  Contract looks the same, website looks the same, services same.  Take pictures away and you cannot tell the difference among businesses.  It is just not good enough.  Not that it ever was mind you, but living in the shadows is easy when the light sucks.  When there is nothing but light in the digital age, there is no place to hide.  Stand for something or, rightfully, go away.

The three changes all of us can and must insist on, then, are entirely based on the last sentence.

To stand for something you must: 1) know what that something is and why it matters to both you and your client; 2) how that something drives you and your creative business to do what you do and how you go about doing it; and 3) your willingness to ignore anyone who does not appreciate (i.e., highly value and pay for) 1) and 2).

What that something is is your design statement — what kind of art do you create and why do you create it.  Listen to Rick Bayless talk about Mexican food — how steeped he is in the culture, history, geography of Mexico and how it fuels him to honor the tradition in his cooking and yet make it his own.  The passion, vision, education, experience of the artist matters.  Nobody ever should be allowed to say “I like to create pretty things” ever, ever again.  If you are willing to take a client’s money to create art for them, they deserve to know what you do matters most to you as an artist first, business second.

Your vision as an artist then dictates everything your business will do — how much you will work, what you need to get paid, when you need to get paid to do it, and, of course, how much you need to produce your best work.  This is value delivery.  Get paid when you deliver the value YOU care about.  Getting paid can be dollars or it can be a decision or it can be both.  There is no one size fits all and if you do not understand the value you wish to offer and to who, no method of payment will work.

The last change is most important.  If you are willing to compromise 1) and 2), then you have nothing.  The reason is profound to me and hugely insulting to all potential and actual clients.  If you say yes to everyone, then you really do not care about anyone because everyone is the right one.

The idea that everyone is the “right” one belies the very definition of what is to be human — our innate desire to express ourselves as separate, individual, unique.  While we may listen to, wear, read, watch similar things, we are not the same.  Each of us matters as the very person we are.  We may care generally, but we love specifically.  The art you create and the creative business you run are the very embodiment of the best of us as humans, our essence to be, well, us.  Not them.  Us.  A celebration our our own individuality.

So no compromise to 1) and 2).  Ever.  That said, only yes on your terms, never no.  As artists and creative business owners, you must have faith that your art will transform those who you create it for as you set about the journey of creating it.  While you need not be your clients to create amazing work for them, you must be able to empathize with them, to attempt to see what they see and believe that your art is what will fill the need they most desire.  What it means is that yes on your terms actually sings the song of those that can most see themselves in what that yes represents.  You must ignore the rest.

Capital Structure

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Talking about taking other people’s money (OPM) is not often addressed when it comes to most creative businesses.  Of course, most creative business are considered micro businesses and are also incredibly personal to the artist/owner.  That said, taking OPM is in the air and understanding what it looks like is really useful BEFORE you decide to leap.  So here goes.

There are so many things when it comes to considering taking on debt and/or an investor.  Sometimes just the thought of having someone else being able to poke their nose into your creative business is enough to send you screaming for the hills.  If this is the case for you, then no need to read further.  OPM is not for you and set yourself free for the notion (delusion) that it ever could be.  If you are open to, well, being open, then keep reading.

Given the choice between taking on an investor or debt, my deep preference is to take on debt.  Most creative businesses only need cash to support seasonality and/or growth in human capital.  Meaning you are not going to be raising money to go into a massive expansion or have a business plan that is going to demonstrate enormous scale anytime soon.  Investors invest because they see tremendous upside in giving your creative business money without any guarantee that it will be paid back.  For most of us, we just cannot make that promise.

Debt has its own issues though, the biggest of which is that it is a pain-in-the-you-know-what to get.  Most of you have awesome cash flow running through your accounts, particularly if you are managing purchases for and/or retailing to your clients.  And likely is that you are stable in that you do it every year and you have been doing it for a while.  This makes you a perfect candidate for a Line Of Credit.  A general rule is that your LOC should be for at least six or so months of operating expenses.  Now, meaning high season, is the best time to apply for the LOC because the tide is in and cash flow is good.  Which leads to a general rule — if OPM is something you are considering, then go get it when you do not need it, because, when you do, it will be much much harder to get.  Yes, I know I am adding to your already long to-do list at the moment, but that is why you should get help.

To get a LOC, you are going to need your accountant to support you — to provide all of the financial information the bank is going to need.  Most likely you will be asked to personally guarantee the loan.  Sometimes this is ok, but sometimes it is a deal breaker.  I would stress to you that it should be less of a deal breaker than you think.  You are all in anyway and providing yourself financial flexibility is almost always worth the risk. If you can avoid the personal guarantee, so much the better.  Do note though that many LOC’s are connected to SBA programs that almost always require a personal guarantee.

For those of you who have capital assets (i.e., inventory, buildings, etc.) to finance longer term, so much the better.  Just know that the banking axiom to match length of debt to purpose is there for a reason.  Financing inventory with your credit card is never a good idea.

Back to equity.  The issue with taking on investors is that you are all private micro companies offering a minority stake.  What this means is that the investor does not control their fate and really have no way out to get out of their investment save an ongoing return from your business (a business they have no say in by the way).  The translation is that if you are looking for third party investment, it is going to be really, really expensive and the investor will absolutely look for some sort of say that is going to be much bigger than their investment.  For this very reason, equity investment would be a last resort for me.

The only exception to equity investment/partnership would be if the investor/partner brings something to the table other than money — whether it is operational expertise, a new sales channel or other type of exposure.  Think Shark Tank.  Still though, just like Shark Tank, those with money and expertise tend to overvalue both.  Which means, of course, that it will be really expensive.  The other downside to equity is that once it is gone, it is gone.  Unfortunately, I have seen many equity situations where you, the artist and creative visionary, wind up effectively working for your investor.  Not exactly what you signed up for when you decided to launch your creative business.

For specific advice: do the work now to get yourself a LOC for at least six months of operating expenses.  Think of the cost of your LOC even if you do not use it as an insurance policy for when you do.  Leave equity investment alone unless you can see how you can cash out your investor in some way in the next three to five years.  Since most of you are not going public anytime soon, this means a sale of your business.  If that is not something you would ever consider, taking on an investor will not be for you.  This will be true even if the investor is strategic.  The strategic investor will be adding their expertise/value so that they can realize a big return — this means build it to sell it too.

The last option and my very least favorite is friends and family (FFM).  Unless you are starting a new venture that you can see your way to success with, taking personal money is almost always a bad idea.  FFM is not OPM for a reason.  FFM is because they love and believe in you beyond all else.  For business, creative business in particular, this is an awful idea.  Creativity demands irrationality, a blind faith in what is to come.  You can be very wrong and you will likely be wrong more than you are right.  Having to explain necessary missteps to FFM is almost impossible and pretty much never has a good outcome for you or your creative business.

A practical post to be sure, but hopefully helpful as you think about what to do when things slow down and/or for your grand future plans