If you are one of the many artists that have been working your art business part time and have moved it up to full time, or you have expanded it to hiring other artists then dealing with cash is no longer an option. I had a fellow entertainer tell me the other day she only deals in cash. The way it worked is that when the work was done she expected to get paid. As much as we all would like to work like that the reality is quite different.
In my employed days I was the supervisor for a fleet of trucks for a very large corporation that was global in scale. When I purchased a product the vendor would invoice me and I would in turn approve the invoice and send it through our system. Our system would send that invoice from our plant in Ontario Canada electronically to Argentina, it would be processed and sent to California, where the cheque would be written, and mailed to my vendor that was around the corner from my office. That whole process took approximately 60-90 days. So when the vendor called me for payment all I could tell them was it was in the mail, somewhere. Most of my corporate clients have similar systems and the larger the company the slower the system, especially if they have outsourced the work. Even the ones I work for regularly pay within 30 days which is exceptional.
So as a small artist or entertainer you have to understand the system and make sure you have money coming in because it will take some time to get paid by some clients. Stop thinking like a job as long as you are always invoicing clients and getting work your cash flow should go all right. If you are working job by job you will find the process very painful. There are some ways that you can increase your cash flow and speed up payments. Sign up to accept credit cards, many large companies will pay be credit card and get you your money sooner. Take deposits for bookings so you are not out of pocket so much. The road of business is not an easy one making it easy for a client to pay you is the best thing you can do to help your bank account.
About the Author
Bruce Outridge is an illustrator and business consultant. For more information visit his websites at www.bruceoutridgeproductions.com or www.outridge.ca
