The most common business mistakes artists make when selling their work, and practical steps to build a sustainable, profitable art business.
Key takeaways:
- Not solidifying your audience/market and selling your art to a non-existent market
- Not understanding the basics or having basic experience in business and/or business management
- Not budgeting and understanding costs
Top Business Mistakes Artists Make
So you’d like to be a successful artist? That’s totally normal. Not everyone wants to be a “starving artist.” After all, the term “starving artist” didn’t come from thin air. Artists are notorious for lacking the business skills needed to market their art and manage their projects properly. If your goal is to run a profitable business by selling art, then this is the article for you. Before you dive into selling art online or setting up a shop to sell artwork online, prepare yourself by considering these key points and learn how to avoid common business mistakes artists often make.
Selling Art as a Business
Selling your art is a legitimate business model. Many people do it successfully. Think about the clothes you’re wearing—an artist designed that T-shirt, and an engineer designed the chair you’re sitting in. You have to shift your mindset to see that your art can be sold; it’s a product that people are willing to pay for. Art is purchased all around the world, often because customers connect with the work itself or they want to support the artist behind it. By focusing on selling art online, you can reach a global audience and increase your sales.
Who Will Buy Your Art?
Yes, your art can be sold! It’s all about knowing who your audience is and where to find them. What do you create, and who has appreciated your art in the past? When you’re selling art online, it’s crucial to understand if your creations solve a specific problem. For instance, if you create custom illustrations for eco-friendly brands, you’ll attract sustainability-focused clients who want unique branding.;
Ask yourself and answer: “What problem does my art solve?” This clarity will help you better position yourself when you sell artwork online.
When solidifying your target audience you reduce costs because you begin to target your marketing and enrgy to people who want your artwork, not people who will ask, “Why am I seeing this ad?” Harvard Business Review provides this example:
Nike’s segmentation of its audience, 40 percent of which is female. To cater to that group, Nike incorporates messaging about female athlete endorsements, inclusive models, and holistic health in its ads. At the same time, the company successfully connects with its other target audiences—male fitness enthusiasts and youth athletes.
The more you understand your audience the better you’ll be able to provide them solutions and understand how to make your art or who is interested in the art you make.
Doing Business as an Artist
I can’t stress this enough: artists need to take the time to learn how to run a business effectively. If you’re serious about selling art online or offline, gain some experience first by managing sales for someone else. Learn how to read financial reports, calculate labor hours, and understand the difference between gross and net income.
The more you understand what it takes to operate a business, the better prepared you’ll be. Whether you’re planning to sell artwork online or in a gallery, having hands-on business knowledge will prevent costly mistakes that could derail your art business.
The U.S. Chamber of Commerce states that one major reason businesses fail in America is poor management. When the owner of the business does a great job at making their product but finds it challenging to manage the business as a whole. Hiring, firing, taxes, and logistics among otehr things are intregal parts of running a business and when 21.2% of businesses fail in their first year, according to Business Insider, business management experience is not something you want to skip and learn on the fly when you’re running your own business.
I advise many artist to work anywhere and gain experience in which you go from entry-level staff to management so that you gain hands-on business knowledge that you can’t get from reading books alone.
Artists Need a Budget for Their Art Business
Unless you’re already at the stage where you have a manager to run your business, you’ll need to handle your finances yourself. One of the biggest mistakes artists make is not balancing a budget. If the word “budget” feels intimidating, think of it as a spending plan.
If you’re planning on selling art online, you need to be clear on your income streams, whether they come from online art sales, freelance projects, or other sources. Be mindful of all your expenses, from digital tools to shipping costs. Understanding the difference between what you earn and what you spend is essential when trying to profitably sell artwork online.
Good business people understand that you must never spend more than you make.
Artists often forget hidden costs, such as:
- Supplies and Materials: Track every canvas, software license, or packaging material.
- Marketing and Promotions: Digital ads and social media promotions can be expensive but are necessary for selling art online.
- Studio Space or Rent: Even a small home studio has costs like electricity and internet.
- Shipping and Packaging: If you’re selling physical artwork online, these costs can add up quickly.
- Taxes: You can’t avoid them. Taxes must be paid and experts such as Dave Ramsey suggest setting aside 25% to 30% of your gross income for taxes.
Common Business Mistakes Artists Make
Now that you have the basics down, let’s explore some common mistakes that can hurt your business:
- Lack of Project Management Skills
Artists often focus on the creative side and overlook the logistics required to deliver on time and within budget. Whether you’re selling art online or working on commissions, invest in project management tools to keep track of your workflow.- Using Google Sheets (a free tool) to keep your deadlines in order can significantly improve project completions.
- Ignoring Debt
Debt can pile up quickly, especially if you’re investing in art supplies or marketing for your online store. Always plan your purchases and avoid relying on credit without a clear repayment strategy.- Using Google Sheets (a free tool) to keep your budget in order can significantly improve your net profit. The U.S. Chamber of Commerce has a great guide and advises that using budgeting tools helps ensure your business grows and doesn’t quickly fall to failure
- Not Paying Yourself
Many artists reinvest every cent back into their business, but it’s important to pay yourself. Even when you sell artwork online, set aside a portion of your profits for personal income.- As an example, an illustrator who takes a $200 commission but forgets to account for the 8 hours of revisions is really making $12/hour. Not only should you pay yourself, but quantify your labor hours correctly.
- Poor Hiring Decisions
If your online art business grows and you need to hire help, make sure you’re hiring the right fit. Define job roles, expectations, and budgets before bringing anyone on board.- Most people have had a job. In that job there were definitely people that lied on their applications, were tardy many days, or had a bad attitude. Can you imagine managing that kind of person and being afraid to fire them when needed? Every day that person is allowed to work at your establishment does not just cost you their hourly salary but also the amount of stress they caused you at each hour.
- Neglecting Marketing
The best art in the world won’t sell if no one knows about it. If you’re focused on selling art online, invest in learning about social media marketing, SEO, and email campaigns. Consistent engagement with your audience is key to success. - Not Shopping for Deals
Buying art supplies at full price can eat into your budget. Shop around for discounts, use coupons, and buy in bulk for frequently used items. Every dollar saved is another dollar you can invest in selling art online.
By avoiding these common pitfalls, you’ll be better positioned to build a sustainable art business. Remember, it’s not just about being creative—it’s about making smart business decisions to support that creativity.
If your are interested in business stories from artists you should consider reading Oyindamola’s interview regarding Janore.com and her sustainable dresses.