Numbers and art typically don't mix, but both were on exhibit at the American Visionary Art Museum Monday.
The Baltimore museum hosted a one-day seminar with PNC Bank on what artists need to know to survive and thrive on the business side of their craft. About 35 painters, musicians, writers and other artists attended the free crash course on budgeting and cash flow.
Aspiring writer Carita Ellis-Espola was among them, driving an hour and a half from Harrisburg, Pa., to pick up financial tips. The 37-year-old is an accounting assistant for the state, working in the area of corporate taxes. "For a creative person, it's like slow torture," she said of her job.
Her goal is to become a full-time writer by July.
"In this economy, thinking about trying to survive on your art is like crazy talk," continued Ellis-Espola, the single parent of an 8-year-old. "I can't be worried. I have to try."
Artists — like many self-employed individuals — struggle with irregular income. Money may pour in one month, only to dry up the next. Such fluctuations make budgeting and keeping an eye on cash flow especially important. Several artists attending the seminar admitted that they sometimes are more focused on their art than on their bottom line.
"A lot of people who are creative in one field feel that finance is not in their personality," says Rebecca Hoffberger, the museum's founder and director. "If you are creative in your own life, you can be just as awake and creative in your personal finance and business finance if you have the tools."
Hoffberger says the idea for the seminar grew out of discussions with museum board member Renee Wooding, a senior vice president with PNC Bank. The bank offers a variety of financial literacy initiatives, but this was the first one aimed at artists. Bankers were pleased by the response and plan to hold another seminar.
"Obviously, there is an unmet need there," Wooding said.
Artists brought a variety of financial concerns with them to the seminar.
One was concerned about transitioning from a 9-to-5 job to working full-time on rock operas. A painter says she struggles with how much to charge for her work, especially when friends expect discounts or freebies. (The advice was to charge friends as artists would any other customer.)
Artists who already manage to support themselves from their craft came for advice, too.
Jenae Michelle of Washington makes a living designing handbags, but she wanted to learn more about how to improve her finances and secure her retirement.
"Saving and planning and making more than just barely a living sounds pretty appealing," the 45-year-old said.
One of the first steps artists should take is to hire a good accountant to advise them on taxes and whether their business should be a sole proprietorship or another structure, bankers say.
Another important move is to create a budget to track income and expenses month after month. This information is useful for figuring out cash flow, says Samantha Sagner, a PNC merchant account executive. Sagner is a seamstress on the side and hopes someday to make sewing a full-time career.
Not everyone dispensing advice was a banker. Baltimore County sculptor David Hess offered tips on finances and life.
He advised artists to have a mentor or support system outside the art world because that "grounds you and brings you back to reality." He told them to network and get out in public because "that's where sales happen."
And Hess reminded the artists to think of their art as a business. That includes acting responsibly with money, paying bills on time, meeting deadlines and being punctual, he says.
The art of finance
Artists and other self-employed individuals have unique finances because their income is often irregular. To weather good and bad times:
•Set up a budget based on expenses and monthly income. Not sure what those numbers are? Review bank and credit card statements for the past year or two to see your income and spending patterns.
•Work with an accountant to advise you on taxes and how to structure your business.
•Maintain an emergency fund to cover unexpected expenses. This fund also can help with long stretches when income isn't coming in.