business plan for illustrators

Artist Business Plan Template

Written by Dave Lavinsky

Artist Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their artist businesses. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an artist business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Artist Business Plan?

A business plan provides a snapshot of your artist business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Art Business

If you’re looking to start an artist business or grow your existing artist company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your artist business to improve your chances of success. Your artist business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Artist Businesses

With regards to funding, the main sources of funding for an artist business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for artist companies.

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How to Write a Business Plan for an Artist Business

If you want to start an artist business or expand your current one, you need a business plan in the proper business plan format . The guide below details the necessary information for how to write each essential component of your artist business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of artist business you are running and the status. For example, are you a startup, do you have an artist business that you would like to grow, or are you operating a chain of artist businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the artist industry.
• Discuss the type of artist business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of artist business you are operating.

For example, you might specialize in one of the following types of artist businesses:

• Antiques: This type of artist business may include the restoration, curation, and auction of antique furniture and other items.
• Art Consultant: This type of artist business involves helping clients find and select art pieces for their own collections.
• Tattoo Artist: Tattoos are a popular way for artists to earn money by tattooing permanent ink art onto their customers.
• Photography: Photographers may specialize in certain categories like wedding photography or nature photography.
• Graphic design: This type of business encompasses all kinds of design from creating logos and marketing materials for businesses to creating websites and designing products.
• Art teacher: This type of artist business involves art instruction and can include anything from teaching an elementary school art class to a recreational painting class, or an online art course.

In addition to explaining the type of artist business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of art pieces sold, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the artist industry.

While this may seem unnecessary, it serves multiple purposes. First, researching the artist industry educates you. It helps you understand the market in which you are operating. Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends. The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your artist business plan:

• How big is the artist industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your artist business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your artist business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of artist business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other art businesses. Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This may include other sources of art pieces, auctions, or resellers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of artist business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a artist business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of artist company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you sell paintings or sculptures, consult on various art pieces, instruct a painting class, etc.?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your artist company. Document where your company is situated and mention how the site will impact your success. For example, is your artist business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your artist marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your artist business, including answering calls, meeting with clients, billing and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your artist business to a new city.  

Management Team

To demonstrate your artist business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing artist businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an artist business or successfully running a small curation business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you meet with 5 clients per day, and will you charge by the hour for art consultation services? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your artist business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a artist business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a sample of your artist portfolio.  

Writing a business plan for your artist business is a worthwhile endeavor. If you follow the sample template above, by the time you are done, you will have an expert artist business plan; download it to PDF to show banks and investors. You will understand the artist industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful artist business.

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Other Helpful Business Plan Articles & Templates

How to Start an Illustration Business Step-by-Step

Main Sections In This Post Steps To Starting An Illustration Business Points to Consider Knowledge Is Power Featured Video

In this post, you’ll find a step-by-step guide on how to start an illustration business.

In addition, we will give you an overview of what you can expect from operating an illustration business and help you make better decisions and gain clarity.

You can access the latest resources in our “Knowledge Is Power” section. Which can be used during the startup phase and once your illustration business is fully operational.

There is an abundance of information available to explore. If you like this post, consider sharing it with others and bookmarking it for future reference.

Let’s get started with the steps.

The Steps to Take To Start Your Illustration Business

Below are the steps to starting an illustration business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Illustration Business Overview
• Researching Your Illustration Business
• Looking at Financials
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose an Illustration Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier and Service Provider Considerations
• Setting Your Prices
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees
• Getting Customers Through the Door

1. An Overview of What You’re Getting Into

a. ) Owning and Operating Your Own Business

Running your own business brings a unique set of challenges compared to traditional employment.

Potentially long and unpredictable hours replace the typical nine-to-five workday. As a business owner, you assume full responsibility for the company’s success or failure.

This entails making critical decisions, managing finances, and dealing with unexpected issues that inevitably arise.

Before starting an illustration business or any entrepreneurial endeavor, it is crucial to assess whether business ownership aligns with your skills, personality, and lifestyle.

Consider your ability to adapt to a flexible schedule, handle the pressures of decision-making, and navigate the financial complexities involved.

Owning and operating a business can be rewarding, but it demands dedication and a willingness to embrace its challenges.

Proper preparation and a realistic assessment of your capabilities are essential steps toward success in the entrepreneurial world.

See Considerations Before You Start Your Business to identify points for a new business owner.

b.) Pros and Cons of Owning a Business

Every business venture has its merits and drawbacks. While owning and operating a business comes with numerous advantages, it’s essential to acknowledge the potential disadvantages.

Many aspiring entrepreneurs often fixate on the rewards while underestimating the challenges involved.

Taking the time to evaluate these challenges thoroughly is crucial for informed decision-making. When you are aware of the issues you might encounter, you can better anticipate and plan for them.

This proactive approach reduces the likelihood of unwelcome surprises that could derail your business endeavors.

You can make well-informed choices by realistically assessing the benefits and drawbacks.

Set realistic expectations and develop strategies to address the challenges effectively, ultimately increasing your chances of success in entrepreneurship.

For more, see Pros and Cons of Starting a Small Business.

c.) Passion a Key Ingredient For Success

The Power of Passion

Passion is a driving force that can significantly impact your success as a business owner.

It fuels your determination and problem-solving abilities when faced with challenges.

In contrast, a lack of passion may lead to a desire to escape when difficulties arise.

When considering owning and operating an illustration business, your level of passion plays a pivotal role.

Passion Test Scenario

Imagine a scenario where you possess limitless wealth, all desired possessions, and absolute freedom. Would you still choose to run an illustration business without financial gain?

If your answer is a resounding “yes,” it underscores your deep passion for this endeavor, signaling a promising direction.

The No-Passion Dilemma

Conversely, if your answer leans toward “no,” it prompts reflection. What alternative path would you prefer?

Exploring that path might be more fulfilling than starting an illustration business without genuine passion.

In Conclusion

To enhance your chances of success in the illustration business, passion is non-negotiable.

It serves as the driving force behind your commitment, innovation, and resilience.

Assess your passion honestly; it will guide you toward the right decision—whether to embark on this entrepreneurial journey with zeal or explore a different path that truly ignites your inner fire.

For More, See How Passion Affects Your Business .

2. Gaining an Overview of Owning an Illustration Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running an illustration business.

Note:  This section contains an abundance of information that you will want to review. It will give you an overview of what to expect, and it’s worth reading this section.

a.) A Quick Overview of Owning an Illustration Business

An illustration business revolves around creating visual content that communicates ideas, stories, or concepts through various artistic mediums.

Illustrators utilize their artistic skills to craft images, graphics, or drawings that cater to clients’ needs, such as advertising agencies, publishers, or individual clients. These visuals can be used in books, magazines, marketing materials, websites, etc.

Day-to-Day Operations in Managing an Illustration Business

1. Client Communication and Requirements Analysis

A significant part of running an illustration business involves consistent communication with clients.

Understanding their needs, goals, and expectations is paramount.

Clients may provide detailed briefs or seek creative input, necessitating clear and effective communication skills.

2. Artistic Creation and Design

The core of the business is the creative process. This entails translating concepts into visual representations.

Illustrators use various tools and techniques, including digital software or traditional mediums like pencils, watercolors, or ink, to produce high-quality artwork.

3. Project Management and Timelines

Efficient project management is essential. This involves setting realistic timelines, meeting deadlines, and organizing workloads.

Multiple projects require strong organizational skills to ensure clients receive quality work on time.

4. Marketing and Self-Promotion

Maintaining a consistent client base involves marketing and self-promotion.

This can include creating a portfolio to showcase your work, networking with potential clients, and utilizing social media platforms to reach a broader audience.

5. Financial Management

Managing finances is crucial. This includes tracking income expenses and invoicing clients promptly.

Understanding pricing strategies and negotiating fair rates are also vital aspects of financial management.

6. Continuous Learning and Skill Development

The creative field is ever-evolving.

Staying updated with industry trends, new software, and artistic techniques is necessary for long-term success.

Dedicate time to continuous learning and skill development.

7. Legal and Contractual Aspects

Navigating contracts, copyrights, and intellectual property rights is essential to protect your work and business interests.

Familiarize yourself with legal aspects and seek legal advice when needed.

In summary, an illustration business involves more than just creating art.

It requires effective communication, project management, marketing, financial acumen, and continuous learning.

Successful illustration business owners balance their creative skills with these day-to-day operational aspects to thrive in this dynamic field.

b.) Illustration Business Models

Types of Illustration Business Setups and Their Business Models

Freelance Illustration:

• Business Model : Freelance illustrators work independently, taking on project-based assignments. They negotiate fees with clients directly and manage their schedules and finances.

Illustration Studio:

• Business Model : Illustration studios are small companies or partnerships comprising multiple illustrators. They collaborate on projects, offering a variety of styles and expertise. Income is usually divided among studio members.

Online Print-on-Demand Shops:

• Business Model : These businesses create and sell illustrations on products such as T-shirts , posters, and mugs through online platforms. Artists earn a percentage of each sale.

Art Licensing Agency:

• Business Model : Art licensing agencies represent illustrators and license their artwork to manufacturers for stationery, home decor , or apparel use. Artists receive royalties or upfront payments.

Children’s Book Illustration:

• Business Model : Children’s book illustrators collaborate with authors or publishers to create artwork for books. They may receive advances or royalties based on book sales.

Educational Illustration:

• Business Model : Educational illustrators create visuals for textbooks, e-learning materials, or educational websites. They may be hired on a per-project or contract basis.

Choosing the Right Business Model

Selecting the appropriate business model for your illustration venture is pivotal. Each model offers distinct advantages and challenges.

Freelancers enjoy autonomy but bear the burden of client acquisition and administrative tasks. Studios benefit from collaboration but must manage revenue sharing.

Online print-on-demand shops require solid digital marketing skills, while licensing agencies offer passive income but rely on a portfolio that appeals to manufacturers.

Children’s books and educational illustrators must establish relationships with authors or publishers.

Focusing on a niche within your chosen model allows specialization and tailored services. It helps you stand out in a competitive market and attract a specific clientele.

Identifying a business model that aligns with your skills, interests, and goals is essential for a well-planned startup.

Changing your model later can be complex and disruptive.

Therefore, thorough consideration and strategic planning in the early stages can pave the way for a successful and sustainable illustration business.

c.) Challenges You Could Face When Starting and Operating an Illustration Business

Challenges During the Startup Phase:

Starting an illustration business is an exciting endeavor, but it comes with its share of challenges.

Here are some common obstacles that business owners may encounter during the startup phase:

• Client Acquisition : Attracting the first clients can be daunting. Building a portfolio and marketing your services effectively is crucial, and it may take time before a steady stream of clients begins to flow.
• Financial Instability : During the initial stages, income can be unpredictable. Managing personal finances while investing in your business’s growth can be challenging.
• Market Competition : The illustration industry is competitive, and distinguishing yourself from other artists is essential. Finding a unique style or niche can help, but it requires careful planning.
• Time Management : As a business owner, you’ll wear multiple hats – artist, marketer, accountant, and more. Balancing these roles while maintaining creative productivity can be a juggling act.
• Legal and Contractual Matters : It is vital to understand contracts, copyrights, and licensing agreements. Mistakes in these areas can lead to legal issues or the loss of intellectual property rights.
• Self-Doubt and Burnout : Entrepreneurial self-doubt and burnout are real challenges. The pressure to succeed and financial uncertainties can affect mental well-being.

Challenges in the Operating Phase:

Once your illustration business is up and running, a new set of challenges emerges:

• Client Retention : Maintaining long-term client relationships is as crucial as acquiring new ones. Providing consistent quality and meeting deadlines is essential for client retention.
• Workflow Efficiency : As your business grows, managing multiple projects can become overwhelming. Streamlining workflows and project management becomes vital.
• Market Trends and Adaptation : The art world evolves, and staying current with industry trends and technology is necessary to remain competitive.
• Financial Stability : Achieving stable income can still be challenging, especially if clients are inconsistent with their projects or payments.
• Creative Blocks : Even seasoned artists face creative blocks. Finding inspiration and staying motivated can be difficult during slow periods.
• Scaling the Business : Expanding your business while maintaining quality can be complex. If necessary, hiring and managing additional artists requires careful planning.
• Legal Issues and Intellectual Property : Protecting your work and navigating potential legal disputes remain concerns. It’s essential to stay vigilant in this regard.

In summary, the challenges faced by illustration business owners vary from the early stages of establishing the business to its ongoing operation.

Preparing for these challenges, seeking mentorship or professional advice, and continuously adapting to the evolving industry can help overcome these hurdles and achieve long-term success.

d.) Questions You Need to Consider for Your Illustration Business

By addressing the following questions, you can better prepare yourself for potential challenges and ensure a well-thought-out plan for your illustration business:

What type of illustration business model are you considering?

• Determine whether you plan to operate as a freelance artist, establish an illustration studio, or explore other models.

Do you have the skills needed to manage and operate an illustration business?

• Assess your artistic skills and ability to handle business aspects such as finances, marketing, and client management.

Will you do all the work alone, or will you hire employees?

• Decide whether you will be a sole practitioner or intend to build a team of illustrators.

Do you intend to manage your business, or are you planning to hire a manager?

• Consider your role in day-to-day operations and whether hiring a manager is necessary.

How will you acquire customers?

• Plan your client acquisition strategy, including networking, online presence, or agency collaboration.

Who are you competing against?

• Research your competitors within the illustration industry to understand their strengths and weaknesses.

How will you maintain customer loyalty and encourage repeat business?

• Develop strategies for building lasting client relationships and delivering consistent quality.

Are you interested in finding partners or investors?

• Decide whether you wish to collaborate with partners or seek financial backing from investors.

How will you finance your startup costs?

• Determine the funding sources for your illustration business, such as personal savings, loans, or grants.

Have you considered how long it will take to become profitable?

• Establish realistic financial projections and a timeline for achieving profitability.

How will you support yourself during the early stage of operation, which can be financially challenging?

• Plan for personal financial stability during the initial phases of your business when income may be irregular.

What products and services will you offer?

• Define the range of illustration services and products you will provide to clients.

How do you know people will want what you have to offer?

• Conduct market research to validate the demand for your services and identify potential niches.

What will you provide that sets you apart from your competition?

• Determine your unique value proposition and what makes your illustrations stand out.

High-end, Average, or discount operation be positioned?

• Decide on your pricing strategy and the positioning of your business within the market.

By thoroughly addressing these questions, you’ll have a comprehensive business plan in place, which will be invaluable as you navigate the challenges and opportunities in the world of illustration.

3. Research

A.) inside information illustration business research.

Starting an illustration business requires thorough research to gain valuable insights into the industry.

Quality information is your foundation, ensuring you know what to expect and preventing unexpected challenges.

Learn from Experienced Professionals

Experienced illustration business owners can provide invaluable guidance.

Their knowledge and years of experience offer priceless insights into the industry.

Spending time with them can be an opportunity to absorb their wisdom.

Connecting with the Right People

Identifying the right individuals to consult goes beyond this post.

An article, “An Inside Look Into the Business You Want To Start,” offers ideas on finding and approaching experienced professionals.

It provides details on how to access the information you need.

See An Inside Look Into the Business You Want To Start for all the details.

b.) Demand, the Competition and Your Location

Launching a successful illustration business hinges on comprehending the dynamics of supply, demand, competition, and location within your chosen market.

Each aspect plays a pivotal role in your business’s viability and growth.

Demand: A Vital Metric

Assessing the demand for your products and services is paramount.

Quality and competitive pricing alone won’t suffice; a substantial demand must exist. Insufficient demand can lead to premature closure and insurmountable debt.

Market Saturation: Navigating Competition

Beyond demand, consider market saturation. Is your chosen market flooded with similar services? Gaining market share becomes challenging in saturated markets unless you introduce unique value.

Assess the ease with which competitors can replicate your idea, as established players may seize the majority of market share.

Analyzing Your Competition

Examine your competition closely. Avoid competition with dominant market players.

Instead, identify gaps in their services and ask if your potential customers would pay differently for what you can provide.

Choosing the Optimal Location

Selecting the right location entails balancing demand and competition.

Cost-effectiveness is essential.

A densely populated area may offer exposure but can also bring high expenses. Conversely, cheaper rent must align with the presence of your target market.

Online Business Setup: Flexibility and Challenges

An online setup provides flexibility but demands vigilance regarding competition and demand.

High competition may render your online presence invisible, while a lack of search volume can hinder traffic.

Home-Based Business Setup: Starting Small

For some, a home-based setup suits initial operations, especially for online businesses or those with limited customer interaction.

As your business grows, consider transitioning to a commercial location.

In conclusion, the interplay of supply, demand, competition, and location is pivotal in determining your illustration business’s fate.

The cornerstones of making informed decisions are in-depth research and thoughtful analysis of potential locations.

A well-planned approach to these aspects will set the stage for your business’s success and growth.

For more, see the Demand for Your Products and Services and Choosing The Best Location for Your Business.

c.) Target Audience

Understanding your target audience is critical to tailoring your products and services effectively.

Knowing your market allows you to cater to their preferences and needs, ensuring that your service aligns with their interests.

This targeted approach allows you to focus on what matters most to your customers rather than attempting to offer a wide array of options.

Target Market Ideas:

• Independent authors seeking book illustrations.
• Marketing agencies in need of visual content.
• E-learning platforms requiring educational graphics.
• Small businesses looking for unique branding visuals.
• Event planners seeking custom artwork for promotions.
• Art enthusiasts and collectors interested in original pieces.
• Parents looking for children’s book illustrations.
• Non-profit organizations needing visuals for campaigns.
• Local businesses in need of custom signage and logos.
• Digital media companies requiring visual storytelling elements.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Understanding the numbers and making good decisions is a crucial factor in succeeding.

You will struggle to manage a successful operation without putting in the time and effort to understand and monitor the financials of your illustration business.

This section has a lot to cover, and these are critical steps in your business startup and operation.

The section is broken up into the following:

Start-up Cost: In this step, we will look at the importance of getting an accurate estimate and a simple startup cost to help you get your setup ideas.

Monthly Expenses: Expenses must be monitored, or the operation could be jeopardized. A sample list of monthly expenses is provided, which can be used to generate ideas for the setup.

Profits: To keep your doors open, you must generate profits and enough to pay your bills, grow your business and support your income. There are a few points you will want to consider in this section.

Bests Practices: In addition to the above, we will examine a few best practices regarding your business’s financial aspects.

Let’s get started!

Start-Up Costs:

Startup Cost Estimation

Accurate estimation of startup costs is essential for a smooth transition from planning to opening your illustration business.

Underestimating costs risks running out of funds preventing business launch, while overestimating portrays your operation as high-risk.

Determinants of Cost

Costs vary based on several factors:

• Operation Size : Larger operations incur higher costs.
• Location : Costs differ based on geographical location.
• Staffing : Deciding between hiring employees or managing solo.
• Equipment : Choosing between new or used equipment impacts cost.
• Business Setup : Options include renting, leasing, home-based, or online operations.

Cost Estimation Process

List all necessary items and obtain price quotes. Research may uncover additional costs, which should be included in your estimate.

Sample Estimates and Business Model Definition

Providing an exact cost for starting an illustration business is impossible, as each setup is unique.

Begin by defining your business model. Online businesses generally incur lower setup and operational costs than brick-and-mortar or home-based businesses.

Variables and Research

Many variables affect startup costs. Researching and obtaining accurate estimates is critical to determine if starting an illustration business is feasible.

Sample Startup Cost For an Illustration Business

Focus on the listed items, not the specific numbers, as they are general samples and will vary for each business.

• Rent/Lease for Studio Space : $1,500 – $3,000 per month
• Website Development : $1,000 – $3,000
• Business Licensing and Permits : $200 – $500
• Insurance : $500 – $1,500 per year
• Marketing and Advertising : $500 – $2,000
• Equipment (Computers, Tablets, Software) : $2,000 – $5,000
• Furniture and Office Supplies : $500 – $1,500
• Initial Inventory of Supplies (Paper, Ink, etc.) : $300 – $1,000
• Professional Services (Legal, Accounting) : $1,000 – $3,000

Total Estimated Costs:

• Lower Estimate: $7,500
• Upper Estimate: $20,500

These figures are general estimates, and actual costs will vary based on specific circumstances and choices.​

For more, refer to my article on Estimating Startup Costs.

Monthly Operating Costs:

Monthly Expenses in Illustration Business

Staffing and Location Impact

Monthly expenses mirror those discussed in startup costs, with significant variability.

Choosing to operate independently or with full staffing greatly influences monthly costs. Location also plays a role; a high-traffic area incurs higher expenses than less frequented locations.

Additional Variable Costs

Other factors affecting monthly expenses include:

• High loan repayments.
• Costly marketing campaigns.
• Repairs and maintenance.

Balancing Costs and Quality

Minimizing expenses is crucial to maintaining optimal business operations and managing revenue fluctuations.

However, reductions should not compromise quality, service, or productivity. Careful balancing is critical to sustaining a successful illustration business.

Sample list of estimated monthly expenses for a MID-sized illustration business

Again, the purpose of the list below is to focus on the items rather than the numbers. The numbers are a general idea, and your numbers and list will differ. 

• Rent/Lease for Studio Space : $2,500
• Utilities (Electricity, Water, Internet) : $500
• Employee Salaries : $8,000 (Assuming a small team)
• Marketing and Advertising : $1,000
• Loan Repayments : $1,500 (Estimate for a business loan)
• Insurance : $200 (Monthly portion of annual insurance)
• Office Supplies and Maintenance : $300
• Software Subscriptions (Design tools, etc.) : $400
• Professional Services (Accounting, Legal fees) : $500
• Miscellaneous Expenses : $300 (Contingency for unexpected costs)

Total Estimated Monthly Expenses: $15,200

Considerations for Profits 

Impact of Overhead on Profit

Your business’s operational style greatly affects net profit.

High overhead costs can significantly reduce profit margins, even with substantial sales.

Since each illustration business has unique variables, no one can accurately predict your specific profit.

Personal Estimation of Profit

As the business owner, you are best positioned to estimate potential profits based on your operational setup and strategy.

Business Positioning and Profit Margin

Your business’s positioning, whether as a high-end service or a discount operation, directly influences your profit margin.

Big Picture Focus

It’s essential to consider the overall profit rather than individual sales profits. A high profit per sale is futile if sales volume is too low to cover overhead.

Conversely, a strategy focusing on increased sales volume with lower profit per item requires careful balancing to ensure each sale covers expenses and contributes to overall profitability.

Startup Phase vs Operational Phase

Profit is an estimate during the startup phase. However, once operational, accurate data provides solid figures for analysis.

Simple Profit Calculation

Net profit calculation is straightforward: subtract total costs from total revenue. This gives you your net profit.

Advanced Profit Analysis

For a more detailed understanding, complex calculations like net profit per sale can identify the most profitable products and services, guiding strategic focus on these areas for enhanced profitability.

For More, See Estimating Profitability and Revenue.

Final Thoughts on Financials 

Tracking and Recording for Compliance

Financial management is a critical aspect of running an illustration business.

Tracking and recording all financial transactions for tax and legal purposes is imperative.

Studying Finances for Business Insights

Beyond basic tracking, closely monitoring profits and expenses is crucial.

Analyzing financial reports can reveal trends and provide insights into business performance .

Proactive Response to Market Changes

For instance, if there’s a noticeable drop in sales, a thorough financial review can help identify the cause – market changes, product or service issues, or new competition.

Consequences of Neglecting Financial Monitoring

Without regular financial monitoring, potential problems may go unnoticed, leading to missed opportunities for timely corrective actions.

Keeping a close eye on financials ensures that you stay informed and responsive to the dynamics of your illustration business.

5. Create Your Mission Statement

A mission statement serves as the guiding compass for your illustration business, helping clarify its purpose.

It reminds you of the primary value you intend to deliver to your customers and the community.

By defining your mission, you remain focused and aligned with your core objectives, ensuring that your work consistently reflects the benefits you aim to provide.

Examples of Mission Statements for an Illustration Business:

• “Empowering businesses through captivating visuals that communicate their unique stories and values.”
• “Enriching children’s literature with vibrant illustrations that ignite imagination and learning.”
• “Enhancing brand identities with custom artwork that makes businesses stand out in a crowded market.”
• “Supporting social causes through visual advocacy, one powerful image at a time.”
• “Transforming ideas into visual masterpieces that leave a lasting impact on audiences.”
• “Connecting art lovers with exceptional illustrations that inspire and evoke emotions.”
• “Helping educators and trainers simplify complex concepts through engaging visual aids.”
• “Partnering with event planners to create memorable experiences with visually stunning promotions.”
• “Providing small businesses with affordable, eye-catching graphics for effective marketing.”
• “Enabling digital media companies to tell compelling stories through our artistic creations.”

These mission statements illustrate the diverse purposes of an illustration business. Each reflects a unique commitment to delivering specific benefits to their clients and communities.

For more, see How To Create a Mission Statement.

6. Creating A Unique Selling Proposition (USP)

The Power of a Unique Selling Proposition (USP)

A unique selling proposition is the cornerstone of distinguishing your illustration business. It identifies and defines what makes your business distinct in a competitive market.

A well-crafted USP helps you pinpoint your uniqueness and guides you in creating something extraordinary.

It’s the essence of your brand identity, allowing you to communicate the specific value you offer to your clients.

Examples of USPs for an Illustration Business:

• “Bespoke Storytelling Illustrations” : Specializing in creating custom visuals that bring narratives to life, catering to authors and publishers seeking unique book illustrations.
• “Data-Driven Infographics” : Crafting visuals that simplify complex data, serving businesses and organizations in need of compelling, informative graphics.
• “Art with Purpose” : Focusing on socially conscious artwork, partnering with non-profits and advocacy groups to visually convey impactful messages.
• “Quick-turnaround Visual Solutions” : Providing rapid and high-quality graphic content for event planners and marketing agencies with tight deadlines.
• “Illustrations That Grow Brands” : Helping startups and small businesses establish strong visual identities that set them apart in the market.
• “Digital Dreamscapes” : Creating captivating digital art for art enthusiasts and collectors seeking unique and mesmerizing pieces.
• “Educational Illustration Innovators” : Specializing in innovative visual aids for educators and trainers, making learning engaging and effective.
• “Signature Character Design” : Known for distinctive character illustrations, appealing to companies looking for memorable brand mascots.

These USPs exemplify how an illustration business can carve out a niche and distinguish itself by offering specialized services that cater to specific client needs and preferences.

7. Choose a Business Name

Choosing a Memorable Illustration Business Name

Selecting the right name for your illustration business is a critical decision that deserves careful consideration. Here’s why:

Long-lasting Impression :

Your business name is a lasting brand identity. Changing it can be complex, so choose wisely.

Ease of Recall :

Opt for a name that’s easy to pronounce and remember, ensuring it stays in clients’ minds.

Online Presence :

Secure a matching domain name to establish a strong online presence.

Avoid Conflicts :

Check for existing registrations to prevent legal issues and brand confusion.

Now, let’s explore some creative ideas for your illustration business name:

Here Is a List of Sample Illustration Business Names:

• Artful Visions Studio
• Visual Tales Creations
• ColorCanvas Illustrations
• InkMasters Design Co.
• PicturePerfect Pencils
• Graphic Storylines
• IllustraCraft Studio
• Creative Lineage Art
• Visionary Palette
• WhimsiSketch Studios
• PaperTrail Creations
• QuillQuest Illustrations
• Vivid Imagination Arts
• Brush & Beyond Designs
• Starlight Strokes
• Artistic Aura Illustrations
• Graphix Whiz Studio
• InkWaves Illustrations
• DreamCatcher Artistry
• ColorWhirl Creations
• ImagineInk Studios
• StoryCraft Visuals
• Artistry Alcove
• Line & Lyric Illustrations
• PencilPower Studios
• Splendid Scribbles
• Creative Chronicle Co.
• VisualVerse Artworks
• ChromaDream Design
• EnvisionEden Illustrations

This list inspires you to spark your creativity and craft a unique, memorable name that resonates with your illustration business’s essence.

Take your time in this naming process; it will become integral to your brand identity.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

8. Register Your Company

To operate an illustration business legally and efficiently, there are crucial steps to take:

Professional Consultation:

Consulting with a legal or financial professional is a prudent first step.

They can advise on the most suitable business setup for tax benefits and liability protection.

Common Business Registrations:

• Business Structure: Decide on your business structure, such as sole proprietorship, LLC, or corporation, and register accordingly.
• Business Name: Register your business name to ensure it’s unique and compliant with local regulations.
• Tax ID Number: Obtain an Employer Identification Number (EIN) from the IRS if needed for tax purposes.
• Business Permits and Licenses: Depending on your location and the nature of your services, consider the following permits and licenses:

Permits and Licenses for an Illustration Business:

• Business License: A general license required for operating any business.
• Home Occupation Permit: If your business operates from home, check if this permit is necessary.
• Sales Tax Permit: If you sell tangible goods, you may need this permit to collect sales tax.
• Professional License: Some states require illustrators to obtain professional licenses.
• Copyright Permissions: Ensure you have legal rights to use any third-party content in your work.
• Health Department Permit: Required if you create illustrations for products like food packaging.
• Zoning Permits: Check local zoning laws to ensure your business location is compliant.

Complying with legal requirements avoids potential issues and establishes trust with clients.

Seek guidance from professionals and local authorities to ensure your illustration business is legally sound and primed for success.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

9. Create Your Corporate Identity

The Significance of a Corporate ID

A Corporate ID serves as a visual representation of your business.

It encompasses critical elements like your logo, business cards, website, signage, stationery, and promotional materials.

Maintaining a consistently professional design across these components is crucial to making a lasting impression on new and existing customers.

It reinforces your brand identity and fosters a sense of reliability and professionalism in the eyes of your audience.

You can see our pages for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

10. Writing a Business Plan

A business plan is a crucial document serving multiple purposes:

1. Securing Financing and Attracting Investors:

• When seeking financial support or investors, a well-structured business plan is essential. It provides a comprehensive overview of your business, instilling confidence in potential backers.

2. Guiding Your Business Journey:

• A business plan is your vision in written form. It acts as a roadmap, ensuring you stay on course during the startup and operational phases.

The Investment of Time and Effort

Creating an effective business plan is not a task to be taken lightly. It demands time and effort because it shapes your business’s future.

Vision Building:

• Writing a business plan entails envisioning your business fully operational detailing its intricacies. This process requires thoughtful planning and meticulous expression.

Worthwhile Endeavor:

• Despite the effort involved, the result is worth it. Completing your business plan clarifies the essentials to start and run your business successfully.

Exploring Your Options

When crafting your business plan, remember the flexibility you have:

Tailored Approach:

• You can create it from scratch, hire a professional, utilize templates, or employ business plan software. The key is active participation, especially when hiring a professional, to ensure accurate communication of your business’s nature and management.

Expect Change and Adaptation

Recognize that business plans and operations can evolve:

Dynamic Nature:

• Your business plan may require adjustments as you gain experience and market conditions fluctuate. Regular reviews and updates are advisable to keep it aligned with your evolving business reality.

A well-structured business plan is invaluable in your entrepreneurial journey. It facilitates growth, attracts support, and provides guidance in an ever-changing business landscape.

Business Plan Template for an Illustration Business

Note: A comprehensive business plan provides a roadmap for your illustration business. Tailor each section to your specific needs and goals.

1. Executive Summary:

• Briefly introduce your illustration business, highlighting its unique value proposition.
• Outline your business goals, target market, and financial objectives.
• Summarize your business plan’s key points.

2. Business Description:

• Describe your illustration business, including its history, mission, and vision.
• Explain the motivation behind starting the business.
• Detail your products/services and how they meet market demands.

3. Market Analysis:

• Conduct a thorough analysis of the illustration industry.
• Define your target market(s) and audience demographics.
• Research competitors and identify your competitive advantage.
• Analyze market trends and growth potential.

4. Marketing and Sales Strategy:

• Outline your marketing plan , including online and offline strategies.
• Define your branding strategy and messaging.
• Detail pricing strategies and sales channels.
• Describe your customer acquisition and retention methods.

5. Operations and Management:

• Provide an organizational structure chart.
• Detail the roles and responsibilities of team members.
• Describe your workflow and production processes.
• Explain your supply chain and resource requirements.

6. Financial Projections:

• Create financial forecasts, including income statements, balance sheets, and cash flow statements.
• Estimate startup costs, monthly expenses, and revenue projections.
• Identify potential funding sources and investment needs.

7. Legal and Compliance:

• Explain the legal structure of your business (e.g., sole proprietorship, LLC, corporation).
• Detail any licenses, permits, or certifications required.
• Address intellectual property rights and copyright considerations.

8. Risk Analysis:

• Identify potential risks and challenges your business may face.
• Develop strategies to mitigate these risks.
• Consider market fluctuations, competition, and financial uncertainties.

9. Appendix:

• Include any supporting documents, such as resumes, portfolios, market research data, or legal documents.
• Attach additional information that strengthens your business plan.

10. Timeline and Milestones:

• Create a timeline outlining key milestones and goals for your illustration business.
• Set realistic deadlines for achieving these milestones.

11. Exit Strategy (Optional):

• If applicable, describe your long-term exit strategy , whether it’s selling the business, passing it on, or other options.

12. Marketing Plan (Optional):

• Provide a detailed marketing strategy, including specific campaigns, timelines, and budget allocations.

13. Sales Forecast (Optional):

• Include a detailed sales forecast based on market research and growth projections.

14. SWOT Analysis (Optional):

• Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess your business’s internal and external factors.

Remember to keep your business plan concise, well-organized, and focused on your business’s unique strengths and objectives. Update it regularly as your business evolves.

See How to Write a Business Plan for information on creating your business plan.

11. Banking Considerations

Choosing the Right Bank for Your Illustration Business

When selecting a bank for your illustration business, choose a nearby bank with a strong small-business focus.

A dedicated business account ensures a clear separation between personal and business transactions.

This distinction simplifies expense tracking, accurate reporting, and tax filing.

Building a professional rapport with your banker is beneficial. They can offer financial guidance, streamline application processes, and provide valuable services.

Securing a merchant account or online payment service enables credit and debit card transactions, enhancing sales and customer convenience.

This financial groundwork sets the stage for your business’s economic success and credibility.

For more, see How to Open a Business Bank Account. You may also want to look at What Is a Merchant Account and How to Get One.

12. Getting the Funds for Your Operation

Securing Financing for Your Illustration Business

If you require a loan to kickstart your illustration business, consider the following options:

• Traditional Lenders: Approach banks or credit unions for conventional business loans.
• Private Loans: Seek loans from family, friends, or private investors who believe in your venture.
• Asset Sale: Consider selling assets you own, like real estate or valuable possessions, to generate capital.
• Government Grants: Research available government grants that can assist in starting your illustration business.

Meeting with a Loan Officer – Key Considerations:

• Clearly outline your business plan and how the loan will be used.
• Demonstrate a strong understanding of your industry and market.
• Highlight your business’s potential for growth and profitability.
• Be prepared to discuss your creditworthiness and financial history.
• Present a realistic and well-structured repayment plan.

Documents Needed to Apply for a New Business Loan:

• Business Plan
• Personal and Business Financial Statements
• Credit Report
• Income Tax Returns
• Collateral Details (if applicable)
• Legal Documents (e.g., business licenses, contracts)
• Bank Statements
• Debt Schedule
• Financial Projections
• Resumes of Key Team Members

Thoroughly preparing for your meeting with a loan officer and having the necessary documents in order increases your chances of securing the financing you need for your illustration business.

For more, see the following:

• Getting a Small Business Loan
• SBA Small Business Grants
• Search: Illustration Business Start-up Loans
• Search: Grants For an Illustration Business

13. Software Setup

Selecting Accounting Software: A Strategic Approach

Regarding accounting software for your illustration business, careful research is paramount.

Here’s how to make an informed choice:

1. Start with Research:

• Investigate available software options thoroughly. Switching systems after data entry is cumbersome.

2. Opt for Established Providers:

• Choose a company with a proven track record. Dependable support is crucial for long-term business operations.

3. Trial Periods and Demos:

• Look for software offering trial periods or demos. Test their functionality before committing.

4. Rely on User Feedback:

• Explore software reviews and forums to gain insights from others’ experiences.

5. Tax and Expense Management:

• Besides accounting, research software for tracking expenses and preparing financial documents for tax filings.

6. Consult with Experts:

• Engage with your bookkeeper or accountant for valuable guidance in selecting the right accounting software.

Types of Software for Illustration Business:

• Accounting Software: Essential for financial tracking and reporting.
• Design Software: Tools like Adobe Creative Suite for creating illustrations.
• Project Management Software: To streamline project workflows.
• Client Relationship Management (CRM) Software: For client interactions and record-keeping.
• Time Tracking Software: To monitor billable hours accurately.
• Expense Tracking Software: To manage business expenses efficiently.
• Tax Preparation Software: Facilitating tax compliance.
• File Backup and Storage Solutions: Ensuring data security and backup.

Each of these software types plays a crucial role in managing and optimizing the operations of your illustration business.

Choose wisely to enhance efficiency and productivity.

Check out Google’s latest search results for software packages for an illustration business.

14. Get The Right Business Insurance

Shielding your illustration business from unforeseen events is essential.

Here’s a breakdown of crucial insurance considerations:

1. Coverage Precedes Activity:

• Don’t wait for incidents to occur. Ensure you have the right insurance in place before any business activity begins.

2. Comprehensive Protection:

• Assess various insurance types to safeguard customers, employees, yourself, visitors, property, and more.

3. Professional Liability Insurance:

• Consider professional liability insurance to protect against potential lawsuits related to your services.

4. Interruption Insurance:

• Interruption insurance acts as a safety net, sustaining your business during involuntary shutdowns due to unforeseen incidents.

5. Home-Based Business Insurance:

• If operating from home, inform your home insurance agent. Neglecting to do so may void your existing home insurance policy.

6. Expert Guidance:

• Utilize the expertise of a competent insurance broker. They can help you assess your specific needs and ensure adequate coverage.

The right insurance coverage offers peace of mind, protecting your illustration business and its stakeholders from the unexpected.

Prioritize this aspect to ensure the sustainability of your operation.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for illustration business insurance .

15. Suppliers and Service Providers

Selecting Reliable Suppliers and Service Providers

Building strong partnerships with suppliers and service providers is vital for the success of your illustration business. Here’s what you may need from them:

1. Art Supplies:

• Consistently sourcing quality art materials is crucial for your creative process.

2. Printing Services:

• Dependable printing services for reproducing your illustrations or promotional materials.

3. Shipping and Logistics:

• Reliable logistics partners for shipping your artwork to clients or exhibitions.

4. IT Services:

• IT support for maintaining your website, online presence, and digital assets.

5. Marketing Services:

• Marketing professionals to assist in promoting your work and reaching a wider audience.

6. Accounting Services:

• Accounting or financial advisors for managing your finances and tax obligations.

7. Legal Services:

• Legal experts to handle contracts, copyright issues, and intellectual property matters.

8. Packaging Suppliers:

• Suppliers for packaging materials to protect and present your artwork professionally.

Nurturing a trustworthy relationship with your suppliers and service providers is mutually beneficial.

They can offer competitive prices, ensuring cost savings and a higher profit margin for your business.

Maintaining respect and ensuring their financial well-being fosters a positive working relationship, contributing to your success.

For More, See How To Choose a Supplier.

16. Setting Prices

Strategic Pricing in Illustration Business

Effective pricing research is crucial for the success of your illustration business. Here are key considerations:

1. Optimizing Profit Margins:

• Thorough pricing research ensures you strike the right balance. Set prices that allow for profit without deterring customers.

2. Avoiding High Prices:

• Overpricing can deter potential clients, leading to lost sales and limited market reach.

3. Preventing Underpricing:

• Underpricing may attract more customers initially, but it can jeopardize your ability to cover expenses and generate profit.

4. Value Emphasis:

• Your pricing should align with market standards while highlighting your illustrations’ unique value.

Mastering pricing strategies allows you to maximize revenue, attract a loyal clientele, and sustain your illustration business successfully.

See the following for more:

• Setting the Price of Your Products and Services
• Search Results for Pricing Strategies for an Illustration Business.

17. Physical Setup

Illustration Business Layout and Setup

Efficiently organizing the layout and setup of your illustration business is vital for productivity and professionalism.

1. Overview of Layout:

• Begin with a well-thought-out layout for your workspace, ensuring it accommodates your workflow and client interactions.

2. Signage Matters:

• Establish your business identity with prominent signage, including the main business sign and directional signs for parking lots, exits, and special areas.

3. Professionalism through Signage:

• Well-designed signs convey professionalism to clients and visitors, leaving a lasting impression of your operation.

4. Office Setup for Efficiency:

• Acknowledge that managing your illustration business demands time and organization.

5. Boosting Productivity:

• Maintain an organized office setup, fully equipped with essential tools and resources to enhance productivity.

6. Efficient Workspace:

• Arrange your workspace to optimize creativity and streamline daily tasks, facilitating a seamless workflow.

7. Client-Focused Setup:

• Create client-friendly areas within your workspace, ensuring a welcoming and comfortable environment for meetings and consultations.

A well-planned layout, attention-grabbing signage, and an organized office setup are integral to the successful operation of your illustration business.

They contribute to a professional image and efficiency in managing your daily tasks.

See Here are Considerations for The Setup of Your Office for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

A website is imperative for your illustration business. It serves as the primary point of contact and a versatile marketing tool.

1. Ownership and Control:

• Unlike social media accounts, a website is entirely owned and controlled by you when you host and register a domain name.

2. Information Hub:

• Your website acts as an information hub, allowing you to convey essential details about your business, services, and portfolio.

3. Marketing Potential:

• Leverage your website as a powerful marketing tool. Regularly publishing industry-related blogs and valuable insights tailored to your audience helps build trust and positions you as an industry expert.

4. Credibility and Expertise:

• A well-maintained website enhances your credibility, making it easier to establish yourself as an authority in the eyes of your customers.

A website provides essential business information and serves as a platform for nurturing customer relationships, showcasing your expertise, and strengthening your illustration business’s online presence.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

An external support team of professionals is an invaluable asset for your illustration business.

Here’s how to assemble and leverage this team:

1. Diverse Expertise:

• Your support team consists of experts you can turn to for advice and services. Each team member brings unique skills and knowledge to the table.

2. Not on Payroll:

• These professionals are not employees but are typically engaged on a project, contract, hourly, or retainer basis, providing cost-effective solutions.

3. Gradual Formation:

• Building a reliable support team is an ongoing process, as it takes time to develop professional relationships and trust.

4. Essential Members:

• Your external support team should consider including accountants, lawyers, financial advisors, marketing specialists, technical advisors, and consultants.

5. On-Demand Assistance:

• Your team can be tapped into whenever you need their expertise, ensuring your illustration business has access to a wide range of skills and insights.

A solid external support team enhances your business’s capabilities, offering guidance and services that contribute to its growth and success.

For more, see Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Solo Operation vs. Hiring

Running it alone can be cost-effective in the early stages of your illustration business. However, as your business expands, managing everything alone may become overwhelming. Here’s a transition guide:

• Cost Considerations: Solo operation helps reduce expenses, a significant advantage during the startup phase.
• Growth Dilemma: As your business grows, the workload may exceed your capacity, necessitating the hiring of employees.
• Qualified Personnel: When hiring, prioritize candidates with relevant skills and strong work ethics to ensure a productive team.

Job Positions for Growing Illustration Business:

The following are job positions or outsourced services to consider as your illustration business grows:

• Graphic Designers: For collaborative projects and increased output.
• Administrative Assistants: To handle administrative tasks and support daily operations.
• Marketing Specialists: To promote your work and reach a wider audience.
• Accountants/Bookkeepers: For financial management and tax compliance.
• Customer Service Representatives: To enhance client interactions and satisfaction.
• Project Managers: For efficient project coordination and client communication.
• Web Developers: To maintain and enhance your online presence.
• Legal Advisors: For contracts, copyright matters, and intellectual property protection.

Expanding your team strategically is crucial for scaling your illustration business effectively while maintaining quality and efficiency.

For more, see How and When to Hire a New Employee.

21. Getting Customers Through the Door

When you have reached this step, your business is set up and ready to go, with one more final step, which is important: getting customers through the door.

There are numerous ways to do this, like advertising, having a grand opening , word of mouth, etc.

Let’s dig a little deeper into the following sections.

a.) Marketing Considerations

Attracting the Right Customers for Your Illustration Business

A thriving illustration business hinges on attracting the right customers. Here’s a glimpse into effective marketing strategies:

• Initial Challenges: Starting can be demanding as your business is new and relatively unknown.
• Building Reputation: With time and a solid reputation, attracting customers becomes more manageable.
• Continuous Marketing: Marketing is an ongoing effort to maximize revenue and sustain growth.
• Diverse Approaches: You don’t always need an agency or expert; consider simpler methods to raise awareness.

Simple Methods for Business Promotion:

• Social Media Presence: Create engaging profiles on platforms like Instagram and Pinterest to showcase your artwork.
• Networking: Attend industry events and connect with fellow artists and potential clients.
• Online Portfolio: Maintain an updated and visually appealing online portfolio to display your work.
• Email Marketing: Collect emails from interested parties and send out newsletters or updates about your work.
• Word-of-Mouth: Encourage satisfied clients to spread the word and refer others to your services.
• Local Art Shows: Participate in local art exhibitions and galleries to gain exposure within your community.
• Collaborations: Partner with related businesses or artists for joint projects and promotions.
• Content Marketing: Share valuable insights and tips related to your field through blogs or video content.

These simple yet effective methods can help raise awareness about your illustration business, attracting the right audience and setting the stage for sustainable growth.

See How To Get Customers Through the Door and our marketing section to provide ideas to help you bring awareness to your business.

b.) The Market Can Guide You:

Prioritize Customer Preferences: A Valuable Business Strategy

Drawing from extensive business experience, it’s crucial to heed your customers’ preferences. Here’s why:

• Your Vision vs. Market Demand: While you may have a specific product or service in mind, it’s vital to remain receptive to market demands, even if they deviate from your initial plan.
• Recognizing Opportunities: Ignoring persistent market signals can result in missed opportunities for business growth and prosperity.
• Balancing Control: Ultimately, the business is yours to steer. However, when market indicators consistently point in a particular direction, it’s prudent to reconsider and align your services with customer preferences.

By staying attuned to your audience’s needs and being adaptable, you can harness the potential for a thriving illustration business that caters precisely to what the market desires.

c.) Sample Ad Ideas:

• “Capture Attention with Unique Artwork. Contact Us Today.”
• “Transform Concepts into Visual Masterpieces. Explore Our Portfolio!”
• “From Concepts to Creations, We Bring Your Vision to Life.”
• “Discover the Power of Visual Storytelling. Let’s Collaborate!”
• “Visualize Your Message with Impactful Artwork. Get Started Now.”

d.) B2B Ideas

Building partnerships with complementary businesses can be a win-win strategy for your illustration business.

Here are some businesses you could approach for collaboration, along with mutually beneficial arrangements:

Graphic Design Agencies:

• Collaborate with graphic design agencies to offer comprehensive design services. Refer clients to each other based on project needs, ensuring clients receive top-notch design solutions.

Printing Companies:

• Partner with printing companies to provide design services for their clients’ print projects. Offer referral fees for new design clients they send your way.

Web Development Firms:

• Work with web development firms to offer custom graphics and illustrations for website projects. Establish a referral system where you recommend each other’s services to clients.

Marketing Agencies:

• Team up with marketing agencies to enhance their marketing collateral with your illustrations. In return, refer clients seeking marketing services to them.

Publishing Houses:

• Partner with publishers for book cover illustrations and interior artwork. Offer reciprocal referrals for authors in need of publishing services.

Advertising Agencies:

• Collaborate with advertising agencies to create captivating visuals for advertising campaigns. Exchange referrals and enhance campaign effectiveness.

Event Planners:

• Provide event-specific illustrations for event planners, such as invitations and promotional materials. In return, they can recommend your services to clients seeking custom event artwork.

Content Creators:

• Partner with content creators like bloggers and YouTubers to enhance their content with custom visuals. Offer affiliate programs or referral fees for new clients they bring in.

Educational Institutions:

• Collaborate with schools and universities to provide educational illustrations and visuals for textbooks and learning materials. Explore co-branded educational resources and workshops.

Nonprofit Organizations:

• Work with nonprofits to create impactful visuals for their campaigns and materials. Consider offering pro bono work or discounts in exchange for referrals and exposure.

Remember that successful partnerships rely on clear agreements and communication. Define the terms of your collaboration, whether it’s referral fees, reciprocal referrals, or joint marketing efforts.

By forging strong partnerships, you can expand your client base and provide added value to your customers while benefiting your collaborating businesses and their customers.

Points To Consider

Next, let’s review essential points for more tips, insights, and considerations before starting your illustration business.

We will cover sections, including skills to consider, points to focus on, and equipment. Then you’ll reach the “Knowledge Is Power,” section, where you will want to use the resources for valuable information.

Key Points to Succeed in an Illustration Business

Key Points to Succeed during the Setup Phase:

• Thorough Business Plan: Develop a comprehensive business plan that outlines your goals, target market, and financial projections. It serves as a roadmap for your business.
• Legal Compliance: Ensure your business is legally registered, obtain any necessary permits or licenses, and consult with professionals for legal and financial guidance.
• Market Research: Conduct extensive market research to understand your target audience, competition, and pricing strategies. Identify gaps in the market for your services.
• Financial Management: Set up a robust financial system to track expenses, income, and taxes. Create a budget to manage startup costs effectively.
• Professional Branding: Invest in a professional brand identity, including a logo, business cards, and a website. Your branding should convey your expertise and credibility.
• Portfolio Development: Build a strong portfolio showcasing your best work. It’s your visual resume and a crucial tool for attracting clients.
• Networking: Establish connections within the industry, attend relevant events, and engage with potential clients and collaborators. Networking can lead to valuable opportunities.
• Pricing Strategy: Determine competitive yet profitable pricing for your services. Consider your skill level, market demand, and overhead costs.
• Marketing Plan: Develop a marketing strategy that includes online presence, social media, and content marketing. Start building your online presence early.
• Client Contracts: Create clear, comprehensive contracts that outline project details, timelines, fees, and expectations. Contracts protect both you and your clients.

Key Points to Succeed in the Operation Phase:

• Quality Work: Maintain high-quality standards in your illustrations. Consistently deliver work that exceeds client expectations to build a strong reputation.
• Client Communication: Foster clear and open communication with clients. Keep them informed about project progress, changes, and expectations.
• Time Management: Efficiently manage your time and workload. Prioritize tasks, meet deadlines, and avoid overcommitting to ensure client satisfaction.
• Client Relationships: Nurture positive client relationships by being responsive, attentive, and accommodating. Repeat business and referrals often come from satisfied clients.
• Continuous Learning: Stay updated with industry trends and improve your skills. Invest in workshops, courses, and resources to enhance your abilities.
• Financial Sustainability: Keep a close eye on your finances. Ensure you’re earning a profit, manage cash flow , and plan for taxes and business expenses.
• Marketing and Promotion: Continue marketing efforts to attract new clients. Use your portfolio and satisfied clients as marketing tools.
• Adaptability: Be adaptable to changing client needs and industry shifts. Explore new niches or styles to expand your market.
• Professionalism: Maintain professionalism in all interactions, whether with clients or collaborators. Reputation is a valuable asset in the creative industry.
• Diversification: To increase income and stability, consider diversifying your revenue streams by offering related services, such as merchandise, workshops, or digital products.

By focusing on these key points, you can lay a strong foundation during the setup phase and sustain and grow your illustration business successfully during the operation phase.

Ideas to Make an Illustration Business Stand Out:

• Unique Style: Develop a distinctive and recognizable illustration style that sets you apart from competitors. Your unique visual identity can attract clients seeking something fresh and original.
• Specialized Niches: Focus on specific niches or industries where your illustrations can shine. Becoming an expert in a niche allows you to target a dedicated audience.
• Personal Branding: Incorporate your personality and story into your brand. Clients often connect with artists on a personal level, making your business more memorable.
• Interactive Content: Offer interactive illustrations or animations that engage viewers. This adds an interactive dimension to your work, making it more appealing.
• Exceptional Customer Service: Provide exceptional customer service by being responsive, attentive, and accommodating. Building strong client relationships can lead to repeat business and referrals.
• Collaborate with Influencers: Partner with social media influencers or bloggers in your niche to create unique content and gain exposure to their followers.
• Portfolio Diversity: Showcase a diverse portfolio that demonstrates your versatility. Clients appreciate illustrators who can adapt to different styles and projects.
• Storytelling Illustrations: Create illustrations that tell a compelling story. Storytelling through visuals can be a powerful way to connect with an audience.
• Sustainability Focus: Highlight eco-friendly practices in your business, such as using sustainable materials and promoting environmentally conscious themes in your work.
• Community Engagement: Engage with your community through workshops, art events, or charity projects. Being involved in local or online art communities can boost your visibility.

Ideas for Add-Ons for an Illustration Business:

• Print Merchandise: Offer print-on-demand merchandise featuring your illustrations, such as art prints, posters, T-shirts, or stickers. This can expand your revenue streams.
• Digital Products: Create digital products like downloadable illustrations, templates, or coloring books that customers can purchase and use for personal or commercial purposes.
• Commissioned Artwork: Provide custom artwork for clients who want personalized illustrations for various purposes, from book covers to branding materials.
• Workshops and Tutorials: Host online or in-person workshops and tutorials where you teach your illustration techniques to aspiring artists or hobbyists for a fee.
• Subscription Services: Launch a subscription service that delivers exclusive digital illustrations or design assets to subscribers on a regular basis, offering a recurring income source.
• Illustration Licensing: License your illustrations to businesses for use in their marketing materials, products, or publications, generating royalties.
• Collaborative Projects: Partner with other artists or creative professionals on collaborative projects, expanding your creative network and diversifying your portfolio.
• Personalized Portraits: Offer portrait illustration services where clients can request personalized portraits of themselves, family members, or pets.
• Artwork Animation: Add animation to your illustrations, offering clients the option to bring their visuals to life with animated elements or GIFs.
• Graphic Design Services: Expand your services to include graphic design, allowing clients to access a full range of design solutions, from logos to branding materials.
• Print Design: Provide print design services, including designing marketing materials like brochures, flyers , and business cards for businesses and individuals.
• Art Licensing Library: Build a library of licensable artwork that businesses can access for their projects, such as advertising campaigns or product packaging.
• Art Consultation: Offer art consultation services where you advise clients on selecting the right illustrations or artwork for their projects, helping them make informed decisions.
• Art Therapy Workshops: Organize art therapy workshops or sessions that cater to individuals seeking therapeutic benefits from creating art.
• Mentorship Programs: Establish mentorship programs where you guide and mentor emerging artists, sharing your knowledge and expertise.

By incorporating these add-on services and services, you can diversify your revenue streams, cater to a broader range of clients, and enhance the value you provide as an illustration business.

Hours of Operation:

Hours of Operation for an Illustration Business:

• Regular Business Hours: An illustration business typically operates during standard business hours, typically from 9:00 a.m. to 5:00 p.m., Monday through Friday.
• Extended Hours: Depending on client demand and project deadlines, you may extend business hours to accommodate international clients or meet tight project timelines.

Tasks Outside Regular Business Hours:

• Client Meetings: Schedule client meetings or consultations outside regular hours to accommodate clients in different time zones or with busy schedules.
• Project Deadlines: Occasionally, you may need to work beyond regular hours to meet urgent project deadlines or accommodate last-minute client requests.
• Creative Inspiration: Some artists find that their most creative moments occur outside regular hours, so they may choose to work during evenings or weekends.
• Personal Development: Dedicate time outside business hours for personal artistic development, experimenting with new techniques, or creating personal projects.
• Marketing and Admin: Handle marketing efforts, bookkeeping, and administrative tasks during non-client hours to minimize disruptions during active project phases.
• Professional Networking: Attend industry events, webinars, or networking activities, which may take place outside regular business hours.

By adapting your hours of operation and managing tasks effectively, you can balance the demands of running an illustration business while ensuring client satisfaction and personal development.

Equipment and Supplies

A List of Equipment and Supplies to Consider for an Illustration Business:

Equipment for an Illustration Business:

• Computer: A high-performance computer or laptop with graphic design software is essential for creating digital illustrations.
• Graphics Tablet: Invest in a graphics tablet or pen display for precise and natural drawing, making digital art creation more intuitive.
• Monitor: A high-resolution color-accurate monitor ensures that your digital illustrations display accurately.
• Graphics Software: Acquire industry-standard illustration and design software such as Adobe Illustrator, CorelDRAW, or Procreate for digital artwork creation.
• Scanner: A high-quality scanner allows you to digitize hand-drawn illustrations and artwork.
• Printer: A color printer is useful for proofing and producing physical copies of your artwork.
• Drawing Tools: Stock up on traditional drawing materials like pencils, sketchbooks, erasers, and ink for hand-drawn illustrations.
• Studio Lighting: Proper lighting setup ensures accurate color representation in your work and reduces eye strain.
• Storage Devices: Invest in external hard drives or cloud storage for backing up and organizing your digital files.
• Furniture: Comfortable seating, a spacious desk, and ergonomic accessories like an adjustable chair and monitor stand enhance your workspace.
• Reference Materials: Collect reference books, magazines, and art resources for inspiration and research.
• Camera: A digital camera for capturing reference photos or documenting your artwork.
• Calibration Tools: Use color calibration tools to maintain color accuracy on your monitor.
• Drawing Accessories: Acquire additional drawing aids such as rulers, compasses, and stencils for precision work.
• Custom Merchandise Equipment: If you plan to sell merchandise like prints or apparel, consider equipment for printing, packaging, and shipping.
• Easel: An easel is helpful for working on larger canvases or traditional painting.
• Art Storage: Organize and protect your physical artwork with portfolios, sleeves, and archival storage materials.
• Art Supplies: Maintain a well-stocked inventory of paints, brushes, inks, and other traditional art supplies.
• Tablet Stand: A stand for your graphics tablet or display can improve ergonomics during long work sessions.
• Cintiq or iPad Pro: Advanced illustrators may invest in a Cintiq or iPad Pro for a more interactive drawing experience.
• Color Picker: A color picker tool can help you select and reproduce accurate colors.
• Digital Camera: For capturing textures, references, and real-life elements for incorporation into digital illustrations.
• Photography Equipment: Professional lighting, tripods, and backdrops for photographing artwork.
• 3D Software and Tools: If your work involves 3D modeling, invest in the necessary software and hardware.
• Comfort Items: Ergonomic accessories like wrist rests, anti-fatigue mats, and adjustable monitor arms for comfort during long working hours.
• Print Proofing Equipment: Tools for ensuring print accuracy and quality, such as color calibration devices and print proofers.
• Document Scanner: A document scanner for archiving and organizing paperwork and important documents.
• Online Subscription Services: Subscriptions to online design resources, stock image libraries, or design asset platforms.
• Client Presentation Equipment: A projector or large monitor for client presentations and critiques.
• Art Display Equipment: If you participate in art exhibitions, consider display materials like easels, stands, and signage.

Remember that the specific equipment you need may vary depending on your illustration style, medium, and client requirements.

Additionally, regularly upgrade your equipment to ensure optimal illustration performance and quality.

Focusing on your skill set is vital for running an illustration business.

Assessing whether you possess the necessary skills identifies areas for improvement.

If you lack a crucial skill, options include learning it or hiring someone with that expertise.

Essential Skills for an Illustration Business Owner:

• Artistic and creative abilities.
• Business management and planning.
• Financial literacy and budgeting.
• Marketing and promotional skills.
• Customer service and communication.
• Time management and organization.
• Technology proficiency, including illustration software.
• Networking and relationship building.

Considering the Future of Your Illustration Business:

Considering a future vision for your illustration business is crucial.

While the future may differ significantly from today’s landscape, envisioning potential developments aids in making informed decisions.

This forward-thinking approach ensures your business progresses in the right direction, aligning with long-term goals and adapting to evolving market dynamics.

A clear vision is a guiding beacon, facilitating strategic planning and decision-making to achieve desired outcomes.

Find an Illustration Business For Sale

Buying an existing illustration business offers distinct advantages and drawbacks compared to starting anew.

• Immediate revenue upon takeover.
• Avoidance of the startup phase.
• Established operational success.
• Known revenue, profit, and expenses.
• Pre-existing customer base.
• Existing business reputation.

Disadvantages:

• Higher cost due to goodwill, including purchasing the customer base.
• Potential customer loss if significant changes are made.
• Inheriting both positive and negative aspects of the business’s reputation.

Exploring available illustration businesses for sale, even if not an exact match, is worthwhile to understand the landscape in the industry.

The latest search results for an illustration business for sale and others in the same category.

Franchise Opportunities Related to an Illustration Business

Exploring an illustration franchise before starting your business is advisable, as it offers advantages and limitations.

• Proven business model from the corporate office.
• Benefit from established reputation and marketing.
• Prior knowledge about the business.
• Support from the corporate office.
• Restrictions on making significant changes without corporate approval.
• Limitations on dealing with unapproved products or services.
• Operational constraints based on the agreement.
• Continuous franchise fees.

While a direct match for an illustration business franchise may not exist, researching franchises in the same industry can reveal relevant opportunities.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Harnessing industry knowledge is crucial during startup and full operation, with the following sections providing valuable information for effective application.

Trends and Statistics

Analyzing industry trends and statistics benefits illustration businesses by informing strategic decisions and identifying market opportunities.

See the latest search results for trends and statistics related to the illustration industry.

Illustration Associations

Trade associations provide benefits like staying updated with industry news and accessing networking opportunities.

See the search results related to illustration associations and the benefits of Joining the Chamber of Commerce.

The Top Illustration Businesses

Studying established illustration businesses can inspire ideas, reveal industry gaps that can be exploited for competitive advantage, or highlight overlooked services that others provide.

See the latest search results for the top illustration businesses.

The Future of the Illustration

Researching the industry’s future equips those starting an illustration business with insights for strategic planning and adapting to upcoming trends.

See the search results for the future of illustration.

Customer Expectations

Analyzing search results on customer expectations in illustration designs offers insights into their perspectives, helping to meet and exceed these expectations and uncover unconsidered aspects.

See the search results related to customer expectations for illustration designs.

Expert Tips

Experts seeking tips might discover more straightforward methods or new perspectives, while novices gain essential skills and knowledge.

See the latest search results for illustrations to gain tips and insights.

Illustration Publications

Publications serve as a source for tips and insights about illustration, providing valuable information.

See the search results for illustration publications.

Illustration Forums

Participating in illustration forums builds industry relationships and offers insights into customer perspectives, helping you better understand your customers.

See the latest search results related to illustration forums.

Courses, whether online or at local institutions, are practical for enhancing skills and knowledge, benefiting your illustration business.

See the latest courses that could benefit an illustration business owner . Also, see our management articles for tips and insights for managing your business.

Illustration Blogs

Subscribing to leading illustration design blogs and then filtering out non-updated or less valuable ones results in a curated collection for continuous industry insights.

Look at the latest search results for top illustration design blogs to follow.

Service-Based Business Tips

Exploring tips and insights for the service sector enhances the management and operation of illustration businesses, fostering long-term sustainability and success.

Look at the latest search results for Service tips and insights to follow.

Illustration News

The news provides a valuable source for staying informed about media-covered stories in illustration.

See the latest results for illustration news.

YouTube is a useful resource for learning about illustration design, with related videos offering new perspectives and information.

YouTube videos related to illustration design.

Privacy Overview

How to Sell Art Online | Online Marketing for Artists

Helping artists sell their art online since 2009. Blog, guides, courses, and coaching for artists.

Business Plans for Artists: Here, I Did It for You!

Also, check out Jennifer’s book!

You’ll want to see her Right Brain Business Plan home study course .*

Not Ready for A Full Right Brain Business Plan?

Here’s a simple 4 page example plan that will help you get started.

Example Business Plan for Artists (pdf)

Example Business Plan for Artists (Word doc)

The first thing I ask every artist when we start working together is if they have a business plan . Most of the time the answer is no. Why do you need a business plan, you ask? Great question.

You will become focused. As you start planning, that shotgun approach to marketing that most artists take will start to thin itself out and you will learn how to put a system in place. Also, establishing your unique selling proposition is really important. Sure, you’re a painter, but what makes you stand out from all of those other painters out there? There’s a lot more to being an independent artist than just creating your art.

You’ll know where you stand. Your strengths and weaknesses will become apparent to you as you start to create a business plan. What aspects of your art do you excel at? What do you tend to put off because you don’t know how to finish ? Once you know where you stand, you’ll know what your weaknesses are, and this is really important. Most artists have no idea that they’re not good at accounting, or they don’t want to admit it so they run around in circles. A business plan will help you eliminate this.

You’ll know how to get where you want to be. Once you write down a business plan, it’s easy to refer back to it often to get re-focused on your goals. Carefully analyzing what you really want out of your art business is a good way to stop doing what is getting in your way.

You’ll know what other artists are doing. Do you want a competitive advantage? Are you afraid of really pushing your business because you don’t know what will make you different and make people want to purchase your art?

Does 4 pages feel like too much?

Get started with our beginner’s one-page business plan and work your way up.

This post has been updated since its 2009 original publish date.

*affiliate link

November 20, 2009 at 11:46 AM

This is fantastic! Many thanks!

November 21, 2009 at 9:45 AM

You’re welcome!

November 22, 2009 at 5:32 AM

This is a really great resource that I’ll have to share with my readers. It’s always wonderful to find other people putting in the hard work and dedication that goes into doing what you do. .-= Damien Franco´s last blog ..Photographer’s Intro to Twitter =-.

May 19, 2010 at 3:26 PM

This is great. Thank you for doing this. It’s really something I’ve always known I needed to do. I will definitely do it now.

April 27, 2011 at 8:21 AM

Do you have a business plan for dummies and beginners? This is kind of advanced. I have nothing but 5 good paintings right now.

This is my first time coming to this website. I was very confused by the business plan. Who is “I”? As in, “I help artists dispel the starving artist myth”? It took me 15 mins to finally understand who “I” is, and who Cory and John Smith is.

January 7, 2016 at 12:24 PM

I agree, this business plan is completely confusing and way too advanced and overwhelming. I really want to like it, but after reading it a few times, I’m still lost.

October 27, 2011 at 11:10 PM

Creating a business plan was one of the smartest things I ever did. I wrote down all the ideas that had been spinning around in my head but had never been inserted into my business as a whole. Just the process of writing everything down becomes a way to clear your head and see the way forward. It’s great to see an honest, physical example of a business plan – thanks Cory!

March 11, 2012 at 4:25 PM

Wow!  I’m so glad I stumbled onto this!  Just what I needed!

June 4, 2012 at 6:16 AM

Thanks for posting the examples.  I didn’t realize that I already had lists covering most of the sections.  This really helped me put everything together in one place.  Now as I get new ideas, I have one document that I can go to.  I can quickly jot it down and properly categorize the idea right away knowing that I will have it on hand for when I have time to review the bigger picture over time.  Thanks again!

June 4, 2012 at 8:01 AM

 @figmentations Glad it helped!

January 13, 2013 at 2:57 PM

Thanks Cory. A Breath of Fresh Air!!! For the first time at last…with drudgery behind me, I can now pursue my business plan in JOY!!! In full celebration of all right brainers…here’s to your unlimited success:-)

February 23, 2013 at 11:43 AM

Hi Cory & Jennifer, I totally agree with having a business plan, writing down all the ideas & growth you have in mind for your business.

July 1, 2013 at 5:20 AM

thanks for everything. i like this site so much…

August 19, 2013 at 7:55 AM

Thank you this was very helpful 🙂

December 17, 2013 at 8:32 PM

Thank you for sharing this information, it can be difficult finding business resources for the artist/entrepreneur.

December 20, 2013 at 12:43 PM

Just need help starting a creative business. CB

September 25, 2015 at 3:07 PM

hello jennifar, i a cross this because am a starting artist. gama arts in Rwanda but i realy want a bussiness plan because i know success business needs a plan. thank you.

February 26, 2016 at 4:12 PM

I’m looking forward to doing the seminar on how to sell your artwork online. I am not computer literate, so this is going to require some intensive learning on my part. I am retired and can finally dedicate my time to doing the thing that I love the most, painting watercolor illustrations. I know nothing about blogging, or setting up my own web site. I hope this is the kind of information I can access from your seminar.

Thank you for showing me my first step toward creating a business out of my artwork…

May 16, 2016 at 4:35 PM

Thanks Cory and Jennifer, for sharing this information, it’s always good to know more about how I can do more on my art business.

November 25, 2017 at 3:06 PM

It helps me a lot to have specific, measurable goals. I’m just starting to turn art into a business for myself, so I’m trying out a few different things to see what works for me, but concrete numbers and plans and dates really help.

I’ve put together a list of business books for artists: http://jacquelineboss.com/2017/11/25/10-art-business-books-learn-how-to-sell-your-art/

January 22, 2018 at 12:01 PM

I had no idea how to get this started. This is super super helpful! Thank you!

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Illustration Business Plan Template

Written by Dave Lavinsky

If you’re looking to create an illustration business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful illustration businesses. Below is an example of a business plan for a illustration business.

Illustration Business Plan Example

Below is our illustration business plan template and sample plan created using our ai business plan generator :  

I. Executive Summary

Company overview.

Welcome to ArtfulVisions Illustration Studio, a groundbreaking illustration studio based in Appleton, WI. We are the first of our kind in the local art scene, offering a unique blend of services tailored to meet the diverse needs of our community. Our mission is to transform your visual concepts into reality with a personal touch and unmatched creativity. From custom illustrations to digital illustration and illustrated branding, we are dedicated to quality and creativity. Our position in Appleton, WI, not only allows us to serve the local and regional market effectively but also to be an integral part of the community’s artistic and economic development.

Success Factors

Our studio’s success is built on a foundation laid by our founder’s previous achievements in the illustration industry, combined with our cutting-edge digital illustration capabilities and a wide range of custom illustration services. Since our launch on January 7, 2024, as a Sole Proprietorship, we’ve made significant strides, including the development of our distinct logo, company name, and securing an ideal location for our studio. These achievements mark the beginning of our journey towards becoming a pivotal part of Appleton’s creative landscape.

Industry Analysis

The Illustration industry in the U.S. is flourishing, currently valued at approximately $3.5 billion with an expected annual growth rate of 4% over the next five years. This growth is driven by the rising demand for visual content across advertising, publishing, and digital media. Trends towards digital platforms and personalized, custom illustrations play to our strengths at ArtfulVisions, allowing us to offer high-quality, unique digital illustrations and custom services that cater to the evolving needs of businesses and consumers in Appleton, WI.

Customer Analysis

Our studio focuses on Appleton, WI residents seeking custom illustrations for personal enjoyment or home decor, and local businesses desiring unique branding elements. We also cater to authors and publishers in need of bespoke illustrations for their publications. By addressing the specific desires for unique, personalized art and branding, we position ourselves to meet the growing demand for custom illustrations that reflect individuality and creativity.

Competitive Analysis

Our main competitors include Allegra, Coalesce Marketing & Design, and Edison Collective, each offering a mix of marketing, design, and creative services. However, ArtfulVisions Illustration Studio sets itself apart through our superior digital illustration services and commitment to custom, personalized illustrations. Our focus on these areas, combined with the latest technology and a deep understanding of our client’s vision, gives us a significant competitive advantage in the vibrant Appleton art scene.

Marketing Plan

At ArtfulVisions Illustration Studio, we specialize in a wide array of services, from custom illustrations to digital illustration and illustrated branding materials, priced to accommodate the complexity and customization level required by our clients. Our promotional strategy integrates both traditional and digital marketing efforts, including social media engagement, community events participation, and targeted advertising. We aim to build a strong online presence, foster community connections, and ensure customer satisfaction to attract and retain a loyal client base in Appleton, WI, and beyond.

Operations Plan

To guarantee the smooth running of ArtfulVisions Illustration Studio, our day-to-day operations include diligent client communication, daily team briefings, project timeline reviews, and regular updates to our website and social media channels. We ensure quality control, manage financials, and continuously engage in market research and team development. Our immediate goals include establishing a strong brand identity, securing initial client projects, and achieving operational profitability, with a long-term aim of reaching $15,000/month in revenue and expanding our service offerings based on market demand.

Management Team

Under the guidance of Oliver Torres, CEO, ArtfulVisions Illustration Studio boasts a leadership team with a proven track record in the illustration industry. Torres’s extensive experience and innovative approach are instrumental in driving our studio towards success. His strategic vision and commitment to fostering a culture of innovation and excellence ensure that ArtfulVisions is well-positioned for sustainable growth and achievement in the competitive art market.

Financial Plan

To reach our growth objectives, ArtfulVisions Illustration Studio requires $92,500 in funding. This investment will be allocated to capital investments such as location buildout and equipment, as well as operational expenses including staff salaries, marketing, and initial working capital. These financial resources will enable us to establish a solid foundation, secure the necessary tools and talent, and effectively market our studio to attract and retain clients.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

ArtfulVisions Illustration Studio is a pioneering Illustration studio dedicated to serving the vibrant community of Appleton, WI. As a fresh face in the local art scene, we stand out as the first high-quality illustration business dedicated to meeting the unique needs of this area. Our mission is to bring your visual ideas to life with a personal touch and unparalleled creativity.

At ArtfulVisions, we pride ourselves on offering a wide range of services tailored to our clients’ diverse needs. Our offerings include custom illustrations, character design, storyboarding, digital illustration, and illustrated branding and marketing materials. Each service is crafted with the utmost care and precision, ensuring that every project we undertake is as unique as the clients we serve. Our commitment to quality and creativity sets us apart and makes us the go-to studio for all your illustration needs.

Based right here in Appleton, WI, ArtfulVisions Illustration Studio is strategically located to cater to both local and regional clients. Our deep understanding of the local market, combined with our global perspective on art and design, allows us to deliver services that are both relevant and internationally competitive. We are not just another business in Appleton; we are a part of the community, committed to contributing to its artistic and economic growth.

Our studio’s potential for success is rooted in several key factors. Firstly, our founder brings invaluable experience from running a successful illustration business, ensuring we have a solid foundation and a clear direction. Moreover, our competitive edge lies in our superior digital illustration capabilities and our expansive array of custom illustrations, setting us leagues ahead of the competition. These strengths, combined with our passion for art and design, position ArtfulVisions Illustration Studio as a leader in the industry.

Since our inception on January 7, 2024, ArtfulVisions Illustration Studio has been a Sole Proprietorship. We’ve hit the ground running, achieving several milestones in a short period. Our achievements include designing our distinctive logo, developing our unique company name, and securing an ideal location for our studio. These accomplishments are just the beginning of our journey to becoming a cornerstone of the Appleton creative community.

III. Industry Analysis

The Illustration industry in the United States is a thriving sector that continues to grow year over year. Currently, the market size is estimated to be around $3.5 billion, with a projected annual growth rate of 4% over the next five years. This growth can be attributed to the increasing demand for visual content in various industries such as advertising, publishing, and digital media.

One trend that is driving the growth of the Illustration industry is the shift towards digital platforms and online marketing. With the rise of social media and e-commerce, businesses are looking for unique and eye-catching illustrations to help their products stand out. This trend bodes well for ArtfulVisions Illustration Studio, as they can offer high-quality digital illustrations that cater to the needs of these businesses in Appleton, WI.

Another trend in the Illustration industry is the focus on personalized and custom illustrations. Consumers are increasingly looking for one-of-a-kind illustrations that reflect their individuality and personality. This presents a great opportunity for ArtfulVisions Illustration Studio to showcase their creativity and offer unique illustrations that resonate with their customers in Appleton, WI. By tapping into this trend, the studio can differentiate itself in the market and attract a loyal customer base.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target local residents in Appleton, WI, who have a keen interest in custom illustrations for personal or home decor use. This demographic appreciates unique, artistic expressions and values the personal touch that our illustrations provide. By focusing on this group, we will tailor our marketing and product offerings to meet their specific desires for art that resonates on a personal level.

Beyond individual consumers, we will also serve local businesses seeking to enhance their branding with custom illustrations. These could include cafes, bookstores, and boutique shops looking to create a distinctive aesthetic appeal in their physical or digital spaces. Our services will offer them the opportunity to stand out in the competitive market by incorporating unique art that reflects their brand identity.

Additionally, we will target authors and publishers in the area who require illustrations for their publications. Whether it’s for children’s books, graphic novels, or promotional materials, our studio will provide bespoke illustrations that bring stories to life. This segment values creativity and originality, which aligns perfectly with our expertise and capabilities.

Customer Needs

ArtfulVisions Illustration Studio caters to the unique and evolving needs of its customers by providing high-quality custom illustrations. Residents and businesses in the area can now access personalized artwork that not only meets their aesthetic preferences but also enhances their spaces. This service particularly appeals to those who value creativity and wish to incorporate distinctive visual elements into their personal or business environments.

In addition to custom illustrations, ArtfulVisions extends its services to include illustrated branding and marketing materials. Clients can expect to receive bespoke designs that effectively communicate their brand identity and message. This is especially beneficial for businesses looking to stand out in a competitive market through visually compelling and memorable marketing strategies.

Furthermore, ArtfulVisions recognizes the importance of digital presence in today’s market. Therefore, it offers digital illustration services tailored for online platforms. This enables clients to maintain a consistent and engaging visual identity across various digital channels, meeting the needs of businesses aiming to capture and retain the attention of their online audience.

V. Competitive Analysis

Direct competitors.

ArtfulVisions Illustration Studio’s competitors include the following companies:

Allegra  Allegra offers a wide range of services that includes marketing solutions, print services, mailing services, and promotional products. Their price points vary significantly depending on the scope and scale of the project, catering to both small and large businesses. Allegra generates revenue by providing customized marketing and print solutions designed to meet the specific needs of each client. Located in several locations across the United States, Allegra serves a broad customer segment, including corporate clients, small businesses, and nonprofit organizations. The company’s key strengths lie in its comprehensive suite of services and its nationwide presence, which allows it to serve customers across various geographies. However, its broad focus might dilute its expertise in specific areas such as illustration, which may be viewed as a weakness against niche competitors.

Coalesce Marketing & Design  Coalesce Marketing & Design specializes in marketing strategy, branding, digital marketing, and graphic design services. This company positions itself in the mid to high price range, reflecting its focus on delivering high-quality, customized solutions. Coalesce Marketing & Design’s revenue comes from a diverse portfolio of clients, ranging from startups to established businesses across various industries. The company operates primarily in the Midwest but has the capability to serve clients nationwide through digital means. Coalesce Marketing & Design’s key strength lies in its integrated approach to marketing and design, which ensures consistency and effectiveness in brand messaging. However, its focus on a broader spectrum of marketing services might not cater as specifically to clients looking solely for illustration services.

Edison Collective  Edison Collective is a creative agency that provides services including branding, digital experience, and content creation. Their pricing strategy is tailored to the project’s complexity and the client’s needs, often positioned at a premium to reflect the bespoke nature of their work. The company’s revenue stems from its ability to offer unique and innovative solutions to its clients, which include both startups and established businesses looking for high-end creative services. Edison Collective is based in a single location but serves clients nationally, leveraging digital communication to work with companies outside its immediate geographic area. A key strength of Edison Collective is its focus on creativity and innovation, particularly in digital experiences and content creation. However, this specialization might limit its appeal to clients specifically seeking traditional illustration services.

Competitive Advantages

At ArtfulVisions Illustration Studio, we pride ourselves on delivering superior digital illustration services that set us apart from our competitors. Our commitment to excellence is evident in the intricate details, vibrant colors, and innovative designs that define our work. We understand that in the realm of digital art, quality and creativity are paramount. This is why we continuously invest in the latest technology and training for our artists. By doing so, we ensure that our digital illustrations are not only better than those of our competition but also uniquely tailored to meet the specific needs and visions of our clients.

Moreover, our studio stands out through our extensive offering of custom illustrations. We recognize that each client has a unique story to tell and a distinct vision to bring to life. This understanding drives our approach to offering personalized services that go beyond the standard offerings in the market. Whether it’s for branding, personal projects, or commercial use, our team works closely with clients to transform their ideas into captivating illustrations that speak volumes. This level of customization and personal attention to detail not only enhances the client experience but also solidifies our competitive edge in the industry. Our ability to create bespoke illustrations that resonate with our clients’ objectives and expectations is what truly sets us apart in the vibrant city of Appleton and beyond.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

ArtfulVisions Illustration Studio specializes in a broad range of creative services designed to cater to various needs, from individual artistic projects to comprehensive business branding solutions. With a focus on high-quality, custom illustrations, the studio aims to bring clients’ visions to life through a diverse palette of artistic services.

At the core of its offerings, Custom Illustrations stand out for their unique ability to capture and convey personal or project-specific visions. Clients can expect to invest an average of $200 to $500 for these tailor-made creations, depending on the complexity and detail required in the artwork. This service is perfect for those looking to commission artwork for personal use, gifts, or specific project needs.

For clients in the realm of gaming, animation, or literature, Character Design is a crucial service. ArtfulVisions offers character creation that brings narratives to life with vivid detail and personality. The pricing for this service ranges from $150 to $400 per character, reflecting the intricacy of the design and the level of customization requested by the client.

Storyboarding is another pivotal service offered, catering especially to filmmakers, advertisers, and digital content creators. It plays a vital role in pre-visualizing scenes and sequences. The studio prices its storyboarding services from $500 to $1,000, depending on the length and detail of the storyboard required.

Digital Illustration is a versatile service that ArtfulVisions provides, utilizing cutting-edge tools and software to create stunning visuals for a variety of applications. Clients can expect to pay between $100 and $300 for digital illustrations, with prices varying based on the project’s scope and detail level.

Last but certainly not least, Illustrated Branding and Marketing Materials are essential for businesses looking to stand out with visually compelling logos, brochures, business cards, and more. This service is priced on a project basis, with costs typically ranging from $250 to $2,000. The investment reflects the comprehensive approach taken to develop cohesive and impactful branding that resonates with the target audience.

ArtfulVisions Illustration Studio is dedicated to providing exceptional artistic services that meet the diverse needs of its clients. With a commitment to quality and creativity, the studio ensures that every project is a masterpiece that exceeds expectations.

Promotions Plan

At ArtfulVisions Illustration Studio, we understand the importance of a robust promotional strategy to attract customers and build a loyal client base. Our approach encompasses a blend of traditional and digital marketing techniques to ensure we reach our target audience effectively.

Online marketing plays a crucial role in our promotional tactics. We leverage social media platforms such as Instagram, Facebook, and Pinterest to showcase our portfolio. By sharing our latest works, behind-the-scenes processes, and client testimonials, we engage with our audience and attract potential customers. Additionally, our website serves as a central hub for our digital presence, optimized for search engines to improve visibility. Email marketing campaigns will keep our subscribers informed about new offerings, discounts, and studio updates, encouraging repeat business and word-of-mouth referrals.

Beyond online marketing, we engage in community events and art fairs within Appleton, WI, to increase local awareness. Participating in these events allows us to connect directly with our community, display our work in a tangible format, and network with other businesses. Collaboration with local businesses and artists for joint promotions and cross-marketing efforts will also amplify our reach and introduce our studio to diverse audiences.

To further ensure our visibility, we will invest in targeted advertising in local print media and online platforms frequented by our target demographic. Engaging content, such as tutorials, artist interviews, and insights into the illustration industry, will be regularly published on our blog and shared across our social media channels. This strategy not only positions us as experts in our field but also helps in building a community around our brand.

Lastly, customer satisfaction will play a key role in our promotional efforts. Exceptional service and high-quality illustrations will encourage positive reviews and testimonials, which we will proudly feature on all our platforms. Referral programs will reward our loyal customers for spreading the word about our studio, creating a network of advocates for our brand.

At ArtfulVisions Illustration Studio, we are committed to implementing a comprehensive promotional strategy that not only attracts customers but also builds lasting relationships with them. Through a combination of online marketing, community engagement, targeted advertising, content creation, and a focus on customer satisfaction, we are poised to make a significant impact in the Appleton, WI area and beyond.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of ArtfulVisions Illustration Studio, there are several key day-to-day operational processes that we will perform.

• Monitor and manage client communications promptly – This includes responding to emails, phone calls, and social media inquiries to ensure customer satisfaction and engagement.
• Conduct daily team briefings – These meetings can help align the team on the day’s objectives, discuss ongoing projects, and address any issues that might arise.
• Review and update project timelines – Regular checks ensure that all projects are on track and deadlines are met, adjusting timelines as necessary to accommodate changes or delays.
• Manage and update the website and social media profiles – Regular content updates and interactions with followers can boost the studio’s visibility and attract new customers.
• Process orders and commissions – This includes recording new orders, updating clients on the status of their projects, and ensuring that all details are correctly logged and understood.
• Perform quality checks on all illustrations before delivery – Ensuring that each piece meets the studio’s quality standards before it is delivered to the client.
• Handle invoicing and payments – Generate invoices for completed projects, track payments, and manage financial records to ensure accurate accounting.
• Order and manage supplies – Keep track of the inventory of art supplies and reorder as necessary to ensure that the studio always has what it needs to operate smoothly.
• Conduct market research – Stay informed about industry trends, new tools and technologies, and competitor activities to ensure the studio remains competitive and innovative.
• Engage in continuous learning and development – Encourage and facilitate opportunities for the team to learn new skills, techniques, and tools that can enhance the studio’s offerings.
• Collect client feedback – After project completion, gather feedback to understand the client’s experience, which can inform improvements in service and customer satisfaction.

ArtfulVisions Illustration Studio expects to complete the following milestones in the coming months in order to ensure its success:

• Launch Our Illustration Business:  Establish a legal entity, secure a workspace (whether it’s a home office or a rented studio space in Appleton, WI), set up a business bank account, and launch our official website and social media profiles to mark the official start of our operations.
• Develop a Strong Brand Identity:  Create a compelling brand identity, including a logo, business cards, and a portfolio of our work. This will help in making our studio recognizable and will establish a visual style that appeals to our target market.
• Build a Comprehensive Online Presence:  Develop a professional website with a portfolio section, contact information, and client testimonials. Additionally, establish active social media profiles on platforms relevant to our target audience (e.g., Instagram, Pinterest) to showcase our work and engage with potential customers.
• Network and Partnership Development:  Attend local art shows, business events, and join Appleton-area small business groups to network with potential clients and partners. Building relationships with local businesses, art galleries, and educational institutions can lead to referrals and partnerships.
• Secure First Client Projects:  Achieve the milestone of signing contracts for our first client projects. This will validate our business model and start generating revenue. It’s important to deliver exceptional work to encourage word-of-mouth referrals.
• Implement an Efficient Project Management System:  Set up project management and invoicing software to streamline our workflow and financial tracking. This system will help manage deadlines, client communications, and payments efficiently, reducing the risk of project overruns and client dissatisfaction.
• Achieve Operational Profitability:  Focus on reaching operational profitability by controlling costs and gradually increasing prices as our portfolio and reputation grow. This involves closely monitoring expenses, optimizing our workflow, and delivering projects on time and within budget.
• Get to $15,000/Month in Revenue:  This is a critical financial milestone that will indicate that our business model is sustainable. Achieving this level of monthly revenue will require a steady increase in client projects, possibly expanding into new markets or offering new services that complement our core illustration offerings.
• Establish a Recurring Customer Base:  Develop a strategy for repeat business, such as offering discounts to repeat customers or launching a referral program. Having a base of loyal customers will provide a more predictable revenue stream and help stabilize the business financially.
• Expand Service Offerings:  Based on customer feedback and market demand, consider expanding our service offerings. This could include digital illustrations, animation, or other creative services that leverage our existing skills and client base. Expansion should only be pursued once we’ve achieved a stable client base and have the operational capacity to support new services without compromising quality.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

ArtfulVisions Illustration Studio management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Oliver Torres, CEO

Oliver Torres brings a wealth of experience to ArtfulVisions Illustration Studio, having previously established and successfully managed an illustration business. This background has endowed him with a deep understanding of the creative industry’s nuances, from operational challenges to market trends. His leadership is not just rooted in experience but in a proven track record of success, demonstrating his capability to navigate the complexities of the illustration world. Torres’s strategic vision and entrepreneurial spirit are pivotal in steering ArtfulVisions towards achieving lasting success, by fostering a culture of innovation, excellence, and resilience within the team.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, ArtfulVisions Illustration Studio needs $92,500 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is an illustration businessplan.

An illustration business plan is a document that outlines the strategies you have developed to start and/or grow your illustration. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your illustration business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Illustration Business

A business plan is required if you are seeking funding for your illustration. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, an illustration business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

The Informed Illustrator

Information on Illustration Ideation, Execution, & Publication from an Illustrator's Perspective.

Tuesday, April 23, 2013

Illustration business planning, do you need a business plan, the strategic plan objective, the start-up plan objective, illustration business plan outline, 1. overview, 2. objectives, 3. mission statement, 4. key advantages, 5. company synopsis, 6. illustration pricing structure, 7. marketing strategy, 8. finances, 2 comments:.

Hi there.. Just wanted to tell you how important it wasfor me to stumble with this page reading. I dont know if this system posts the time, but its 4.24 am, and I'm having tunnel vision trying to do the planning for an illustrating life. but thanks for the info,

I appreciate you comment. Best, Don

Note: Only a member of this blog may post a comment.

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How to Write a Business Plan for an Artist’s Business

7 min. read

Updated January 24, 2024

Free Download:  Sample Arts and Crafts Business Plan Templates

“But how can I write a business plan? I’m an artist.”

He was one of my favorite students in the class I used to teach on starting a business. He had a delightful way of challenging assumptions, occasionally on the basis that art, by its very nature, was above—or perhaps immune—to cash flow. As a student, he was engaged, intelligent, and eager to learn; so yes, he was one of my favorites.

“What, you aren’t going to sell paintings?” I responded. “You don’t plan to pay your rent and other expenses? You don’t care if checks bounce?”

How you make money is at the heart of an artist’s business plan

He agreed, somewhat begrudgingly, that maybe an artist wanted to survive in the world like anybody else.

On reflection, he decided that he liked the idea of making a living without abandoning his art. In the end, he saw himself in a condition similar to the professional, like a bookkeeper or consultant, faced with the idea of doing what he loved, in conjunction with a plan.

In this case, being an artist meant creating paintings to be hung on walls. But “artist” can mean a broad range of related things, from fine art and (ugh, so crass) commercial art, to design, writing, acting, stand-up comedy, and even live art. I’m in favor of whatever works for you and in awe of people who actually manage to combine talent, passion, and hard word to make that work for them as a way of life. Hats off.

So how do you make a business plan and use it to optimize the business side of your art? Here are some suggestions.

The big idea—making money

The first big hurdle for the artist business plan is what they call the business model, or, if you don’t like the trendy buzzword, how you make money.

If you’re a performer, I assume it’s about gigs, managers, and that stuff. Or, it’s about selling your paintings, sculptures, or photographs. Maybe you’re okay with being the starving artist, but if not, it’s “show me the money.” Don’t discount the obvious—take a look at the results of a quick web search, in the illustration here, for  “where to sell my paintings.”

Don’t completely discount the related businesses. Writers teach literature, painters teach fine arts. There are galleries. There are websites buying, selling, and collecting art. You can be as creative with the business model as you are with your art. Stand-up comedy is a tough career, I hear, but there are people getting around the gatekeepers using YouTube and downloads.

One of my personal favorite artist-with-a-plan stories is the story of  Paul Anthony and Rumblefish.  He was a talented musician—a drummer who built a business around selling music rights for films and ads. He started from his dorm room at the University of Oregon in 1996; he sold his company, Rumblefish.com, for $27 million in 2015.

Eventually, you settle in on how you hope to make money. Talk to people about it, search the web, sample websites, ads, displays, prices—get as much how-to information as you can and settle in on what you’re going to try.

That is the heart of your artist business plan: how you make money.

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• Strategy and tactics

Strategy is focus. It’s as much about what you don’t do as what you do. Figure out where you are going to concentrate your business efforts. It could be as simple as what kind of work you sell, to whom, through what channels. Or it might be what kind of performance, and how you reach the gatekeepers. Think about what makes you different, who will buy from you, and what you sell to them.

With strategy set, you need tactics to execute. Tactics are decisions you make about pricing, channels, websites, social media, managers, agents, stores, overhead, allies, and so forth. Make sure your tactics match your strategy.

For more on strategy and tactics, check out  Strategy Is Useless without Execution  and  Strategic Plan for Your Business,  also here on Bplans. If you’re a  LivePlan  user, determining your strategy and tactics can be as simple and direct as filling out the pitch page in LivePlan, which defines market, strategy, tactics, and so forth. If not, strategy and tactics can be as easy as a few bullet points you set down and keep track of. You don’t have to include long eloquent texts to make a business plan for yourself. Just include what you need, and will use.

• Milestones and metrics

Think through some manageable and measurable milestones—goals—you’re going to meet along the way. It might be your first gig; your first painting sold; your first painting available through some website; your first YouTube video posted, or the 100th; or maybe reaching 500 likes or 1,000 followers; or getting on the Jimmy Fallon show. Try to spell it out, though, so you can aim for it and work toward it.

The metrics help you track progress. Units sold, gigs, unique visitors, conversion rates, viewers, likes, follows—avoid having a plan full of generalities only. Keep it concrete and specific so you can use it to guide yourself and optimize your business.

For more on that, read  Milestones Make Your Business Plan a Real Plan.  For a personal view of metrics, with some suggestions, read my post on my blog here at Bplans:  Magic of Metrics, Tyranny of Metrics.

• Essential business numbers

Although a lot of people fear forecasts, don’t. It’s easier to do essential forecasts than to run a business without them. A simple sales forecast can be extremely helpful for your business later, as you track actual results, compare them to the forecast, and analyze the difference. What went right? What went wrong? Where were you off? If you don’t lay out a  forecast  first, you lose the opportunity to follow up with the management of it.

And yes, I know, you’re an artist, that’s not what you do. It’s hard on the self-image, but it’s good for the bank balance. You can do it, and it will help you succeed. Consider this previous post:

Do a spending budget linked to the sales forecast. A lot of your spending—marketing activities, for example—ought to have a direct connection with the projected sales that will result. For more on that, try my recent post on my blog here at Bplans:  How to Do a Spending Budget.  That’s part of a whole series I finished recently, on  standard business plan financials.

And, most important, plan your cash flow. Make sure you have enough cash in the bank to pay your rent and other bills. Having enough sales is a critical first step, managing spending is next, and then make sure you have the full cash flow including things like loan repayment, buying inventory, and supplies. For more on cash flow, try this post:  How to Forecast Cash Flow.

Remember: It’s planning that matters, not just the plan

The point of the business plan for most artists isn’t just having the plan; it’s using it to optimize your business. Expect your plan to change often. It’s a cycle that starts with the first plan and continues from then on, as long as you are in business. I call it P-R-R-R, as in the illustration here on the right.

Use it like a dashboard, a tool for checking your progress against goals, for tracking results, and doing regular course corrections. Think of it as a business navigation system, which includes destination, route, and—with regular review and revisions—real-time information to adjust the route as you go.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• The big idea—making money
• Remember: It’s planning that matters, not just the plan

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