The other day, a ceramic artist friend messaged me, asking if I had any finance book recommendations for a small business like hers.
As it turns out, I have LOTS of finance book recs. (I once gave each of my siblings different personal finance books for Christmas tailored to their individual life situations.) And I was so happy that this artist asked, because I can totally geek out on the money and numbers stuff, but it’s usually a subject many (but not all) artists and makers aren’t too excited to talk about.
One small positive that I hope comes out of this shitty situation we’re all experiencing right now is that more artists and makers get serious about their financial situation.
I’d love to see everyone get more of their money shit together so it’s not the grand panic we’re seeing from a lot of small businesses now. (I’ll admit, I’ve had a few moments of panic myself – how could I not – but I have a pretty solid savings safety net I’ve built over the years, plus a good strategy in place for making money online, which is making it so much easier to remain calm and levelheaded throughout the whole ordeal.)
So today, I thought I’d share a few of the finance and money books I’ve read over the years that have helped me get my shit together. If you’re thinking it’s time to get serious of this aspect of your business, these are a great place to start.
The Money Book for Freelancers, Part-Timers, and the Self-Employed by Joseph D’Agnese and Denise Kiernan
This is one of the first finance books I ever read for my business that I remember thinking actually understood my situation. The authors understand what it’s like to have unpredictable income (because they are self-employed) and guide you through getting your money shit together.
If you’ve been head in the sand, totally ignoring your finances, and just hoping things will work out, this book is a good (and gentle) reality check and a good place to get started.
Profit First by Mike Michalowicz
I can’t help but think that if more small businesses had read this book and implemented the ideas in it, far less of them would be in crisis right now. If your business has never made much (or any) profit, this is the book you should read.
I’ll admit I don’t use this exact system (I prefer to automate my money – more on that in a minute) but if your income fluctuates a lot, the idea of consistently taking percentages is much easier to work with than automating specific amounts every week or month.
If numbers overwhelm you, don’t get too bogged down in the math in the book. Instead, focus on the core principles of paying profit and yourself first and working from smaller plates, and implement it in a way that feels good to you.
The Automatic Millionaire by David Bach
I like to say that the best thing I ever did for my creativity (and stress level) was automate money into savings. It’s not sexy, but it’s true. And this was the book that really got me into the idea of automation.
While this book is written more for people with traditional employment, the idea of automating money is so powerful, it’s worth checking out. At the end of the day, I’m not the kind of person who wants to sit down and analyze every penny. I need my money strategy to be automatic, so I don’t have to think about it.
And once I started applying automatic transfers to my business (it’s how I save money, put aside taxes, and pay myself) I gained a whole lot more financial freedom and confidence.
The 1% Windfall by Rafi Mohammed
This is a pricing book, not a personal finance book, but it remains one of the most powerful money books I’ve ever read in my business. The premise is simple – raising prices by just 1% can have a big impact on your bottom line.
But what’s even more powerful is the focus on the fact that businesses (yes, that includes us artists and makers) deserve to make a profit and are entitled to do so. This book helps you understand that profit isn’t evil, but an essential part of building a business.
The Purpose of Profit
Ok, shameless plug here. This is an ebook I wrote based on a talk I gave at the SNAG conference a number of years ago. But it addresses two really important ideas that artists and makers struggle with – the the work you make has value to the world and that you deserve to get paid well for it.
If you like the idea of The 1% Windfall, but want something that’s more specific to an artist and maker’s perspective, this is worth checking out. It’s not so much about specific strategy, but it’s helpful for getting your mindset around money and profit right.
I know there’s a lot of stress around money and financial situations right now, and thinking about it may be the last thing you want to do. But the reality is, money problems don’t go away if you ignore them, so rather than sticking your head in the sand, take now as an opportunity to sort through your money shit so that you can come out of this crisis more prepared to weather whatever comes next!