When Do You Need a Contract?
The quick and dirty answer to this question is that you probably already have a contract. A contract is very simply any agreement that fills four requirements: that the agreement is not unlawful, that the agreement is entered into by people who are authorized to make such an agreement, that the agreement is understood by both parties, and that it is explicitly agreed to by both parties.
There is generally no need for signatures, social security numbers or DNA tests. An e-mail discussion about the details of a transaction is often the only contract you need, so don’t be careless with your e-mail filing! Do note that, in the US, it is required that agreements of a monetary value over $500 be documented on paper (this falls into the ‘not unlawful’ category).
The only real advantage to having a signed document is in the case of an actual court battle; having physical evidence can hold decided weight over what can otherwise be merely a he-said/she-said disagreement. Your decision to have a contract for a transaction is dependent on your trust. If you trust your client or publisher, etc, there is no need for a hard-copy, signed document. If you prefer to play it safe, draft up a simple statement of all of the terms, make sure that it states the four above-mentioned components that make it a contract, and have them sign it for you. A good middle ground is to send a single e-mail that states all of the terms of the agreement and ask that your client reply with the text included in the message and a specific ‘I accept these terms’ statement. This is an excellent compromise when involved in a project where time is of the essense or when dealing with people overseas. Remember that your terms include when and how payment is to be transferred, not just what it is.
Filing
Your filing system is your best friend. I’m giving this subject a whole section of its own because it’s that important.
Computer Files: Computer folders are free, easy to manipulate, and take up nearly no space on your hard drive. Use them. You want to be able to find things again, so use a system that makes sense to you. In my case, my business has three branches: retail, printing services, and freelance art. Those are my first three folders in my business directory. Beneath these folders, I have them subdivided into product types (for retail) or clients. Files that you have a lot of versions of (in the case of revisions to digital art, for example) may deserve their own subfolders, simply to save the clutter in the parent directory. You should be able to look at the contents of a folder and easily find what you are looking for. Name your files logically, and file them in the correct place immediately. I find it useful to maintain a ‘portfolio’ folder as well. When I produce work that I think is exceptionally good, I place a flattened, finished .tif version of it into this folder. Any time that I am suddenly asked for a portfolio CD, I can easily burn a copy of select contents of that folder without having to search through many, many directories to find my best work. You can even maintain subfolders of ‘available work’ in case you are ever asked to provide spot illustrations on an impossibly tight deadline.
NOTE: If you are using Microsoft Windows, don’t ever store important files on your Desktop, or in the My Documents folder under the Desktop. If Windows develops a bug and has to be reinstalled, these files can (and usually will) be lost. Files in folders that are not related to Windows can be restored or recovered far more easily. Set up your folder directory directly on your C: drive. Back it up frequently.
E-mail: These days, most long-distance business correspondence is via e-mail. Important business contacts, details of commission agreements, queries about the products you carry and all the other general chitchat shouldn’t be stored in your Inbox in a great unorganized mess. I tried this, it really doesn’t work once you have more than one customer. Use the same kind of folder organization system as described for your computer files, and you’ll be able to locate that important e-mail far more easily than flipping through pages of general correspondence. It is useful to store the answers to the e-mails right along with the original e-mails. If you have a great deal of correspondence with a single individual, make them their own folder. I often break an e-mail to a single person into two parts if the correspondence should be filed in different locations.
Hardcopy Files: Some documents will be hardcopies, like purchase receipts and signed contracts. Some people also deal better with something they can touch and sort by hand, and prefer to file hardcopies of e-mail correspondence to looking for them on a computer. Whatever your personal balance between hardcopy and electronic, you’ll need some amount of filing space. Invest in a filing cabinet or start with a filing box, and buy a lot of folders. Some suggested categories include: places to advertise, publishers, receipts (have a folder for every year), tax documentation, contracts, clients (particularly if you have return clients), orders and art.
Hardware
Selecting a printer, scanner and other production equipment is a subject complex enough for its own article. In general, you need to make decisions about what you want to sell, do some research to find the best way to do so, and make informed decisions. The quality of these items depends on your intended use. If you want to be hands-on and create your own prints, you should consider purchasing a top-of-the-line 6-color, archival printer. If you prefer to job-out your printing, perhaps a cheaper (and less touchy) 4-color option would suit you fine for printing letters and medium quality proofs. If you scan in sketches and color over them digitally, you probably need a less hefty scanner than if you wish to scan in painted originals to reproduce as large prints.
Once you’ve decided what you’ll be selling, you’ll need the space to make it. Whether this is room for your easel, space for a printer and scanner, or an area for a heat press and more, be sure that this is dedicated space that won’t be taken over by children or nightly dinner preparations. Be sure you have a filing cabinet for the paperwork you will generate, and a safe, airtight way to store good paper and ink supplies.
In Case of Disaster…
Plan for the worst. If a fire wipes out your home, is your business equally wiped from the planet? Make regular backups of everything on your computer and store a copy away from your primary dwelling. Even having a one-year-old CD of the most important files at a friend’s house or in a bank lock-box is better than starting from scratch with all of your art and business contacts. Insure your home office, and be sure you take into account the value of the information on your computer.
It is advisable never to store things that can be damaged by water on the floor, particularly in flood-prone areas and on first floors. Heat, light and air can often be damaging to paper and ink, so be sure your storage method is conducive to your supplies.
Don’t ever rely 100% on your web host or any of your commerce services. If you have important files or a complex website, back it up regularly and store a copy either on your own computer and/or on a disc. Likewise, download relevant order and payment information from your money handlers like PayPal or your credit card proxy company monthly.
