
THE SUNLIGHT TAX BLOG:
Tax and Money Education for Creative People, Freelancers and Solopreneurs
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You create the culture. So what will you build?
Confession:
Like you, I struggled to wave the flag this weekend. Celebrating our nation's freedom felt heavy in the wake of the Supreme Court's deletion of womxn's right to bodily autonomy (which is tied to our economic autonomy).
And yet, I will still say something very unpopular:
I love this country.
Why? Because I love you.
If you're reading this, you create culture.
The thing about American culture is that there is so much of it that is so awesome. That reflects the best of this country. Our values. Our creativity. Our inclusivity. Our highest aspirations. Our vision for a better world.
Confession:
Like you, I struggled to wave the flag this weekend. Celebrating our nation's freedom felt heavy in the wake of the Supreme Court's deletion of womxn's right to bodily autonomy (which is tied to our economic autonomy).
And yet, I will still say something very unpopular:
I love this country.
Why? Because I love you.
If you're reading this, you create culture.
The thing about American culture is that there is so much of it that is so awesome. That reflects the best of this country. Our values. Our creativity. Our inclusivity. Our highest aspirations. Our vision for a better world.
When you get in a Lyft in another country, you hear Cardi B playing. People will quote Ted Lasso to you, or talk about Hamilton, The New York Times, or the latest Thor movie.
Our influence is massive. And culture creates change. (To get real nerdy, it opens the Overton Window)
Here are a few of my favorite reasons to love this country:
Shirley Chisholm
Jad Abumrad
Jon Stewart
The Rev. Dr. William Barber II
Cardi B
Adam Davidson
Raja Kumari
Beyoncé
Kara Walker
Dolly Parton
Rachel Rodgers
Ezra Klein
James Turrell
The Obamas
Chana Joffe-Wolt
Seth Godin
2 Dope Queens
Tig Notaro
Sarah Silverman
Amanda Gorman
I bet you've got a similar list, and I bet it comes to you easily.
Part of the reason we get to hear so many voices of people from historically marginalized groups is that we have managed to push for change in organizations both public and private to gain more access and voice and platform.
That work has opened up a lot of doors. But it is far from done.
I've dedicated myself to teaching the skills of financial autonomy to you, the culture maker, and the historically marginalized person, because you create the culture.
And so you change the world.
I believe in you so much, that I've made this my life's work. I want you to secure and hold onto your economic power. So you can have a bigger impact with your work.
I want you to do the self-care of getting your tax + money foundation solidly underneath you.
In service of that today, I made you a video.
You've already downloaded my Visual Guide to your Deductions.
(You haven't? Here are the links for you again. Pick the one that fits you best:
So I made you this 5 minute video with some quick tips for how to use the guide to set yourself up.
So now I’ll toss the question back to you:
What is the country you want to see?
What is your vision?
What is the culture you’re creating?
I'm gonna say it again.
I love this country.
Why? Because I love you.
In love and solidarity,
Hannah
My two worst mistakes, plus a Visual Guide to Deductions
This last year has been hard. I’ve learned a lot, and gained a lot, but I’ve also lost a lot. (Hair, sleep, and 4 employees)
I want to tell you a brief and vulnerable story about my business, as a way to frame my gratitude to you, dear reader.
During the pandemic, Sunlight Tax grew a lot. There were 3 new tax bills passed, and I got busy making courses, writing articles and offering workshops on how these bills would affect you - the creative person doing that important empathy-building work. My audience grew as a result, and a lot of people joined Money Bootcamp. These things are wonderful.
But I made some mistakes.
This last year has been hard. I’ve learned a lot, and gained a lot, but I’ve also lost a lot. (Hair, sleep, and 4 employees)
I want to tell you a brief and vulnerable story about my business, as a way to frame my gratitude to you, dear reader.
During the pandemic, Sunlight Tax grew a lot. There were 3 new tax bills passed, and I got busy making courses, writing articles and offering workshops on how these bills would affect you - the creative person doing that important empathy-building work. My audience grew as a result, and a lot of people joined my program, Money Bootcamp. These things are wonderful.
But I made some mistakes.
Mistake #1:
My pricing was based on working alone. And this was fine when I worked alone, but once so many people joined my program, and I could no longer serve everyone by myself, I needed to hire people to help. And once I did, I quickly realized that my prices could not support my employees and myself. And that entered me and my employees into a cycle of overwork and then burnout. Feel free to take notes, because I don’t want this to happen to you. I see this all the time in other small businesses, and it only really crystallized for me once I did it myself.
Mistake #2:
Another mistake I made was projecting revenue into the future. I thought my growth in sales would continue the way it did in the height of the pandemic.
It did not.
This was not just disappointing. This left me with too much work to get done, and not enough sales to cover payroll. I lost sleep, I lost hair. Obviously, I also lost money. My husband shook me, looked into my eyes and said, “I cannot be the only one you talk to about this. This is too much. You need to get a therapist.” And once my employees burned out, which they quickly did, I lost employees.
So this year, I launched my program a lot. I know that my program is excellent, and I know that it is valuable to the people who are the right fit for it. But launching is exhausting both for me and for you.
People got a lot of emails.
And if you got all of them, and you’re reading this now, you’re still here.
So, I just want to say, thank you.
(But also: it is 100% ok to unsubscribe if you want to! And if you don’t like my emails, you absolutely should)
Some of you write me to tell me how my work has been meaningful or helpful to you, and that is what keeps me going when things get this hard. It’s you.
I am a creative person first and foremost, and being in community with creative people like you, and helping you figure out the tax/money part so you can make more of your work in the world - that is the whole reason I do this.
So today I want to give you a gift of thanks.
I often talk about artists, but my creative family is much bigger than art per se. So, I decided to expand my Visual Guide to Tax Deductions to help those of you who are in adjacent fields.
Below, you can download a Visual Guide to Tax Deductions for:
Designers
Performers
Artists
Makers
Creators and
Online Business Owners/Creative Entrepreneurs
These are updated for 2022, and each is tailored to the needs of your field. Makers has the rules for COGS. Online business includes things like coaching and retreats. You can print it out, and post it by the spot where you do your numbers.
Thank you so much for being here with me. You’re making the world better, and I'm glad to be in your company.
Warmly,
Hannah
Podcast episode: Losses are normal, and debunking the itemizing vs business deductions misconception
Hard years can include, and almost universally DO include year one. So, we expect you to have a loss year one. A lot of artists feel a lot of guilt and shame that they don’t make money at first. But, neither did Uber. Neither did that restaurant you ate dinner at last night. That’s normal. You’re not a bad guy - that is completely normal.
Hard years can include—and almost universally DO include—year one. So, we expect you to have a loss year one. A lot of artists feel guilt and shame that they don’t make money at first. But, neither did Uber. Neither did that restaurant you ate dinner at last night. That’s normal.
-Hannah Cole
This week, Hannah talks about how losses are normal for art businesses, and why artists don’t need to feel so bad about them. Plus, an explanation of itemized deductions vs. business deductions (hint: don’t throw out those receipts!). All of this in part 2 of a 2 part podcast interview on The Passionate Painter podcast.
Art and Fear (part one): Interview with Hannah on The Passionate Painter podcast
“I think artists make a mistake thinking that their work speaks for itself.
Your work is wonderful.
But your work needs a frame, and you are the frame. You can tell people what to think of your work. Because if you don't, they're going to pick it up from other stuff - like the fact that you seem really insecure.
And they're going to be like, "ok, I guess it's not good."
You know, you're telling them that when you say, "I guess...uh..."
If you talk like that, you're saying, this isn't very good."
“I think artists make a mistake thinking that their work speaks for itself.
Your work is wonderful.
But your work needs a frame, and you are the frame. You can tell people what to think of your work. Because if you don't, they're going to pick it up from other stuff - like the fact that you seem really insecure.
And they're going to be like, "ok, I guess it's not good."
You know, you're telling them that when you say, "I guess...uh..."
If you talk like that, you're saying, this isn't very good."
Listen to a thought-provoking interview about my own insecurities as a painter, and how I've learned to manage them, and what I've learned from artists who do well. RIGHT HERE.
Two shifts to help you sell more without selling out.
You make beautiful work. You provide a service that helps your customers. You craft gorgeous products. You teach people life-enriching skills. There’s only one problem:
You feel so gross when you have to sell.
Most artists and creative small business owners operate from the “sales are slimy” belief at some point in their journey to make sustainable incomes from their work. But being afraid to sell because you feel that it’s manipulative or unethical—or that if your work were any good people would just buy anyway—leads to the same result: low sales that prevent you from having the freedom to devote your time to your craft.
If you experience this tension between wanting to be financially fueled by your work but afraid to actually ask people to pay you, you’re not alone. The good news? There are two simple shifts that you can make in your relationship to sales that will help you to promote your work without feeling like you’re selling out.
By guest writer, Business Strategist Sarah M. Chappell
You make beautiful work. You provide a service that helps your customers. You craft gorgeous products. You teach people life-enriching skills. There’s only one problem:
You feel so gross when you have to sell.
Most artists and creative small business owners operate from the “sales are slimy” belief at some point in their journey to make sustainable incomes from their work. But being afraid to sell because you feel that it’s manipulative or unethical—or that if your work were any good people would just buy anyway—leads to the same result: low sales that prevent you from having the freedom to devote your time to your craft.
If you experience this tension between wanting to be financially fueled by your work but afraid to actually ask people to pay you, you’re not alone. The good news? There are two simple shifts that you can make in your relationship to sales that will help you to promote your work without feeling like you’re selling out.
Stop making sales about you
Have you ever started a newsletter or social media post with the words “I’m so excited to share…”?
Or maybe it’s “I love this new piece” or “I’ve worked so hard to make this.”
(You can raise your hand. No one can see you.)
What do all of these have in common?
“I.” The focus is firmly on your experience as the maker, creator, business owner. No wonder you feel gross asking people to buy things from you! It sounds like you’re asking for a favor rather than an appropriate exchange for your brilliance, labor, and what your work will bring to the customer.
Instead of centering your experience when talking about your work, try focusing on the customer: what does your piece, product, or service make possible for them? What will they experience through their purchase? What do they get out of it?
This simple shift can have a massive impact on your relationship to selling. Your potential customers are not doing you a favor, or buying to make you happy. They’re buying your work because they want to!
2. Start focusing on service
There’s a business idiom that states “selling is a service,” and for good reason. Selling is not about forcing someone to buy your thing or reaching through the computer screen or across the event booth to grab their credit card.
Selling is about helping your potential customer to make a decision.
If someone is following your social media, walking into your shop, on your mailing list, or visiting your website, there’s usually a pretty simple reason: they’re interested in your work. They are actively seeking you out and want to know what you have to offer.
This means that your job is not to convince a potential customer that they need what you make, but to ensure that they have all of the information to make a buying decision.
Purchasing is an exercise in prioritization. Do I need this thing now? Is this experience or outcome what is most important to me at this moment? Does this solve a problem that feels urgent or like I’m ready to tackle? Will it help me?
When a customer is exploring your work, they’re running through these kinds of questions in their minds, even if they’re not conscious of it. And now that you know this, you get to answer them! Your sales materials are not going to focus on why you love your work, but how your work helps your potential customer. What transformation it will facilitate. What values it will affirm. What beauty it will bring to their lives.
Your customer is looking to you to help them navigate your work, understand its impact, and ultimately decide whether or not they want to prioritize it. You don’t need to sell them on it. You just need to help them.
Want to learn more about how to sell without that slimy feeling in the pit of your stomach? Business strategist Sarah M. Chappell is leading a free live training just for the Sunlight Tax community all about attracting your ideal customers without doing all the things or feeling like you’re selling out. Learn more and reserve your spot HERE.
What are your money concerns?
Suggest a blog topic for Hannah here.