Art Festival Newsletter | November 2020

PPP Loan Forgiveness
In October, the Small Business Administration released a simpler loan forgiveness application for PPP loans of $50,000 or less. This action allows the financial institution that you received your loan from to streamline the PPP forgiveness process.

If you applied for your PPP loan with a Form 1040 Schedule C, you will need to have the following documents:

  • Payroll/Wages: 2019 Form 1040 Schedule C
  • Utilities: utility account statements verifying payments for February 2020 and each month during your covered period
  • Rent: monthly landlord account statements for February 2020 and each month during your covered period
  • Mortgage interest: lender account statements for February 2020 and each month during your covered period

You have up to 10 months after your covered period ends to apply for forgiveness.

You are not required to start making loan repayments until your forgiveness decision is determined. When repayment does begin, any loan amount that is not forgiven will need to be repaid, along with a 1% fixed annual interest rate on the amount not forgiven.

Note: if you do not apply for forgiveness, your business will need to start repaying its loan within about 16 months of receiving the funds. 

Remember that the SBA may request more information and documents while reviewing your application—and for up to six years after your loan is forgiven. Keep all of your documents just in case. 

After the loan has been forgiven, you should be prepared for the forgiven loan to impact your 2020 taxes. While a forgiven PPP loan is tax-exempt, using the loan can also reduce how much you can write off on your business taxes. This means that some of your everyday expenses like payroll, rent and utilities that would normally be deductible from taxable income would not be deducted. Without this deduction, your business may in fact owe more taxes at the end of the year than normal.

The Color Trends for 2021
I think I speak for most people when I say that I can’t wait for this year to be over. Now of course there is no guarantee that 2021 is going to be pandemic free, but at the moment it looks like we can be a bit hopeful. The color experts at Pantone seem to share that optimism because their color trend predictions for next spring are a burst of cheerful kaleidoscopic color. Featuring ten colors that will be find their way into fashion, home decor, graphics and advertising.

The overall 2021 color trends are warm color hues from soft pastel tones to serene blues and greys to create a calm base. But there is also a trend for more brigher color hues to add more contrast and vibrance to our lives.

Why is it so important to pay attention to color trends? Using color as a means of self-expression is not limited to artists. Specific hues, shades, tones, and tints convey mood or sentiment and people’s tastes in color are continually evolving. This begs the question, can we possibly single out a shade that perfectly captures the current moment? Over the past 20 years the anwer is yes. Each company that releases a color of the year takes into consideration fashion, marketing, social media and even politics. The hue chosen as Color of the Year has become increasingly influential in the vast world of design and brand marketing.

Benjamin Moore selected a soft, soothing blue-green for its 2021 color of the year. Aegean Teal 2136-40 marries the tranquil nature of blue with green's association with wellness, while a gray undertone keeps the color modern. 

HGTV Home by Sherwin-Williams predicts vibrant, daring colors will reign supreme in the coming year. The brand's 2021 color of the year, Passionate HGSW2032, is a rich, saturated red (personally I think this color is closer to a maroon and my personal favorite color of the year).

Instead of announcing a single shade for the color of the year, Valspar named 12 cozy muted colors as its top picks for 2021. Ranging in tone from misty blue to warm apricot, the hues were chosen for their ability to calm and encourage mindfulness.

One color that appears to have true staying power - Aqua. According to the trend forecasting company WGSN, Agua is the color of the 2021. Already popular in the fashion and tech world, the forecast is that this bright, bold color will dominate the year ahead.
This Issue's Quote: Color is a power which directly influences the soul.” ~Wassily Kandinsky
How Much Should You Spend on Social Media Advertising?

The first step to determining your advertising budget is to understand the numbers. A typical business marketing budget is between 8% to 16% of total revenue. Smaller companies tend to spend more on marketing and given that we are not showcasing at art festivals (a signifcant percentage of where we traditionally spend our advertising dollars) we can apply this rule to our art bussiness.

Social media advertising can be daunting for new users, yet it is the most efficient and cheapest form of getting your message to your target audience.

Content you post on social media doesn’t get seen by all the people that follow your page and you must pay to be seen. The upside is that social media advertising is affordable. You can reach 1,000+ people on Facebook or Instagram for $5 per day.

When you put out a piece of content that gets some good attention from your audience organically (without ad spend), that’s a pretty good sign that that piece of content would perform well to a larger, but similar audience in your niche.

Start with $2 per day and build to $5 for measureable results.
Once your ad reaches over 1,000 people, you can begin to draw broad conclusions on how your ad is performing, and if it’s worth it.

Start looking at the fine details of your ad in the Facebook Ads Manager. Your ad might have some good copy and a compelling offer if you’re getting a high click-through ratio or low cost per click. If you ad is performing poorly, you are able to cancel at any time and try something new.

Poor audience targeting is one of the premier reasons why an ad is not getting any traction. It’s best to identify a customer profile. A customer profile identifies the interests, habits, and behaviors of your target market. This will allow you to specifically narrow in on your target audience and find your niche.

Facebook requires $1.00 per day for advertising. Get in the habit now of selecting a Lifetime Budget for each promotion, which will help keep costs down.

Lifetime Budgets allow you to set a custom ad spend maximum. To get started, budget your spend between $2 - $5 per day as you run your first campaigns. This low daily spend is important, as you will be able to see which ads are more effective, and later increase ad spend accordingly.

It is crucial to note that your social media advertising might not sell any of your work at first. The strategy is to build your brand awareness to a larger customer base. Since art is a closed activity, buyers tend to buy artworks from artists they know personally. Social Media advertising improves your chances of making sales and broadens the network.
Contact Robin Markowitz at [email protected]
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