How to Start a Caricature Business

Start a caricature business by following these 10 steps:

1. Plan your Caricature Business
2. Form your Caricature Business into a Legal Entity
3. Register your Caricature Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Caricature Business
6. Get the Necessary Permits & Licenses for your Caricature Business
7. Get Caricature Business Insurance
8. Define your Caricature Business Brand
9. Create your Caricature Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your caricature business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Caricature Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a caricature business?

One of the many benefits to choosing this as a career path, is that there are very few start-up costs. Business is generally conducted at events, making this a primarily mobile business. Unless you so choose, there is no need for a dedicated office. Many caricature artists now work with clients across the world, selling their digital pieces, so it is recommended that you create a workspace at home, if at all possible.

In addition to artist supplies, it is recommended that you have a simple website built. This is a great opportunity to showcase your work, attracting clients from all over the world. There are a number of options for entrepreneurs who wish to build their own, free websites. Work with a licensed professional to ensure your insurance policies are up-to-date and include any necessary coverages. Since much of your business will be mobile, make sure you have reliable transportation and an insurance policy that will provide coverage should something happen while you are on the road.

What are the ongoing expenses for a caricature business?

Ongoing expenses for a caricature artist business are minimal. Art supplies, website maintenance, and marketing materials should be budgeted for on a monthly basis. Travel expenses, even when only taking on local events, will likely be your largest expense. Should you decide to hire employees, be sure to consider the costs associated with payroll.

Who is the target market?

The earliest recorded caricature art was found in the works of Leonardo da Vinci, indicating that this art form has been enjoyed for hundreds of years. Intended to lighten the mood and bring smiles, caricature artists are hired to “perform” in settings ranging from carnivals to weddings and other social functions. When devising your marketing strategy, consider what social functions your art could be most enjoyed.

How does a caricature business make money?

Clients hire caricature artists either by the hour or per person. Fees also vary depending upon materials, such as black and white, color, and digital works.

How much can you charge customers?

Caricature artist businesses charge an average of $150 to $250 per hour, depending upon whether the customer requests regular or digital caricatures.

How much profit can a caricature business make?

Experienced caricature artist business owners indicate that artists with average speed and skill can bring in up to $600 per day. If you are able to work three events a week, at $600 per event, your business would generate a revenue of over $93,000. Subtract ongoing expenses from this figure and you have a significant profit, particularly for only working three days a week.

How can you make your business more profitable?

As a caricature artist, your business can charge a higher fee for digital work. This method also expands your potential client base, allowing you to reach a much broader audience. Once your work is more well-known, consider approaching syndication companies who might want to feature your work in upcoming newspaper space and want caricature artists who attract subscribers.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your caricature business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a caricature business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A caricature business is generally run out of a booth or kiosk. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a caricature business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your caricature business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Artistically inclined individuals who possess the drive and tenacity to manage their own stable business would be best suited for this business venture. As a caricature business owner, you must be both creative and business savvy, making critical financial and marketing decisions that will help your organization sustain long-term growth.

What happens during a typical day at a caricature business?

Until your business has realized significant growth, your days will be split between administrative and artistic work. When not creating caricatures for a client or attending events, there are emails to be answered, invoices to be dispersed, and client bookings to attend to. While much of your marketing strategy and networking will be hands-on, it will also be necessary for you to promote your business, both in-person and online, ensuring your work reaches a broad audience.

What are some skills and experiences that will help you build a successful caricature business?

The most obvious skill a caricature artist must possess, is artistic talent. Caricatures, however, go beyond just drawing a picture. While the final work will be “cartoonish,” it is critical that it resembles the model. Therefore, caricature artists must have a firm grasp of anatomy, with the ability to pick out a distinguishing feature in each subject. Once you have mastered this, it is all about developing your own style. Aspiring caricaturists are urged to practice as much as possible, in a variety of settings. This not only helps develop a unique style, it assists in fine-tuning the other necessary skills, such as observation, communication, and humor. Since this artistic form requires making creative decisions on the fly, both accurately and quickly, practice really is the most rewarding experience.

While a degree is not required, there are a number of programs across the country that specialize in illustration and cartooning. The Center for Cartoon Studies, located in Vermont, offers a variety of certifications, degrees, and workshops, designed to meet every aspiring caricaturist’s needs. Those who attend a focused school program are able to learn design software such as Adobe Illustrator or ArtRage, create a portfolio, exhibit their work, are able to take part in internship programs, and are provided university support in their job search upon graduation. Additionally, many offer business classes to ensure aspiring entrepreneurs have the knowledge and skills necessary to successfully manage an enterprise.

What is the growth potential for a caricature business?

The introduction of digital technology offers a unique opportunity to modern day caricature artists, expanding their potential client pool to include virtually everyone. Artists who have found the greatest success go on to train a team of individuals across the country, ensuring their business reaches clients in need in every major town.