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In this video, Mitchell Losey discusses the importance of contracts for photographers and videographers starting their businesses. He highlights the common scenario where service providers begin projects without clearly discussing pricing or expectations with clients. This can create awkward situations, especially when payment is due after completing the work. Mitchell emphasizes that to avoid these uncomfortable moments, it is crucial to establish clear agreements and communicate about pricing upfront before starting any project. This ensures both parties are aligned on the scope of work and payment terms, ultimately leading to smoother business transactions.