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Christa Hughes, founder of a nerds WorldCom, discusses the importance of having a Statement of Work (SOW) in business contracts for graphic designers and web developers. She shares her experience of transitioning from using simple contracts to incorporating detailed SOWs for client projects, after realizing its significance with the help of a lawyer. SOW helps in clearly defining project deliverables and expectations, ensuring mutual understanding and preventing miscommunication in client relationships. Hughes emphasizes the importance of incorporating SOWs in contracts for a smoother project workflow and successful client management.