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In this video, Mitchell Losey discusses the importance of contracts for photography and video businesses. He highlights the awkwardness that can arise when starting a project without clear communication about payment and expectations. Many new business owners find themselves in situations where they complete work without having discussed prices or client requirements upfront. This can lead to discomfort when it's time to request payment. Mitchell emphasizes the necessity of establishing clear contract terms to avoid these awkward situations and ensure that both parties understand their obligations, including payment, before beginning a project.