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In this video tutorial, Mitchell Losey discusses the importance of contracts for new photography and video business owners. He highlights the common scenario where a client relationship develops without a clear discussion about payment or project details. This often leads to awkwardness when it’s time to discuss fees after the work has been completed. Losey emphasizes the need to establish clear agreements regarding payment and expectations upfront to avoid uncomfortable situations later on. He stresses that having a contract is crucial for setting professional boundaries and ensuring both parties are on the same page financially.