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In this video, Mitchell Losey discusses the importance of contracts for photographers and videographers starting their businesses. He addresses the common awkwardness that arises when discussing payment with clients. Many entrepreneurs find themselves in a situation where they have not clearly established pricing or the scope of work before beginning a project. This can lead to discomfort when it comes time to discuss payment after completing the work. Losey emphasizes the necessity of clear communication regarding service costs and expectations to avoid such awkward situations, highlighting the significance of having a contract in place to outline the terms of service and payment upfront.