Started photography business...help!! (Page 2): Wow! There’s much good advice already offered but the core message, from my point of view, is missing: What’s the difference that makes...

PaulBrit Loc: Merlin, Southern Oregon

Wow! There’s much good advice already offered but the core message, from my point of view, is missing: What’s the difference that makes the difference? Whether by plan or by accident (the latter in my own case) you have to see the world through the eyes of your potential customers. That means knowing in some detail what their needs are, and why, why their present providers aren’t giving them a solution (product, service, price?), and more. Then comes the business plan: essentially are there sufficient numbers of like-minded potential customers, aka prospects, whose needs support a price that delivers an income that gives you a profit after tax! Then comes the sales and marketing plan!

Apart from that, it’s easy! 😎

jwn Loc: SOUTHEAST GEORGIA USA

I was in the insurance business and over the years lots of new business came to me for insurance.....most failed because they did not have the $$$ to sustain the start up period for their industry. Have you ever sold a print??? Based on your questions...and I don't mean to be snarky but look for third career, you are not prepared.

E.L.. Shapiro Loc: Ottawa, Ontario Canada

PaulBrit wrote:

Wow! There’s much good advice already offered but ... (show quote)

That's the marketing research aspect. This includes examination of what is being offered, what folks are buying, what is lacking and how a new business can fill in the difference. Believe it or not, the word "NEW" is still a very powerful advertising concept.

PaulBrit Loc: Merlin, Southern Oregon

E.L.. Shapiro wrote:

That's the marketing research aspect. This includes examination of what is being offered, what folks are buying, what is lacking and how a new business can fill in the difference. Believe it or not, the word "NEW" is still a very powerful advertising concept.

Spot on!

russelray Loc: La Mesa CA

thephotographychic wrote:

Scarier than expected I must say. From the marketi... (show quote)

At the end of the day yesterday, my business, Photographic Art by Russel Ray Photos, is averaging $10,205.23 per month for 2018 according to Excel.
My goal when I started my business was $10,000 a month by the end of 2016. I got there, and when I got there, I sat back and let the business take care of itself via satisfied Clients and their word of mouth advertising.
When I got to $2,000 a month, I shared my tactics with UHH in a "Marketing 101 for Photographers" post. Here's the link to that post: http://www.uglyhedgehog.com/t-327835-1.html

Good luck!

Idaho

1. It's critical to start this as a second job so. Hopefully you will eventually be able quit the first one.
2. Be prepared, at least initially, to do all sorts of photography . You can't afford to be selective at first.
3. Work from you home.
4. Study all the professionals in your areas to see what they are doing and how they are doing it.
5. It's very possible this will never become a full time business. Keep that in mind.
6. Be prepared to compete with all the new "semi-professionals" who work part time at below market rates.

Dannj

russelray wrote:

At the end of the day yesterday, my business, Phot... (show quote)

You say according to “Excel” you’re business is averaging etc...
It’s pretty much a necessity to use some of spreadsheet to help manage a business but people starting out need to be reminded that the results these packages give us depend entirely on the information we provide. Obvious? Should be. But many people who are highly skilled in one area, especially creative people, rely on the results without question.

russelray Loc: La Mesa CA

Dannj wrote:

You say according to “Excel” you’re business is averaging etc...
It’s pretty much a necessity to use some of spreadsheet to help manage a business but people starting out need to be reminded that the results these packages give us depend entirely on the information we provide. Obvious? Should be. But many people who are highly skilled in one area, especially creative people, rely on the results without question.

Back in 1994 I had the opportunity to hear Lee Iacocca (Google him) speak to the MBA candidates at Stanford University. At the time I was driving a highly customized 1989 Saleen Mustang GT, so going to hear Iacocca was the high point of my life at that time. One story Iacocca told has forever stuck in my mind. Loosely quoted:

Joe Bob was a plumber living in a mid-size city. He was the best plumber in the city. He had always worked for ABC Plumbing, and upon his 25th anniversary with the company, ABC Plumbing threw him a big party. He got a nice watch and a plaque as anniversary gifts. That night at home Joe Bob decided that he could do better than a nice watch and a plaque, so the next day he gave a 2-week notice. He opened his own plumbing company. ABC Plumbing, of course, simply hired another plumber, and if someone asked for Joe Bob, they simply were told that Joe Bob had quit. Six months later, Joe Bob went to ABC Plumbing and asked for his old job back. ABC Plumbing was only too happy to re-hire him. So what happened? Joe Bob was the best plumber! Joe Bob thought everyone would naturally seek him out, that ABC Plumbing would tell their Clients where Joe Bob had gone. So Joe Bob did no marketing. After all, he was not a marketer. He was a plumber. Moral of the story, according to Lee that night: If you don't know how to do something, hire someone who does.

I'm what my friends call a "serial entrepreneur." I like to start companies, get them through the startup phase and into a good growth phase, and then sell them or give them back to the people/companies that hired me to create them. I started my 39th company, A+R Pottery, in February 2018. I sold it in June 2018 for $50,000. I had not intended on selling it, but sometimes when opportunities present themselves.... Russel Ray Photos is my only business that I have had for longer than 13 years; I've had it since 1966, having started it when I was 11 with help from my wise old grandmother who taught me a lot about marketing, tracking, and keeping records.

Dannj

russelray:
That’s a great story and Iacocca’s point is well taken. But I think he’d agree that when you do hire someone, check on ‘em every once in a while...keeps everyone on their toes😊

dandev Loc: Enumclaw, WA

There is a lot of good advice here so I will just add a few items:
1. I agree regarding the accounting comments. Get QuickBooks and use it. Cheapest version is OK. You can send an output file to your accountant at tax time. And get an accountant. They are worth it.
2. Get a good portfolio going on your website/FB site. Be brutal and only showing your good stuff. (This is not easy.) Have a pro/other photographer tell you what looks bad and take it down. Better to have 5 good photos vs. 50 mediocre photos.
3. Try some volunteer work to get your portfolio in shape. If it's pets, take photos for the shelter. If it's city shots, take photos for the local chamber of commerce. I do photo for Habitat for Humanity builds and other fundraisers. It gets you contacts, and makes you a better photographer. But..... Don't fall into the trap like I did, which is doing too much volunteer work and not having time for paid work. It's a balance. I have gotten paid gigs after doing volunteer stuff.

Jules Karney Loc: Las Vegas, Nevada

E.L.. Shapiro wrote:

I am pleased that you are passionate about you work- the areas of photography that you LOVE to do and the results that bring you personal satisfaction. I have been at this profession for over 50 years and I still love the work- you must have enthusiasm for what you do- it's one of the important foundations of a successful business. Never give up on that aspect of your professional life!

The concept of turning all this love and enthusiasm into a paycheck can be a daunting undertaking without consideration of the BUSINESS components of a successful enterprise. Assuming you actually have the talents, know-how and skill sets to execute work of a professional caliber and you have the equipment and materials at your disposal, you MUST come up with a viable BUSINESS PLAN including a targeted marketing plan. Without theses components in place, in today's business environment and the state of the photographic industry, you will put yourself on the fast track to the bankruptcy court!

So...my young friend- put the cameras down for a couple of days or weeks and get out the pencil, paper, the calculator and begin the task of business management. You will need to support you lifestyle and you business on the revenues you take in so you will have to project a salary for yourself and enough cash flow to sustain your business. Start off by listing all you personal expenses- EVERYTHING- rent/mortgage, food, all household expenses and utilities, automotive expenses and payments, insurances, entertainment etc.

NEXT- make another list of all your projected business expenses: Rent/mortgage payments (even if you work from home you still need to calculate a percentage), all utilities, insurances, communication and computer operations, equipment maintenance and repairs, eventual assistants or staff salaries, advertising and promotional costs, professional association fees and dues, license fees and business taxes, educational expenses, automotive expenses, interests and banking fees and charges, bookkeeping and accounting costs and fees, legal (set up) fees and any and all post-operational expenses. Include you salary based on you personal expenses. The sum of both lists will give you some idea of the revenues you must generate set as a goal. There many spreadsheet and computer-driven accounting programmers that you can adopt and adapt once you get going but at first a pencil and paper is a good start.

These lists do not include COSTS OF SALES, these are the monies you have to advance to service you client's orders- lab fees, materials, outsourced services, expendable supplies, albums, picture frames, - the stuff you by on behalf of of your clients and need to mark up accordingly.You must decide on markups and profit margins.

Based on all of this you need to create a price list or schedule. You can not solely depend on so called going rates, what others are charging etc. because those rates do not reflect YOUR overhead expenses, personal requirements and costs of sales.

If you have difficulty with any of this you may want to consult a Certified Public Accountant or professional business adviser. You bank manager may be of some assistance. Good legal and accounting advice is a good investment- it saves money and aggravation in the long run. Even of you are starting out as a very small individual operator, you need to put all of this in place and be able to project goals and monitor your business as it progresses.

Market research: Think about this- McDonald's will not so much as open a burger joint and General Motors won't open a Cadillac dealership unless they are convinced the demographics are there to support their businesses. You can't successfully operate a high-end studio or photographic business where folks or companies can't afford your prices or the customer base for your services doesn't exist. Folks won't pay professional fees for things they can do themselves or have Uncle Oscar with his new DSLR do. You work needs to be outstanding! Different! People can photograph their own doggies and puddy-cats with their cell phone cameras- and family pictures too, so your pet and lifestyles images should fall under a category of high-end general portraiture and again- your stuff has to be above average in content and presentation.

Each geographic location is different. In my city, there is still a viable market in high-end portraiture, corporate portraiture, commercial, architectural, and industrial photography, and very high-end wedding overage. I love landscape and still life as well so I display a few in my showroom and sell some occasionally- a side line!

There is no MAGICAL promotional secret- this is not a job for the lazy photographer. Believe me, even a really classy website won't have folks breaking down your doors. Websites and other institutional advertising are good support systems for good old hard nosed legwork and networking. Once you decide on a targeted market you need to network. I started my commercial business by visiting, in person, ad agencies, advertising and PR departments of local industries, retailers and governmental offices.- with my PORTFOLIO in hand- you gotta compel one! Meanwhile I promoted my wedding work by doing some pro bono (freebies) for popular florists, wedding planners, jewelers, gown and formal wear providers etc- other vendors in the same industry. Within a few months I had MY photography hanging in over a dozen highly frequented shops. I rented some showcases in shopping malls and one at the airport. I went through 5,000 business cards in 3 months! I explain what I do to just about everyone I met- I still do that, why not! . Learn to do that and make it short and sweet. Mine is- "My name is Ed Shapiro- I operate a photographic studio specializing in creative and imaginative commercial photography, corporate and family portraiture...” !

I display my work at 4 trade and consumer shows each year- a business show, a home show, a bridal fair, and a food and beverage show for restaurateurs and the food service industry. I talk to potential clients, meet old ones and renew relationships, collect leads and do PR.

I hope this helps- not to get discouraged! This is the “riot act” I explain to all the new folks! Best wished for every success!

I am pleased that you are passionate about you wor... (show quote)

Sir you always tell it like it is. Whether or not people want to hear and take what you have to say serious. Good for you...

Lemon Drop Kid Loc: Greeley, CO

I had this advice given to me way back in the 1970s: Call yourself "John Smith, Photographer". NOT "John Smith, Photography". Had to do with business legalities. Don't know if it makes any sense now or not,

russelray Loc: La Mesa CA

Dannj wrote:

russelray:
That’s a great story and Iacocca’s point is well taken. But I think he’d agree that when you do hire someone, check on ‘em every once in a while...keeps everyone on their toes😊

Probably. The gentleman who gave me the ticket to go see Iacocca had a wireless telecommunications consulting business. He was making about $75 million a year. I worked for him opening offices throughout the United States and Canada, ultimately 37 offices in 18 states and 2 provinces. One thing he always emphasized, "Hire the best. Trust them. Check on them."

slacativ Loc: Palm Beach Gardens, FL

Local Library might be a good option also.

Diocletian

Quickbooks online should be about $30 (usd) a month to keep track of income & expenses