Cost of Doing Business

I hope that anyone reading this blog has benefited from it. If so, it did it's job! Since this isn't a blog I typically update, I wanted to at least finish with one last entry (for now) that sums up my career so far and the business of photography and hopefully help someone out.

Besides the obvious quality and technical skills, what else separates the real professionals from the hobbyist or "wanna-be's"? A professional is someone who can carry all of the families expenses if they needed to. Someone who is or could be full-time and make enough money to pay all expenses (I mean all- doesn't matter if spouse pays or contributes anything) A hobbyist or non-legit "professionals" (for lack of better words!) is someone who doesn't make much money doing photography, but doesn't care. Any income is extra income. Most likely they will not be "on the books" with taxes, otherwise their "business" would quickly become deemed as failed. Maybe this is why statistics show that 95% of businesses fail in the first 5 years- this is a number from people who ARE on the books and were labeled as failures.

Also, hobbyists still really enjoy "taking pictures". Don't get me wrong, I do love what I do, but it is not fun anymore! I don't take snapshots of my kids anymore. I never take my camera out unless I am at a job. That's just the way things become after a while of being in a business. It is no longer a hobby or pass-time. It is a job. This is another reason why even successful professionals close shop after a while. They lose their passion and the enjoyment of being a photographer, and want it back. They want photography to be a hobby again, rather than a business. Like mentioned before, the actual photographing part when you are a true professional is only about 10% of it. I have spent hardly any time shooting. Most of my time is spent marketing, designing and editing. It's work- a lots of it!

As I begin writing up my 2009 business plan and prepare my sales tax and tax return for 2008, I figured out that I am just starting to see a profit. I begun my business in spring of 2006. Made a decent amount, be lost thousands. 2007 I made even more, but lost even more. This year I lost a lot, but made enough to cover the immense amount of expenses, but saw a small profit. The amount of expenses I have are so much more than I ever thought I would have. Much more than I am sure anyone who does not have a successful business would think. The theory of just needing a few good pieces of equipment is so far off it's amazing. Just to show some numbers and possibly help anyone who is really serious about pursuing a career in photography, here is a list of my expenses:



Variable:
Ink- $360
Paper- $25
Folders- $60
Stickers- $30
Wallets or notecards- $25
Albums- $5000
Lab Expenses- $5000
Business Cards- $1000
Clear Bags- $100
Boxes- $500
Stamps- $50
Gifts- $500
Rep cards- $1200

Fixed:
Mortgage- $15,060
Rent- $6000
Heating- $1000
NiMo- $2400
Food- $7200
Gas- $3640
TWC- $1800
Phone- $480
Car Insurance- $396
Car Payment- $3600
Sewer tax- $520
Medical Ins- $12,000
Child Care- $1500
* Seminars- $2000
Marketing- $10,000
Equipment- $10,000
PPA- $320
WPPI- $150
Liability & Equipment Insurance- $1200
Forum- $95
Forum- $250
* Bridal Shows- $1000
Print Competitions- $500
Credit Card Machine- $720


From these numbers, you must figure out what your salary will be- what you want to PROFIT. Your break-even will obviously be the number of your expenses added up. Your goal is your expenses plus your salary. (typically about $30,000 a year) Then you must figure out how many weddings you'd like to do, how many sittings, then how much you will need to make each wedding and each sitting in order to reach your goal. A business plan is a MUST and these calculations are a MUST. Every successful professional photographer has done this. You can't be successful without it. There are a lot of resources out there to help you understand and figure this information out. One book that I HIGHLY recommend is "The Lucrative Photographer" by Mark Till. Available on CD as well. It contains in depth descriptions of the above.

Photography is unfortunately one of the least regulated professions. There is no requirement for a degree (except for certain jobs under certain employments) and there is very little upfront costs to open a business. All you really need is a camera and a business license- and not everyone gets one of those either. A lot of people just put "photography" after their name or come up with some other name, and get a website. It's very sad how much it's being abused, and how over-used the term "professional photographer" is. It astounds me that so many people throw that term around and refer to themselves as something they are not. I have even seen people open their "business" and begin copying other people's stuff (we all get this at some point!) and some people who even steal other people's images and put them on their website to pass off on their own. What is the point of that? I have NO idea! My guess is to gain clients, but those clients will be sorely disappointed! What's my best sum up of advice- Work hard to BE a professional, don't just be one of the many who have a camera, likes to "take pictures" and CALL themselves a professional. I will admit right here and now that I thought it was going to be easy just as most people assume with professional photography, but it has been the most difficult thing I have ever done. There is no easy way to be successful- with any business.