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Buisiness plan
Does anyone who is a full time photographer have a buisiness plan? and if so how does it work for you? Is it relevant to running a photog buisiness? Nov 25 05 07:10 pm Link If you are running a business, any business, you should have a business plan. There are many ways to run a photo business (the value chain is so long you can fit in different places). I have worked with some artists-type on developing their businesses and I have found out that in many cases they are over the top with their expectations and are often extravagent in their spendings (then cashflow runs dry and the business dies). A business plan clearly lays out the steps that would lead you to success. If you don't have one and allow a business to run on autopilot, the chance of failure is so high I don't think anyone who knows would ever risk it. Nov 25 05 07:36 pm Link As Leo said, the most difficult thing is to determine reasonable expectations. As you can see here, there are many people who will try to undercut you, so planning without taking that into consideration is suicide. You won't get dayrates anywhere, because you'll presumably be undercutting those that do. I don't know specifically what you want to do, but the pretty girl business is overwhelmed with people who want to shoot it. The other biggest danger is kill yourself with debt right off the bat. If you can go into the business debt free, that's a huge leg up. Better to rent as required than to own something you'll seldom use. Capital equipment sitting idle is a cost. Lay out some figures and add a fudge factor to costs, because you'll always underestimate them. Plan out for a minimum of five years what you expect to do ($$). Be prepared to flush the whole project if the numbers don't come out black enough to live on and it simply isn't going to work. The best test of a business plan is to see if a bank or other lending institution will give you money based on it. If they won't, then the plan is probably full of holes. Good luck, Don Edit: I was a full-time photographer and did have a plan. As with most plans it worked right up to the point of putting it into effect. Now I'm an amateur and like it much better. Nov 25 05 09:59 pm Link Thanks to those who replied to the question of a business plan. I am assuming that those who have business plans did it themselves and did not hire it out. I also assume that these are full time photogs who have been in business for at least 5 years and probably have a studio? For those out there who have thought about the commercial studio rout, who would like to shoot fashion, for example and have all the things that would make it nice for a company to come in and hire you as a full service studio, how would those of you with this sort of experince recommend those who want to go this rout do so with very little capital and is a business plan essential to this kind of set up? What are your thoughts, anyone? Nov 26 05 12:52 pm Link Master Image Photograph wrote: Yes. But I had done business plans for other small busniesses previously. Master Image Photograph wrote: Professional for five years, full-time for about half that. I had a studio, but it was not full-service in that it wasn't large enough for boats, and wasn't conveniently set up for small product photography. Nov 26 05 01:04 pm Link Thanks for your post Dan and others- I shoot digital, so location is fine for me, but for me to get the shots I really would like to get I would like to have a studio too. Large enough studio for cars and motorcycles with models if it were called for. If I have hopes for my own studio 1,500 sq foot for example I would need to lease a place, and to fix it the way I want it, I need $$$$ so to get the $$$$ I need a loan with enough operating capital for at least one year, so SBA loan would be handy but you need a business plan for that, correct? My brother who is a CPA and banker tells me I should have one to give myself an upper hand on the compition, he says you don't "need" it to be professional, but if you want to take control of your business you should. One problem, I don't know how to even right one up to the satisfaction of a banker for a loan, plus don't you need to be in business for at least 2 years continuously (IRS)? I wonder how many photogs on MM work professionally and make at least $50K a year after taxes who have no business plan as apposed to those who have a buisness plan who make much more and how the plan effects that amount of $$$ and"success"? Anyone have opinions, share your experiences here. Nov 26 05 02:08 pm Link D. Brian Nelson wrote: Minor nitpick.. There is a misconception that banks and the money industry know what they are doing. They don't. It's all on their whim what they decide to back or not. Even if you have a solid plan, they are under no obligation. You could have never missed a loan payment in 20 years and the banks can still determine that you are not worthy. Nov 26 05 02:37 pm Link Judging from what you have written in that last post, I strongly (emphasize strongly) suggest that you look into writing a business plan and perhaps read a few books on entrepreneurial business practices first. Entrepreneurial businesses by itself are already extremely high-risk. Most fail within the first 5 years. Over 80% fail within the next 10 years. Without a business plan, you may never be able to figure out whether your business model works or not, and whether it is sustainable. Who wouldn't want to start with a large studio with Profoto hanging from the ceiling? Is that sustainable? Probably not, especially with such large capital investment. Who are your clients? How will you get to them? How much money can you bring in the first year? You need to answer all of these questions first before you should even spend your first penny. I strongly disagree with the bank/money lender not knowing anything comment above. Banks and lenders have one objective: get their returns. If your plan does not point to a growth or at least profitable path, they would not get their returns. If you fail, they get nothing. Most bank loan officers, particularly the experienced ones, would be able to point out the gaps in your business plan and, if they are worth their salt, gives you a reality check with your revenue projection and a sustainability analysis. If they don't think it would work, most likely you should re-think your value proposition and your business model. I consult with startup and small businesses (marketing mostly). Unrealistic projections and expectations will kill you in no time. Avoid large investment. And if you can have it this way, bootstrap and don't borrow money (there is a large cost to borrowing that may not be apparent in the first place, it's more than just the interest). The best way to start a business, in my opinion, is to find a niche first, then expand. It minimizes your investment, carve out a piece of the pie of a large market where others are not watching, build up your capital then expand. I highly recommend this book: Crossing the Chasm by Geoffrey Moore. It was written with technology venture in mind, but it applies equally well to any other small business startups. Another great book for startup is: Guerilla Marketing. It is a great strategy to bootstrap (or at least take out the smallest loan) to start a business effectively. Nov 26 05 03:33 pm Link I will spare you my not so amusing anecdotes over the last twenty years but will focus on one to drive the point that it's all about perserverance: two guys are making $800 a weekend selling hand made caps on street corners. They have a vision: to make clothing. With the money from selling caps, they made shirt samples and go out on a hail mary.. They fly out to the MAGIC show in Vegas (where the entire fashion industry meets) They can't afford the 5K for a booth on the floor but they snag a hotel room and tickets so they can pitch to buyers. As Walt Disney would script it, they land a 400K order (from major retailer) for their shirts. They get back to Brooklyn; all estatic. One small problem, they need 250K to buy the supplies needed to fill the 400K order. Every bank systematically turned them down. They were frustrated; after all the banks would have their money back with a month. The bankers told them too many things could go wrong, that they had no experience. the fact that they had a guaranteed 400K order was irrelavent. The guys had about given up, when their mother told them "lets run an ad in the paper." The guys laughed saying they had been refused by all banks and small business organizations. But somebody else who went through the school of hard knocks saw the ad and lent the money. They fulfilled the order and a little company called FUBU was on their way. They made mucho BLING BLING in unimaginable quantities over the next few years. For every story like the above, there are probably 5000 where the business plan was unrealistic and doomed but the only advice i give to people is to have no faith in bankers and the system. The only way you learn is by getting your feet wet. lll wrote: Nov 26 05 05:14 pm Link Thank You all for your insites and sharing ! Nov 26 05 05:21 pm Link I have been in the photographic business for 42 years. In that time I have made a fairly good living from it. I started small and grew my client base over the years. I have never had a business plan that a bank was happy with. However, I managed to follow the plan I had set out and it worked. Business plans to banks are nothing more than guessology. Banks do not seem to see potential in what some people are trying to do. I believe that Richard Branston was turned down when he first went to a bank with his business idea. Nov 27 05 04:37 am Link I'm liking this thread actually . Any more inspiring details? lol Nov 27 05 10:52 am Link utako omori wrote: We mostly tend to focus on such "fairy tale" outcomes and over-estimate our own chances of achieving them. Nov 27 05 11:02 am Link MakeupIsArt wrote: Yes. Develop a separate marketing plan. Nov 27 05 12:12 pm Link As a photog myself who appreciates the input here I would also like to add that those who are make up artists, hair stylist, etc should put their two cents worth in here. After all this is for the benefit of everyone and anyone who never thought about asking a question about something so boring as a business plan. It sounds obvious doesn't it? If you have a business, you should have a plan of how to make money, where your money is going (marketing, adv.etc) Tracking your goals, and checking to see how things are working for you. How many photogs here for example meet others from MM and get referrals and paid work for example? Aside from portfolio development and gaining expose / experience what are a few benefits photos, models etc have received since being on the site, I would love to talk about that as it relates to a plan. Thanks for any and all input...now go out and create! Nov 27 05 05:44 pm Link Photographers aren't the only ones who should have a business plan. Models should as well. I work in marketing as my "day job" and model on the side so I deal with business plans on a regular basis. It doesn't need to be complicated. Simply look at your goals and then assign sub-tasks to get you there. The BEST business plans I have seen are always revised at least annually (some quarterly). For me, it makes me feel good to take some accounting of where I am and what I am looking to accomplish. The plan is always open to change and modifications as new opportunities and events take place.  Nov 27 05 05:53 pm Link I've run my own business successfully for 6 years... never had a business plan. Guess I don't fit people's definition of a good businessman  I prefer A slave to the drive of obsession term (borrowed from Rush) Take it as you willNov 27 05 06:00 pm Link utako omori wrote: Fairy tale, one in millions. They got lucky, in fact, extremely lucky to have pulled that off. The bank was absolutely correct to turn them down. And honestly, if the bank funded them, it might turn out absolutely differently. Different kinds of business require different kinds of funding sources. The bank was likely not the right place for something like FUBU. Nov 27 05 06:03 pm Link lll wrote: I have - my own. You could have the best plan in the world, but what good is it to you without passion? I have no degree in business, so you would beat me in the game of terms in no time, all I know is that I'm a Scorpio and as such success is my only option. End of story. Passion before plan - works for me Nov 27 05 06:08 pm Link MarkMarek wrote: Not at all Mark. You have been successful - that makes you a good businessman (or really lucky) Nov 27 05 06:15 pm Link MarkMarek wrote: Mark, passion is an inherent requirement for an entrepreneur. Without passion there is no entrepreneurship. Passion, indeed, is before the plan. The plan is there to minimize the risk of failure, that's it. Nothing more than that. And you know, not everyone is a natural born businessman like you. Nov 27 05 06:29 pm Link lll wrote: Well said. Nov 27 05 06:33 pm Link lll wrote: While all of this is true to one degree or another...all of these comments remind me of a question, what is success and what is failure? Nov 27 05 06:41 pm Link Master Image Photograph wrote: Ok, you have asked multiple questions that I think are kind of exclusive from each other. Nov 27 05 07:57 pm Link |
