Are You Ready To Charge People?
Are you ready to charge people?
That's the question that gets asked a lot when you're thinking of starting a photography business. As artists we tend to question ourselves and our abilities constantly. We are forever in doubt about our abilities and whether we could 'get away with' charging people.
Here are 5 steps you can take to know whether you are ready to charge for your photography.
1. Are your photography skills up to par?
This one is the most basic. Before you even consider putting up a shingle and charging for your photography, you need to make sure you have a decent skill level before you start.
If you are still shooting in fully automatic, then I would say no, you are not ready.
If you haven't even mastered the basics of shooting in manual and understanding your camera then you cannot legitimately call yourself a pro photography just because you got a 'good camera'. A 'good camera' does not make you a professional. A professional understands many factors influence a good image and gear is just one.
If however, you are confident with your skills behind the camera and you are asking yourself this question then I would say that the question 'are you ready?' stems more from your own fears and insecurities than from any outside influence.
And the best way to combat your fear is by doing research and discovering for yourself whether your dream is feasible or not.
Now, I don't mean asking friends and family whether they think you are any good and can make a go of it.
Though as your friends and family they will express their opinion regardless of whether you ask it. And they can be a great source of support (or doubt) but ultimately their opinion holds no weight.
Not to mean that their opinion is irrelevant. Of course it isn't. On a personal level you want your friends and families support and encouragement as it will help you when you have your less than perfect moments. But in deciding whether you should start a business, unless they know all of the factors then their opinion is just that, an opinion.
When you decide to start a photography business whether or not you feel ready and your photography skills are up to par, is just ONE of the factors you need to consider.
2. Have you run the numbers?
Before you even consider trying to turn your photography into a business you need to do the math. I'm going to repeat that because it's so important.
You need to do the math!
Urrghhh, I can hear you all groaning from here. Trust me, I know. No creative likes to hear that part. In fact, I think we were all hoping our teachers were wrong in high school when they said we needed it. And that is certainly true of Pythagoras's Theorem (I have never once used that outside of school) but unfortunately it doesn't hold true when you want to start a business.
Business, I'm afraid to say, is all about the numbers. Is it the only factor? Of course not. But it does play a large role and it's an extremely important part in figuring out whether this is possible for you.
So grab a glass of wine, a notebook and a calculator (your phone for those of you who haven't experienced those two items as separate devices) or if you prefer, you can go and rock a spreadsheet and get your groove on there.
This is where you need to get really detailed. You are going to account for every expense in your personal life, every expense in your business, your COGS, your desired salary and your profit for reinvestment. And don't forget taxes.
Depending on how much you earn your tax percentage can change in Australia so I suggest you give yourself some leeway and put aside about 35% for taxes. I don't know about you but I would prefer to get a little back from the tax man then having to scramble because I don't have enough to pay him.
If you do this part correctly you are going to come up with a scary number. That's good. It means you did your figures correctly. Once you have figured out what you need to make, you can go ahead and set your prices.
Unfortunately a lot of people skip this step and just start charging. They think they are making money because it's more money in their pocket than before but it's not until they work out their finances that they realise instead of making a profit, what they've actually done is work for below minimum wage or not make any money at all.
I cannot stress it enough. DO NOT SKIP THIS STEP AND DO THE MATH!
3. Have you covered your ass and gotten legal?
Ok guys, since I'm an Aussie I'll be talking more specifically about the requirements and legality regarding photographers in New South Wales, Australia. If you live outside this area then you'll need to do your own research but this can give you an idea of what you need to do.
Keep in mind that I am not a solicitor and this in no way constitutes a complete overview or legal advice. Please do your own research regarding this matter and consult a solicitor.
Register for an Australian Business Number (ABN)
Decide whether you want to trade as a sole proprietor or as a Pty Ltd (LLC for anyone in the US)
Register for GST (if needed). Registering depends on how much money your business makes - so check with the ATO for their requirements. This step ALL DEPENDS on your income - so make sure to check when you need to register.
Get business, equipment and liability insurance.
Until you do these steps you are not legal. If you can't afford to do any of these steps then I encourage you to wait until you can. If you want to be a business you need to act like a business and that includes protecting yourself and your customers.
Please do your own research and work out what is required for you. Different countries and different states require different things.
And finally...
4. Are you prepared for the business side of your business?
Someone once said that running a photography business is 20% photography and 80% business and they weren't lying. If you go into this expecting your days to be filled with a couple hours of photoshoots and editing and then you can spend the rest of the relaxing then I'm going to burst your bubble right there.
This is no breezy job. There is so much more involved in running a photography business than what you think when you are just starting out and if you aren't prepared for the business side of your business then you will burn out and fail.
According to Bloomberg 8 out of 10 entrepreneurs who start a business fail in the first 18 months. That's a huge 80% of businesses that fail. Now are all of those businesses photography businesses. No of course not. But let's be realistic.
With a percentage like that you are guaranteed to be quite a few photographers who have failed and had to close up shop. And let me tell you, the vast majority has nothing to do with their skill behind the camera. And everything to do with realising what it takes to run a successful business.
Now I'm not telling you all this to kill your dream and make you so despondent that you never want to pick up a camera again. I'm telling you this so that you are prepared. So that you do the research and go into business with your eyes wide open. So that you can be one of the 20% and not the 80%.
So take the time before you jump in headfirst and determine whether this is really what you want and if you are really prepared for all the work that goes into it.
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