Growing Pains: Marketing Strategy Tips from Sarah Petty

I have been collecting daily marketing tips from boutique studio photographer Sarah Petty since her company, "The Joy of Marketing," hosted the Master Photographers' Telesummit Marketing series last month. I thought I would pass them along to my followers and reread them myself to help the knowledge sink in. Here's your first tip. And look for more every Sunday here on my blog until we reach number 10!

1) CREATE A STRONG IDENTITY: One of the main reasons that small businesses, specifically photography businesses, aren't growing is that their identity lacks focus. Every successful business starts with a great logo and identity. If you're using more than one logo, it's counterproductive! You can't build a brand if you don't have a strong identity. And a strong identity starts with a great logo.


Listen to 5 tips for creating a great logo here.

This Weekend: Photo Meetup and Crafting My Business Plan

Later this afternoon, I will be meeting with several of my friends and photographic colleagues from the Mile High DPS Social Group. Together, this group has shared some memorable outings photographing the majestic, rocky crevices of the Garden of the Gods, zombies attacking downtown Denver patrons, colorful city holiday lights, and each other when our model decided not to show to her own photo shoot. Today, our subject will be butterflies taking flight at the Butterfly Pavilion. I am hoping to nail my entry for this month's blog photo assignment DECISIVE MOMENT while shooting at this event. A macro lens and wide aperture will be a must to get images similar to the one above and left, taken by my instructor and award-winning nature photographer Russ Burden.

The only thing the group needs more of is...well, you! We want to continue growing the social group, so membership rolls are open. To join, you have to be a member of the Digital Photography School forum, which in itself is a wonderful resource and has helped me on many an occasion to prepare for photo sessions and get advice on the business nuances of my photography studio. Once you join the forum, go to the navigational bar at the top of the page and click on QUICK LINKS. Scroll down to NETWORKING-SOCIAL GROUPS and become a member of the Mile High DPS Social Group. Our group is definitely one of the most active on the forum.

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Tomorrow, I will be posting about the creation of my business plan for 2009. It's been a long time in coming. But I finally met with photographer and business manager expert Jim Turley to hammer out the details. Jim runs Sweet Water Images and teaches a "Passion + Profits" business management course at Illuminate Workshops.

If a photographer wants to catapult a passion into a livelihood, a business plan, profit and loss statement and effective marketing are essential. I found out it wasn't nearly as complicated as I had feared and that I had already been doing things and conceptualizing plans naturally that will help my business grow. Putting the plan down on paper and using it as a guideline to help gauge my profits will be essential to my ultimate goal of leveraging some investments from outside sourcing and creating a model that includes hiring other photographers to work under the Picture Your World Photography brand.

Growing Pains: Don't Become a Debt Collector

Several lines from an email I recently received from one of my photography colleagues worried me to the core:

"I'm having trouble with one of my clients...they expect the work done on their terms and expect the photos before payment. So, I'm holding the photos ransom. I've become a collector, and I hate it."

One of the most difficult things to deal with for any business is securing payments. Because of that, I've been requiring clients to pay before I start shooting. Clients must pay half of the shooting fee to book me, and then pay the rest before I actually take my camera out the day of the event. Most people haven't had an issue with that once I explain to them why it is a necessary business practice (I think it helps that all of my work has been from referrals as well, so others have vouched for my work ethic). Even my business management instructor Jim Turley told students he hates having to chase people down for payments. So I asked Jim to share with me some strategies for remaining a business owner rather than a debt collector.



JIM SAYS: "Get full payment before the event.

Once an event, especially a wedding, takes place and the total cost is
known (weak budgeting on the part of the bride and/or mother - not
unusual) the motivation to pay in a timely manner can wilt.

If a wedding photographer is providing an album or DVD, then
definitely do not release any photos, even on Pictage or any other online hosting site, until the bill is paid in full. But this should be a last resort if monies are not collected prior to the event.

Businesses that typically carry accounts receivable (few today, since most require credit cards) build in a cost for collections. Photographers are unlikely to do this. And the cost is not only in dollars but in time it takes to pester your client for unpaid balances. Add to this the brain-damage of wearing a bill collector's hat, and the cost is even greater.

An up-front payment is a sign of good faith on the part of the client, but more importantly allows a photographer to make the reserved date unavailable to anyone else. What could be worse than reserving a date, which may be a popular date, and then not getting paid or paid-in-full? Not only does a photographer suffer from losing anticipated income, but she/he was prevented from booking that date for someone else!"

Jim also recommended that if anyone is interested in allowing clients to pay by credit card, then they should check out PayPal, which has a no-monthly-cost plan. In the early stages of a photography studio, Jim explains, owners need to be aware of fixed costs, even when it seems small such as $20 per month. Even established studios should think twice about monthly costs since it's not wise to take on fixed costs that yield no benefit certain months.

If any of this information has been helpful and you are in the Denver metro area, you should take Jim's course "Passion & Profits: Managing Your Photography Business," offered through Illuminate Photography Workshops. The next session starts Oct. 22 and runs for $199.

Growing Pains: A Legal Foundation for Your Business

Put down the camera for a second and get into an entrepreneurial state-of-mind. Here are some great resources from photo attorney Carolyn E. Wright to help the creative right-side of our brains come in line with the logical (and hopefully money-making) left-side. Check out her blog to get more advice on securing a legal foundation for your business:

1. The IRS website - taxes are the most unpleasant issue, but at least it's easier today to learn about them. The IRS website is surprisingly user-friendly. The business section addresses subjects such as how to start and operate a business and includes a special section on small and self-employed businesses.

2. Your state's secretary of state website - each state has a website directed to topics such as establishing and registering your business and state tax requirements.

3. Your county's website - many county governments also have websites so that you can learn about the requirements to operate a business in the county. Conduct an Internet search on your county's name to find it. Click on "business" to find information on licenses and how to register your "fictitious name," also known as your "doing business as" (when you operate your photography business under a name other than your own or a state registered corporation or company).

4. Your own CPA - even with these great resources, it's still difficult to know how to organize your business and pay your taxes. Find your own CPA to help you with those issues.

5. Your own lawyer - despite the plethora of legal advice available from web forums, your legal circumstances are unique. The legal answer that worked for one photographer may not work for another. Find an attorney who can help you with your specific legal concerns.

I have taken care of points 2 and 3, having registered my company's name with the state and county. My accountant specializes in working with journalists so I think I have that covered. At some point I will need to acquire an attorney and get a better handle on my taxes when I start making more income.

Growing Pains: How to Succeed in the Photography Business

I am going to be introducing a new section of my blog today called "Growing Pains," featuring advice on maintaining a successful photography business. Lord knows I need all the help I can get, and if you are new at this like me, then you probably could use some advice too! Just about every other day, I get emails from various news, business and marketing services I have subscribed too, and I thought the information would be helpful to my readers too.

Marathon Press, a marketing partner for professional photographers, released these highlights from a Professional Photographers of America's Financial Benchmark Survey into some extremely user-friendly tips:

1) Gain experience before you quit your day job. Learn about the business of photography by operating a part-time business while still drawing a salary from stable employment. Don't go out on your own until you can:

Develop a following among your target market, so that you can gain client referrals.
Develop consistent cash flow from your part-time business. Most experts agree that a photographer should be grossing between $50,000 and $100,000 annually before it is wise to consider a full-time business in a home studio and at least $150,000 before considering a move to a retail location.

Create an efficient work flow that will allow you to deliver orders on time.
Bank enough cash to live on until your business becomes profitable. This can take from two to five years.

2) Control your start-up overhead. Starting a home-based business will help you to control operating costs and provide the additional benefit of writing off some home expenses as legitimate business deductions. Not every home lends itself to business operations because of zoning and/or image considerations. So if you must start a business outside the home, search for a low-rent location such as a community-based business incubator until your business can afford costlier facilities.

3) Understand financial and operational requirements. Don't go into business until you understand the financial requirements of doing business. Vital areas of concern are:

Being fully aware of all business costs, from investment capital to monthly expenses and product production costs.
Knowing how many sessions or events you must photograph to cover these costs and earn a profit.
Learning how to price your photography according to industry standards that assure profitability.


4) Budget your capital investments very carefully. Too much debt will doom a business from the start. Remember: Your business must be able to generate enough revenue to pay you (or the bank) back for the capital investments you make. Even if you have the cash to invest in capital items and don't have to go into debt, that cash might be needed to help you survive the early business years when most studios do not generate enough revenue for the owner to draw a salary. Once you have the business start-up essentials, a good rule of thumb is to purchase only those extras that you can pay for within 12 months.

5) Once you do take the plunge into a full time business, build business volume as fast as you can, doing whatever it takes to get clients in the door.
PPA's Benchmark Survey confirms what business authorities know: The difference between financial success and failure often turns on the ability of a new business to build sales volume quickly. That's why many recommend not starting a full-time business until you already have a loyal following from running a part-time business. Even so, a full-time business will require additional strategies for building sales. Get the word out any way you can: through networking with other businesses; hosting a series of open house events for different community segments; get involved with charitable organizations by donating photography to their fund-raisers; look for "marketing partners" to help spread the word; get displays of your work on the walls of retail businesses and/or professional offices; and even offer "invitational sessions" for the purpose of "expanding your advertising portfolio" or making samples. Building your business base early will establish sales levels high enough to sustain your business over the long term.

6) Develop a clear business focus that consumers can easily understand. Don't expect prospects to be attracted to your business if you fail to create a business concept that is easily understood by consumers or one that lacks compelling products to excite their fancy. Sometimes it pays to direct your new business to only one or two niches, such as family and children's portraiture or wedding photography. Limiting your business in this way will help you to develop a strong focus that consumers can readily understand, and it will greatly simplify your marketing efforts.

7) Study effective marketing methods. Learn how to create year-round marketing strategies designed to attract new clients. Market back to existing clients, finding ways to reward them for their loyalty. An excellent resource for learning about marketing methods as well as helping you to create a marketing plan is the Marketing Resource & Activity Planner for the Professional Photographer, available from Marathon Press at MarathonPress.com or call 800/228.0629

Growing Pains: No Print Sales From Wedding Yet, But Why?

My first wedding and the growing pains I continue to suffer because of it has definitely pinpointed the fact that I need to hone my business skills if "Picture Your World Photography" is going to succeed.

I blogged last week about providing CDs in packaging. This week, I'm having to deal with the fact that no one is buying online prints from the wedding. The presentation went very well and the bride was very pleased with the photos. I'm not sure what the issue is, but I ran into the same problem earlier this year when few people purchased prints from a National Black Skiers association event I covered in January. Given time, I eventually made more than $200 in additional print sales from the NBS event...but it was still confusing considering how many people viewed the images (and continue to do so even months after the event).

My instructor Russ Burden, a veteran photographer, said even he has experienced this same phenomenon. I have posted numerous threads about the issue on the photography forums I frequent, including Digital Photography School and Digital Grin to get some help and explanations. If you have the time, I would suggest reading through these threads, as they are full of great tips from seasoned photographers who have found ways to deal with these issues.

Some people are convinced that online print purchases just don't happen, and if they do, it should be considered "icing" on the cake. To that end, it has been suggested that I need to create a business plan that incorporates print sales into the overall price. For example, $500 was simply too low to charge for the wedding. A more realistic price might have been $1,500 or more (with half or all paid upfront before the wedding) to ensure a profit margin.

I've been doing some research to see how much local wedding photographers charge for their various services and what their packages look like. Few people can afford to pay $3000 for wedding photos, so I really like the idea of creating several types of packages, based on coverage, starting from $750 and up.

I also took a "Managing your Business: Passion and Profits" seminar from Illuminate Photography Workshops several weeks ago to get a handle on the business aspects of photography. Being a good photographer doesn't mean you will have a successful business. Instructor Jim Turley stressed the need for me to create a six month business plan. He is right, and this is exactly the kind of circumstance where having one would have helped me. Instead of getting overwhelmed with trying to create an entire budget, I am going to start with realistic steps to get me through the next six months of my business planning including: nailing an agreement contract, creating service fees and photo packages and passing out all of my business postcards I bought.

Get the Goods: PPA Webinar

I joined the Professional Photographers of America association last week and one of my gifts for joining the association was free attendance for Friday's "webinar," an online seminar by industry leaders for professional photographers. All you need to participate is a computer, high-speed internet connection and speakers. This one is called "Business Basics for Photographers," and it sounds like a great opportunity to get sorely needed business-sense in this creative field:

"Many photographers get into the business for the creative aspect…but it’s your business knowledge that will keep your dream alive and kicking. As photographers, you need to understand the business basics, especially when you’re starting out. And Ann Monteith, a leading authority on studio business management, has a good place for you to start learning these business basics.

Business Basics for Photographers
Participate in the online seminar Friday, June 6

Friday, June 6, 2008
with Ann Monteith, M.Photog.Cr.Hon.M.Photog., CPP, ABI, API, A-ASP
12:00pm-1:00pm EST
$49 *PPA members / $249 non-members
Register online or call 800-786-6277

It takes a lot more than good photography to build a successful business. In this Webinar, Ann Monteith will review the financial, sales, marketing and workflow fundamentals that must be mastered in order to build a successful photography business. Join now and start off on the right foot."

About Ann Monteith,
M.Photog.Cr.Hon.M.Photog., CPP, ABI, API, A-ASP, Hon.A-ASP
Known as a leading authority on studio business management, Ann Monteith serves as a consultant to studios throughout the country, both privately and under the auspices of major industry suppliers. A former chairwoman of the board of the PPA International School of Professional Photography and a past president of PPA, she received the Gerhard Bakker Award for excellence in teaching and the Charles H. “Bud” Haynes Award “for encouraging business awareness and practices.” A widely published author, she and her husband Jim are directors of Countryhouse Studios near Hershey, Pennsylvania, as well as a prestige portraiture business and teaching facility in Deep Creek Lake, Maryland.

*SEP, CPI, SPS, and EPIC members can register at the PPA member rate, but they must register via phone by calling 800-786-6277.

Visit the PPA's events section for more information on upcoming online seminars.