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PPA Today: Benchmark Financial Survey: November 2014 Archives

Benchmark Financial Survey: November 2014 Archives

By Bridget Jackson, CPA, PPA Business manager

Have you ever read something and thought to yourself, I could have written that! Today is that day for me. In fact, the entire article could have been my quotes.

The article was 7 Ways to Help Ensure Your Business Succeeds by Donald Todrin. He points out business fundamentals have not changed, but new strategies are required in light of the changing economic conditions. The information is poignant when applied to photography business owners, so I decided to do just that! Here are his seven ways to succeed in business tweaked for what I believe to be strategies for the photography industry.  

1) Have a written plan that should include the following:
 a. A financial plan detailing how many sessions you plan to conduct at a certain sales average, an estimate of how much it will take to produce your products (cost of sales), and an estimate of what your fixed expenses will be.
 b. A source of initial financing until the business is self-sufficient. On average, per the SBA, it takes some businesses 3-5 years until they are sustainably self-sufficient. Knowing this, if you plan to use your personal resources, go at it fully understanding that it will take time to replenish.
 c. A sales plan to achieve your sales average goal. The plan should include a strategy and a price list set up to achieve the goal.
 d. A marketing plan to attract the amount of sessions you need to satisfy your financial plan. The plan should identify your ideal paying client and the appropriate strategy to attract such defined target clientele. Also develop your marketing calendar, detailing the tools to be used, when to use them, and how you will measure your results. (PPA's Square One tool is a great place to start developing your plan.)
 e. Detailed workflow from the initial phone call to the delivery of the products. Outlining each step of your process doesn't only help identify the time required for each session, but it will also help you define outsourcing/employee opportunities.

2) Don't marry your plan. Even the best laid-out plans can eventually go awry. Think of it this way; it's not necessarily the plan that is important, but what we learn from the planning process and how it shapes and guides our future actions.

3) Keep your ego in check and listen to others. The photography industry is unique in some ways in that there are plenty of mentors out there to help guide you. Find one whose business is a reflection of what YOU would like your business to be. Look past the "flashy stuff" towards finding a mentor who is dedicated to their craft and their photography business.

4) Keep track of everything, and manage your numbers. In order to be successful, it is imperative as a studio that you know how many sessions you need to hold in order to reach your goals. The results of this analysis can tell you if your sales and marketing plans are working. It's that plain simple. And if they are not working, it may be time to reassess. PPA has made it easy for you to evaluate your numbers. Just go check the online tools, Square One in particular, that will help you establish the basis of managerial accounting.

5) Delegate and avoid micromanaging. This is where your detailed workflow (see 1e) comes into play. It is important for you to remember that you don't have to do everything. In the beginning, it might make sense, but as your business grows, carve out specific outsourcing opportunities using your detailed workflow. The photography business tends to be seasonal so keep that in mind as well when you are creating your plan. If you find yourself needing help year round, then it is time to take the steps needed to hire on an additional employee.

6) Use the internet! Social media is one marketing tool that is inexpensive but vitally important to building your business. It takes time and effort but if you schedule it ahead of time and take advantage of off-season opportunities to pre-post, it will become easier.  More importantly, it is pertinent that you do it consistently in order to be effective. Look outside of our industry to see how profitable companies take advantage of free marketing tools.

7) Reinvent your business. Seriously. If you don't like what your numbers are telling you, make a change. Of course, map out your change, but always remember that it is ok to take calculated risks. It's not about what you gross, but what you keep in our pockets. Assess your business from a different perspective. Ask yourself what your competitive advantage is. What niche could you carve out of your competitive market, and how could you provide better customer service to elevate your value? Discounting brings down your market's perception of your value so instead of playing the pricing war, exceed your clients' expectations by delivering more!

You have made a conscious choice to be a photographer, one that requires time and money. Always give yourself the best chance to succeed in this ever-changing profession. Knowledge is power--and as an entrepreneur, you are on an endless path to discover what you don't know. This is what PPA is here for: to help you be more profitable by continuing to learn about the photography business!

jacksonbridget_blog.jpgAbout the author:
Bridget Jackson is a Certified Public Accountant (CPA) and PPA Business manager. Over the years, Bridget has helped hundreds of photography studios become more profitable. 

PPA's Benchmark Survey, to the uninitiated, is an amazing tool that can help PPA photographers maximize their profit potential. If that isn't convincing enough, as an added incentive, we've been giving away prizes to several lucky winners. It's a pretty sweet way to not only figure out all of the numbers you need to achieve what you want in business, but to also potentially win big!

We've heard from a few of our previous winners over the past couple of weeks and this week we're super excited to announce a brand new winner--Paul Jew!

Paul has photographed a huge variety of subjects--from celebrities to presidents, so the ability to compare books with other diverse businesses is important to his bottom line. "I think it is helpful to share so you can compare your business to other studios. Without this comparison, it would be difficult to assess how our business is doing compared to our peers. It's very important to have this knowledge." Paul used PPA's Benchmark survey as his photography business guide and it was easy. Remember, the knowledge is just a few clicks away!

For participating in the survey, Paul is taking home a $500 gift card to Showcase Inc.! Not a bad way to kick off the holidays (yes, there are already Christmas decorations popping out everywhere).

PPA's Benchmark Survey is the industry's only complete financial overview that depicts what profitable successful money-making studios (the kind you want to be) look like. That's unlike any other industry averages that only give you, well, averages. Having access to information that shows what high-performing studios look like has been helping photographers form a better idea of where they stand and how they can improve their bottom line. Please consider giving it a try! It really helps!

How? On top of the survey, digestible summaries, and an easy projection tool, participating studio-owners get a side-by-side comparison of the Benchmark with their own financial data. And this comes free for PPA photographers! Not only is this an in-depth source of information to help you grow your business, it is a $750 value (or more!). As a bonus, if you participate, you're also automatically entered each month in some giveaway drawings for great prizes! This month, participants are entered to win a one-year subscription to Sticky Albums or a $250 gift card to Adorama.

Don't forget about this awesome little nugget of information: In addition to the monthly giveaways, all participants are also entered into a drawing for an all-expense-paid trip for two photographers to Imaging USA 2015 in Nashville. That includes airfare for two, hotel for 4 nights and two all-access pass Imaging USA registrations. Submit your info today!

About this Archive

This page is a archive of entries in the Benchmark Financial Survey category from November 2014.

Benchmark Financial Survey: October 2014 is the previous archive.

Benchmark Financial Survey: December 2014 is the next archive.

Find recent content on the main index or look in the archives to find all content.

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