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PPA Today: Benchmark Financial Survey: April 2015 Archives

Benchmark Financial Survey: April 2015 Archives

In the previous post 2 Studios Are Getting a Full Business Makeover This Year! you met PPA Studio Makeover recipients, Wes Roberts and Krista Newbill and read the overview of the makeover process.

Now that the makeovers are underway, you can follow along with their progress! First up is Wes as he and the PPA mentor team dove into the financials of his business.

Wes's Story

The Financials

Wes was super excited to get started. He's been working with PPA's Business Consultant and CPA, Bridget Jackson, to get a handle on where he is currently and the best way to move forward.

First, we always did a complete financial analysis of the studio. It's important to know what's working and what's not. We did this by comparing Wes' studio's numbers to PPA's Benchmark Survey. By comparing his cost of sales, overhead and net profit we started to get a good picture of the pitfalls that are causing monetary loss. We also uncovered potential opportunities for savings.

Wes' numbers looked better than the average benchmark studios in 2013 and 2014. However, his 20% cost of sales percentage doubled between 2013 and 2014. While, in general, 20% is a great number to achieve (below the recommended 25%), we had to figure out what has changed to cause such a drastic uptick and put everything in place to ensure that trend would not continue in 2015.

Second, PPA mentors helped Wes develop a photography business plan for 2015 that included three goals:

  1. the number of sessions he wants to photograph (broken down by month)
  2. the sales average of each session
  3. his net profit



About this Archive

This page is a archive of entries in the Benchmark Financial Survey category from April 2015.

Benchmark Financial Survey: January 2015 is the previous archive.

Benchmark Financial Survey: May 2015 is the next archive.

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

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