Jumping In - Head First

SCS_Photo · January 31, 2006

I'll preface this post with a little background on myself.

I'm 18, just out of high school. Not that it matters, but I am taking the GED test in 10 days; Didn't do the regular diploma route due to circumstances beyond my control. Anyway, I find myself with a lot of free time (between jobs).

Photography and Post Processing has eaten up quite a bit of that, to the order of over 20 gigs thanks to a Sony F828 and a Nikon D70. I know my way around my equipment, and am pretty confident of my skills. I've come to the conclusion that this, in one form or another, will be my career. College and the time it entails will be an issue, but I'm going to take it slow, start off this fall with just enough hours to qualify for health insurance

In the meantime, I've decided to start my business. It'll be a sole proprietorship, any funding will be in the form of grants/loans until I get in the black.

Things I've decided:
#1 No studio portrait work - Don't have the room or the assets, even if it is a 'cash cow.'
#2 An open business model, little overhead, deal with prints by selling through smugmug & Licensing through non-commercial attribution CC licenses - customers see proof prints/online images and print to their hearts delight.
#3 Work with local merchants - coffee shot, farmers market displays, etc, Take advantage of family & friends' social networks, so to speak.

I have almost no liquid assets right now. What I do have in the way of non-liquid assets:
Paint Shop Pro 9
Sigma EF-500 DG for Nikon
Apple iBook
Tungsten E2 PDA
My own Cell line
Old MF M42 Screwmount (200 f/4, 50 f/1.4, 28 f/3.5, 135 f/3.5, all super-takumar) Primes & a few K-mount primes

Keeping in mind that the D70 is not mine, heres what I figure I'll need (ordered by expected need & expense):
Camera body *istDS2 - $750 - Will use my K1000 as backup.
Sigma 70-200 f/2.8 - $650
50mm F/1.8 - ~$100
Booth & Tent for Art Fairs - $?
Tamron 90mm SP Di Macro - $440
Kenko Extension Tube Set - $120
External Flash - $140-$200
3 Gigs worth of SD cards, good performance - $150-200
Decent Tripod - $200
Monopod - $70
Tamron 1.4x TC - $90
Flash Diffuser - $50?
Lowepro/Other brand back pack for photo gear - $?

Non hardware one time expenses:
Safe For Camera Gear - $?
Extended Warranty for Camera Body $?
Neat Image - $120+
Business Cards - $99 per thousand, through Shelly

Continuing Expenses
Vonage business Line - $30/month
Smugmug Pro $100/year
Non-smugmug Website hosting - $30/Year from a reputable host
Insurance on Gear $?

Advertising
Biz Cards, Website banner exchange, Word of Mouth. Eventually - get my Silverado tastefully branded with the name of the business. Participation in online forums with sigs leading to my site.

Main Revenue Stream
Amateur/Youth Sports photography - Little League Baseball, Soccer, eventually basketball in the Winter.

Alternate Revenue Streams (in no particular order)
Freelance photojournalism for local publications. (City of 200,000 & 330,000 in this county - plenty of potential clients) Google AdSense derived from photography related site (but not my main sales/business site). Corporate/Industrial photography - Connections through my father, works closely with bigwigs in local industries. Ebay consignment & product photography - freelance. Potential client in small textiles shop & interior designer - friend of the family. A specific Gallery Downtown that is known for low consignment rates - Get more artistic & wildlife stuff

Obstacles
Clients - Attracting an initial client base, and maintaining stable,paying clients.
Perception - That most important thing for a photog my age... I don't want to be quoting Rodney Dangerfield 6 months from now.
Coding - As of now, I only have the barest knowledge of HTML... I'm a quick study in other technical matters, but coding could be different.
Business Model - Finding a Niche

Funding
I hate debt, I've had first hand experience with it... it sucks. But it'll be a fact of life for my small business. I think the best way is through the SBA, if I can secure a loan from them. If not, I'll look for other sources. In this matter, I don't want to rely on family or friends - best to keep it to official business. Regardless of the source, getting 'back in black' will be one of the first matters of business. Start out simple, high margin work, based on the first few months/weeks of business. Only after that I'll start branching out. I'll need about $700 on hand (in the bank) at all times. Create seperate bank accounts - one for most of the revenue, one for scheduled expenses, and one for purchasing assets.

So far... what do you think? Feedback on anything and everything is desired.

Thanks in advance.

-Sam

SCS_Photo · February 3, 2006

Guess I'll post a dupe of this thread over at FredMiranda.com...

Must I have a few hundred posts before someone gives me the time o' day around here?

bham · February 3, 2006

I think you have put a good amount of effort into laying out the basics of a plan, what you have, what you need, etc. I think the main reason you might not have gotten any responses is for the lack of understanding of what it is you are asking us (dgrinners) for.

I think the best advice it to takes time to build the business and that could take a few years. The fact that most business' fail in their first year is a sign that people think they can just jump in and carve a niche easily. It isn't easy, but good luck. My advice would be not to go into debt. Look for ways to minimize expenses until you can start to get a feel for your incomes. Maybe just keep the cell line as a make do business line. Have your photography called your name like "John Doe Photography" then you can answer the phone "John Doe" and weather it is business or personal they know they have reached the correct person.

Not sure for the reason for the seperate non-smugmug host site. With the customizations that some smugmugers have done to their site I don't really see the need. You may have something specifically in mind that smugmug couldn't provide but IMHO that would be a much lower priority.

You may want to try and prioritize the list of have the fellow dgrinners help you prioritize it. That I think would be very helpful.

Go to the library and check out some photography business books. Hey most libraries have some good ones, and the taxes you already pay give you free access. Thus not having to buy. But take notes of things you find helpful, interesting.

You probably could substantially benefit from doing work for a student newspaper or being a photographers assistant for a local photograher that is in the business.

StevenV · February 3, 2006

Sam,

two things right up front. 1. for a 'youngster' you've got a good sense of organization; that business plan has much more detail than what I've seen from many 'adults'. 2. patience is a virtue, attitude isn't. there are lots of posts every day, and sometimes those of us who mainly check the 'new stuff' listing miss something and it scrolls off.

Amateur/Youth Sports photography is a beginning category, can you define your focus a little more narrowly and therefore save some money up for a little while? What I mean is this sort of thing - if you're looking to do mainly action shots, maybe you just get the monopod and not the tripod. If you're going for the group and individual posed, the tripod's a necessity bu the monopod might not be. Then as you've got some better cash flow you expand. Don't get me wrong, both are valuable but given your situation it might be a way to gradually spend rather than all at once.

The real thing for Amateur/Youth Sports photography is to get some sort of contract and payment up front. Shooting a weekend of sports, posting pictures on a SmugMug site and hoping that parents will come buy can be a fun hobby but probably isn't going to earn what you're looking for. If you can, get the league to pay up front for your time.

Tessa HD · February 3, 2006

Hi,
It's evident you've put a lot of thought into this by the looks of your business plan. That is an important first step - business plan. It really helps keep everything in focus. And then every 6 months or a year, update it.

To attract business, keep yourself as visible as possible. Advertising is expensive, so just be visible. Go to all your local functions, take shots, hand out your card, direct them to your website. I'm a firm believer that the best advertising is word of mouth, so be visible and get people talking about you. Even set up a tripod downtown during lunch hour, or where people are. I'm an oil painter and this works well when I set up an easel and start painting in a public place. People love to see what you're doing and I almost always get business when doing this. Plus it helps you get into other cirlces and out of the circle of people that know you.

Money and debt. My stomach gets in knots over those two words. You've got to somehow get a line of credit for those times that you have to dish out cash before you get some. My best advice for that is get a small credit card, maybe $2,000 limit (can you join a credit union?) and use it ONLY for your business. More advice, don't worry about paying off the balance each month. A business needs some cash flow. If you're visa bill is $200 and you have $200 in your checking account (make sure you have a separate checking account for the business) don't pay off your card. Pay $50 or $100, that way you'll have some cash, as long as your wise with that leftover $50-$100 and aren't spending it on a "business cappucino" every morning. It is vital that you keep your business completely separate. Well-kept bookkeeping can really help you at tax time, plus you'll have a good conscience. Make every trip in your car a business trip, and log every mile in a journal so that you can claim all that mileage at the end of the year. Keep a space in your house/apartment set aside for only business, figure out the percentage of that space and you can deduct that percentage of all your utilities without going full tilt into "home office deduction". then at the end of the year when you've a hefty loss, you can take your tax refund and buy some of the things on your wish list!

I don't know what else to say, but I hope I've offered something useful - they are some things I've found helpful for me. I wish you the best. Be patient and build slow.

Angelo · February 3, 2006

Print out your plan on nice paper, frame it and hang it on the wall becasue it has more meaningful insight into your ability to conceptualize, organize, plan and present a stream of thought than HS Diplomas say about most students these days.

Good luck in your efforts

Frog Lady · February 3, 2006

sports shots
hi Sam,

Like the others, I was pretty impressed by the detail of your business plan. Now comes the hard part...

With regards to sports shooting - if you are talking about action shots, having all your dealings on the web may not be the best way to get going. I've been doing that on a sort of hobby basis (but good quality pix w/ my Canon D20 and 100-400 L lens), and I get plenty of looks, but not a lot of buying. Most of my buyers are the parents on my son's team, even though I hand out information to the opposing side lines as well. Some of the issues include the socioeconomic level of the teams and their access to high speed internet, the parents willingness to buy off the internet (yes, that is still an issue, even in this day and age), and not knowing the quality of the product (for 1st time buyers).

On the other hand, I have seen on-sight sales florish. The photographer takes pictures one day and has prints available on another day. While it is a bit of a risk (ie, pay for all the prints yourself up front), the mark up may help and you get a lot more of the impulse buyers. If you start w/ 4x6 prints, it is not as much of a financial risk ($0.19 per 4x6 v ~$1.99 per 5x7). With one person, it probably won't be feasible to take pictures of every team in a given league, but if you focus on a certain age group one week and then sell the prints the next that might help. Also be aware that leagues may have contracts w/ photographers that prohibit another one coming in (for example, I couldn't even sell my prints to my son's teammates parents b/c of the exclusivity contract, even though the pro's were only there for one week end of the whole fall season).

Lastly, again, if you are going to start w/ soccer/baseball action shots, I would recommend a longer lens (the 50-500 "Bigma"?) to minimize the crop.

good luck

Shay Stephens · February 3, 2006

All the planning in the world won't save you from yourself. Being rude is a death sentence in this business for someone starting out.

In a few decades, maybe, but for now, stow the 'tude. No one owes you anything. The sooner you learn that, the easier it will be on you and the faster you will be able to progress. You will get more help when people want to help, rather than feeling guilty that they have to help you. You will find people will avoid you after making them feel that way. Then, you are all by yourself, bitter and angry that the world hates you for no good reason.

Secondly, long complicated posts require more time to formulate more than just an off the cuff answer that may or may not benefit you at all. It at times takes me (for example) a few days to answer something complicated. There is a flash question I am working on now that is going to take days more. And if the poster got all huffy and copping an attitude that I or other posters were not performing up to their expectations and schedules, well, they can...go take some photos

But seriously, drop the idea that people owe you anything, it will stunt your growth.

SCS_Photo wrote:

Guess I'll post a dupe of this thread over at FredMiranda.com...

Must I have a few hundred posts before someone gives me the time o' day around here?

SCS_Photo · February 4, 2006

Shay Stephens wrote:

All the planning in the world won't save you from yourself. Being rude is a death sentence in this business for someone starting out.

In a few decades, maybe, but for now, stow the 'tude. No one owes you anything. The sooner you learn that, the easier it will be on you and the faster you will be able to progress. You will get more help when people want to help, rather than feeling guilty that they have to help you. You will find people will avoid you after making them feel that way. Then, you are all by yourself, bitter and angry that the world hates you for no good reason.

Secondly, long complicated posts require more time to formulate more than just an off the cuff answer that may or may not benefit you at all. It at times takes me (for example) a few days to answer something complicated. There is a flash question I am working on now that is going to take days more. And if the poster got all huffy and copping an attitude that I or other posters were not performing up to their expectations and schedules, well, they can...go take some photos

But seriously, drop the idea that people owe you anything, it will stunt your growth.

I think you're reading a bit too much into my little quip. The 'tude' was just to get things going.

It worked quite nicely.

Anyway, thanks for all the advice (everyone). I'll digest it a little then post back. A few things that spring to mind in response to the posts:
Socioeconomic Level: My township in Fort Wayne is Upper-Middle Class, on average. Its one of the 'booming' areas of Fort Wayne, good schools, pricey land etc. Verizon is installing FIOS here... internet penetration is farely good. But that is a good point on the impulse buyers.

Gear: My first purchases would be the body + mem cards, the monopod, and the 70-200 with the Tamron TC. The other stuff would follow after I get some decent cash flow.

Thanks again. I'll have more questions shortly.

Frog Lady · February 6, 2006

SCS_Photo wrote:

Socioeconomic Level: My township in Fort Wayne is Upper-Middle Class, on average. Its one of the 'booming' areas of Fort Wayne, good schools, pricey land etc. Verizon is installing FIOS here... internet penetration is farely good. But that is a good point on the impulse buyers.

OK, I'll give you that, and I had the same thoughts about my genral area. But unless you intend to "saturate" your home market, you'll be going to tournaments, etc and drawing teams from distant regions. This is where you are likely to run into access/affordabilty issues. We go to tournaments that are up to an hrs drive away and many teams travel further. So even local events may have players from different ecomonic groups...

JimM · February 6, 2006

I will warn you, that I have tried shooting football games here and have only had one person order any prints (and the shot were really good). There order was for $70 so that was nice.

I shot the games and passed out business cards referrencing my site. SM showed a ton of traffic, but only one order out of 4 games. I am now working to partner with the team's board of directors to have me be the "official" action shot guy. Hopefully they'll link to me from their website and put me in their program. I am discussing sharing revenue with them for the links. I also am planning on setting up a display with some sample images, pricing, and more business cards for people to take home. I live in a wealthy suburb, but the only order I received was actually from a non-wealthy suburb.... go figure.

I think it just proves that this as a gig is tougher than it looks. Seems like making money off of portraits is more of a sure thing, as you know they are going to pay you when they book a session.

kal151 · February 6, 2006

SCS_Photo wrote:

Socioeconomic Level: My township in Fort Wayne is Upper-Middle Class, on average. Its one of the 'booming' areas of Fort Wayne, good schools, pricey land etc. Verizon is installing FIOS here... internet penetration is farely good. But that is a good point on the impulse buyers.

You sure you're only eighteen?

The eighteen year olds I deal with can't even make change for a twenty.:D

I too had "circumstances" when I was eighteen and had to go the GED route. It's not an easy road to take in the world of college grad fast food workers. It sounds like you have a good plan for a business. Just remember that it is going to take time to get it going. I look forward to seeing examples of your work.

Back to lurking for me.:hide

Art Scott · February 6, 2006

I think everything I could say has been...except maybe....do not turn down those jobs taht you don't especially want to do..like portraiture...as you said are a cash cow....one good black muslin 5 to 10 rosco gels (20 to $100) 3 lights (rent them .... surely there is some where in that area to rent lighting or even a studio)....talk with the rental studio owner to work out a way to stay updated on the studios availability.....but if you get people that like your portraits and people who like your other work ...word gets around.....be hungry....just don't let people think you're starving for work.

Look into putting up sample work (20 X 30 inches) in places of business (near entrance) with cards in a holder on the frame. Be diligent in keeping them filled. Check Vista Print...online super cheap and great work.....or design your own and print your self...........card should be an example of your work also.

Good luck

Bodley · February 6, 2006

SCS_Photo wrote:

I think you're reading a bit too much into my little quip. The 'tude' was just to get things going. It worked quite nicely.

Little advice - Shay is a fountain of knowledge. Puts a lot of work in helping others on this forum. Don't think In-your-face snide comments directed toward him are in your best interest.

You could also try www.dpreview.com/forums/

wxwax · February 6, 2006

Before spending a dime on my business, I'd want to make sure that I actually had a market. Have you been to games? Talked to parents? Talked to league organizers?

The bulk of your post is about things you need to buy. You devote two sentences to the thing that will make or break you - your clients.

Unless you have secret market research you haven't shared with us, you have a problem. I'd address that problem before I started throwing money away.

SCS_Photo · February 6, 2006

Frog Lady wrote:

OK, I'll give you that, and I had the same thoughts about my genral area. But unless you intend to "saturate" your home market, you'll be going to tournaments, etc and drawing teams from distant regions. This is where you are likely to run into access/affordabilty issues. We go to tournaments that are up to an hrs drive away and many teams travel further. So even local events may have players from different ecomonic groups...

I thought about this... I won't be travelling much. The two local parks are the biggest youth sports venues within 30 miles. I may take 'away' games as a paid assignment, but I'll be a strictly 'home game guy' to start... no need to add excess overhead costs right off the bat. I suppose any initial business model will be hit and miss... theres no real way to measure this kind of market before you get into it...

SCS_Photo · February 6, 2006

wxwax wrote:

Before spending a dime on my business, I'd want to make sure that I actually had a market. Have you been to games? Talked to parents? Talked to league organizers?

The bulk of your post is about things you need to buy. You devote two sentences to the thing that will make or break you - your clients.

Unless you have secret market research you haven't shared with us, you have a problem. I'd address that problem before I started throwing money away.

Good point... This is the first time I've typed some ideas out. I've got a whole lot o' stuff in my head. I need to flesh it out - in writing - a bit further.

I printed off this thread and am taking notes & re-formulating and re-writing my original post.

Jumping In - Head First

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