Best Business Practices for Photographers [16]
A cursory review every two to three years, followed by a serious sit-down every five, will ensure that in 20 years you will not only be in business, but you will be earning a fair wage, and you will be satisfied that you made smart decisions along the way.
Know What You Don't Know
One of the lessons I pass along to every group I speak to on this subject is this mantra: Know what you don't know. I know it sounds silly at first blush, but when you stop and think about it, you realize that it's really a wise idea. If you don't know about marketing, don't pretend that you do. Admit that you don't (at least to yourself) and then work to fix that. When you've figured out what you don't know, then and only then can you work to know what you now know you don't know. (Reread that last part—it's critical that you understand it.)
Make a list. If you don't know how to find new clients, write that down. If you don't know how to raise your rates, write that down. If you don't know how to charge for post-production of your digital images, write that down, too. Now you are beginning to grasp what you don't know, and you can begin to learn what you don't know.
One problem this brings up is being honest with yourself. Many photographers pride themselves on knowing it all; however, that thought process will backfire. It used to be that technology improved slowly, and all we had to worry about was the newest film emulsion or the improved auto focus or flash TTL technology, but today we must learn and then relearn new software and new-and-improved versions every 18 months. We begin again teaching ourselves (or taking seminars to teach us) just how to use the new software or the latest camera body. There is no shame in sitting down and reading a camera manual from front to back and then doing it again in two weeks to learn what you've forgotten already. There is nothing wrong with calling a colleague, admitting you've never used the latest version of Photoshop, and asking what the difference is between the latest and previous versions.
There are many facets of business that are unfamiliar to photographers. From sales tax, to quarterly payments, to terms such as "2 10 net 30," to profit, to expense ratios— understanding that these are important to the long-term success of your business and that seeking out the answers will serve your long-term interest means that you will be in business in 20 years. These and innumerable other business facets mean that there's a lot you don't know, and you need to know what you don't know before you're ready to move forward and grow your business wisely.
Creating a Business Plan for an Existing Business
Creating a business plan midstream is like trying to turn an ocean liner 90 degrees in two football fields. Without precise tools and know-how, it's next to impossible. Yet, there are a variety of reasons why it's important to create a business plan. For one, the Small Business Administration won't give you a loan without one. Banks will be reluctant to loan you money as well. But often you're so focused on the next two weeks, you just can't seem to find the time to sit down and write a plan. If you don't know how or where to begin, the Small Business Administration (www.sba.gov) is a great resource with in-person and online classes, as well as samples on just how to do this.
Harry Beckwith, author of What Clients Love: A Field Guide to Growing Your Business (Business Plus, 2003), makes this point about business plans that cannot be missed:
Most people assume that business plans will tell them what to do. Few businesses, however, follow their plans. Things change, assumptions change— and plans change with them, as they should. Yet businesses still plan…. The value of planning is not in the plan but in the planning…. Like writing a book, writing a plan educates you in a way that nothing else can.
Fortunately, you're in business, transitioning from one business to another or from staff to freelance, and you are not trying to start your plan as a pie-in-the-sky