Business plans

[Peter Ahrens]

Does anyone here who sells their work use a business plan? Or do you just play it by ear?

What resources did you use to make your business plan? Like google, or a for dummies book?

Thanks,
Peter

[Eastree]

EVERY business needs a plan! The ones which play by ear almost always fail miserably.

I'd say at the absolute very least, learning about what they are and the basics of how they affect a business can be learned online. But I'd suggest at least some self-education from business books, although courses would be better.

In the very short term, the business plan will be your goals with your business, your focus; basically it's the big picture of your business and it can be changed at any time (some business plans need to be "adjusted" so focus can be made more effective for a smaller business, or broader for a growing business). Some are quite simple while most are more detailed and cover plans for emergency situations and other unexpected occurrences.

The most basic plans answer these three questions:
What's your starting point?
Where do you wish to be in what amount of time?
How do you plan to get there?

It basically gives a way to plan ahead and answer a lot of questions before they're actually asked.

[Biomech]

I'm working on my plan during the run up to christmas. I've found these people along the way who provide templates and advice: Free Sample Business Plans and Business Plan Software if you're in the UK there's also Prepare a business plan | Business Link

[Peter Ahrens]

Eastree, I agree that every business has a plan. I just wanted to know how many people actually use them. Photographers tend to focus less on business, more on the photography.

Biomech, thank you for the links. I find the financial statements part complicated - I usually skip it out. Do you work through those bits too? Also, I visited your website and I thought I would let you know that social media icons at the bottom of the page don't link directly to your pages. (e.g. Twitter icon just goes to http://twitter.com/).

[Jim Bryant]

You can get a hold of your local small business organizations and they can help you get started.

[Eastree]

Originally Posted by Peter Ahrens

Photographers tend to focus less on business, more on the photography.

You really believe that with the amount people say that running a photography business is much more about the business end of things than the photography end? I'll directly call that opinion naive.

Really: Peruse some web sites of professional photographers running local businesses. You'll often find mediocre photos in portfolios, touted as that photographer's best work. You'll find some photographers who make amateur mistakes, have bad exposure and framing, and try to compensate for bad photography with neat-o Photoshop tricks. But they can run a business well, and can manage finances, thus their business does decently despite their crap photography.

If you're just wanting to sell prints (as in online, in a gallery, or on your own), or market to local businesses to sell prints for you, it still relies very heavily on your business skills. Taking good photographs won't stand on its own as a business model.

Either way, you require a plan involving your target market(s), prospective expansion or improvement, how much you'll charge and how that changes based on certain variables (photog services: mileage, time shooting, number of images, wear on equipment, time in post, licensing for anything burned to disc if you do, prints and their margins, etc. | selling prints: print cost, frame cost, distance to the selling point, costs to display the photos, wear on equipment, etc.). If you're selling services as a photographer, you need a business plan to be able to consistently charge your customer base for your services. If you're selling prints as art, you must be able to consistently price your work at each selling point.

I promise you: Without following a plan for business, you're going to run into trouble. You'll either lose track of what you want to charge your customers, or some customers will happen to meet or know each other (such as a former client recommending you for the event). If your pricing is not predictable enough, you will end up shooting yourself in the foot by inconsistent business. Or you won't be able to afford your replacement camera body by the time the shutter mechanism in your current body fails. Or ... something.

[Jim Bryant]

A business plan keeps one focused and on track to complete one goal after another.

[Peter Ahrens]

Eastree. What I was trying to say is that the photographers who do not do too well are the ones who focus less on the business side. It is uncalled for you to call my opinion naive, based on one comment I have said that you have taken in the wrong context.

I should have mentioned that I have completed my business plan already.

I just want to get a feel for what people in this forum include in their business plans, what resources they use and if they think a business plan is a valuable tool for their business.

I hope this clears things up.

[Biomech]

Originally Posted by Peter Ahrens

Biomech, thank you for the links. I find the financial statements part complicated - I usually skip it out. Do you work through those bits too? Also, I visited your website and I thought I would let you know that social media icons at the bottom of the page don't link directly to your pages. (e.g. Twitter icon just goes to Twitter).

Cheers, I haven't "officially" launched it yet, I thought I updated that bit though :P Thanks for the pointout.

As far as the finances sections go, I wouldn't have a clue. Fortunately for me, my Mrs is a solictor qualified in accountacy :P. If she wasn't, I'd have to force myself, I'd say it's one of the most important parts. I have added up expenses etc to see what I should be charging

[Peter Ahrens]

Lucky you

I have done an expenses list and figured out what to charge from that, estimating what I am going to sell each week, hence each year.

I found the statements in those business plans to be a bit over the top, since I know I have the money without having to figure out cash flow statements and those other things they have in the business plans. I think they are more if you need finance - when you are going to see the bank they might want to see these numbers.