# Portrait studio start-up



## banderson (Feb 24, 2012)

Okay, so for the past few months I've been working on a business plan to start my own portrait studio. I have been making spreadsheets of the initial start-up and monthly costs (Still in a very preliminary stage) I plan on focusing on senior portraits, as well as wedding and event photography. I feel like this would be a good start. 

However I do not have any idea what possible returns I would be looking at in the beginning. I am definitely not expecting a huge return in the start, but I am going to be pitching the idea (Including preliminary financial projections) to an investor. The studio location would be close (Within 10 miles) to at least 4 high schools, with many more in the surrounding areas. 

So does anyone have any previous experience about what sort of returns I'd be looking at, providing I do everything right??

Thanks!!!!


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## photoentrepreneur (Feb 25, 2012)

Hi

Thats a broad question. What are you charging for your portraits? Are you printing them or doing digital files (Old School photographer might not like this one, but I'm all for it.) Are you going into the Schools (I made $4000 in a day shooting headshots (200 students nearly killed me!)). If it was me, I would approch the schools first before getting your studio and see if you could advertise and shoot there. You will need insurance, checks and planning. 

Good luck


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## 12sndsgood (Feb 25, 2012)

have you looked at what your competition is charging? your sucsessful competition,  see what they are charging and then figure out what your costs are going to be to figure out what you will need to charge to keep your head above water. and then you at least can know how many clients you need to bring in to stay going. 

 in my area a senior portrait runs anywhere from $50-$1000 dependnig on the company so its really an open ended question.  your client based is so dependant on who you are and how well you are generating business that id imagine this would be a hard question to answer.


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## MLeeK (Feb 25, 2012)

You are aiming at seniors-your research needs to include the local schools. They have everything from no expectations on the senior portrait to requiring that they be taken by THEIR senior portrait. The specs that they require can be so incredibly detailed as to measure exactly where the head will be positioned in the image by giving you exact measurements.... As the entrepeneur up there mentioned advertising in the schools-a FEW will allow you to do it, but MANY will charge you to do it and still more will not allow it as they require THEIR photographer. You need to plan your work around for the NO's and your budget for the ones that charge-or work around... The schools can be a profitability killer.
If they do require that the senior use THEIR photographer find out how and when you can bid that contract. You also need to know if they expect you to produce the yearbook for them-many photography studios do produce the yearbook and that can require you providing the school with software AND---cameras!!

As to what to expect for return you have to do your own math. I can't tell you what to expect as it's all based on YOUR price point, YOUR marketing program, YOUR projections for the number of clients you will shoot. 
I will tell you that you have to be *FAST* in the computer department to make it work during that june thru october time frame. If you are shooting a wedding on Saturday and a dozen seniors during the week you are looking at having to post process maybe 3000 images a week or more. If it takes you only 30 seconds an image that's 25 HOURS of COMPUTER ONLY time. Are you fast enough to totally complete an image in 30 seconds? Then to add in a 12 hour day of wedding photography and 20-30 hours of studio shooting AND your overhead time for running the studio. That's a work week of about 87 hours-at 30 seconds an image. Wedding clients can wait a bit longer but, if you are shooting a wedding a week during that season you are only screwing yourself over and going to tick off the client. If you are shooting their wedding in July and delivering the images in December-and figuring editing time that's realistic. If you don't finish the wedding by the next wedding you are compounding each week what your work load is. Senior portraits can't wait-they have deadlines. Usually in October or November. So... How are you going to work around this time constraint? Do you plan on having a production crew doing your processing/editing? That's how a high volume studio works... There goes some profitability too... 

You also need to remember that seniors and weddings are a limited time frame. I am starting a few seniors now, but in June thru October I will do seniors and weddings like there is no tomorrow. Then it's famine if you don't plan for those off months. Are you going to pay your overhead for 12 months of the year out of your 4 month busy season? Probably not realistic. So... you might want to add something to at the very least get you through the Christmas Portrait rush.


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## banderson (Feb 25, 2012)

Thanks for the info! Yeah, I know it's kind of a broad question. The area is mostly upper-middle-class and the competition is making a killing (600-800 on average or more a person) including prints of course. I have contacted the schools and they have the headshot photographers, but I was mainly talking about senior portraits. At least around here, I'd say close to 75% of students around here go to private studios for their portraits, and then have them submitted to the yearbook. So thats the market I'm really going for - Plus events. Right now I'm looking into advertising in yearbooks, school papers, Malls, facebook, and what not. Mainly I'm just coming up with a proposal to an investor. I am going to try to get things rolling by early to mid 2013. In time for the main season for senior portraits. The competition is very harsh about copyright, and will give you one digital image. (A low quality one at that) So I think I would like to make it so that if you get a print of that photo, I will include a digital copy of it, reasonably sized with a small watermark in the corner with our name on it. I think the competition is really undercutting themselves here because facebook (Where they will probably post the pictures of their shoot) is a really great free advertising source and they are doing themselves a disservice by not letting teenagers show their friends the shoot on there. So, I guess another big decision is whether or not to do in-house printing. Because I am wanting to also provide prints, but I am unsure of the benefits of both. Any thoughts?


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## MLeeK (Feb 25, 2012)

Ask the school specifically about the senior portraits. More often than not their headshot photographer is very different than the senior photographer-even for the headshots. 

You have a good view on the digital and prints. I have more to add, but I have to go shoot a game. i'll be back!


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## KmH (Feb 25, 2012)

Visit- http://www.jessicaedwardsphotography.net/

Most new businesses will have little, if any, profits for the first couple of years.
Most investors know it takes time for an investment to yield any return. The return on an investment is not the same as the profitability of a business.

Part of writing your business plan involves determining your anticipated cost-of-doing-business (CODB) and cost-of-goods-sold (COGS). Part of your CODB is the salary you pay yourself.

Researching the competition shows how you can provide a service no one else is providing. But, expect the competition to react once you get started. 

High school senior and wedding photography are both pretty seasonal so you'll also have to figure out a way to generate revenue in the off season, or just be sure you have enough revenue during the wedding/senior seasons to carry you through the slow times.

Historically, well run studio based photography businesses realize profits of 15% to 20%. Since you will be relying on an investor for your startup funding, some portion of your early year&#8217;s profits will go to the investor. That means you will not be able to invest that portion of your profits that go to the investor back into the business.

Doing some basic math gives us some working numbers.

If the business has a total yearly profit of $30,000 and the business realized 15% profitability, the business will have had total revenues of $200,000 for the year. That is $16,667 a month, average, and at 4.3 weeks a month, average that&#8217;s $3876 a week average.
If the business had total profits of $20,000 at 20% profitability the business will have had total revenues of $100,000 for the year.
Profit dollar amount divided by the % profitability = yearly revenue. ($30,000 / .15 = $200,000)

Running a studio based photography business is more about doing business tasks than it is about doing photography tasks. Consequently you cannot shoot every day.

Though 3 shooting days a week is more likely we will assume you can shoot 4 days a week. It is not prudent to plan on working 52 weeks. Accounting for business and photography seminars, sick days, and other unplanned for can't-work-days lets use 48 weeks as our figure of merit. 

4 days a week times 48 weeks = 192 shooting days a year. To have $200,000 in revenue for the year, each of 192 shooting days has to bring in an average of $1042 for each shooting day. Don't forget the off seasons for weddings and seniors. You may be challenged to actually shoot 192 days a year. I think the actual number is closer to 130 shooting days a year. for that $200,000 in revenue you would need to average $1540 in revenue each shooting day.

How many seniors do you think you can shoot in a year&#8217;s time? How many weddings?


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## rub (Feb 25, 2012)

Apologies if I misinterpruted your statement, but if you think making $600-$800 per stundent is "making a killing" you better take a VERY hard look at your expenses, not just your anticipated revenues.  Once you know what you have to earn, you can set your prices accordingly.  Earning $600 from a shoot, after expenses, tax, time, product, etc. is not a killing.  

Good on you for doing your research and making a business plan.  Market research is critical for you right now.  

Good luck!!


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## photoentrepreneur (Feb 25, 2012)

I'm shocked that the average is 15-20% profit, are you sure? I really don't mean to brag in anyway but mine has always been around 50-60% for the last five years. I do pay for two studios, tax, advertising (although not much) And buy my own equipment. There are a few business models you can use. 


I like your use of Facebook. Works really well in my studios. 


Good luck though.


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## KmH (Feb 25, 2012)

No doubt there are exceptions, but then too you are in the UK, not the US.


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## MLeeK (Feb 25, 2012)

photoentrepreneur said:


> I'm shocked that the average is 15-20% profit, are you sure? I really don't mean to brag in anyway but mine has always been around 50-60% for the last five years. I do pay for two studios, tax, advertising (although not much) And buy my own equipment. There are a few business models you can use.
> 
> 
> I like your use of Facebook. Works really well in my studios.
> ...


Your profit margin shocks me.  Benchmark (which isn't easy to attain and maintain) is about 35%.


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## MLeeK (Feb 25, 2012)

rub said:


> Apologies if I misinterpruted your statement, but if you think making $600-$800 per stundent is "making a killing" you better take a VERY hard look at your expenses, not just your anticipated revenues.  Once you know what you have to earn, you can set your prices accordingly.  Earning $600 from a shoot, after expenses, tax, time, product, etc. is not a killing.
> 
> Good on you for doing your research and making a business plan.  Market research is critical for you right now.
> 
> Good luck!!


Adding to what she said... I am guessing you're looking at your COG's only in paper, not into the EVERYTHING that goes into COG's and not your full CODB. If the average shoot is $1000 you'd be doing better than the average guy if you actually MAKE in profits to the owner $350. 

check out The U.S. Small Business Administration | SBA.gov There are a lot of resources there and there will be a local chapter at a college near you that offers seminars and classes for entrepeneurs like yourself that will teach you all of what goes into these different costs. I have a feeling you aren't considering the replacement of equipment, insurances, ALL of your overhead... 
Here is a good CODB calculator for photographers. NOTHING in there should be a zero and if it is, you need to think long and hard. Maybe ask some questions regarding it. Don't coddle yourself or lie to yourself when it comes to expenses-that's setting yourself up for failure.


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## MLeeK (Feb 25, 2012)

You'd also HIGHLY benefit from an aspiring membership to PPA Join PPA | Professional Photographers of America
They have some incredible resources for members ranging from business guidance to insurance and indemnity.


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## photoentrepreneur (Feb 25, 2012)

I can promise you it's correct. 

Took me a while to perfect it but it's still growing


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## banderson (Feb 25, 2012)

I really appreciate all of the helpful advice. And when I say 600-800 I'm including the cost of prints and what not. The only thing im not referring to is labor time. Plus they have 5 or so photographers per location- and do 5-10 students a day per location during that season lol they have at least two locations in our area. I feel like they're not using social media to the fullest. So I'd like to use that as a reason to get some of their business. Plus want to use stuff like living social to promote my work.


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## banderson (Feb 25, 2012)

I'm working on a spreadsheet- so I have costs down, but I was really trying to nail down the incoming part. 

I know that I won't be profiting much for a year or two. Coming up with realistic projections can be kind of hard lol


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## banderson (Feb 25, 2012)

Fortunately for me I've gotten used to living on the cheap and am only 20 right now. So my coating of living is still very low, and so Is the other photographer I'll be working with.


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## MLeeK (Feb 25, 2012)

banderson said:


> the competition is making a killing (600-800 on average or more a person) including prints of course.



We are telling you that this is NOT what they are making. If they are bringing in 600-800 on a client they are LUCKY to be making $210 to $280. Which means the COST to photograph those clients ranges from $390 to $520. How many clients do you think they are photographing in a day/week/month? 

What are you expecting your total $ in overhead to be in a month for EVERYTHING?


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## banderson (Feb 25, 2012)

Mleek- I know I won't be profiting that much. I was really referring to total revenue, not profit. I have monthly costs calculated. Which I found it far easier to calculate that part. I should have been more specific. I also plan on doing general portrait type work as well. But I am planning on focusing on seniors and weddings.


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## banderson (Feb 25, 2012)

Also- I have it all calculated in a spreadsheet but I am on my phone away from home ATM lol


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## MLeeK (Feb 25, 2012)

We're really not trying to shoot you out of the water. You need to see the HUGE picture so you CAN succeed. 
It's reasonable to expect studio costs in your area to be $3500 (probably more, but...) You will need to make a minimal living so we'll say you have to have $750 AFTER TAXES to survive per week or GROSS $4945 per month. So your overhead is now $8445 per month. And you have 6 months of down time for seniors and weddings...
Your overhead is now $16,890 PER MONTH to cover those off months. 
Is that feasable? Maybe. It's going to mean you do a wedding a week AND that you can put that wedding out for proofing in less than a week during those busy months. 

One way to get around the time issue with weddings is to produce PROOF quality images in a week, a proof album to share. Then they at least have their images to share with everyone. Include a small sized digi so they can share that and promise their specialty work and albums at 6 months out. That gives you the ability to keep the client happy and then put the heavy duty time consuming work of high end edits and album designs off until your heavy season is gone.


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## banderson (Feb 25, 2012)

Mleek -- Oh I understand! Lol I just was filling you in on other pertinent details. Also- I forgot to meantion that my dad and his friend own commercial properties and his friend would be the investor. So the lease of the space can be arranged more easily.


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## KmH (Feb 25, 2012)

> and so Is the other photographer I'll be working with.



There will be another photographer? 

Will the other photographer be a partner or an employee?


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## banderson (Feb 25, 2012)

He will be partner. He will mostly be doing creative direction and lighting. So we will both be shooting, but I will probably be doing most of the planning and stuff. The other thing is that he doesn't really have any expenses, so he said he's even willing to work without pay at first (don't worry, I still plan to pay him lol)


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## banderson (Feb 25, 2012)

Mleek- also, cost of living wise, I am currently surviving on 1400/mo after taxes, and I am fine with the way I live, so I would be fine with that. Lol so that cuts my overhead some too.


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## banderson (Feb 25, 2012)

Aha! Mleek- you live in new York lol I live in Ohio. Cost of living is much less here. Lol I can find studio apts for like 400-500 dollars and even nice apts run like 650/750 a month (my current situation)


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## photoentrepreneur (Feb 26, 2012)

Sounds to me a bit like how I started up. I had very low cost of living, which made me able to grow slowly. 

Will your studio have footfall? Or are you relying on advertising and word of mouth?


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## banderson (Feb 26, 2012)

Well, it's a bit of both really. I would say mostly advertising though.


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## banderson (Feb 26, 2012)

I take it you mean just people walking by? I had to look up footfall online because it is more of a British term in business. Lol


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## photoentrepreneur (Feb 26, 2012)

Cool. I would also look to do baby and toddler photos too. Gives you customers during the school hours and they will eventually go to school/ high school and want to come back to you if your build loyalty.


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## banderson (Feb 26, 2012)

Very true. Definitely a good thought. So much useful info!


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