# My advice on opening a business... And building a house.



## MLeeK (Sep 6, 2012)

[h=3][/h]   
    A couple of years ago my( then) 12 and 14 year old kids along with their friends built a house. It even had a second story and a roof. They were pretty clever and resourceful in building this house. They used lumber that their grandparents, us and friends donated. 
One of the other parents found them a great piece of plastic/rubber for them to use as roofing material. They ran electric to their house by way of a REALLY long extension cord and had a TV and gaming system out there. They found some furniture by raiding the dealership for some car seats, swiping a cooler for a stand... It was really a pretty great idea. They thought they were pretty amazing. 

   I promise you it wasn't pretty. In fact it was so scary we made them remove the second story because it was so dangerous. As they were deconstructing it my son fell through the 'floor' onto the sofa (aka vehicle seat.) Thankfully no one was injured other than their pride.  


  The kids didn't plan for anyone to fall through the floor or for their house to have major issues. They just knew they had the raw materials and they could do it! As adults we wouldn't build a hose with no plans and no clue how construction is done.  How could you expect it to be sturdy, pass codes or last? Those raw materials don't come cheap and I sure wouldn't want to take a risk of throwing all of that away because I didn't have any plan or knowledge of how to build it.  


  Going into business as a photographer (or anything else)  is like building a house with no plan. You have some awesome raw materials and you know what you want your house to be in the end. You just need a plan on how to get there.You aren't going into business to  fall through the floor, you are going into business to make some money  doing something you probably love. At the very least you are hopeful  that it will at least pay for the camera addiction we all have. 
  Why hang your shingle out there and take that huge chance of failure?  This industry sees THOUSANDS of "photographers" come and go in the  business every year. Most of them fail not because they are bad  photographers. Some are even pretty damn amazing photographers. They  fail because they didn't have a plan to succeed. 


  Back in the day when I used to play pool competitively a coach once told me
*"Plan your shot. Then shoot your plan"*​ It is the best piece of advice I have EVER been given. It translates to  every aspect of life. It doesn't even have to translate to be applied to  photography. When you create an portrait you plan how you are going to  do it-posing, lighting, settings, etc. Then you shoot it. If you have  planned well you get an image that is exactly what you expected to get.​ It's the same in business. Plan your success, then follow your plan.  Will you have to ad-lib in there somewhere? Sure. Your plan will change  often over the years, but if you are planning for that change you will  succeed.​ 

  Here is the key to everything:  
*Business is far more difficult than photography. *
_A person who is good at business and mediocre at photography can succeed wildly. _
_A person who is phenomenal at photography and mediocre at business will usually fail._


  My first suggestion? Get a business education. It should be part of your plan. Plan to learn what you don't know. Because you just don't know what you don't know.
If you are going to school for photography change your major to business. You can get a photography education anywhere and it's much easier to learn than numerous aspects of running a business. Take photography as your minor and business as your major.


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## tirediron (Sep 6, 2012)

Excellent post MLeek!


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## xyphoto (Sep 6, 2012)

Very well said. Two thumbs up! It is certainly not easy to start any business from ground up. It requires time and dedications. Sometimes there is also a luck factor. To that point, I wish everyone a good luck to succeed in this business.


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## PhotoWrangler (Sep 6, 2012)

Excellently said, but sadly few will listen. I suspect the only ones who will adhere are those of us who have already learned our lessons.


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## IByte (Sep 6, 2012)

So I'm thinking MLeek is challenging me to a pool match??  Great post btw .


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## KmH (Sep 6, 2012)

Yep. MLeek ran the table.


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## Superfitz (Sep 6, 2012)

ChristopherCoy said:
			
		

> Excellently said, but sadly few will listen. I suspect the only ones who will adhere are those of us who have already learned our lessons.



I don't think the problem is people won't listen. I think the problem is people won't take the time to read that long of a post. Which is unfortunate, because it is a good story.


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## IByte (Sep 6, 2012)

KmH said:
			
		

> Yep. MLeek ran the table.



But does she still have what takes to beat me at billiards? lol


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## Bitter Jeweler (Sep 6, 2012)

Sorry. I disagree. Running a business isn't that hard. 
It really, really, isn't.


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## amolitor (Sep 6, 2012)

Bitter Jeweler said:


> Sorry. I disagree. Running a business isn't that hard.
> It really, really, isn't.



Neither is photography!

I think the point isn't that either one is hard, but that there is actually stuff to know and learn in both cases. Jumping rope or riding a bicycle isn't that hard either, but if you don't know how it's still not going to work out all that well the first few times.

If you're going to cut a few corners, cut the photography corners not the business ones. It's not about degree of difficulty, it's about how well you have to do it to succeed.


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## PhotoWrangler (Sep 6, 2012)

Bitter Jeweler said:


> Sorry. I disagree. Running a business isn't that hard.
> It really, really, isn't.



But you do agree that it takes at least _some _business knowledge and _at leas_t a plan written in big crayons.


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## MLeeK (Sep 6, 2012)

IByte said:


> So I'm thinking MLeek is challenging me to a pool match??  Great post btw .


9-ball?



IByte said:


> KmH said:
> 
> 
> 
> ...


I just might! I had just hit an 8 when I quit playing APA


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## MLeeK (Sep 6, 2012)

Bitter Jeweler said:


> Sorry. I disagree. Running a business isn't that hard.
> It really, really, isn't.



I think you need to add an addendum to that: It isn't hard IF YOU KNOW WHAT YOU ARE DOING. 
BUT... If you didn't know how to do your own legal stuff, taxes, accounting, marketing, pricing, etc... how easy would that be?


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## MLeeK (Sep 6, 2012)

amolitor said:


> Bitter Jeweler said:
> 
> 
> > Sorry. I disagree. Running a business isn't that hard.
> ...


You hit that nail on the head.


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## jhodges10 (Sep 6, 2012)

I'm one of those people that hopes to turn photography into a business and I assure you I read every last word and appreciate your time and knowledge that you've shared.


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## MLeeK (Sep 6, 2012)

There is more up there, rattling around in my brain to go with this... I'll get it out eventually!


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## jaicatalano (Sep 6, 2012)

Very well said. Do you follow someone's marketing plan or are you creating (have) your own based on experience?


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## MLeeK (Sep 6, 2012)

I am marching to the beat of my own drummer with marketing-for the most part. My biggest advertisement: Being on the sports fields. I do no advertising for weddings now. I don't really want to do more than maybe 5 a year. I usually end up with more than that, but I am also a sucker. 
I do the yearbooks for seniors, but I honestly don't know as it truly gets me a return. I do it just to support the kids-which I do a LOT of. It pays me back greatly in family, senior and newborns. I seem to have a rush on newborns among the teachers right now. 
I am involved with the school board and any projects in the community. My theory is anything that will get me seen and give me the chance to talk. I have gotten very adept at chatting and plugging without even sounding like I am plugging.  In the 4 small towns I am busiest in I've gotten to know A LOT of people and it's pretty easy to mention something about when I photographed their friend, neighbor, family member... 
As for any true PAID marketing I do I target the local country clubs/yacht club crowds based on the "artwork" angle. Between that and the teachers/student's parents I am pretty busy. Sometimes more than I want to be. 

I said for the most part-I REALLY subscribe to Jim Garner's theory "give it away, it will come back to you tenfold..." I know I couldn't do it if I hadn't gotten pretty damn good at what I do and bring in the income level I am at. As my confidence in myself grew so did the instant respect for my 'art.' I think that starting out if I had done that I would have failed miserably!
Putting my marketing theories into writing is one of the things on my list to do.


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## CCericola (Sep 6, 2012)

All of this only applies to people who freelance or open their own business. There are other employment options if you want to be a photographer.

Sent using PhotoForum


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## PhotoWrangler (Sep 6, 2012)

CCericola said:


> All of this only applies to people who freelance or open their own business. There are other employment options if you want to be a photographer.
> 
> Sent using PhotoForum




JcPenneys, Sears, Walmart, Glamour Snots....


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## CCericola (Sep 6, 2012)

And there is more than just retail photography.

Sent using PhotoForum


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## MLeeK (Sep 6, 2012)

CCericola said:


> All of this only applies to people who freelance or open their own business. There are other employment options if you want to be a photographer.
> 
> Sent from my iPad using PhotoForum


But employment isn't what this is about-it's about starting your business (or freelancing, because that is a business in itself.) Which is why the title is my advice on *opening a business. *
Employment in the field is a completely different ball game. 



CCericola said:


> And there is more than just retail photography.
> 
> Sent using PhotoForum



Again, that's not what this is about or who it's written for. It's written for those who want to open a retail business.


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## janineh (Sep 7, 2012)

Nicely written. Its all a learning curve.


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## 12sndsgood (Sep 7, 2012)

I'm working on building a solid foundation and trying to get my ducks in a row before i jump to just trying to get job after job. but even after 6 or so months I still feel like my foundation is shaky lol.


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## IByte (Sep 7, 2012)

So in a nutshell if you're going to any hobby or project do your research, "measure twice, cut once" philosophy?  Makes sense to me.


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## MLeeK (Sep 7, 2012)

12sndsgood said:


> I'm working on building a solid foundation and trying to get my ducks in a row before i jump to just trying to get job after job. but even after 6 or so months I still feel like my foundation is shaky lol.


It's REALLY a LOT of research that goes into a thorough business plan! You've got to be everything: Secretary, Executive, Grunt, Accountant, Legal, Web designer, Marketing guru, creative.......... The list is endless and you have to do it all if you are a sole proprietor!


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## mjhoward (Sep 7, 2012)

IByte said:


> So in a nutshell if you're going to any hobby or project do your research, "measure twice, cut once" philosophy?  Makes sense to me.



If you fail to plan, plan to fail.


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## MLeeK (Sep 7, 2012)

mjhoward said:


> IByte said:
> 
> 
> > So in a nutshell if you're going to any hobby or project do your research, "measure twice, cut once" philosophy?  Makes sense to me.
> ...



My kids!!! I am forever telling them that failure to plan on your part does NOT constitute an emergency on my part!!!


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## orljustin (Sep 7, 2012)

mjhoward said:


> IByte said:
> 
> 
> > So in a nutshell if you're going to any hobby or project do your research, "measure twice, cut once" philosophy?  Makes sense to me.
> ...



To learn my teachings, I must first teach you how to learn.

He who questions training only trains himself at asking questions.

When you can balance a tack hammer on your head, you will head off your foes with a balanced attack.


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## pgriz (Sep 7, 2012)

Further to what MLeek said...

Business is about finding an (unfulfilled) need, convincing prospects that you are the one to fill that need, and to do it effectively/efficiently enough to make it worthwhile.

Retail is servicing the public, which implies many small transactions.  There is a wide range of possible price-points, ranging from boutiques (customized, relatively high margins) to commodity (standard product, very thin margins, reliance on high volume).  At each price point, it is possible to make money, but the marketing, process of delivering the product, expected transaction volume, and investment in equipment/administrative systems/procedures/training is very different from level to level.  Figuring out which segment you are best equiped to serve is not a trivial task.  Learning about business gives a prospective business person some basic tools (and even an MBA gives only basic tools) to determine which components of the business model are relevant to their situation, and once the basic organization is done, to customize one's activities and processes to the specifics of the niche market they are trying to serve.

I run several businesses, and have, over the years worked in and with businesses ranging from multinationals, to one-person specialty shops.  Probably the most frequent reason for going out of business is the lack of sufficient planning.  The second most common reason is lack of sufficient financial resources.  Third most common is not managing the cashflow.  Over the longer term (10 years or more), businesses fail by not adapting to changing circumstances.

Keith (KmH) often refers to links discussing the business plan.  MLeeks has referenced several links with very good business advice.  The foundation of any business has to be a well-though out business plan, which starts with a deep and detailed look at the prospective market one wants to exploit.  What are the existing characteristics, buying patterns?  Who are the preferred suppliers to that market?  Is there an untapped potential in that market?  Who are the "heavyweights" in that market, and why are they successful?  Are there any societal/environmental trends that may change the dynamics of that market?

Once the market is researched and understood, the next challenge is to determine how to generate prospects in that market.  What are the characteristics that define the most valuable prospects within that market?  What/who are the authority figures that these ?  the influencers?  Which media do the prospects use to find the services they want?  Where they shop/eat/entertain themselves?  What are their "hot buttons"?  Assuming that you reach them, how do they contact you?  What is the process you use to log and follow up your prospects?  How many steps are there before a signed contract is obtained?  How do you follow up with the prospects that did NOT go with you, and what can you learn about why you did NOT get their business?  Are there direct competitors who are winning away your most valuable prospects?  If so, what are they doing right that you are not?

Once you have a contract, what is the process for ensuring a smooth production?  How do you identify, quantify and minimize risk?  Tim Campbell did a very good writeup in another thread (on weddings) where he described some of the prep work needed for a wedding.  Each production project needs to have a similar level of thinking and planning.  How do you cover equipment failure?  How do you minimize communication failure?  Do you have a plan and schedule for the event(s), the post-production, and the final delivery?  What measures are you taking to ensure that you get paid?

Once the contract is complete, do you have a plan for the post-mortem?  What went wrong, and what could have been done to prevent it in the first place?  What opportunities presented themselves for new business?  Are you dealing with the most valuable prospects, or do you have to re-evaluate that?  What about your production efficiency - which activities took more time investment than you planned?  Why?  What could be done to improve the effectiveness?  What changes to the process can you see to improve the client experience?  to improve the marketing prospects?  to reduce risk?

What administrative processes are you planning/using to stay on top of commitments?  what followup are you planning/doing to ensure your investment in marketing is not wasted?  What is your cashflow projection and how does your actual cashflow compare to your projections?  What has to change to improve the cashflow?

and so on.      

On the financial side, there has to be enough financial reserves available to buy/rent the production equipment needed, pay for operating and living expenses for about 6 months, and to remit to the various levels of government the appropriate permits, taxes, fees that need to be paid by a operating business, to pay for (some) legal advice and paperwork, and to cover (some) accounting services.  If you've borrowed money to start the business, then the financial costs and available credit must be carefully tracked and managed.

And then there's the daily monitoring of the cashflow.  You had a plan, how's it actually working out?  Are you getting enough revenue in your bank account to match your cashflow projections?  Are your collection timelines reasonable?  Are your outflows all budgetted or are there many unexpected drains?

Business can be both fun...  and when things go wrong, they usually go really, really wrong in a hurry.  Business is not for amateurs.


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## 12sndsgood (Sep 7, 2012)

MLeeK said:


> 12sndsgood said:
> 
> 
> > I'm working on building a solid foundation and trying to get my ducks in a row before i jump to just trying to get job after job. but even after 6 or so months I still feel like my foundation is shaky lol.
> ...




Yeah starting out when I got laid off I figured I had plenty of time. after 5 months and going back to work I realised I only learned about 1% of what I feel I need to learn. I'm looking forward to things slowing down in the winter so I can continue doing more reasearch and learnin about what I need to know.


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## MLeeK (Sep 7, 2012)

pgriz said:


> Further to what MLeek said...
> 
> Business is about finding an (unfulfilled) need, convincing prospects that you are the one to fill that need, and to do it effectively/efficiently enough to make it worthwhile.
> OR creating that need!!! You don't have to re-invent the wheel, you just have to create a need in your prospective customers for YOUR wheel and only your wheel.
> ...


AWESOME ADDITION!!! And much of the things you covered are things I'd like to go into much more depth on as I add to the initial post!!!


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## IByte (Sep 7, 2012)

pgriz said:
			
		

> Further to what MLeek said...
> 
> Business is about finding an (unfulfilled) need, convincing prospects that you are the one to fill that need, and to do it effectively/efficiently enough to make it worthwhile.
> 
> ...



...wax on,wax off.


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## amolitor (Sep 7, 2012)

I think it's worth pointing out at this point that, while all MLeeK and pgriz have said is true, I think they've also given the impression that you MUST have all this sorted out in advance.

In reality, yeah, you should have a whack at it sorted out. No plan survives contact with the enemy, and business plans are no exception. Market research, pricing, processes for everything, selecting your target customers, all that stuff is all ongoing activity. You should have an idea when you start, but your idea might well be all wrong -- and that's ok, in fact it's practically guaranteed to be partly wrong. This is what cash reserves are for, to buy you time to sort out all this stuff into a functioning business that's cash flow positive.

Sweat it, but don't get fixated on "MUST BE PERFECT" because it's not going to be. At some point, you just gotta pull the trigger and go do it, knowing that changing the plan is a good part of what running a business is.


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## rexbobcat (Sep 7, 2012)

orljustin said:
			
		

> To learn my teachings, I must first teach you how to learn.
> 
> He who questions training only trains himself at asking questions.
> 
> When you can balance a tack hammer on your head, you will head off your foes with a balanced attack.



That second one doesn't sound like very good wisdom. Lol


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## Patrice (Sep 7, 2012)

pgriz said:


> Further to what MLeek said...
> 
> Business is about finding an (unfulfilled) need, .....
> 
> ...




Excellent post. It's a pretty good summary of a 30 hour credit course I teach at the community college.


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## Derrel (Sep 7, 2012)

So...how many yards of Redi-Mix do we need to fill the foundation forms???


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## pgriz (Sep 7, 2012)

amolitor said:


> I think it's worth pointing out at this point that, while all MLeeK and pgriz have said is true, I think they've also given the impression that you MUST have all this sorted out in advance.
> 
> In reality, yeah, you should have a whack at it sorted out. No plan survives contact with the enemy, and business plans are no exception. Market research, pricing, processes for everything, selecting your target customers, all that stuff is all ongoing activity. You should have an idea when you start, but your idea might well be all wrong -- and that's ok, in fact it's practically guaranteed to be partly wrong. This is what cash reserves are for, to buy you time to sort out all this stuff into a functioning business that's cash flow positive.
> 
> Sweat it, but don't get fixated on "MUST BE PERFECT" because it's not going to be. At some point, you just gotta pull the trigger and go do it, knowing that changing the plan is a good part of what running a business is.



True that.  The real message, which you have pointed out very well, is that a business plan is not something you do at the beginning ONLY, but something that you continually update and revise as circumstances dictate.  But having thought through many of the decisions, it's much easier to go back and revise a portion because the assumptions behind it or the actual reality is now different.


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## pgriz (Sep 7, 2012)

Derrel said:


> So...how many yards of Redi-Mix do we need to fill the foundation forms???



Having done that last weekend, the answer is...  Until you're done!

(or your back rebels...)


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## MLeeK (Sep 7, 2012)

Derrel said:


> So...how many yards of Redi-Mix do we need to fill the foundation forms???



I would think a dozen or so bags of kwi-krete (sp???)It should be fine. Its not like its going to go anywhere. We should be fine!


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## MLeeK (Sep 7, 2012)

amolitor said:


> I think it's worth pointing out at this point that, while all MLeeK and pgriz have said is true, I think they've also given the impression that you MUST have all this sorted out in advance.
> 
> In reality, yeah, you should have a whack at it sorted out. No plan survives contact with the enemy, and business plans are no exception. Market research, pricing, processes for everything, selecting your target customers, all that stuff is all ongoing activity. You should have an idea when you start, but your idea might well be all wrong -- and that's ok, in fact it's practically guaranteed to be partly wrong. This is what cash reserves are for, to buy you time to sort out all this stuff into a functioning business that's cash flow positive.
> 
> Sweat it, but don't get fixated on "MUST BE PERFECT" because it's not going to be. At some point, you just gotta pull the trigger and go do it, knowing that changing the plan is a good part of what running a business is.


YES! your plan is a foundation. But it is also pretty fluid and will change. Plan for how you are going to keep up with that need to change. The trends, things that don't work, education, technology.... you have to keep on things and that's a piece of the plan!


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## CCericola (Sep 7, 2012)

MLeeK said:


> CCericola said:
> 
> 
> > All of this only applies to people who freelance or open their own business. There are other employment options if you want to be a photographer.
> ...



Ok, I can see what you mean. It was the "get a business degree and not a photography degree" that threw me. Getting a business degree can really shut doors for some photography jobs. But now that you said you meant it for only retail photographers I understand.


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## MLeeK (Sep 9, 2012)

CCericola said:


> MLeeK said:
> 
> 
> > CCericola said:
> ...




I had to figure you read it on the fly! Which I am HORRIBLY guilty of doing CONSTANTLY! LOL!


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