The Cost of Starting and Being in Business - Photography part 7
(This is a reprint of a series of notes I wrote on Facebook in 2009)
In our last episode we discovered our Start up costs for a homebased photography business would be about $6870 with an additional $6581 annual reoccurring costs. This is just costs, too that we talked about adding a small take home pay and self-employment tax.
For this episode I wanted to point everyone to a great resource, the NPPA Cost of doing business calculator. (sorry, the link was down at the time of republishing this writing, but a Google search should help you find a good CDB calculator)
Take a look at the CDB calculator, and plug in your numbers for your business....what did you find? Are you charging enough in just costs for your work?
We ran the default numbers in the calculator to find the following:
Results
Total annual expenses (including desired salary) $89,850.00
Weekly Cost of Doing Business $1,727.88
Your Overhead Cost for a Day of Shooting $898.50
The cost for a day of shooting is based on 100 shooting days (which is more than most do in their first year) at about $900 per shoot, you would likely have to shoot only weddings and a minimum package of about $1400 to include prints and and album.
How does your business compare?
Are you shooting more times in a year or less?
Are your expenses higher or lower?
Do you need to reconsider you pricing?
In our last episode we discovered our Start up costs for a homebased photography business would be about $6870 with an additional $6581 annual reoccurring costs. This is just costs, too that we talked about adding a small take home pay and self-employment tax.
For this episode I wanted to point everyone to a great resource, the NPPA Cost of doing business calculator. (sorry, the link was down at the time of republishing this writing, but a Google search should help you find a good CDB calculator)
Take a look at the CDB calculator, and plug in your numbers for your business....what did you find? Are you charging enough in just costs for your work?
We ran the default numbers in the calculator to find the following:
Results
Total annual expenses (including desired salary) $89,850.00
Weekly Cost of Doing Business $1,727.88
Your Overhead Cost for a Day of Shooting $898.50
The cost for a day of shooting is based on 100 shooting days (which is more than most do in their first year) at about $900 per shoot, you would likely have to shoot only weddings and a minimum package of about $1400 to include prints and and album.
How does your business compare?
Are you shooting more times in a year or less?
Are your expenses higher or lower?
Do you need to reconsider you pricing?
Comments