Rolling in the Dough
So your business is taking off, and you have money coming in. Spending it on Lululemon and a new pair of Nikes sounds enticing but is it the right thing to do? Any money you make for the first couple of years must be reinvested into your business. Key Points we will go over: How to reinvest & where to reinvest.
How to start the reinvestment process: It all depends on your situation. I do not recommend quitting your full-time job with benefits right away to become a photographer. Growing a photography business takes time and patience. You have to build up a portfolio and provide memorable services for others to spread the good referrals. Now, some of us can go out and spend $10,000 or more on bodies, lenses and all the greatest products because we have the finances too, but most can not. This new career will be as big as you want to make it, but hard work and smart financial moves are critical. I have never been a fan of debt and will choose the other option before I take out any loans. I advise you to stay away from loans as well. If you have another job that supports the bills, then save every last penny with photography and place it in savings.
Do not keep your ATM/Debit card in your wallet because the temptations to spend that money will haunt you.
Create Goals: Set goals on what you need as a business. Create a list of products you need and also start a daily marketing budget. Organize from top to bottom what is important for you.
Sami Anna 2017 Goals:
-Marketing $5.00 a day on IG, weekly $35.00, monthly $140.00
-70-200mm Canon Lens
-Canon 80D Body for videography & Vlogs
-Travel money for destination locations
-2017 Taxes (15.3%)
What if you need some money for personal use: Tough times call and sometimes we have no other choice. If this is the case, try to save half of everything you make and take the rest. Let's say you have two full sessions a weekend every month.
$2400.00 Monthly Income
- 25% Taxes
A $900.00 paycheck a month to yourself is a start to a good income. Only pay yourself if you need to each month.
TAXES: You are a self-employed taxpayer now. Quarterly tax payments will be due. Rule of thumb is to put aside 25% of each paycheck into a separate tax account. Taxes are a real bitch. This is something that many self employees do not do!
Reinvesting your money into social media ads: You can choose to grow organically and slow by word of mouth, or you can spend some extra money on marketing. It is incredibly easy this day an age to go everything digital. Facebook and Instagram already have starting points for beginners. Facebook and IG will let you choose your audience, amount of money a day your wish to spend and the amount of people you want to target. Have you seen random sponsored ads on your social media feeds? These are companies like you that have set out monthly budgets to spend on social media ads to reach targeted audiences. It is really a simple & easy process. They do all the work for you.
Reinvesting your money into equipment: Setting aside money for newer equipment is a good idea. One thing about photography is good lenses is the key to good imagery. The body is debatable. In our field of work, everything camera related is expensive.
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