First Business Meeting

[etnad0]

The February date for our new photography business is in full swing. I gave up 30% of my previous 80% share to a photographer that wants to go into business but isn't as business minded as he'd like to be. He's coming on board with his equipment and knowledge of photography which will be coupled with my business know how. We got a lot done last night including:

• Business Card Designs
• Employee Uniforms
• Employee Requirements
• Shop Layout
• Shop Image
• Daily Operating Budget
• Hours of Operation
• Ownership Readjustment

Finally and most important, we agreed that our main focus should be customer service and not photography. With the plan we have in place, taking a $10 photo will come with a level of customer service that will make people feel like they are taking a $1,000 photo. We also figured out that we need to limit the time spent between photographer and customer to 3 minutes per $20 they spend. Doesn't sound like a lot of time to give someone $1,000 level customer service, but I can't reveal the details to that. Let's just say that from the time they come in to the time they leave, they will have someone giving them 100% personal attention and us photographers are only a small part of the experience.

Basically for my 30% share he's bringing in his camera, full strobe set up, which brings us to 2 setups (1 continuous and 1 strobe). He's bringing his backgrounds, props, and experience. Why would I give up 30% of my share? Because 50% of $400 is more than 80% of $200 (example). With an extra camera we can make double the amount of money in the same amount of time. It also allows me to maintain control of the company since a majority vote is required to make decisions. Majority is based on ownership percentage. Ties result in postponed decisions until the next meeting. If my two partners decide they want to do something off the wall crazy, I can block it until we come to an agreement. If I decide to do something off the wall crazy, they can block me. However, if either of them votes with me it's an automatic win. Everybody is good with this new arrangement, so that is one less thing to worry about.

We are all going out next weekend to scout the location since the new partner hasn't seen it yet. He knows me and about the success I've had business wise, so he was on board before I ever gave him the details of the business. Our strategy is to control every entrance to the location through the ticket booths. A few well placed lunches, some smooth talking, and getting in good with the owner should put us in position to get our discount cards distributed at the gate as people pay the entry fee. We figured that would be much more effective than handing out fliers as people pass by.

Part of the reason for writing this is because I just wanted to tell someone how much progress we are making lol... and the other reason is for the business noobs that don't have a clue where to start. The pre-planning process is more important than what you do after the business opens the doors. If you pre-plan thoroughly, you won't be caught off guard by much. We still have at least 2 more meetings and a ton of email to send back and forth before February.

 

[CCericola]

You have been a busy bee! No need to defend your actions about giving a new partner 30%. It's a part of doing business and seems to be a very smart move on your part. Make sure your lawyer puts in the contract that the 30% goes back to you or you have first dibs to buy him out if he leaves (My dad learned that one big time)

I'm so excited for you. I have to convince my husband we need to take a trip out to Vegas. Maybe I can find him a music industry expo or Microsoft seminar to go to out there.

Keep us posted on your progress!

 

[tirediron]

Certainly sounds like you're putting a lot of thought into the pre-planning; kudos for that! I'm not sure I understand the reference to ticket-booths (does this relate to an earlier post which I have forgotten? If so, perhaps add a link to that post?). When you say 'employee uniforms' do you mean actual uniforms or just a dress code?

 

[o hey tyler]

What lenses and strobes are you going to get prior to February?

 

[etnad0]

You have been a busy bee! No need to defend your actions about giving a new partner 30%. It's a part of doing business and seems to be a very smart move on your part. Make sure your lawyer puts in the contract that the 30% goes back to you or you have first dibs to buy him out if he leaves (My dad learned that one big time)

I'm so excited for you. I have to convince my husband we need to take a trip out to Vegas. Maybe I can find him a music industry expo or Microsoft seminar to go to out there.

Keep us posted on your progress!

Thanks. I wasn't really defending them, more explaining them before someone asked the question. I actually wrote the Operating Agreement, which is still being worked on. It states that nobody can sell or transfer their share without first offering it to the other owners. Both owners have to know about the intent to sell or transfer 90 days in advance and no owner can buy more than 50% of the share unless the other owner turns down the offer. So if he or the other partner wanted to sell, I can buy half of what they are selling and if my other partner turns it down, I can buy the whole thing. It ensures I maintain a controlling share of the company. Great advice though.

I'll definitely keep everyone posted.

 

[etnad0]

Certainly sounds like you're putting a lot of thought into the pre-planning; kudos for that! I'm not sure I understand the reference to ticket-booths (does this relate to an earlier post which I have forgotten? If so, perhaps add a link to that post?). When you say 'employee uniforms' do you mean actual uniforms or just a dress code?

The flea markets/swap meets out here cost to get in. There is a previous post on it but I have to dig it up. As far as "uniforms" it's both actually. I think we are going to buy the uniforms, but they aren't uniforms in the traditional sense. We are hiring 2 female models. The attire has to be sexy, but not so sexy that families feel uncomfortable bringing their kids. We found some good examples that we are going to go with.

We figure it's a good cross between sexy and professional. The reason we are buying is because if we leave it up to the girls, sooner or later someone will cross the borderline with sexy clothes. All of the models, receipts, order forms, etc. will be bilingual since 80% of our customer base speaks Spanish.

Drunk men and sexy women are a great combination. The place we are at sells beer and lots of it.

The compensation also includes and hourly + bonus goals for the day.

 

[etnad0]

What lenses and strobes are you going to get prior to February?

I have to grab a 50mm prime and I know he has some. Our equipment meeting is sometime next week after we do the recon. He has strobes, so we may end up buying the kind he has or may choose another brand. Not 100% sure yet, but it did come up last night. The equipment is pretty much the last thing on our list since it doesn't take as much thought to go to the store and pick something up based on suggestions that I've seen from people here. I hope that came out right.

 

[Robin Usagani]

Can you take good pics? Can he? That is the big key ingredient.

 

[o hey tyler]

What lenses and strobes are you going to get prior to February?

I have to grab a 50mm prime and I know he has some. Our equipment meeting is sometime next week after we do the recon. He has strobes, so we may end up buying the kind he has or may choose another brand. Not 100% sure yet, but it did come up last night. The equipment is pretty much the last thing on our list since it doesn't take as much thought to go to the store and pick something up based on suggestions that I've seen from people here. I hope that came out right.

This statement kind of tells me that you aren't up to speed with photography where you should be. You should know what lenses to use, and why before opening a business. You should also have a good understanding of lighting as well.

So far you have a T2i and Kit lenses, that's very far from professional. It's great that you have a business plan and everything, but a knowledge of photography, lighting, and photographic equipment is also key. So I think you are a bit ahead of yourself in my opinion.

 

[etnad0]

Can you take good pics? Can he? That is the big key ingredient.

Yes and Yes, but you are wrong, pictures are only 10% of a picture business. Ask McDonald's if it's more important to run good business or make good burgers. I'm sure you can point me to 1,000 burger places that make better burgers, but don't have anywhere near the success as McDonald's.

The last business me and one of my partners was in, we had 3 competitors people had to go through before they got to us. We smashed the competition because we spoke English and hired someone Spanish. The other guys were Asians that didn't speak either very well. LOL. I'm assuming that by your comment that you are photography minded like my new partner? Not a bad thing, but sometimes the craft keeps you blind to the business and vice versa, which is why we make a great team.

Our business is the equivalent to a photo booth at a wedding or a Glamour Shots in a mall, but without the cheesiness. Once we take care of the necessary paper work, I'll share our business card that I designed yesterday.

 

[o hey tyler]

That McDonalds analogy is perhaps the worst analogy I've ever heard.

Have fun with your dollar menu photos.

 

[etnad0]

This statement kind of tells me that you aren't up to speed with photography where you should be. You should know what lenses to use, and why before opening a business. You should also have a good understanding of lighting as well.

No offense, but I assume you didn't bother to read or comprehend what I wrote. I specifically said we're saving equipment meeting for last since he has what we need. My setup will likely be a duplicate of his. He recently closed down his business because he was focused on equipment and photography, not business. He'll handle the what lenses to use and why before we get started. He's in charge of daily setup. I have a pretty good understanding of it, but I'm not expert.

So far you have a T2i and Kit lenses, that's very far from professional. It's great that you have a business plan and everything, but a knowledge of photography, lighting, and photographic equipment is also key. So I think you are a bit ahead of yourself in my opinion.

We actually have a lot more than that with last night's addition of the new partner. Let me say it again, he's the photo pro. I do business. The other partner is a retoucher/editor. Everyone is doing what they do best. While that happens, we are all going to learn from each other, which will make us stronger in the areas that we are lacking. If I didn't think knowledge of photography was key, I would have kept my 30%.

As far as the T2i, the average person doesn't know the difference between a T2i and a 5D. Maybe I'm wrong, but haven't you also stated that the person behind the camera is more important than the equipment? Which is it, if you don't mind me asking? You seem to be changing your story now.

 

[Robin Usagani]

Based on what I read, your friend is a moron for being OK getting only 30% when he has all the equipment and knowledge to take photos. Maybe should be the other way around? You can be his manager and take 30% cut.

 

[etnad0]

That McDonalds analogy is perhaps the worst analogy I've ever heard.

Have fun with your dollar menu photos.

Mostly because you don't understand business. McDonald's isn't focused on making a better burger. They focus on promoting mediocre burgers and making them look good. You seem to think that focusing on making the best the burger (photo) is the most important thing and it's not. Look at the movie industry, look at fast food, look at clothing lines, look at Microsoft. Lot's of people make better stuff than most of the huge companies, but they think like you, which is why they aren't as big.

Compare the budget of Paranormal Activity 1 to Pluto Nash, then look who made more money. Maybe you just don't get it... Business is 90% marketing and getting people to believe what you want them to believe. 10% is the actual product. Example... the Snuggie. It's a blanket with sleeves modeled after a hospital gown. I bought one for my wife and she doesn't even use it, but she really wanted it because of the commercials making it look so comfortable. She uses a blanket pretty much on a regular basis. I can give you more examples of the marketing being a major factor behind success and not necessarily skill or product.

 

[etnad0]

Based on what I read, your friend is a moron for being OK getting only 30% when he has all the equipment and knowledge to take photos. Maybe should be the other way around? You can be his manager and take 30% cut.

He has equipment but doesn't know how to run a business. We are going into business with or without him. He has no choice but to take 30%. He just closed his business down because he failed at the business side of it. He's a great photographer in many people's opinion, but he admits that he doesn't know the business side. I also have all the cash that we need to make it happen. So he's pretty smart to take 30% because his credit is shot from his last business and he can't get the cash to start another. How much money do you think the people at K Mart and Walmart get for taking pics all day? How much do you think the guy makes that sets the cameras? I think you are confusing what we are going to do with a super high level of professional photography.

You are free to think whatever you want, but do you own a business? Have you ever owned a business? Until you do, not much you can say to someone that does own something and does very well in what I do. You also seem like a moron because you don't comprehend very well. I have an idea of what I'm doing as far as photography. Doesn't take much to snap off a photo in a studio where everything is preset, but just in case I'm wrong, I'm going to call my ex who use to take pics at Baby's R Us and knew nothing about photography. I'll also stop by K Mart and ask those guys. LOL... those two examples are exactly what we will be doing as our main business.