Ideas getting busier, I need help :(

bennielou · Sep 21, 2011

shellie said:
I set money aside for taxes so that is covered. I was unaware of manditory liability insurance until this thread. I have asked for help from multiple places and it never came up. I have even contacted the small business org and no one seems to be able to answer my questions. If you can tell me where to get answers I would be grateful for the information and make the calls. As for the facebook stuff, I was a photographer before I was on fb. I just set the fb account up to help get my name out there. I was told that I could do a DBA, doing business as, and that's what I did.

Hi Again Shellie,
I think you are confusing the tax issue. You can't just "set aside" money for your sales tax. You have to file as a business with the state, and pay quarterly. I think you mean you are saving for your Federal taxes. Those are two separate things.
Here is the link to the taxes I am talking about, and your rates:
New Rates and Effective Dates

I'd take care of that right away, as people always eventually get busted. *You will stand out more to the county as you have a studio* Not to mention, there is a "reward program" that encourages competitors to turn each other in. (They have been really ramping that up in the last few years) The fines and late fees are astronomical, so taking care of it quickly is better.

The reason I point this out to you, is it was something that I was also confused about, and I ended up paying 5 figures to cover it. I had a lot of money in the bank, but it almost put me out of business. And the State doesn't screw around. They want the money in 30 days or else.....

Also, did you actually set up a DBA, or are you just calling yourself one. I mean, did you do the actual paperwork at the county? If you did, the State already knows you are out there. If not, you are not an actual business yet, and therefore would be personally liable should any number of things happen.

Liability Insurance is normally $1,000,000. (Mine is $2,000,000) Don't worry though, that is only about $200 a year and $25 for each location (paid once for location).

Also PPA is a good idea, as they can help you with any lawsuits you may encounter personally, regarding unhappy clients, lost files, etc.

I don't want this to sound like a downer. This is just the things you need to be a legit business. I've been in business for a long time, and done right, can be a very rewarding profession. Keep at it, but before you worry too much about ads and soforth, you need to take care of the business basics. These costs will help you determine what you need to charge to make a profit.

Best of luck, and I honestly hope this helps.

Hope this clears up some of the business aspects.

TCUphoto · Sep 22, 2011

I skipped a lot of the posts in between here and the beginning, so I apologize if this has already been said. Your website needs help. The neon pink and black is aimed at females only and appears tacky. Go for more gender neutral tones, like light blue and tan, for example. Look at other popular companies colors. Facebook: Navy and white. Martha Stewart: robins egg blue and white. Secondly, I didn't see a portfolio on there. Maybe you do have a portfolio on there, and I missed it, but that means others are missing it too. Third, you have grammatical errors on there. Fourth, screaming SENIORS SENIORS makes you sound desperate. You can communicate the same message without sounding like you are not getting any business.

You seem like a very sweet lady, so I hope this does not offend you, but rather helps you. I wish you the best!

CCericola · Sep 22, 2011

Listen to bennilou. There is a lot of good information there. CYA, Cover your A$$. Doing things by the book is a lot less stressful. In NJ you can be a sole proprietor but not a DBA so I had to do a DBA under my husband's LLC. What is nice is my personal property is safe. The house, car. etc... And don't be late with your quarterly tax payments. It can come back to bite you in the butt.

bennielou · Sep 22, 2011

CCericola said:
Listen to bennilou. There is a lot of good information there. CYA, Cover your A$$. Doing things by the book is a lot less stressful. In NJ you can be a sole proprietor but not a DBA so I had to do a DBA under my husband's LLC. What is nice is my personal property is safe. The house, car. etc... And don't be late with your quarterly tax payments. It can come back to bite you in the butt.

I missed paying by one day, and got a $125 fine on top of my payment.......

bazooka · Sep 22, 2011

This thread is awsome... should be stickied... so much useful info here, and no "you suck, quit now" comments. Bravo.

One thing I will add, although it's not high priority, your website is flash. As such, it cannot be "read" by search engines. Try searching for "Latham Photos" and you will not see your site come up (at least on the first page). Also, not all systems are flash capable and flash is constantly being updated and things tend to break. I would get out of the flash business altogether. And when you get these other legal things taken care of, you can reserach "SEO" or search engine optimization. After all, your company name is "Latham Photos" and your website is lathamphotos.com.... it should be the #1 hit on google. If someone searches for your first and last name, it should be the #1 hit.

Patrice · Sep 22, 2011

Hello Shellie,

I admire your willpower. Starting a business in an already crowded small market area is not an easy task. And it is especially difficult when that business is to be your sole income from the start.

I have started and run a number of businesses throughout my career, there is a tremendous sense of achievement when something you personally started grows and becomes successful. However all is not rosy, 85% of startups fail within 5 years. The entrepreneur does not see a business failure as a personal failure, but rather as a lesson learned to apply to the next opportunity. One of the most common reasons for failure is not lack of knowledge, or lack of effort, or lack of luck, or even lack of customers, but lack of management skill. Management skill not only includes the ever important cash flow but also marketing and pricing. Many entrepreneurs make the mistake of pricing themselves too low which leads to cash flow problems which leads to a credit crunch which leads to business bankruptcy. These things have been talked about above. What I would add is business training. If there is a community college in your area check to see if they offer adult education evening or weekend classes in business and management. I know, a single mother's time availability is already way past the point of being non existent but try to find the means somehow, it may well mean the difference between success and failure.

Make a 5 year business plan with at least 6 month pro-forma financial statements. Be thorough with it, don't just guess at the various numbers but use real, or at least realistic, estimates for all the entries. Get help from the business community itself (chamber of commerce for example or business development agency) with respect to local market statistics. Even if you don't use your business plan to secure financing it is a very useful business assessment tool. Refer to it often to see where you stand and keep it current as much as you can.

A last very small point. You NEED to make a profit, profit is AFTER all of your expenses INCLUDING your salary. Profit will not likely happen in the first couple of years, but if your business does not ultimately make you more money than you could earn working elsewhere then there is no real point to all of the hard work and heartache.

Just a quick note on flow trough items. You almost need to charge up to 3 times your purchase price in order to make any money on an item that you resell. If you pay $10 for a frame, the customer should pay nearly $30 dollars for it in order to recover your personal, overhead, handling, storage, and carrying costs associated with that item.

A photography business is probably 35% about photos and 65% about running a business.

Good luck, persevere, don't be afraid.

shellie · Sep 22, 2011

Thanks for all the continued support and advise! I haven't been posting replies because I have been busy working my butt off to accomplish all the new things I've learned here. Keep it coming! I know I'm not the only one who is/will benefit from all you awesome posters! Again, thanks so much!

bennielou · Sep 23, 2011

I'm glad all this is helping you, Shellie. You seem like a nice, and very determined person.

Patrice, can I give you a big "Amen"! I agree with every single word you said. Every. Word.

shellie · Sep 24, 2011

I was wondering if anyone knows if there are any special permits you need for being a photographer, like city and county. I have looked and not found solid answers. Thanks.

CCericola · Sep 24, 2011

Every city and county is different. This is where a business lawyer comes in handy. Definitely contact your local permit office to see if there is anything you need. Or pay the lawyer to do it for you.

orljustin · Sep 24, 2011

Contact your city and county.

But probably not, otherwise everyone else on Craigslist would be getting arrested. Typically, permits are needed for specific areas where commercial shooting is going on. You probably want to ask about a "license", not a permit.

shellie · Sep 26, 2011

Happy to tell everyone that my wedding I did over The weekend was a beautiful success! And... I used my flash for the reception and all turned out! I knew I just need more time and practice and I will get better.