Opinions

luvcanon · Nov 23, 2011

I have my two my 2 yr plan, however I have come across a business location that needs some fixing, historical site,so very pretty, but also very cheap. What I need to know is how you knew you were ready for a studio? I have experience, and can afford to pay the expenses I have thought of with what I make from photography now, even tho its only part time for me. I could even raise my prices because I'm only outdoor right now. The studio is my goal, but with this amazing offer should I stop having the fear of failure and try? So would you open your studio again, and what's some expenses you didn't think of?

MLeeK · Nov 23, 2011

Studio in a commercial location is hard. Honestly? I PERSONALLY wouldn't do it unless the space were free. According to PPA's benchmark survey most brick and mortar store front studios are making less than 25% of the COS (cost of service) to the owner however most home based studios were above the 35% COS benchmark set by PPA. That's a big deal where I am concerned, however there are many who it is not a concern for.
PERSONALLY? I don't want to work to pay the rent first and foremost. Could I expand to the sky is the limit here? Probably. Do I want to? Definitely not. And there may be the biggest difference between you and I. You may want to run a full time studio whereas I do not.

thereyougo! · Nov 24, 2011

It could be the outdoor nature of your business that is working for you right now. If you then take that indoors almost exclusively will you be risking changing your product too much. Outdoor shotting in great locations could be your USP (Ultimate Selling Point). I'd never give up a USP

luvcanon · Nov 24, 2011

Good points, I do believe that I would still do outdoor photography, like many others in this town, however, there is only 3 with indoor "businesses" Not being a room in their house. I would also have access to areas in this building that no one else would, and may increase my senior shoots due to this place being an old school they are renovating, but keeping original too. (I can keep the built in lockers outside the "store front" ) and use the gym, auditorium that will not be changed. So Im wondering, what would ou do? The only thing I can see is that I decide its too much, and quit, not losing money because I have everything minus paint and small things... so not a huge loss. Just feel uncomfortable rushing my plan, plus fear slows me even more

Am I just enjoying the dream and skipping harder parts, I have worked in a studio for a couple of other people, but Im guessing this is a whole new ball game!

Big Mike · Nov 24, 2011

I have no experience with this myself, but I've seen many photographers at the stage your at now. For some it worked out well, for some others, it didn't.

The big question is whether or not you can easily sustain all the costs involved, over a long period of time (the foreseeable future). So do you have enough steady photography clients? And/or can you personally sustain some reasonable losses in order to keep the studio open during slow periods or economic down turns? If this is your two-year-goal anyway, and if this is too good of an opportunity to pass up...then it may be worth it to jump on it now, knowing that you may take a hit for a couple years.

Consider whether the studio will increase your business or not. I know a few photographers who opened up a studio (or even just a store front) just for the exposure it gives them, and the increased customer confidence etc. It's a place where they can display their work, meet clients for consults & sales etc. Being a studio is sometimes secondary to that.

Have you considered all the costs? Of course, there is rent...but what will the utilities cost? What will insurance cost? What will the clean-up & reno cost? How much will you have to spend on 'studio equipment' that you don't already have? How much will you want/need to spend on advertising? That is one that often sinks people...they find that business is slow (usually after the initial surge) so they have to increase advertising. But getting a good return on your advertising dollar isn't necessarily easy...and it can quickly become a black hole.

Do you have plans for other revenue that might be generated via the studio? For example, I know a few photographers who rent out their studio to other photographers. Some use their studio to give seminars or workshops etc.

KmH · Nov 24, 2011

MLeek only provides part of the story. Those PPA surveys showed that while studio owners had a somewhat smaller profit margin, because they had a higher cost of doing business, their gross revenues were higher and consequently studio owners generally made more income.

What it boils down to is how much business savy you have.

MLeeK · Nov 24, 2011

luvcanon said:
Good points, I do believe that I would still do outdoor photography, like many others in this town, however, there is only 3 with indoor "businesses" Not being a room in their house. I would also have access to areas in this building that no one else would, and may increase my senior shoots due to this place being an old school they are renovating, but keeping original too. (I can keep the built in lockers outside the "store front" ) and use the gym, auditorium that will not be changed. So Im wondering, what would ou do? The only thing I can see is that I decide its too much, and quit, not losing money because I have everything minus paint and small things... so not a huge loss. Just feel uncomfortable rushing my plan, plus fear slows me even more Am I just enjoying the dream and skipping harder parts, I have worked in a studio for a couple of other people, but Im guessing this is a whole new ball game!

I am speaking personally here again... I wouldn't rush things, but that is ME and what is right in MY eyes. What may be right for you? I can't even guess!

Kieth does have a good point about the volume/income for store fronts. Personally I don't want to work that kind of hours. I'd rather remain exclusive, set my hours and not have to work high volume to make that much. I am a BIG fan of work smarter not harder.
BUT I have reasons too... I have a family that is incredibly active-my two kids at home are teenagers-they are in sports and my son alone takes about the equivalent of a full time job with his wrestling and football. We also own another business that I am the "girl friday" for. My husband not only works for himself, but also for his brother a bit on the side. I have grand children half a continent away and want the freedom to travel to see them... Being married to a studio wouldn't give me the freedom to do what I do because I'd have to do more volume to create the same bottom line.

If you are going into business for yourself so that you can set your hours and work at your own pace... Studio isn't it. If you are still wanting a 40 (or 30 or reasonable) hour work week? It's definitely got perks to do volumes of work.