starting my small business

[MeganChristine]

Thanks everyone who was polite and helpful.

No need for people to be rude. I came to get more information on such things as this because at being only 23 i have absolutely no idea on the business ends of things. My concern with getting insurance, attorneys, contracts, etc is the fact that my business may not be big enough to cover those expenses let alone make any sort of profit.

 

[limr]

Thanks everyone who was polite and helpful.

No need for people to be rude. I came to get more information on such things as this because at being only 23 i have absolutely no idea on the business ends of things. My concern with getting insurance, attorneys, contracts, etc is the fact that my business may not be big enough to cover those expenses let alone make any sort of profit.

But will you also be able to finance any lawsuits that arise from not thinking of legal issues before you start? Regardless of the size of the business, you need to consider these issues first. Do some research. First, it might not be as expensive as you think. Or, if you can't afford it, perhaps you should think about saving some money first before starting a photography business.

 

[astroNikon]

Model contracts are normal in this business.
Tell people where you live and they can help you provide a sample model contract.

Starting a business is not age related. I start at one when I was 17 as a DBA (doing business as) which you can get through the county clerk.

Then if you sell things some vendors won't sell you things to resell unless your have a sales tax ID. This only requires one form to use to your state. But you will have to track what you sell and track what sales tax is related to those items and send it in once a quarter or every six months or year to the state.

Those are the basic things to get going to protect you some.
It's not too hard.

 

[tirediron]

Thanks everyone who was polite and helpful.

No need for people to be rude. I came to get more information on such things as this because at being only 23 i have absolutely no idea on the business ends of things. My concern with getting insurance, attorneys, contracts, etc is the fact that my business may not be big enough to cover those expenses let alone make any sort of profit.

No one was rude to you, but when they tried to get across to you the importance of "that extra stuff" you seemed rather dismissive. In truth, that "extra stuff" is the foundation upone which your business must be built. Can you do without it? Absolutely, but, again... if you don't have a license and taxation paperwork completed, one, or more levels of government could come after you for unreported taxes/income, and they can base their calculations on what they think you could have earned. Insurance? You're doing a shoot with a family, you recommend a location, junior trips and hurts himself and you're sued for tens or hundreds of thousands of dollars. Will you lose? Maybe, maybe not, but it will cost you a fortune to defend regardless. Contracts/release? You, just pure luck take the greatest picture ever of a young lady who turns out to be the next super model. Because your contract/release wasn't properly written, she's able to use the image commercially and makes tens of thousands of dollars and you get squat.

Are those scenarios likely... probably not too likely, but it won't take too much effort to find lots of examples of people who've had to deal with each. The business of photography is very much about business and very little about photography. You will probably find that for those who make any serious money from photography that they spend 30-60 minutes on business tasks for every minute of shooting.

The biggest favour you can do yourself if you want to set up a real business is to take as many adult-ed courses on business, entrepreneurship, marketing and other fun things.

 

[jsecordphoto]

Thanks everyone who was polite and helpful.

No need for people to be rude. I came to get more information on such things as this because at being only 23 i have absolutely no idea on the business ends of things. My concern with getting insurance, attorneys, contracts, etc is the fact that my business may not be big enough to cover those expenses let alone make any sort of profit.

It's not about being rude, it's about being realistic and people telling you the truth, when many people won't. I can't even count how many times I've seen someone pick up a camera, and almost immediately their friends and family start telling them how talented they are, and how they should start selling prints/start a business. Listen to the advice of those here who know better

 

[Designer]

I'm definitely no where near contacting an attorney etc and making it a legal business. I'm just starting out and would prefer to build up clients before I go into all that extra stuff.

Hey, it's me again! The reality is the fedgov thinks you have a business as soon as you accept your first dollar, and they want their cut. Same for most states. Of course, just filing your tax return sorts it out, and you might not actually pay very much in taxes, but that first transaction that brought money into your hand was when everything becomes official.

Now to be legal, well that's going to depend. Some municipalities require a business license, and in some places you can't legally run a business that takes customers into your home due to strict zoning laws. So you'd probably better start making some of those phone calls you've been putting off.

As to figuring out what to charge; there are some formulas to try out like cost plus, where you plug in your costs as well as your desired profit margin to find your prices. There is also the local market forces which will pretty much dictate how much you can charge before customers stop calling. Then of course, there is the question: "How good are you?". A really good artist can charge more than a crumby one. Selling prints is one way to increase your profitability, but you've pretty much got to have a customer before that can happen.

 

[Austin Greene]

I'm definitely no where near contacting an attorney etc and making it a legal business. I'm just starting out and would prefer to build up clients before I go into all that extra stuff.

This is not extra stuff. It is what makes your business a business and not a hobby.

 

[Designer]

Thanks everyone who was polite and helpful.

No need for people to be rude. I came to get more information on such things as this because at being only 23 i have absolutely no idea on the business ends of things. My concern with getting insurance, attorneys, contracts, etc is the fact that my business may not be big enough to cover those expenses let alone make any sort of profit.

Rude on TPF? Himmel!

Some things you might be able to obtain less expensively, some things you'll just have to save up for, and some things, like taxes, can be put off for a bit. Jumping off the cliff is no time to find out your parachute is still at the cleaners.

 

[astroNikon]

FYI
Business or Hobby Answer Has Implications for Deductions

and taxes ... state sales tax, (possibly City), State & Federal income tax based upon the $$ you take from revenue for income. You can deduct all your equipment too. So if you do it right you should be okay with some basic paperwork and tracking.

Also some cities, parks, event locations may require business info to give you a permit to shot there. YMMV

 

[waday]

I like this article... Don t Get Sued 5 Tips To Protect Your Small Business

Also... https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

5 out of 10 businesses fail within 5 years.
7 out of 10 businesses fail within 10 years.

Granted, there could be a variety of reasons, but I'm assuming cash flow had a significant impact on all of them. Getting sued will take away a good portion, if not all, of your cash flow. You could be left in the red after a lawsuit.

Starting a business isn't easy. It takes hard work, a lot of research, and a good business plan. A lot more than a Facebook page and business cards.

 

[imagemaker46]

Extra stuff. 23 years old, been taking pictures for 10 years, that part is fine, I started shooting when I was 13 years old as well. I'll be 60 this year and still shooting, so that part is fine. I didn't have a web site or face book site for decades, so that part was different, it required me to go out and knock on doors to find clients, more doors closed than opened, that was the way it worked. You have a camera, guessing maybe entry level, or mid level digital, one lens, that part is fine. The biggest issue you will face is the hundreds of other amateurs that all have a "passion for photography" that also have face book pages that are willing to take pictures for free. You are correct in not wanting to get into a "real business" that has all the extras Stay small, enjoy photography, hand out some cards, make a few bucks. Once it becomes a "real job" it's not always fun anymore.

 

[vintagesnaps]

I might think about doing your own website along with a social media page. If you put your photos on a site like Facebook I'd suggest looking thru their Terms & Conditions because I think what you post there falls under their terms. It might be better to direct prospective clients from your Facebook page to your own site.

Along with the SBA site linked in the above post you might try looking up your state's website for info. related to small businesses and taxes etc.; I believe some things vary state to state such as how much you need to make in a year before you have to pay taxes on it.

Try American Society of Media Photographers or PPA for sample forms (releases, contracts, etc.); ASMP has a 'pocket' release and an app. They do a monthly Business as UnUsual webinar on a different topic each time (no cost, don't have to be a member, just sign up and they email a link), and they have tutorials and other resources for photographers.

It sounds like it could be exciting to start your own studio and you'll probably want to make sure you're covered for a variety of potential situations just to make sure your business runs smoothly.

 

[table1349]

You really might want to take a glance at these:

How to Start a Photography Business
Guide How to Start a Successful Photography Business Bplans

Just a thought.

 

[jl1975]

Here's a decent video from a B&H presentation by Jeff Cable.

 

[Psytrox]

In addition to what everyone else has already said:

If you want to keep things very simple, you can do the shoots for free, and charge only for prints. Have it printed, at a local printing service, and either demand payment before hand, or send them the photos with an invoice, and give them the option to return photo's that they are unhappy with.

There is obviously a risk that they wont pay you anything, but at least you save 200 usd on lawyer writing you up a contract

I disagree with this. First of all, whether you charge for your services or not, you absolutely NEED to have a contract if you are going to have "clients." Even if those clients are just friends, you need some sort of contract that spells out what they can expect and what YOU expect from them (payment, use license, etc). Just one example of something that happens All. The. Time.
Jane Photographer does a photo shoot for her friend, Sarah Social.
Jane just takes the pictures because they are friends, no need for a contract. Jane gives Sarah a bunch of pictures on a disk for her to use.
Sarah Social says "Wow, these are great!" then goes through photos, picks a few she likes, then promptly runs them through her OWN photo-editing app, applying gawdy filters, blown-out sun glare effects, changing backgrounds--and then posts the resulting really awful photos on all her social media sources.
Jane says, "Hey, you can't edit my photos like that!" Sarah ignores her, or says, basically, "Sure I can; thanks for doing this!"
A "discussion" ensues.
Jane Photographer and Sarah Social are no longer friends.

Seriously, no matter WHAT else you do--if you are going to start shooting clients:

HAVE A CONTRACT.


Oh, and the other part that I disagree with. Do NOT tell ANYone that they can "return" photos they don't want. No. No way. Because once those photos are in their hands, I guaran-dang-tee you that if they return any to you, they WILL still have their own copies of them. If they are prints, they'll scan them or have them printed; if they are digital, they'll simply save them, then give you the storage device back with the original photos.

I understand what you mean, but I think you missed my point. If she WANTS to start up with minimal costs in terms of lawyer fees, and insurances it kind of goes without saying that she's not going to be the one doing the suing. To avoid getting sued, she doesn't charge for the photosesions. That way, in worst of cases she can shut down the whole operation, and has only wasted her own, and clients time.

I never said anything about selling digital copies, only actual prints. Suppose a practical way of doing it, is printing some standard small prints with a huge watermark across the whole photo, and if the client decides that they like the photo they can pay for it, and she can reprint without watermark.

But from what you've written, it may seem like OP wants to take photo's of models and such...? I was referring more to portraits/family photo's.

But this said, my suggestion isnt the best way or the right way to do it. It is a shortsighted solution to solve your current issue of avoiding start-up costs, but can as many have already said, it can backfire and burn.