Hello Coverlea,
Not following good advice would lead to major pitfalls and not
getting legal advice would be a major pitfall! There are either few
pitfalls in the photography business, OR photographers don?t share
their mistakes! Photographers must be very optimistic characters! I
was unable to find many actual pitfalls to avoid, but plenty on what
one SHOULD do in a photography business, which is a sort of a backward
way of telling you what to avoid! (Clear as mud?)
While the site below is aimed at online photo businesses, and you
didn?t specify yours, these are good pitfalls to avoid (please read
the link posted below for further information):
?How much time does it take to develop a photography business so
that you can make a living at it as your sole source of income? Should
you quit your day job yet? What kind of time expectations should you
have?
There are many different kinds of photo businesses, from the portrait
photographer in the mall, to the press photographer for the local
newspaper, to the stock photographer out in the field that takes
pictures of nothing but birds. Every field of photography has a
different degree of demand for such products, different competition,
and different regional variances that may make that work more or less
worthwhile as a career objective. What you develop your career into is
entirely up to you. But it won't go anywhere unless and until you
develop a sense for business.?
http://www.danheller.com/biz-sense.html#7.1
?Legal stuff. This is an area most online sellers would rather not
think about. If a package is late, you could get sued. If a customer
gets ripped off by a site they found through your site, you could be
liable.
Solution #3: Yup, you should seek legal advice. There are a few things
to include on your site to make sure your backside is covered. These
are:
? Shipping & Return Policies - Clearly post your policies and
guarantees about shipping and returns. Detail exactly what will happen
in the case of a missed or late delivery?
? Privacy Policy - What are you going to do with those e-mails you
collect from orders. Will you share them? Keep them private? It is
highly recommended that you ensure your customers that won't sell,
rent, lease, or share their e-mail with others, if that is your
intention.
? Familiarize yourself with the Federal Trade Commissions rules. You
can find their website at http://www.ftc.gov. Or call them at
1-888-734-3247.?
http://www.wwmerchant.com/item.asp?iid=295
To avoid pitfalls, follow these suggestions(more on the web site):
1. Write your business plan. Yes, even photographers need a business
plan. The business plan will serve as your roadmap to starting,
managing and growing your business. It will help you assess the
viability of your business. Writing a plan will help you to think out
what your goals are and identify the strategies that will take you to
reach your goals. It will help you understand the financial
requirements of your business, evaluate your resources, force you to
think of where and how you can finance the business, and tell you the
parameters of measuring the financial status of your business. Through
the business plan, you can begin to identify your potential clients,
establish a workable timetable, set reasonable fees or prices, and
plan out your marketing strategies. As you go through your business,
the business plan will serve as your guide that will tell you how well
(or how bad) you are performing.
2. Establish your legal business identity. Each country, state and
counties have different rules in treating businesses. Check with your
local county clerk the rules that apply to a photography business,
particularly home-based. If your business is going to be a sole
proprietorship, you only need to register your business in the county
office or town hall and file a "doing business as" (DBA) form for a
small fee if you are not going to use your own name.
3. Open a business banking account. Bring your DBA form to a bank to
enable you to open a checking account for your business. It is
important to separate your business from your personal finances.
Deposit the capital going into the business as your opening deposit,
and as soon as the account is established, use it to pay all your
business expenses. If you are going to use a credit card to jump-start
your business, it is preferable that you have a separate card for your
business and financial expenses.
http://www.powerhomebiz.com/vol56/photography.htm
Continuing on to starting your home photography business:
http://www.powerhomebiz.com/vol56/photography2.htm
This site discusses 7 pitfalls of freelancing, that apply to almost
any business! Check the site for greater detail.
1. Never Quote or Bid
2. Never Speculate
3. Don't extend credit
4. Fair trade, not trade-out
5. No piggyback rides
6. Sign it off
7. Create like a pro, bill like a pro
http://www.60-seconds.com/articles/156.html
Not having a business plan is definitely a pitfall:
http://www.cipne.org/Programs/BizRndTbl/BusinessPlanning.pdf
Not knowing about licenses and model release paperwork is a definite pitfall
http://www.asmp.org/commerce/assignment.php
Equipment Purchasing Scams
?So where are the problems? Well, much lies in "..find the lowest
price...". The scam artists out there play on greed. They know some
people will shop by price alone and that's where they reel in the
suckers. It's not called "bait and switch" for nothing. The really
cheap camera is the bait. Looks great, it's $500 cheaper than you see
it sold at the major camera stores, you start to drool, you get out
your credit card and you place the order. What happens next. Usually
you get email saying "please call us to confirm your order". So you
do...and that's where it starts. The item you've ordered isn't quite
what you thought it was. The low price no doubt applied to the
Malaysian/Korean/Outer Mongolian made version which comes without the
battery, charger, manual, strap, instruction book and software. All
those cost extra. In fact your best bet would be to switch the to the
full USA model, which is....$500 more! So you agree and a couple of
weeks later (maybe) it arrives, along with an invoice for the full
price - with $85 in shipping and handling charges added in.?
http://www.photo.net/equipment/caveat_emptor
Photo business caveats, including assets, valuing your business,
taxes, and legal liability
http://www.danheller.com/photo-inc.html#6
?A good rule of thumb in creating processes for a studio is to make
sure that the procedures answer a need, are easy to use and that their
utility is clear and understandable by all of its audiences?inside and
outside of the studio. A well-managed studio is one in which its staff
members understand their responsibilities, feel empowered to do their
best and communication among its members is constructive. It?s a place
where the physical set-up is able to weather the tempest of rushed
deadlines because it?s easy to find things and they can be depended on
to be in working order. And, finally, an efficient, harmonious studio
has systems that exist only for the purpose of facilitating the flow
of information as effortlessly and seamlessly as possible.?
http://www.commarts.com/ca/collegal/evaD_272.html
Success Tips:
http://www.startups.co.uk/dispatch.aspx?p=a0f6645f-5a8c-4a5c-b06e-343538ab3aa5
Copyright your images
http://www.danheller.com/photo-inc.html#10
Tax tips:
http://www.danheller.com/photo-inc.html#2
?SB: This will be food for thought for the established photographer
looking to go to the next level of marketing. It sounds like big
business! What advice do you have for those just starting out? What
can someone getting into the portrait business anticipate as far as
pitfalls to avoid and opportunities to pursue?
DHD: Beginning photographers should seek out a mentor that is doing
what they think they would like to be doing. There is no substitute
for experience and no better way to learn than to become a part of the
daily routine of an established photographer. This may not be
glamorous, but you will learn the real world skills in context and be
prepared to go out on your own. You do not need to make all the same
mistakes every photographer seems to want to make. Put your ego in the
back seat for a few years and learn the business.?
http://shutterbug.com/columns/business_trends/0404sb_business/
?Dan, what are typical ?hiccups? or pitfalls a photographer can
anticipate in the transition to digital?
DW: The digital photographer has to have another mindset than the film
photographer. For instance, in film an image can be two stops
overexposed and the lab can save it. Underexposing even one f/stop
will cause serious color issues. With digital portraiture we can save
a significantly underexposed image, but are powerless against the
posterization of overexposure.
Many of the hiccups that the photographer suffers come from simply not
following good procedures. Little things, like not making a back-up
copy of your files, can be disastrous. Or not paying close attention
while ordering prints. Computers do what we tell them to do?not what
they think we want.
And of course, the lab is always an issue. As many of your readers
have probably found out, just because a lab might be good at film
processing doesn?t mean they?re good at digital image processing.
They?re different animals almost entirely. Most people with half an
eye for color can sit with their digital image, a PC, and a printer,
and make a pretty good print. Producing professional studio quality
prints at a high rate of volume and economically is a challenge not
for the faint of heart. It takes piles of money, years of learning
curve, and an unbelievable amount of patience and perseverance.
We frequently hear people who have a bad experience say, ?Don?t do any
of that digital stuff. I don?t like the way it looks.? The truth is
good digital processing is not only possible, it should be expected.
It?s kind of like a good hair transplant: you?ve seen it, you just
didn?t notice it. Make sure your lab knows the difference.
Any new technology brings its own set of problems and issues. One can
get into serious trouble by dismissing or ignoring them. Think of the
farmer who kept his donkey because he didn?t want to be bothered with
fixing a tractor. The digital wave is definitely here to stay and will
eventually replace film. It?s time to surf or sink.?
http://shutterbug.com/columns/business_trends/0204sb_business/
?Whether you are considering opening a commercial studio
specializing in food photography or a home based business making
environmental portraits of families, it all begins with planning. I?m
not just talking about hashing out some ideas in your head and jumping
into the deep end, I?m talking about some formal planning. That means
having a business plan. You know, operating without a plan is a
sure-fire way to be out of business before you know it.
Most successful businesses constantly refer to their plan and
revise it annually.I know, it sounds a little rigid for us creative
types, but consider the statistics put out by the US Small Business
Administration. Most small businesses that go under within a year or
two can directly correlate their business problems with a lack of
proper planning. What?s that really mean? Well, let?s boil it down.
Let?s say a photographer decides to go into business for him or
herself. They own one digital body, a few lenses and some flash units.
Mind you, their images are of excellent quality, but this photographer
hasn?t really done a whole lot of planning. Within 6 months, they are
making some cash and decide to put a bunch of it into a pro level SLR
and a few pro lenses to match. Then, wanting to bring in more
business, they decide to have some postcards printed up and buy a
mailing list. After a few months of floundering, they decide to buy a
newer computer to deal with the additional data the camera creates.
Finally, by the end of the year, all of the money that has come into
the business has been spent on equipment, a seminar and advertising.?
http://www.nobsphotosuccess.com/pages/will.htm
?Another notion to dispell: "hard work" doesn't translate to
success. A quick, keen insight into business situations is what it's
all about. Oh, and yes, you also have to put a considerable "quantity"
of time into it as well?after all, you are trying to sell pictures,
and for that, you need to produce a lot of material. And yes, the
better your imagery the better your chances for success. But in the
end, it's not about how good you are as a photographer; smart
photographers are often more successful than talented ones.?
http://www.danheller.com/bizfaq.html
Software + Equipment - Get educated on photo-editing software. Some
software web sites allow you to download a free trial version. This is
a good way to try programs out. Visit forums online and read what
other photographers like and dislike. Make sure your software will be
compatible with your equipment.
I love the Fred Miranda site for excellent advice on photography and
software, equipment reviews and recommendations, and folks there are
generally friendly. Membership is free.
http://www.fredmiranda.com
Another forum member?s advice:
?1. You have to be twice as good as your so called 'experienced' competitors.
2. If you're planning on starting a business, I would go to your
nearest bookstore and sit around and start reading. I read books on
business, my fields of interest (web design etc), and books on people
who've successfully made a business out of their passions.
3. You have to be open, accept all criticism, and accept the fact that
you may fail many times before getting anymore. For example: My first
real job was working at an airport working line (refueling planes,
towing, marshalling, and light servicing). During the interview the
manager didn't believe that someone as young as me could handle a job
like that. But since I had such a positive attitude and maintained a
professional status, I attained the job and within a month an older
guy has a cessna scrape it's tail while towing too fast. That's
another thing, time will prove your dependability and all that.
Anyways I quit that job to do tech support work on the phone now,
which brings on to another thing.
4. You're probably going to work a lot of jobs that you don't want to
work. My answer is, get whatever pays the most, don't settle for idiot
work when you know you can work harder and make more. And don't blow
your money on pointless activities, learn to be frugal and save.
Currently I'm saving up for a Canon XL1s broadcast quality video
camera so I could get serious about my business and a Roland Fantom X7
for x-mas so that I could work on my music composition skills.
5. When buying the tools you need, get nothing but the very best.
People will think it's odd if you show up to shoot a wedding with a
small automatic point and shoot camera. Get all the proper tools, not
just for the 'image' but because they are required if you want to get
the job done right. Be prepared to dump a bit of money into a good
tripod, camera, lighting accessories, and more.
6. Advertise, advertise, and make connections. Start talking and
making friends with older people. My web design business' first job
redesigning a corporate website was attained from talking to an older
programmer friend. The more people you know, the more paths and
connections you'll have.?
http://photography-on-the.net/forum/archive/index.php/t-48754.html
?Successful business people and good photographers have one thing in
common - vision. For the photographer, vision consists in the ability
to interpret a scene, seeing how it will look when it is reduced to a
two dimensional photograph, and seeing how a concept will look when it
is translated into a scene and then a two dimensional image. For the
business person, vision consists in seeing how a business will
operate, grow, and deal with advancing its own goals and success. All
vision comes from the same innate creativity. It is simply expressed
in different terms and ways. Vision can be cultivated and improved.
One thing for sure is that you, the photographer, have the vision to
be both photographer and business person. You have to exercise it, and
that will improve it and your fortune.?
http://www.asmp.org/commerce/business_article_001.php
Business software
http://www.nppa.org/professional_development/business_practices/bizsoftware.html
?The Problem
Despite my success, it seemed that others in the industry?pros and
amateurs alike?were struggling. To me, it was so clear what the
problem was: the paradigm about how to do business wasn't up to date
with modern realities. And that problem stems from an archaic business
model that pros and educational institutions continue to promote. Such
business models were based on historical practices from the
pre-internet era when the photography industry was very different.
It's not that such advice was "wrong," it just doesn't apply today
like it used to. Unlike those days where a powerful portfolio and a
good agent or agency were the path to success, the photo industry
evolved the exact same way that the business side of the technology
sector did: barriers to entry fell, causing buyers and suppliers to
rush in. Traditional sales channels and supply chains for photography
are changing exactly the same way technology did in the early 1980s
when it became cost effective to actually own your own computer. A
photographer can now do more for himself than his agency could do for
him because he's leaner, faster, and more versatile, able to shift to
new directions or respond more quickly to customers and changing
market needs than any agency can. Once photography and the
distribution model for selling direct to photo buyers opened up, the
photography business has taken a fundamental shift as never seen
before.?
If you?re serious about starting a photo business, you might consider
reading the two books mentioned on this site:
http://www.danheller.com/photobiz-book.html
Some excellent advice on starting a home/small business, that applies
to any type of business:
http://www.empowermentzone.com/fromhome.txt
Should Do's:
http://www.asmp.org/commerce/business_article_003.php
Warning-Postal Insurance and Shipping Photos
http://www.asmp.org/commerce/business_article_002.php
This forum discusses starting photo business; one reader says be sure
to have fun with the business.
http://www.photosapien.com/photo-528.html
A photo business forum:
http://www.photo.net/bboard/forum?topic_id=2041
This may also interest you!
http://www.60-seconds.com/articles/156.html
Breaking into the photography business
http://ezinearticles.com/?Photography---Breaking-Into-The-Business&id=187120
More tips:
http://www.committment.com/huffd.html
and
http://www.homeincome.com/articles/home_business/Start-Your-Own-Photography-Business-from-Home.html
Good advice can be found on the ASMP web site, through the forums and publications.
http://www.asmp.org/commerce/business.php
21 Steps to a Home Business
http://www.powerhomebiz.com/vol4/21steps.htm
An online photography business class:
http://dpa.thevlc.com/
Setting up an online photo business:
http://www.danheller.com/photo-biz.html
Check out this book:
http://www.photosource.com/book.html
You can write for expert, free business advice here:
http://emc.score.org/index.cgi?partner=ASKSCORE&action=first
I hope this has helped. Please ask for an Answer Clarification, before
you rate, if anythng is unclear. I will be glad to assist you further,
before you rate this answer.
Sincerely, Crabcakes
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