Setting up in business and seperating hobby from work is essential.
When I first went into pro photography, I drew up a simple plan of what my costs were and what my goals were. I have applied this way of working to all my businesses and now own five.
One of my key points to make is business is business. Dont mess about with friends discounts and freebies. Your business while it plays for 'toys' should be invested into the development of the business not on 'toys'.
Most businesses fail because people dont seperate themselves from the business and the income/profits that it creates.
IN the first two years of your business, exspect to spend around 18 hours a day working on it from next to no cash/wages. You will find that advertising is catch 22, you need to pay out lots for it to get a good return, but then do you have the money to pay for the advertising in the first place.
My Photography business started with an investment of just £20, In 6 months I made £22,000 In the ame time period I paid my self only £400.00 from that business. The remaining money paid for business things that were essesntial.
Obiously you need to invest in more advertising, equipment and stock items (capital plant) The remaining amounts should be your retirement fund holidays and mortgage payments together with bills.
You need to work out your costs for your life. (exc all business related costs)
Once you work this out, work out how much work you will need to do to afford a basic way of life.
Next work out the costs of doing the work, tripple it and add the cost of living to this and you will have your day rate. (not forgetting to ad some wages to this)
If your working for less than your day rate, you should not be in business.
There are many funds and training that is available if you want a full business profile and plan drawn up for you with all leading areas and funders for your project. Visit my site and request an appoinment.
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