How to Start a Photography Business
How to Start a Photography Business
ON THIS PAGE
- How to Start a Photography Business
- How big is the Photography industry?
- What are the key segments of the photography industry?
- What external factors affect the photography industry?
- What are the key customer segments in the photography industry?
- What are the key financial metrics and costs in the photography industry?
- What are the key customer segments in the Clothing Store market?
- Secrets of Starting a Successful Photography Business
- Best Practices of Photography Marketing
- What are the keys to launching a new photography business?
- Photography Websites Analytics
- What are the typical startup costs for a new photography business?
- How much do photographyoperators make?
- Top Visual Design Trends
- How to Start a Photography Business from Home
- Photography Studio Ideas
- Helpful Videos
- Additional resources in the photography industry
How to Start a Photography Business
If you're looking to start a photographybusiness, you've come to the right place. Since we're going to show you exactly how to do it.
We'll start with key photography industry fundamentals like how big the market is, what the key segments are, and how revenues and profits are generated.
Then we'll discuss keys to not only starting a photographybusiness, but succeeding in it!
How big is the photography industry?
According to IbisWorld, there are 185,075 photography businesses in the US, and the photography industry generated $10.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 2.6% over the past 5 years.
What are the key segments of the photography industry?
The photography industry derives a significant portion of its revenue from school (16% of industry revenue) and family portraits, wedding photography services and photo-album compilation services (44%). Corporations make up the other large buyer of industry services, primarily in the form of marketing and advertising services (24%) and other organizations or groups account for the remaining 15.5%
What external factors affect the photography industry?
A number of factors affect the performance of the photography industry. These drivers include:
Per capita disposable income - This industry is particularly sensitive to fluctuations in disposable income because its services are discretionary rather than necessary. Therefore, a dip in disposable income limits the number of people who purchase professional photography services.
Total advertising expenditure - Revenue from commercial photography comes from photo shoots for advertisements or other marketing materials. Commercial photographs appear on billboards; corporate websites; and in magazines, textbooks and other print media. Consequently, increased spending on advertising raises demand for commercial photographers, which generate over one-fifth of industry revenue.
Number of K-12 students - School photographs are a major market for portrait photographers. Changes in enrollment trends, including retention rates, influence demand for industry services. In general, the more students enrolled in school, the more revenue photographers can expect to earn from school portraits.
Marriage rate - Wedding photography and video services are expected to account for a significant portion of industry revenue. Therefore, a rise in the marriage rate is beneficial to the industry as demand for wedding photography services increases.
What are the key customer segments in the photography industry?
The key customer segments in thephotography market are as follows (with the percentage of revenue they generate in parentheses):
- Weddings, holidays and other special occasions photography: 14.7%
- School portrait photography: 15%
- Commercial and technical photography: 23.8%
- Other: 11.5%
What are the key financial metrics and costs in the photography industry?
The key financial metrics in the photographymarket are as follows:
What are the key customer segments in the Clothing Store market?
The key customer segments in the Clothing Store market are as follows (with the percentage of revenue they generate in parentheses):
Profit - For the past five years, Profit has increased to 6.6% from 4.8%.
Wages - In the last five years, total wages have decreased at an annualized rate of 1.4%.
Purchases - In the past five years to present, IBISWorld expects purchase costs to have declined to 19.4% due to the increased prevalence of digital photography equipment.
Depreciation - An indication of capital costs within the industry is reflected by the rate of depreciation, which is estimated to represent 2.9% of revenue.
Rent and utilities - Rent and utility costs vary considerably according to studio location. Rent and utilities for the industry are estimated to be 7.3% of industry revenue.
Other costs - The industry incurs a range of other expenses that make up another 2.4% of revenue.
Secrets of Starting a Successful Photography Business
Best Practices of Photography Marketing
What are the keys to launching a new photography business?
Have a (Business) Plan
A business plan is the essence of your business, and a poor and unrealistic business plan will not earn you any profits. A good plan will also attract potential investors or banks for financing.
Define your Product & Service
Choose an area of photography to distinguish yourself in a crowded market. Having a clear identity helps you define a niche and reach your target market.
Do your Research
Make sure you know your market:
- Who is your competition? What are their strengths? Weaknesses?
- Who is your target market?
- How much do you think you can sell your services for?
Buy in the right equipment
Equipment will be your major investment. Do not cut corners here as the right equipment and high quality equipment is essential to your success. You will need at least two cameras, lenses and flashes, as well as a computer with excellent photo programs.
Determine Price Structure
You need to determine a profitable pricing structure that takes into account your shooting and editing time. Figure out how much one hour of your time costs. For every hour you spend shooting, you’ll spend about 3 hours editing and you need to make sure that you factor that into your pricing.
Build a website
You want it to be extraordinary, so it's best to have a website professionally built. Your website should showcase your work, but it should also be used as a sales and marketing tool. Utilize the site as a way to capture client contact information so you can convert these into paying customers. Include your background experience and contact information. It is also helpful to include pricing- this helps manage customer expectations and keeps people from trying to negotiate for a lower price.
A strong social media presence can translate into real exposure for your brand. Social media is a great advertising tool and platforms like Facebook, Instagram, and Pinterest are good options to build your market. These platforms are a great channels to showcase work and keep customers interested.
Photography Websites Analytics
What are the typical startup costs for a new photography business?
The total costs of starting a Portrait Photography Business is around $9,500 – $13,500 whileWedding Photography business usually costs $14,000 – $18,000.
How much do photographyoperators make?
Photographers receive varied pay amounts based on the success of their product. According to Glassdoor, the national average salary for a Photographer is $25,000.
Top Visual Design Trends
How to Start a Photography Business from Home
Photography Studio Ideas
5 Reasons Photography Businesses Fail
20 Tips for Boosting Your Photography Brand
15 Tips for Starting a Successful Photography Business
Additional resources in the photography industry
For additional information on the photography market, consider these industry resources:
- American Society of Media Photographers: www.asmp.org
- Wedding & Portrait Photographers International: www.wppionline.com
- Professional Photographers of America: www.hedgefundresearch.com
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To speak with a Growthink business plan consultant, call 800-506-5728 or complete the form below.
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