Table of Content

    Photography business plan for starting your own business

    The only way you can break free from the 9 to 5 routine is by starting a business of your own. One of the businesses that you can start with minimum investment is a photography business. In this business plan for photography, you will learn how to write a photography business plan. We will be covering everything from the executive summary to the financial plan of the startup so that by the end of this document you know in detail what to include in a photography business plan. The methodology used here is the same as the one used for creating a franchise business plan.

    Executive Summary

    2.1 The Business

    Benson Photography will be a registered and insured photography business in Dallas, Texas. IT will be owned by James Benson who has been working as a photographer for a fashion magazine for a decade. This business plan on photography will have a detailed look into how the business will be started and run.

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    2.2 Management of Photography Business

    The single most important part of this startup photography business plan is the management of the business. It is important to have a strong management structure to run the business successfully and profitably. That’s why we have made the management structure a part of this commercial photography business plan pdf.

    The management of Benson Photography will be headed by the owner, James Benson. To run the day-to-day operations of the business, three managers will be hired to look after services, liaison, and operations.

    2.3 Customers of Photography Business

    If you need to know how to create a photography business plan, you need to be sure about the customers that the business will be dealing with. As this is not just a pet photography business plan and rather an all-rounder photography business, the following services:

    • Fashion designers.
    • People who want a product photographer.
    • Wedding and other events companies.

    2.4 Business Target

    No photography business plans free templates can be complete without setting the targets and that’s what this section is about. Benson Photography will enter the market with the following targets:

    • Providing impeccable photography services to all segments of the market.
    • Getting permanent clients with whom we will work for a long time.
    • Making a name in the photography industry of the area.

    3 Years Profit Forecast - Photography Business Plan Template

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    Company Summary

    3.1 Company Owner

    James Benson will be the owner of Benson Photography, the business we are using as an example for this business plan for a photography company. James has worked as a photographer in Hollywood for 10 years and is the perfect candidate for starting this business.

    3.2 Why the Photography Business is being started?

    Note

    An important part of any photography startup business plan is also the reason behind starting the business. This business is being started by James because he was recently fired from his job. He has had enough of working for others and now wants to start something of his own. As photography is the thing he knows the best, he has decided to start a photography business. He also knows in detail how to make a business plan for photography.

    3.3 How the Photography Business will be started?

    Step1: Feasibility Planning

    If you really want to know how to write a business plan for a small photography business, feasibility planning is one of the first things that need to be done for it. It’s this stage where you make sure that the business will actually be a commercial success. Once you conduct a feasibility study, you can formulate a workable plan to start the business.

    Step2: Hiring Experts  

    Once you have conducted the feasibility study for the photography business plan sample doc and made an actionable plan for the business, the next thing you need to do is to hire the people to run the business. As this is a services business and not a products one, it is imperative to hire the right professionals to run the business. Only the top photographers can make the business a success.

    Step3: Establishing the Studio

    Once you have hired the photographers to work for your business, the next thing you want is to have a studio. This place will also act as a point of contact with the customers. It will have separate shooting and client handling areas. Just like an art gallery business plan, physical presence of the business is cardinally important.

    Step4: Online Presence

    Internet is the name of the game these days and that means, for the winery to be successful it needs to have a strong online presence. A website for the winery will be made and social media pages will also be created. This will be done not only to make the name known to the customers but also as a way for the customers to connect to and shop from the winery online.

    Step5: Marketing

    Once the studio and office are set up, extensive marketing effort will be undertaken to make sure the business is known to the people who matter for it.

    Startup Cost - Photography Business Plan Template

    Start-up Expenses
    Legal $234,000
    Consultants $0
    Insurance $30,000
    Rent $28,000
    Research and Development $25,000
    Expensed Equipment $54,000
    Signs $3,500
    TOTAL START-UP EXPENSES $374,500
    Start-up Assets $346,000
    Cash Required $359,000
    Start-up Inventory $40,000
    Other Current Assets $231,000
    Long-term Assets $28,100
    TOTAL ASSETS $1,004,100
    Total Requirements $1,378,600
    START-UP FUNDING
    Start-up Expenses to Fund $374,500
    Start-up Assets to Fund $1,004,100
    TOTAL FUNDING REQUIRED $1,378,600
    Assets
    Non-cash Assets from Start-up $1,390,100
    Cash Requirements from Start-up $372,000
    Additional Cash Raised $48,000
    Cash Balance on Starting Date $32,000
    TOTAL ASSETS $1,842,100
    Liabilities and Capital
    Liabilities $29,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $46,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $75,000
    Capital
    Planned Investment $1,378,600
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,378,600
    Loss at Start-up (Start-up Expenses) $388,500
    TOTAL CAPITAL $1,767,100
    TOTAL CAPITAL AND LIABILITIES $1,842,100
    Total Funding $1,378,600

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    Services

    The next important thing in writing a photography business plan is deciding which services we will be offering from the platform of Benson Photography. No professional photography business plan can be complete without that.

    It is also important to have a clear demarcation of services in the photography studio business plan example so that we can hire the proper professionals and acquire the correct equipment for the business.

    Here are the services that this sample photography business plan will include:

    Event Coverage

    We will have a separate wing for covering events. Everything from backyard birthday parties to corporate events will be covered.

    Attire Photography

    Clothing photography will also be one of the services provided under this business plan for photography service pdf.

    Product Photography

    All kinds of product photography services ranging from miniature products to cars and bikes will be provided.

    Pet Photography

    Services will be provided to people who want Grade-A pictures of their pets.

    Marketing Analysis of Photography Business

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    Once you decide the services you will be providing, the next thing your studio photography business plan needs to have is a solid photography business marketing plan. To make that, you need to conduct proper marketing analysis of the field to see how you can step into the business and start turning a profit. Unlike T-shirt printing business plan, the photography business plan startup capital requirement is high and if you enter the business without proper research, you’ll end up losing the investment.

    5.1 Market Trends

    To make a complete business plan for opening a photography studio, you need to study the market trends to see how you can make profit. If we have a look at the trends, the use of photography services has only increased in the recent past. This is because people need better pictures for personal as well as commercial use and those can only be achieved through the services of the professionals.

    5.2 Marketing Segmentation

    After your photography business plans have considered the market trends, the next thing that you need to see is the market segmentation. This is an important part of this sample business plan for photography to give you an idea of the field you are about to enter.

    As this is an all-around photography business and not just a wedding photography business the customers of this business will be from the following segments:

    Marketing Segmentation - Photography Business Plan Template

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    5.2.1 Private Customers

    People who want the services for their family or personal functions etc. will belong to this segment of the market.

    5.2.2 Brands

    Brands can hire the services for product photography and can range from small to large products.

    5.2.3 Models

    Models who want to build their portfolio will also be a segment of the market we are about to enter.

    5.2.4 Fashion Industry

    The producers and designers in the fashion industry will hire our services for picturizing their clothes.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Private Customers 39% 40,000 41,000 42,000 43,000 45,000 10.00%
    Brands 25% 32,000 33,000 35,000 37,000 39,000 10.00%
    Models 21% 26,000 27,000 28,000 29,000 31,000 10.00%
    Fashion Industry 15% 12,000 13,000 14,000 16,000 18,000 11.00%
    Total 100% 110,000 114,000 119,000 125,000 133,000 10%

    5.3 Business Target

    • To establish a credible name in private and commercial photography in the area.
    • To get permanent customers and serve them on a long-term basis.
    • To expand the business to other cities in Texas.
    • To start making $39,000 per month by the end of year 3.

    5.4 Product Pricing

    Our services and products will be priced at the average price that the other service providers in the area are offering. This is because there is not a lot of competition and we don’t need to keep prices low to get customers.

    Marketing Strategy

    The thing that you now need to have to complete this photography business plan template is the marketing plan for a photography business. This is important to have if you want to compete in this industry and start a business that can make you a good deal of money. For making this, we have made the competitive analysis and sales strategy a part of this photography business plan sample. Let’s have a look at them:

    6.1 Competitive Analysis

    The competitive analysis undertaken to make this photography business plan proposal has revealed the following:

    1. There is no significant competitor providing all the services under one roof in the area like us.
    2. Clients are mostly unsatisfied with the quality of service provided by the companies already working.
    3. The rates of the competitors high and we can enter the market by starting with a lower rate and then increasing it.
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    6.2 Sales Strategy

    • Benson Photography will be advertised using all the available media and social media channels of the area.
    • We will start giving the services at a discounted rate to attract customers in the start.
    • We will provide highest quality of service in the area to get more clients.

    6.3 Sales Monthly

    Sales Monthly - Photography Business Plan Template

    6.4 Sales Yearly

    Sales Yearly - Photography Business Plan Template

    6.5 Sales Forecast

    Unit Sales - Photography Business Plan Template

    Sales Forecast
    Unit Sales Year 1 Year 2 Year 3
    Event Coverage 54,000 57,240 60,674
    Attire Photography 53,000 56,180 59,551
    Product Photography 43,000 45,580 48,315
    Pet Photography 50,000 53,000 56,180
    TOTAL UNIT SALES 200,000 212,000 224,720
    Unit Prices Year 1 Year 2 Year 3
    Event Coverage $50.00 $58.00 $67.28
    Attire Photography $40.00 $46.40 $53.82
    Product Photography $42.00 $48.72 $56.52
    Pet Photography $43.00 $49.88 $57.86
    Sales
    Event Coverage $2,700,000.00 $3,319,920.00 $4,082,173.63
    Attire Photography $2,120,000.00 $2,606,752.00 $3,205,262.26
    Product Photography $1,806,000.00 $2,220,657.60 $2,730,520.58
    Pet Photography $2,150,000.00 $2,643,640.00 $3,250,619.74
    TOTAL SALES $8,776,000.00 $10,790,969.60 $13,268,576.22
    Direct Unit Costs Year 1 Year 2 Year 3
    Event Coverage $48.00 $55.00 $63.00
    Attire Photography $38.00 $43.00 $49.00
    Product Photography $40.00 $45.00 $52.00
    Pet Photography $41.00 $46.00 $54.00
    Direct Cost of Sales
    Event Coverage $2,592,000.00 $3,148,200.00 $3,822,487.20
    Attire Photography $2,014,000.00 $2,415,740.00 $2,917,989.20
    Product Photography $1,720,000.00 $2,051,100.00 $2,512,369.60
    Pet Photography $2,050,000.00 $2,438,000.00 $3,033,720.00
    Subtotal Direct Cost of Sales $8,376,000.00 $10,053,040.00 $12,286,566.00

    Personnel plan

    Before we wrap the photography business plans examples up, we need to discuss the man force that will be needed to run this business. Just like a film business plan, photographers will be the main workers we will need to run this business. In short, if you want to know how to create a photography business plan, you need to have a clear idea of how many photographers will be needed to run the business.

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    7.1 Company Staff

    The following people will be needed to run Benson Photography:

    • James Benson will be the owner and CEO of the business.
    • 3 managers for, operations, liaison, and marketing.
    • 4 event photographers.
    • 2 product photographers.
    • 3 model photographers.
    • 2 office workers.
    • 1 guard.
    • 1 reception clerk.
    • 1 accountant.

    7.2 Average Salary of Employees

    Personnel Plan
    Year 1 Year 2 Year 3
    Operations Manager $14,000 $15,400 $16,940
    Liaison Manager $13,000 $14,300 $15,730
    Marketing Manager $13,000 $14,300 $15,730
    Event photographers $40,000 $44,000 $48,400
    Product photographers $20,000 $22,000 $24,200
    Model photographers $32,000 $35,200 $38,720
    Guard $8,000 $8,800 $9,680
    Office workers $16,000 $17,600 $19,360
    Reception clerk $7,000 $7,700 $8,470
    Accountant $10,000 $11,000 $12,100
    Total Salaries $173,000 $190,300 $209,330

    Financial Plan

    The last thing that we need to complete this business plan photography pdf is the plan of finances involved in starting this business. If you want to start the business and run it the right way, you need to have a solid financial plan for photography business. As photography equipment is quite expensive, this business will need a lot of starting capital just like a video production business plan. Here are the expenses that you need to arrange funds for before the business goes live:

    • Money needed to make the studio.
    • The cost of equipment for the studio.
    • The cost of equipment for remote photography.
    • The salary of employees.
    • The cost of buying vehicles for photography teams.
    • Bonds, securities, insurance, and registration costs.

    8.1 Important Assumptions

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.11% 8.14% 8.22%
    Long-term Interest Rate 8.35% 8.42% 8.47%
    Tax Rate 23.98% 24.30% 25.20%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - Photography Business Plan Template

    Break-Even Analysis
    Monthly Units Break-even 5337
    Monthly Revenue Break-even $131,290
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.64
    Estimated Monthly Fixed Cost $163,100

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss
    Year 1 Year 2 Year 3
    Sales $8,776,000 $10,790,970 $13,268,576
    Direct Cost of Sales $8,376,000 $10,053,040 $12,286,566
    Other $0 $0 $0
    TOTAL COST OF SALES $8,376,000 $10,053,040 $12,286,566
    Gross Margin $400,000 $737,930 $982,010
    Gross Margin % 4.56% 6.84% 7.40%
    Expenses
    Payroll $173,000 $190,300 $209,330
    Sales and Marketing and Other Expenses $130,000 $135,000 $139,000
    Depreciation $2,100 $2,200 $2,300
    Leased Equipment $0 $0 $0
    Utilities $2,980 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,700 $2,800 $2,900
    Payroll Taxes $27,000 $28,000 $29,000
    Other $0 $0 $0
    Total Operating Expenses $339,880 $363,400 $387,730
    Profit Before Interest and Taxes $60,120 $374,530 $594,280
    EBITDA $60,120 $374,530 $594,280
    Interest Expense $0 $0 $0
    Taxes Incurred $12,024 $74,906 $118,856
    Net Profit $48,096 $299,624 $475,424
    Net Profit/Sales 0.55% 2.78% 3.58%
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    8.3.1 Profit Monthly

    Profit Monthly - Photography Business Plan Template

    8.3.2 Profit Yearly

    Profit Yearly - Photography Business Plan Template

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Photography Business Plan Template

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Photography Business Plan Template

    8.4 Projected Cash Flow

    Projected Cash Flow - Photography Business Plan Template

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $49,000 $52,920 $57,154
    Cash from Receivables $21,000 $22,680 $24,494
    SUBTOTAL CASH FROM OPERATIONS $70,000 $76,300 $82,404
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $70,000 $77,000 $83,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $39,000 $40,000 $41,000
    Bill Payments $25,000 $26,000 $28,000
    SUBTOTAL SPENT ON OPERATIONS $64,000 $66,000 $69,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $64,000 $69,120 $74,650
    Net Cash Flow $21,000 $22,000 $23,000
    Cash Balance $30,000 $31,000 $33,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $272,000 $304,640 $335,104
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $3,900 $4,368 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $279,000 $312,480 $351,228
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $20,500 $22,960 $25,830
    TOTAL LONG-TERM ASSETS $25,000 $28,000 $31,500
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $20,000 $22,400 $25,178
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $20,000 $22,400 $25,178
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $18,000 $20,160 $22,660
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $54,200 $59,078 $64,986
    Earnings $199,200 $217,128 $238,841
    TOTAL CAPITAL $289,000 $315,010 $346,511
    TOTAL LIABILITIES AND CAPITAL $307,000 $329,280 $370,440
    Net Worth $320,900 $349,781 $384,759

     

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.27% 8.06% 8.93% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.24% 10.24% 11.34% 9.80%
    Inventory 5.43% 6.02% 6.67% 9.90%
    Other Current Assets 2.19% 2.43% 2.69% 2.40%
    Total Current Assets 150.00% 151.00% 152.00% 158.00%
    Long-term Assets 11.54% 11.59% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.88% 4.92% 4.96% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.55% 7.61% 7.68% 7.38%
    NET WORTH 100.35% 101.15% 102.08% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 93.49% 96.01% 98.70% 99.00%
    Selling, General & Administrative Expenses 93.78% 96.31% 99.01% 97.80%
    Advertising Expenses 1.49% 1.53% 1.57% 1.40%
    Profit Before Interest and Taxes 42.00% 43.13% 44.34% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 32.2 33.4 34.235 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 73.49% 74.50% 75.00% 75.00%
    Pre-tax Return on Assets 94.59% 99.32% 104.29% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.20% 34.23% 35.29% N.A.
    Return on Equity 57.00% 58.77% 60.59% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.6 34.23 33 N.A.
    Accounts Payable Turnover 15 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.4 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $242,000 $255,552 $269,863 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.87 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29.3 29.32 29.36 N.A.
    Sales/Net Worth 2.1 2.2 2.3 N.A.
    Dividend Payout 0 0 0 N.A.

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