by Skip Cohen
Welcome to "Insight," a new series of content-rich posts to help make 2019 the year you do more than just survive. We want you to thrive!
Dozens of times over the last few years I've written about all the great content available on the Internet. It's filled with ideas and topics to help you build a stronger business. Wandering through the PhotoShelter blog recently I ran across this gem about the importance of freelance photographers understanding the importance of knowing their costs.
It's a great article by Allen Murabayashi, but in all honesty, whether freelance or a full-time photograph/business owner, the issue of understanding your costs is critical. You've got a choice to make, and it could make the difference between macaroni and cheese every night or mixing it up, and being able to get out to dinner now and then!
For years I've said photographers are typically one of the worst business groups on the planet. It's not all your fault, most of you are right-brain creative types, and you have little interest in the left-brain operational side of the business. But, you have to understand and respect the operational side because it controls your profitability and revenue!
PhotoShelter not only has a reputation for helping you create the very finest presentations of your work, but their blog is loaded with content to help you build a stronger business and brand. Check out the post below for help in developing a better understanding of your costs to do business!
Why Freelancers Need to Know Their Cost of Doing Business
Unless you’re phenomenally wealthy, you probably maintain a budget for your finances. For freelancers, budgeting (and cash flow management) is crucial because the lack of steady income and hefty capital requirements (e.g. a new camera) can require a bigger financial cushion.
During a PhotoShelter Third Thursday event, I queried the audience about whether they had used a Cost of Doing Business (CODB) calculator. A participant answered:
“I did it once, and I don’t know what the hell you guys are talking about. I just found that it was totally unrealistic. I added it up, and I still was like, ‘Where did this number even come from?’”
It’s true that the first time you calculate your CODB, the result can be shocking. Many people find that they’ve severely underestimated what it costs for them to run a business (or they don’t have an accurate accounting of their expenses).
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