Dear Jenna,
I currently believe that I NEED a new camera (expensive!), and I would also LOVE to take your class (also expensive!). Do you ever find yourself having to prioritize different things you’d like to do…and HOW do you do it? Where would you recommend investing in your business? Education or gear?
– Sincerely, Help Me Spend Right
Hey you, big spender. I am so glad you asked this! I wish the answer was simple, but hopefully I can break it down for you in a simple way (and give you some tangible takeaways to implement today!) Starting a business is hard work – and expensive. Trust me, I hear you! When you’re just getting started there are so many expenses: gear, licenses, lens, batteries, camera bags and more… your bank account can be emptied with one simple click of “purchase” and it can seem daunting! On top of it all, there are some awesome opportunities for education and if you’re smart, you’ll realize that these can really get you going on the right foot!
Here are some tips I have to help you know where to invest best:
1.) Never go in debt for your business. If you’re working a full time job, use that to help fund your new endeavors. Whether you cut back on your spending, eat out less, use public transportation, or live off of Ramen for a year or two, that’s up to you. The truth is, you shouldn’t go into the red for your business. Start small, work big!
2.) Take good care of your gear! I am a big believer of buying used gear. My first pieces of equipment were from Craigslist and I took such good care of them, I was able to sell them when I was ready to upgrade. It’s easy to think you need all kinds of crazy gear to shoot like the pros, but if you can learn how to leverage what you have, you’ll be able to invest in your business and not your gear bag!
3.) Set aside money to invest in education. You are never done learning! I have a secret: for a few years I wasn’t investing in learning. What a mistake! I was more worried about figuring out things by myself and because of that, I wasted a ton of time and money. Last year I started re-investing in education, online courses, and a business coach and it changed my life. Those people out there killing it? They are the ones investing in learning, implementing, and laying the foundation for their businesses.
4.) Where will your money go further? Will that new lens really generate you more profits or will learning how to market your business and fill your calendar? This has changed my life and the way I think about my budgeting. My gear budget is a fraction of what I am spending on education because I know that learning new business tricks will move the bottom line more than a new 50mm lens!
5.) Budget, budget, budget! The more aware you are of the money coming in and going out of your business, the more empowered you are to charge what you’re worth and know what will be best for your business! Your pricing shouldn’t be done emotionally, it needs to be done intentionally. If you’re stuck or not sure what you need to charge to profit, download my free profitable pricing workbook!
Prioritizing your funds as you are getting started isn’t the easiest! As you go, you’ll learn where it is best to invest. At this stage of business I look more into what will save me time, help me work smarter, not harder, and what will allow me to focus on what I do best: shoot! My gear line up is simple and I get everything serviced once a year to make sure it lasts as long as possible! I have never been a gear junky and a focus on leveraging what you’ve got so that you can someday get what you want is important! Set yourself up for a successful career and know that gear will only take you so far, knowing how to run a profitable business? That will take your further than any $5,000 camera! You’ve got this and I can’t wait to watch you grow, tackle, and rock your business.
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Hi Jenna! this post is very helpful but I keep going back to the mention of “licenses”. Can you give any guidance on what a startup WI photographer should do as far as licensing goes?
Great advice, Jenna! I’m on the very daunting edge of starting a new business and even though it’s not photography, I found these tips very useful for me. Particularly the importance of education and online learning. Thank you 🙂