I'm going to try and tie and bits of business of this. So I'm gonna talk about fixed costs and variable costs. First up the industry, all I hear is times by three. I'm gonna show you what happens. Maybe when we do that with three different photographers. So imagine Photographer number one is someone who is in full time work. Yeah, that wants to transition out. I'm just gonna do this is in full time work. His income or her income is not solely justified by photography. So the income okay is a bonus. I would try my biggest sorry guys. Or as long as I can keep. I don't want to say the word because the word reached on a radio, I okay, Waas that with him. Why is someone that's still in business? It doesn't need to an income from it. What do they want to aim out of it? Experience? Yeah. Yeah. Okay. You see that? I will be using a razor off to this bit photographer number two, right? Well, full time. They have to have an income out of this. What's their motivation? And what did they need? The...
y don't need experience. Any experiences experience. They have the experience they need to pay their bills. Yeah, some money. They have, like, two things. Money is an important issue because otherwise the kids don't get fat and they want to quit proof that craft? Yeah. This person wants from harm. I may have a husband. A wife. Okay. Part supporting. So we'll call this light. 50%. I'm trying to cover in three. So somewhere I'm hoping everyone watching will relate to this, um, money. Okay. I'm like Croft in your trade, but I think we all craft trade. We're We're all learning, Ram. I definitely que three. They are full time. They have so income. They need to have this work. They have a studio. They have maybe five shooters shooting for them. They need this big time, right? You can't employ someone or not pay them. You kind of have it on your head that the people you're employing can't feed their kids when they go home. This is number one. Yeah, I'm proving my craft. You can see there is different M points to people. Well, there without can I Then erase this and just talk about photographer 12 and three Okay. Okay, wait. Here we go. So let's start working out the cost of a wedding or before we do that. Fixed costs in variable costs only to go into that tonight, you will. You'll find Dina. Yes. Yes. Because half the Internet will probably one tonight. Okay, what a fixed costs and the Internet. And you guys can help me. What? Those out? I did make a list. Fixed costs, regular bills, things like electric mortgage, you pay bills. Or I would say, rather than papers pay rent, right and right. Insurance. I'm just content is off because I'm sure Audio start electricity, heating office, space insurance, insurance, like gear, leaving me account yearly. Dropbox accounts, CRM software if you pay for yearly. Um, things like that. Now, variable. What? Good, baby, what changes? So think about just what comes in every month, and it's always the same price on what changes when you go to work. Your travel is your client always three miles away. It could be three miles. It could be on a plane. It could be different transfers. So we've got travel is gonna be different each time anything goes. Other expenses. Uh, medical. I would more say that was personal. Unless you're running a big studio, then you do have to provide medical and everything else. Keep doing that. Keep praying someone, uh, equipment? Yep. Yeah. No, you're right. Where does that fall? Oh, sort of below. I'm gonna talk about equipment as and this is gonna be like a budget thing. You would. Budget is no, a necessity. However, repairs if you are Me. My accountant moans that about marketing and album costs. Yep. Okay. Album cost. Let me put it here because we're jumping ahead. But I like that. I'm gonna go through and lay it down underneath this as well. Marketing on that marketing can kind of go in here with PR and networking and what this is? Well, very, which is true. But you should have a budget for the general. People don't go out budget. How much am I going to spend? How much does my kind cost? May am I doing wedding fairs? We're gonna go level down. This is Hang with me. Let me check. Haven't got anything else. Books, test shoots. Okay. I wanna put test shoots in here and in budgeting because I haven't done this tour recently. In the nearly four years as December, this will be four years. I have never done a personal test. You for me? Because it always ends up turning into something like a PR thing or something. Cows that I am gonna promise myself I would do more to shoot. I want to get back to that. You know, the whole winning for took over shooting what I'm shooting And then the stuff I love playing. And I know everyone says that have to make time. I always I have no time. I have to make time. Anything else? Internet wise. I've got things like Martin Dance says the staff cost depending on the size of the wedding. Your staffing. Yes, but let's go into basically that the 2nd 1 down. Okay. Um okay. Is everyone kind of getting the idea of this? So then I can kind of a race, this board and then go level down because I don't wanna really overrun again. I think we're pretty good. Yeah. Okay. Yeah, right there. Okay, so we've got an idea. Fixed course, variable costs kind of budget with the budgets with photographers goes out the window. Catholic I wonder, Harry America. Mora. I want to send a more lands like I want. Juan. Don't need one. But if you put it in your budget and this is when we're safer forecasting for next year forecasted in thin year is almost like And I still do this. You should look at your budget. Can I afford to buy one? Is that the prophet in the business to buy one? Do we ever do that? We should say I want this guy. Don't talk to me about buying stuff, okay? Now that it's cool. Um, thank you. Like this. Get out of bed. Okay. Histology. Is this This is what I challenge UAL. What's your get out bed three. Yeah. What? What would you let's think about? Like the Hollywood actors, They have a get out of bed. Fy didn't. There was a model once I forgot her name. She said she won't get under out of bed for a lesson. I forgot. Glad I forget her name, but I but its critics saying that the on the director's before they book, they know these get out bed fees. So because we are really crap as photographers at this Let's start the 1st 1 I'm gonna have to door pounds. I'm really sorry you got bear with me because otherwise it's gonna be with less. We'll just jump in. When we said I think the other day, the pound was trading for a dollar 60 eso somewhere around a dollar. $60. 65. So this is our get out of bed for photographer number one. I care. So there's a fee cause you should get paid for the day. Then there's a fee. And if you want, we'll put this a zero. Not fast. I'm not gonna put figure here anywhere on all of these because I need you to understand the other figures. Did you decide? You'll go that there is the post processing okay again when you knew. Maybe that takes 3 to 5 days and you probably would do it, right? Photographer number one would do this. What else is that? Delivery of products. What is this photographer Probably gonna deliver a disc of images. Shooting burn? Yeah. Yeah. So really this that No, Where we all star? I did that to accept me too. I didn't I kitchen saying to because one thing I want to stay here If I went into my wedding first when I started going, I'm not selling the disc. How many bookings would I got? Zero. Because no one, Because my competition the level where was that was giving away? That is, That's so there's put these things in context is a reason why when I was learning and stuff, people do say, and I understand it. But in reality, when you get out on the field and you have your first wedding fair and you go in all guns blazing and then come home, defeat it because you're not gonna get any booking because your Ford client wants value. It buys a full because it knows what it gets for Afford. You can't pretend to be a Bentley unless you live a Bentley. That kind of thing. I'm gonna keep trying. Teoh used as analogies, let's say £10 right, a disk and maybe books because they're not gonna buy this stuff that we had here. Anything else? Yeah. Great. Some prints or, you know, chamber. Okay, let's move on. Let's go. Total £10. Photographer. Yeah. So do it for free. Don't excited. Feet Just excited. It's not till you see. Like, you realize, Let's times that by three. Yeah, that's what we should be doing. Okay. Same from number two. Breaking too big now, regardless of what this person's get out. But fears for May I still think this person will be doing their own editing. But I may be wrong because I kind of sat here. I had to pay an editor. My editor would cost me £300 but we're actually let's do it. I said that's 303 long, sir. Okay, I definitely would be doing the disk or at least part of a disc. I'll probably now need to differentiate myself from shooting burn. So what am I gonna add? Maybe a product. I need to add value at a proof book. My proof books cost me 90. Quit? Yeah. Okay. So then even if I shoot it for free and I don't value myself now I'm at 400. Yeah. You know what I feel like? I feel I just had a date of the Carol Waterman. I'm no even good at maths. You, but we don't. Do you know who that is? No UK. Twitter will be laughing at that. She's an amazing note up here. She could just do figures. I'm not OK. Things don't give me any challenges. £ times it by through my job. Okay? Yeah. Is that the figure? How don't we forgotten something That's not mine, is it? Why is that? No mine? Because I had to pay somebody else, right? Yeah. Your time is about three to I need to minus Oh, yeah. Yeah. Minus your costs again, please. I know this is gave me that. Please hang with May. I'm trying to get you a light bulb moment. There's method to my madness with three full time studio 10 staff, 20 stuff shooting those of weddings even if its low end rent and rates. So this person, even if that we want to work for free, is gonna have, say, £300 a day for a freelancer to shoot wedding 300 for the retouch. £10 of the disc. £90 for here. I probably need to add something kills because I have to say my studio I'm doing something better than this person even. Let's just put I don't know, 100 quid in here, okay? and then on top of that, let's just see that. So that is 405 106 108 9 10 11 No, How was this More. Yes. No, this is more visit here. Okay. Said on a must. You know, and checking my spending now I k times it by three. That, but And this is a big but look at my cost here. My fixed costs. Where are my variable cost? You know, I e a with those things we said before we have on my rent and right. Okay. He's gonna have higher turnover, but we have taxes. Gosh, Sorry about my We were then have for this one. They probably will be under the threshold for certain taxes for this, but maybe electricity. Gas, Maybe. I've got kind of a little office in the garden and a shared this. I have none. How can we times it by three. Have I convinced people that time is that by threes is not the way forward? You need to know which photographer you are. You need to understand Fixed, cost, variable. Everyone who's really should be no Internet. Let me know if this is helpful before I got a level lower. Yes. Yes. You know, make sense now, as far as like, you know, it's okay. Yeah, You may be doing a lot more. And even if you multiply by three, you're paying out more than you're bringing in. So it's like, um do you have a goose with the golden egg? I mean, you know what? I learnt this. I'm sorry. You know how I like this? No, I did exactly what you did until I just times by three. But I did it 52 times. And halfway through that I couldn't I couldn't shoot. I was shooting twice a week. So far, they said, Oh, Sunday. Probably work out 52 weddings. I was shooting commercial shoots in the week, Portrays in the week trying to retouch them, sleep in my sleep. I couldn't physically turn them around. My clients were screaming at May hide every toucher. That wasn't I'm already minus 300. Hide. An album designer could do that. Either 600 owed money by the end of the year. I had an amazing turn over and this is what we're gonna do. Peer. Now I saw a figure. Yeah, yeah, yeah. Where's the money? No, I was a banker. I should have known. But you know, it's funny at school. No one teaches you business, and it's these kids don't know one teaching in the even this industry. When I went through a business cause I went to Julia Bo Geo on James Bays. You I thank you because James was the next banker. But they are actually, Julia was one that was on Oprah, that she was a famous English that did the whole Oprah video and it went viral. And she ended up going on the Oprah Show. And they are marketeers, democratise. And it was James that was like shaking me up going. You need to get excited about figures on money and forecasts and and this certainly other and know when there's gonna be a dip in the business when there's no. So I thank you, James, because you inspired me and high performance by another. We'll have to tell you there's sort of an adage around here creativelive that says, If you want to become a professional photographer instead of going to photography school, go to business school and watch creativelive on again. Don't take a while. So for gospel, I am. What I still want to reiterate you guys is I'm just telling you what I believe in on what works for me. And my business may not work for you, but I think generally this stuff for May, the Times three I learned the hard way. It didn't work for May. And you know what? It ricocheted in my second year, and I still ricochet ing now because then I started a new business. In year two. I chopped more money into the business. So again, kind of perceptions of your competition rain. So we live in the same area. Cisco, this one, This one? Yeah, I'm gonna undercut him. Or he charges this kind of all just go underneath. How do you know the second senses of the photographer is a wife? Pain? Half the bills. Do they have a nice husband that goes to work and says, Honey, you pick and choose what you want to dio and she just does it for fun. This is her to know what we did before. She just wants experience. Really Reset your competition and find out. Amanda hs You says This is great info. Otherwise it's hard to survive. Find you just go down this rabbit hole. You need to thrive, not survive. But unless it's like anything unless you have foundations and you have knowledge. This is where creative life kicks. But how? Like this concept my coach loves. He didn't know what creative was. Live Waas. He now has bought mawr. But watch the more than I have. He's like this model is amazing. This is Nobody has any excuse anymore. This is free. You don't even need to pay. You don't even need to goto course. Just watch Creativelive And then if you do pay for $99 What's that in English? Is that 60 quid? Oh, my gosh! Going by anything. How would rather have like you had, Robert, You're getting some really cool business people arm we sure are. Yeah. You could almost just dudes do it all here. Yeah, 60 quid breanna. And there's no There's no value for money is ridiculous. I promise you never, ever. Why we doing workshops for those prices and give my heart and soul for three days? No, no, no, no. My account. My business coach talk okay, We're ready to move on my rtb ctb I come from I now you've got it. I'm a little bit and I d as well I love shoes and handbags, but I love tech. So, like I did my m c s c minus e d v a fiscal routing Really sad. But for may I just have this mind that's fascinated. And I wanted to know everything. Even then I go do I like it? I don't do it. Yeah, I do want to do it, but I wouldn't know as much as I can. I just want to learn every single day. So in business and banking we had literally two divisions. We would have changed the bank on bun the bank now run the bank. I'm gonna equate that to this stuff. Like all the boring stuff no one wants to do. V A T returns, figures, fax. But how does your business run without run the bank activities? Let's call it run the business. Although I keep my call if bank because it's my childhood, we need to run the business activities on what are they? They are boring, but without them there's no blood there's no money to do change. The bank changes a bank where the developers that the techies that were designing software, the project managers that efficiencies that will come for the industry to make run the bank better. If you imagine it's the circle we need both on. We need time here to make this run better. But we also need time here. If we don't do this when we go and be creative and we go sell herself a free and we got bike, it was gonna happen at the end of the year. There is no run. The bank and we are over on at this point. I want to give you some stats because this cares May 1st year, 50% of small businesses will not survive five years. 95% of businesses do not survive. I'm like gonna come up to my full family. This hits harm to know the answer. Why cash bow run the bank? Because, Well, we're excited when we start our business because it's all about Yeah, I'm gonna be a photographer. I'm gonna put my heart and soul into it. I'm gonna do this when I do that. Wow. Well, Well, when we do, we like shiny stuff. I definitely don't. Yeah, when there's on that, if I don't pay enough attention to this, I won't even be in business. So we're gonna move on to the next size, but I challenge you to define your value. We didn't even put this was all for free. Those figures. This is you. Every single person here, not getting paid. We need to have a figure. Even if it's like 10 quid. You need something. Okay. Do we get changed in one book? So I changed the business. OK, I'm gonna with through this, That not necessarily was through this, but I tried to put my head on what I found difficult when I was trying to do run the bank stuff on as creative. We're not good at this stuff. I can go on Google and find a business plan. I just can't fill out the gaps. I can't answer the questions working. That's the hard stuff. That's the stuff I want to know. I can I don't know that I needed mission statement things. I'm gonna tackle that next. It's slowly now, getting a little bit better, but I still talk about here now. So get out my size here. Why does your company exist? Is what your vision is about. Your purpose. Okay, so all nice, what we need to do. Those of the you're gonna get the course there gonna have this, or you better be writing it down the notes. The vision is what am I doing? What's my purpose for my business? The main is to serve, and a bit more than that, what's really important to you tell me, was the most important thing to you when you're running it when you're working, Connecting with people I'm working with. Uh huh. The Windsor. What's really important is is is like producing a product that my my customer would just be like, Wow, how easy is it you to give me those answers? But if I said defining the business plan, the value of your business boom, Yeah, why? We lost these questions. I just feel that stuff in the the really tacky name stuff or the business name. So this is your values or sorry. This is the business values. The other thing you've got to try and think about is you can move from what's called a sole trader to a limited company. You've got to think about the business as slightly separate to you. Yeah, it's my business. But I'm a photographer. Know that I'm a photographer in business. I'm a business owner and photography. This is when you'll see my my banker start. Teoh. I am running a business, but I'm doing what I love. And when I want to go and work for free, I'm dedicate myself to charity. But if I do charity all day long, what happens? I'm another step. I do no want to be. That starts next year. Okay, Miss. Keep And I do not use the mission was the mission. Why do you want to go? What do you wanna dio? Your mission is to provide the most kick ass portrays toe every celebrity famous out there. And you want everyone to know your name and ask for you. There you go. Done. There's your mission. Then we talked. We talked about this. You asked me what? How do you do that at lunchtime? Simple is the way you ask The questions still got quiet. But that means people are attentive. How are you gonna go about doing it. So you've got to go. How? How are you gonna actually do this? Because you can't click your fingers. Wouldn't it be cool if we could just go? Yeah, I really wanna lie in. I don't, kid. Now that's all transports A Your strategy just think about is your map your path? How am I gonna get there? And this is when we kind of a slowly crossing into what I think it's seat eBay is This is a whole corners of her. Just know the angle. You don't need to know every single path in between. That's the fun stuff. That's a journey does no, at least where you want to go to from there And there's start brain storming the strategy. How could I get there? Let's start thinking about it. So you're saying you taking your say, just don't have a figure? Um, make it easy. 52 weeks in the year. So I want to say corner, make $52,000 for that year. I just kind of backtrack and break it down to say okay, we need to make a week. How much do I need to make a day? How many shoes Do I need to make that? They just bring it back when you back back it is Just leave these words when you see vision. My vision, mission strategy These are words. I guess I'm more used to for my old job. But, General, I call true creators that have not had any background Minor. This is always just that. I don't want to talk about that. I don't talk about like Linda's. And I'm not the only one I have to. I fight between myself and I am definitely I'm losing my bankers. I go on, I need Teoh. My coach and my accountant pulls me back every time. You don't know. Need this £12,000 animal camera. I don't have to do what was called return on investment. I had she had to show him how that camera was gonna be returned when it was gonna be paid off and how it was gonna make money. So even though he was my counter, I could still go by it. But I value him because he knows about figures. This is where May I know enough about audio? I'm not the expert. He knows more than I do, but I still wanted to come our way. Care Fasten up a little bit. You helping. This is when define the market to find the custom, define the fort. Who buys the Ford or he buys the only this is the hard one. Even for may I always have people say 5 10 years I honestly cannot think that far ahead. If someone has said to me when I got on the plane to Antigua and I vote on my ipad, I would love one day in the world to creativelive and I would be here. Don't hurt up North is not with that less in the year ago. Really? Who? Okay, Jack. Jack. But it okay with him and Starbucks, if you don't have a reason What you're really in the business off. You're not in the business of taking fighters for that now at Sandy Park. Now let me down. Sleep for those you They know that she is no in the business of taking photos. She's in the business of giving someone a kid right on a wedding day. When you take a photo of Granddad and he's not gonna be there, get out of bed fee zero That gift to your climb Do you know? I think they want Oh, they would want that. We have questions. Yeah, Okay, um, just checking. Okay? The RTB stuff. This whole business planning staff is boring. Yes, but you can't reading move onto CTB unless you know you've got the oil and the petrol in the car to go. All of these things we must do CTB is nice to do. Want to dio must do. I must know my cost. I must know my bottom line before even get fancy about going Hey, Lions, You cost me 25 grand higher trainer in a lion like and I have checked this out. Do we build relationships? That's marketing. It is somewhat marketing again. Do we follow through? That's how service I'm gonna keep spraying stuff. I'm gonna keep moving closer. OK, so, P nl, for those of you that I don't know in the UK but even as a sole trader, we have to have a set of accounts at the end of the year. Yeah, still here. Okay, let's talk about that whole profit and loss and there's several p n. L. I'm gonna keep my notes because I would have made sure. Don't forget something really important. Um, we kind of talked about four castings. I think this is more important to meaning. Now, the whole piano. Um, let's start off. Actually, not PML. Let's go. Balance sheet. That's the first sheet that you get. OK, so the bottom is she is what you get. And let me just tell you this is the most important thing, and we'll do this to photography. This is a snapshot. And get this is a still image was cool. This an image? What does that mean? The moment in time. Whatever the accounts are done, these what you're going to see on that balance. She is what it was today or that month. Um, And then you will have things called. I'll read them out. Few assets stock, cash, property equity. Do you really understand? Because I didn't creditors that that is all this other stuff owner shares. Okay, let me show you this way. Mitchell. This really big. So you have stuff people are gonna lost with me now and things. Do we understand that? Yeah. Yeah. Okay. Then we have what we owe on what we own? Yeah. Now we can put this stuff in stuff that we, uh, iron is gonna be equipment, The whole plan. If you ran rate things like that, these poor film guys probably even get bought assets. So this is from things and stuff. Or let me do this. First things on, stuff equal what you own on what you are. That's all you need to know. That makes sense. Yeah. Now let's put it in. So we have cash assets, all those, then all those taking things fit into that. When we make sure stop property equipment, you've got profits and earnings. So, people, what do you own? You also remember this is the company, not you. It owns the profits. Yeah, and then this is a figure. So whatever, you have cash in the bank stock, maybe some albums, things like that. This is the lovely word we all love that we have to pay. Maybe suppliers. If you have something where you kind of have stuff you pay for monthly, you get credit and back again. And then from this, just give me a nod. At least when someone in a chat room that you are on the ball with us questions, things and stuff. I o stuff on our own stuff. And if I add this stuff because normally, sometimes it's here, this stuff in this stuff Plus this equals that snapshot. Yeah, it is what? The figure you see at the bottom the balance sheet figure you will see at the bottom. June, give me a shout because I'm gonna go to profit loss if no one's got Yeah, Get Pernell. You guys in the stakes call this 34 different ways to say as well. Different accountants back. Kind of my move it accountants. They call this stuff differently as well. Good. No, I just profit. Last profit and loss p a. Now. Um Okay, Davis, these checks. I care that this is what bottom line comes in. So you have yourselves and then you have your costs, okay? And we already have done this. The sounds are what you say. Charge the client and you've made. And this stuff is thes things the cost of. So you may say something on your panel that says that. So the fee we charge Masao is your turnover at these two? Because we said it costs, electricity, heating all those things equals bottom line. Okay, Now that my sense. Yeah. Yeah, we really know about this. So if there is no profit up here, this number could be a minus number. Yeah, but there's two numbers. Numbers on a balance sheet. Those numbers on the piano. Which one tells me where I really am. I don't expect those people to get it. Which number tells you where you are? As far as like, you know, Are you Are you making a profit or you lose by making minor losing money? Yeah. Normally, I would say balance sheet, but I bet you PML okay, you're gonna tell us why I'm not gonna tell you. Oh, yeah, really. I spent weeks thinking about how to teach this. So this is where I'm going far into my night. We're gonna do a comparison on 82 companies, get the first company that profit. This stuff. It's £1000. The fixed and variable costs is 900. And this is the perfect. Yeah. Then we will have another company. Do they profit here from their way? Just want to make sure this figures the same company, a company B. Okay, so when you look at that snapshot stuff, this is the thing. You know, We just look out and go have a whiskey. Yeah, or Oh, my gosh is a minus number. No, I didn't miss anything, cause you properties 10, in your experiences or everything. This is not expenses. 900 profit 100. And the other one is 10,000 same expenses. Not sorry. 9000 way more expenses. Eso Your profit is 1000. Yeah, Okay. But you already looking at this stuff you don't? I never used to just look to this. The snap show. When Company B. It's 1000 profit company based on 100 profit. Also yet 100 profit. That needs to be 9900 story. Both of them have the same profit. 1900 things with the same profit. Okay, this is a piano in the P NL. Is your movie okay? I'm trying Related to the PML is a movie from January to December or wherever. I want to use too many toe. End of you is. So when did you start your business? In 12 months. The balance. She is a snapshot at that month that you had two accounts because I know we're three minutes over, but I just think this is really important. Maybe snap show well, we're looking at is our movie. How do I know what the answer was? The What's the better company and this over the year? I'm only giving you PML. Okay, I'm being quite tough. This is if a is trick. Question is pert. If it's per month versus per year, A is better because you're that's $100 a month and then be is what you're doing over here. I rather make $100 a month over 12 months, then to make $100.4 year cause that's like, what, Nine. No, this is both for the year, both for the year. Just one had Liza 10. I wanted I'm going around it out. How about company Is spending on Lee 1000 to make gyms there? We don't know because what are we missing? Can you give me one piece of the puzzle? We are only looking at that and that's all I used to look at. What things on stuff and do they owe on own what things and stuff. Do they owe an own? I could Oh, 50 grand for my rent. I could still have 100 grand's over Texas, Ready to come out their times. But you have to Look, this is now This is across the year. I'm looking just that This little figure that we decide whether we're happy or sad can sway you one way or or then you need to look at both. Poor day now. Looks very bordered really quickly. The last night of my guys break, Everyone needs a whiskey. Now you go through. The hard stuff is literally. Now yours. You'll see this come together. What kind of photography do you want? A bay. Where do you want to spend your time? RTB seat eBay. Do you wanna work for free and spend every evening and your desk where you don't see your kids? You want to pay someone else to do that and have time to do whatever you want to do? Do you want to shoot more? Do you want to edit more? Because this in the UK I lived most my life here and I was only the last what? I was forced to have a re toucher because physically there was not enough hours and even sleeping four hours wasn't enough. I had to make to this model. But if I had the shot 52 weddings and price one, I'd probably still be there.