Let’s chat about something that might not sound super glamorous, but trust me, it’s key to turning your side hustle into a thriving, sustainable business. I’m talking about how to build a sustainable photography business by understanding profit vs. net growth and how it sets you on the path to financial freedom and fulfillment by doing what you love.
I know, I know, numbers can be daunting, but hear me out. Think of it like having a compass that guides you toward your photography dreams, a roadmap that keeps you on track for the long haul. By understanding these vital metrics, you’ll gain the financial foresight to make strategic decisions that keep your business sustainable long-term, no matter what life throws at you.
Heck, it’s even what allowed me to build a business that has thrived for 10 years, one that survived 260+ days in lockdown with no income, and multiple Winter seasons with no work. So, let’s dive in and get you on the fast track to building that sturdy business with profits that fuel your growth and dreams.
Visualise yourself, confidently selling your photography skills and turning your side gig into a full-fledged, money-making machine.
Think of it this way: knowing your profit and net growth is like having a compass that keeps you on track. It’s like knowing how to invest your money wisely – it’s crucial for your long-term business health!
Imagine you’re running your photography business like a marathon. You want to make it to the finish line, not with a shaky stride and a cramp in your side, but with the stamina and strength to keep running full steam ahead.
By understanding profit and net growth, you gain the financial foresight to make strategic decisions that keep your business sustainable in the long run. You’ll know when to tighten your belt, when to invest in that new lens you’ve been eyeing, and when to raise your prices.
Step 1: Envision Your Ultimate Goals
First things first, let’s unleash your creative vision and dream big! What’s your ultimate goal? Is it to make a certain amount of money per month or save up for that dream house of yours? Whatever it is, take a moment to visualise it and jot down the costs that come with pursuing those dreams. This is the foundation of our magical equation.
Step 2: Calculate Your Business Operating Costs
Next up, let’s shine a light on the necessary expenses that keep your biz running like a well-oiled camera lens. We’re talking about the real deal here: wages, subscriptions, systems, taxes, gear, education—everything that makes the magic happen. It’s time to crunch the numbers, get analytical, and be specific about what it takes to keep your business financially afloat.
Step 3: Add a Delicious 30% Profit Margin
Now it’s time to add a sprinkle of sweetness to the mix—your profit margin. We’re talking 30% here, babe! This extra cushion will give you the breathing room and financial security you need to thrive like the entrepreneur you really are. Take your overall business operation costs and your wages, then add that sweet profit margin to the equation.
Step 4: Profit Plan Like a Boss
You’ve done the math, mapped out the costs, and added that profit margin for some extra oomph. It’s time to profit plan like a boss and pursue those big income goals of yours. You’ve got the tools, the vision, and the magic within you to make it happen. Believe in yourself and take action, because building a sustainable-based life and earning your dream income is all about seeing the bigger picture, crunching the numbers, and slaying it with your photography skills.
Putting it in perspective
Picture this: you’re running a lemonade stand (we’ve got to start somewhere, right?). You sell a glass of refreshing lemonade for $2, and your costs, including lemons and sugar, come to $0.50 per glass. With me so far? Fantastic!
Now here’s where things get interesting. You sell 100 glasses of lemonade at $2 each, bringing in a total of $200. But hold on tight, because there’s more to this story than what meets the eye!
Profit is like the lemonade in your hand—the money you earn from each sale. In this case, your profit per glass is $2 – $0.50 = $1. Congrats, you’ve made $100 in profit (100 glasses × $1 profit)!
Net growth of income is like adding a little extra something to your secret lemonade recipe. It’s the amount your overall income has increased over a given period, accounting for both profit and any additional expenses.
To calculate your net growth of income, you’ll need to consider all your business expenses, such as equipment, marketing, and that adorable lemonade stand sign. Let’s say those expenses added up to $50. Your net growth of income would be your total income ($200) minus expenses ($50), leaving you with a net growth of $150.
By regularly tracking your net growth of income, you can spot patterns, identify areas where you might be overspending, and strategize for future growth.
Remember, this journey is yours for the taking. You’ve got the talent, the hustle, and the determination. Now, it’s time to step into the spotlight and create the business and life you’ve always wanted. You’re unstoppable, and if you’re inside The Creative Mocktail Club, we’ll dive even deeper into these concepts, helping you create a foundation for business-savvy decisions to support your long-term success.
Join the club here (with a cheeky half-price discount!) and let’s toast to your sustainable growth, baby!
Together, we’ll build a business that not only withstands the test of time but also leaves a legacy for future generations of photographers to aspire to.
Click here to join The Creative Mocktail Club and get ready to shake up your business!
PS. I would love to hear all about your progress and success in turning your photography side gig into a money-making machine. Don’t be shy, my friend—share your wins, challenges, and everything in between.
Let’s cheer each other on as we conquer the world, one stunning photo at a time!
Cheers to you and your thriving photography business!
