If you love the creative expression of photography and aspire to a career where you get paid to do something you enjoy, a photography business might be the answer. But developing a successful photography business is anything but a snap. The gig has long come with irregular income, weekend work, and demanding clients, and now there’s the creeping threat of artificial intelligence.
According to ZipRecruiter, studio owners’ hourly wages range from $16.11 to $65.38, with the majority of wages in the United States falling between $19.25 and $28.12 per hour. The average pay varies significantly, however, suggesting that many opportunities for advancement and higher pay exist based on skill level, years of experience, and location.
While a college degree isn’t required to succeed as a photographer, it’s wise to obtain some formal training to gain a technical understanding of the craft. You could also consider interning or shadowing successful photographers.
Read on to learn some additional important information you should know before starting a photography business.
Choosing a business model
How will your photography business generate revenue? Several options are available, including:
Selling services and photos to clients (for example, a wedding package)
Selling additional items, such as albums, wall art, and print boxes
Selling your prints and merchandise with images of your photos directly to customers
Licensing your images (for example, to stock photo websites or other businesses)
Depending on the model(s) you choose, you also have numerous potential niches, including:
Weddings, engagements, and elopements
Maternity and newborns
Portraits
Head shots
Real estate
Food
Fashion
Travel
Pets
Products
Stock
Drone
Focusing on one to three niches can help you better target your marketing and position yourself as an expert for a higher fee.
Planning your photography business
Not many businesses end up thriving without advanced planning, and photography is no exception. Begin with thorough market research.
For example, who are your target customers? What are their demographics? What do they value when looking for a photographer? How much are they willing to pay? How can you best reach them?
You also need to research the competition. Is the photography market in your desired location saturated? Gather intelligence on the existing competitors. Review their websites and social media to gain insight into their service offerings, pricing, and target customers. Check online reviews to see what customers like and don’t like about them—are there any gaps you could fill?
Proper pricing is a vital part of your planning. First, you should determine how you’ll charge clients—a flat fee or by the hour. This can vary depending on the type of project, with, for example, event photography billed on an hourly basis versus a flat fee for a portrait session. You may want to take an hourly approach (including your time consulting and communicating with the client, preparing, editing, transportation, etc.) while you’re honing your processes and learning how much time different kinds of jobs require.
Regarding rates, you should have an idea of competitors’ pricing from your research, and you can deduce customers’ willingness to pay those prices based on reviews. Of course, you also have to cover your costs (more on this below). Your costs should be the starting point for your pricing.
Avoid the tendency to undervalue your services. Don’t be afraid of premium pricing if your skills or experience warrant it. Remember, too, that you can adjust your prices based on factors like client response and expense trends.
All of the information above should appear in your formal business plan. A business plan will help keep you on track for your goals. Your plan should include these components:
Executive summary (the introduction to your photography business)
Company description (greater detail on your business’s set-up and history)
Market analysis (data and research on the viability and profitability of your business)
Financials (budgets, expense and cash flow projections, funding sources, revenue sources, etc.)
Products and services (descriptions of your offerings)
Marketing strategy (how you will build a customer base and sell your products and services)
Ensure your financial plans are specific and fact-based, rather than what you hope for in an ideal world. You should budget for both your startup and ongoing costs, including:
Business registration, license, and/or permit fees
Equipment and supplies (including office and other supplies)
Insurance
Marketing expenses
Technology, including:
Editing software
Client management system
Gallery delivery system
Payment processing system
Payroll and accounting software
Continuing education
Wages and benefits (if applicable)
Facilities (if applicable)
Utilities and other overhead
Track your costs closely in the first year to ensure a more accurate budget for the future. Once you’re out of the startup phase, your budgets should also include a salary for yourself, a profit to invest further in the business, and taxes.
New entrepreneurs sometimes underestimate their tax obligations. Consult with a professional to reduce the risk of unexpectedly high tax bills, plus penalties and interest for noncompliance with the numerous tax rules for businesses, such as the mandatory quarterly payment of estimated taxes and withholding requirements for income, payroll, and sales taxes.
Funding your photography business
Photography businesses generally require a fair amount of upfront investment. If you lack personal funds, you will need to find alternative sources.
The U.S. Small Business Administration has several loan programs, and you could qualify for grants from other federal or state governmental agencies, nonprofits, or corporations. The U.S. Chamber of Commerce has compiled a list of grants, loans, and other programs for small businesses. Your chances of qualifying will improve if you have a detailed and viable business plan that you can present to potential funders.
Satisfying the legal requirements
Another critical issue is your choice of a business structure—or business entity. A photography business is usually formed as a sole proprietorship, partnership, C corporation, limited liability company (LLC), or S corporation.
Your choice will affect your potential legal and tax liability. For example, while a sole proprietorship is usually the easiest entity to form and maintain, you’ll be personally liable for all business debts and liabilities, and you’ll have to pay self-employment taxes. With an LLC, you can avoid personal liability for the business and pay less in taxes, but it’s more complicated, and you must satisfy certain ongoing formalities.
You may also be required to register your business with the local government, city, and/or state. These jurisdictions might require certain licenses or permits. You may also need to obtain a “doing business as” (DBA) if you conduct business under a name other than your own.
Photographers should familiarize themselves with the applicable privacy laws, too, such as the
California Consumer Privacy Act or the European Union’s GDPR. It’s generally wise to obtain consent to photograph individuals in settings where they have a “reasonable expectation of privacy.”
You should also familiarize yourself with copyright law to effectively protect your intellectual property rights. Copyright protection exists from the moment an original work is “fixed” in a tangible medium. For photographers, fixation occurs when you take a picture. You don’t need to do anything else for your work to be protected by copyright, but you may want to.
The U.S. Copyright Office recommends registering it to create a public record of your ownership, as well as to obtain additional legal benefits, such as the ability to bring an infringement claim for U.S. works and to seek certain types of monetary remedies.
Like copyright registration, comprehensive insurance coverage may not be legally required, but it is generally wise. It doesn’t just protect you financially; it also boosts your credibility with your target audience. A photography business may need some or all of the following types of business insurance:
Commercial auto: Your personal auto coverage doesn’t apply to accidents that occur while you’re driving to jobs, making deliveries, or for other business purposes. Commercial auto also covers theft, weather damage, and vandalism.
General liability: This provides coverage if someone sues your business for bodily injury, property damage, or personal injury, such as defamation or invasion of privacy.
Commercial property: Property insurance covers losses to your owned or rented building, as well as tools, furniture, and equipment, resulting from fire, burglary, theft, wind, or lightning (additional riders may be required for your photography equipment).
Workers’ compensation. Workers’ compensation is likely required by your state if you have employees. It covers expenses stemming from work-related illnesses or injuries, including medical expenses, lost wages, disability, rehabilitation, and job retraining.
Business owners’ policy. This policy bundles general liability, commercial property, and business interruption insurance into a single policy.
Professional liability. If a client sues you for making a mistake in your services, this insurance will offset your legal costs and any judgments or settlements.
Setting up operations
You may be able to initially launch a photography business from your home. But, with the need for sufficient space to work and store equipment, props, and supplies, you can quickly outgrow your spare room or garage, so think ahead.
If funds are limited, look into sharing studio space with other photographers. You could also rent coworking space on an as-needed basis.
Equipment, on the other hand, is essential. When you’re starting out, though, you don’t need everything an established photographer owns, fun as the shopping might be. Many photographers begin with just the following:
A DSLR camera
An “all-purpose” lens
Memory cards and hard drives
A computer with editing software
Lighting
A tripod
Set an initial budget to decide what you can afford. Although you could easily spend thousands on cameras and accessories, you probably don’t need the latest and greatest right off the bat. You can find decent used equipment on Craigslist, eBay, or photography-specific markets, and might qualify for free trial periods for editing software. You may also want to rent the pricier items initially, so you can try different options and determine what you like. Either way, read reviews and get input from other photographers.
The next crucial step when setting up your photography business is drafting a client contract template. It is not advisable to work on a handshake basis, even with people you know. Many photographers have stories about not being paid by clients who initially seemed friendly and reasonable. You need to protect your business, and clients should take a contract requirement as a sign of your professionalism.
You can find templates online, but consider hiring a local attorney to draft a template tailored to your business. It should be clear about:
The services to be provided
The deposit amount and how it’s forfeited (if applicable)
The timeline and deliverables
Cancellation and rescheduling policies
Copyright issues, such as who owns the copyright and how each party can and can’t use the images
Expanding the team
Although photography business owners frequently start off solo, you may need to add to your team as you grow. Photographers often work with a studio manager and production assistant; some also have individuals dedicated to editing, marketing, and scheduling.
When you determine it’s time to hire, you have a lot to consider. For example, consider whether to hire full-fledged employees or independent contractors. Contractors are generally cheaper because you don’t have to pay payroll taxes, provide benefits, or pay overtime or minimum wage. The tests for contractors are strict, though, and misclassification can prove very costly. You could owe back pay, along with penalties, and end up liable for withheld employee benefits.
Regardless, you’ll need to craft a job description that details the responsibilities and requirements. Post the description where your ideal workers will see it, whether online or off, such as local photography schools or programs.
You should conduct background checks for all employees, especially if they will be working in your home or others’ homes or around valuable items. Check references, as well. Too many employers simply collect contact information for references and don’t actually reach out.
When you hire your first employee, you must obtain an Employer Identification Number from the IRS. You may also need to register with the state department of revenue. You’ll be expected to withhold and deposit income tax withholding and each employee’s share of Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA). FICA is a federal tax that employers and employees split. You’ll also be required to pay unemployment insurance taxes and satisfy a range of federal and state reporting obligations.
Those obligations are among the numerous administrative elements that accompany most businesses. B2B vendors and software can ease your administrative load dramatically, though, allowing you to focus on your core competencies.
Marketing your photography business
Before you can market your business, you’ll need a name for it. Coming up with a brand name for a photography business doesn’t have to be complicated, though. Keeping it simple (for example, Your Name Photography) can make it easy to remember and leave no question about what you do.
You also need a portfolio to show prospective clients. Include photos relevant to the target audience. For example, product photographers can take photos of items around their homes. If travel photography is your niche, consider including photos of local tourist attractions and popular hotspots.
One way to build your portfolio is to participate in styled shoots, where multiple vendors—such as hair and makeup stylists, videographers, florists, bakers, and event planners—collaborate to showcase their skills and inspire clients. A styled shoot usually is a mock event, such as a wedding, with a specific style or theme. If you don’t yet have the network to find a styled shoot, you can stage your own with friends and family or aspiring models trying to build their own portfolios.
Once you have a suitable portfolio, you’re ready to sell your photos and/or services. You can rely on one sales channel or take a hybrid approach.
An e-commerce store is one option for selling photos or merchandise directly to customers. You can establish your online store through a platform like Shopify or build your own. Marketplaces like Etsy and Amazon are other options, but you can get lost among the many different sellers. Pop-up events and local gatherings, such as fairs and markets, are additional avenues for selling goods or on-site photography (like a portrait session, for example) directly to customers.
To sell photography services (as opposed to individual photos), networking can function as an indirect sales channel. Industry workshops, conferences, exhibits, and online groups can help you connect with others in your field. Knowing the right people can open doors to opportunities, such as collaborating with complementary businesses like event planners, caterers, DJs, and modeling agencies.
Regardless of your sales channel(s), digital marketing is indispensable these days, especially for a visual medium like photography. You can showcase your work, style, and personality online at a minimal cost.
The bare minimum is a website, with:
Your portfolio
Services and goods listings
Pricing
Contact information
Client testimonials
Be active on social media, as well. Regularly post work that appeals to your target audience on the platforms where they congregate. You can also share tips, behind-the-scenes videos, and the like. Consider reaching out to influencers and offering to take free or discounted photos in exchange for exposure to their followers.
Finally, review your options for targeted ads to reach users who are online looking for your services in your area. For a fee, you can land at the top of their results.
Understand that your marketing plans will evolve over time. You can’t know now what will work best in a year.
One thing is certain, though: When you start a new photography business, you have a lot to focus on. Fortunately, even solo business owners don’t have to go it alone. Gusto’s affordable payroll, employee benefits, and HR solutions can help.
