Money Talk: 3 Things I Wish I Knew When Starting A Business

When I started my business, my idea in mind was a quick side-hustle. Something to bring in some extra cash, as well as a creative outlet for myself. I didn’t exactly have the business mindset I have today.

So today, I’m sharing with you, the top THREE pieces of advice I wish someone had given me when starting my own business in the service industry.

Have A Landing Place

While this seems like a no-brainer, you would be surprised how many people depend on platforms such as Instagram, Facebook, and TikTok alone, to promote their business. And I did too, at first.

But remember that TikTok ban? Yeah, what would happen if all social media ceased to exist? You would have no platform for your clients to find you. Do not put all of your eggs into one basket. Have a website! Platforms such as Wix, Squarespace, WordPress, Showit, are all fairly user friendly. Personally, I use Showit and love it!

Runs Your Comps and Understand Your CODB

What is CODB you ask? It’s simple: it’s your cost of doing business.

Do you have to rent spaces to operate? What materials need to be purchased? How much does it cost you in equipment? Application fees? Website and subscription costs?

Any output of money that you expense in order to operate your business should be considered when calculating your CODB.

Next, what is your desired salary? What are the comps in your area? What are other people charging for the level of experience and services you are providing?

Let’s run my numbers for example:

Last year, my total expenses to operate in business were roughly $47,000. My goal is to profit $100,000 a year. So my CODB equation would look something like

47,000 + 100,000 / (number of sessions I’d ideally like to work)

If I want to work 18 weddings a year, I would have to charge $8,000 a wedding. I do not charge that. SO I have to figure out the difference and make that up in other sessions: portraits, families, newborns, etc.

This equation works for ANY business. And having a profit goal in mind, makes things much clearer when running an effective business.

Know When To Raise Your Prices

And with that, you also need to know when to raise your prices. With experience, comes more clientele. With more clientele, comes more working hours. If you do not raise your pricing, you will find yourself in rabbit hole of making more money, but working yourself dry. You will lose all of your time (and hello! isn’t that the perk of working for yourself?) You will regret your business decisions. And you will ultimately burn out.

I know. I’ve been there. I worked 47 sessions in September of 2021. At the time, I allowed families to book mini sessions with me but choose their location and date- nearly every evening I was out shooting. I was also still working as a teacher. Which meant, I was lucky if I saw my own family twice that entire month. It led to a lot of resentment in my marriage. I was missing things with my kids. I felt the burn out. And for what?

Because the following year, I upped my pricing, decided it would be specific dates, times, and locations, and I ended up profiting more than I had the year prior.

Do not be intimidated to raise your prices. Your pricing should reflect two things:

1. Your experience level
2. Your cost of living

I simply cannot undercharge my worth for the sake of meeting a clients budget. I have four children to feed. I have bills to pay. I have a household I need to sustain. But I also cannot overcharge and price-point myself out of my experience level.

The beauty in entrepreneurship is that you get to control these factors. And believe me when I say, your clientele will find you. The clientele within your budget WILL FIND YOU.

Leaving You With My Only REAL Piece of Advice

The moral of the story here is this: Gucci is not dropping their prices because 98% of us can’t afford them. They found their clientele. They’ve stuck to their guns. Be Gucci.