Topic: Business Formation
Time Investment: 5 Minutes
Suggested Product: BizRevamp®
So today let’s go over some top mistakes photographers make in their business.
- Choosing the wrong business formation – Business formation can have great impact on the liability protection, as well as tax liability (meaning money you do or don’t get to keep) for your business. You may not be in business and need help. That stage is super important to have the knowledge in making the right choice. You may already have been in business for years, but did you know changes occur in your business – and so may the need for the business structure you have.
- Not deducting appropriately – Tons of deductions a year go un-“claimed” resulting in money you could’ve kept in your pocket. A lot of times this is due to organization even if you have a CPA. CPAs can only do with what you provide them – you are the first line of organization – make sure you have the knowledge to organize appropriately.
- Failing to have the right insurance – I see this all-too-often in forums. People asking for recommendations on insurance and most only settle on the liability and equipment as suggestions. Yes those are great, but did you know there are up to SEVEN types that your business may need to be protected? Seriously overwhelming but that doesn’t change the reality of their necessity.
- Falling into the trap – A common statement that I see from photographers of all stages in business is “I don’t do X that often so I don’t need Y” – and they leave themselves with a huge legal hole and open for potential liability. Don’t fall into the trap of thinking because an action for your business ONCE doesn’t mean you don’t need protection. Whether it’s a contract written for events, even if you shoot one event. Or only having an assistant for the day but failing to have in writing expectations and compensation. Be prepared with the knowledge and tools needed ahead of time so you can make the correct business decisions, instead of off-the-cuff unprotected decisions and actions.
- No plan or a misguided plan – Wanting to “survive” or “make money” is just the beginning of creating a successful business plan. There is actually a true method to madness in planning. Why do you think there are degrees dedicated to business management and planning? It’s not just choosing an end goal then taking a shot in the dark. It requires a clear, yet fluid, plan that shapes and changes as your business does as well. In fact, it was reported in Huffington Post this week that Apple (see article) made more in one quarter of 2014 than Google, Amazon and Facebook combined. They surely didn’t do that without a clear, succinct plan.
As a lawyer and business consultant I’ve seen these mistakes over and over and over and over…..In fact, many times I get you guys in my inbox wanting to fix issues after the fact. My goal is to get myself out there to help so we can prevent or lessen the impact of issues and mistakes such as listed above. Which is why I (a) have this blog/newsletter and (b) have created BizRevamp. My online Biz Course – BizRevamp is open for limited enrollments. I seriously LOVE enrollment time because I get a whole host of new victims, I mean photographers, to help with their business. Thousands have gone through the course and have come out the other side thriving.
Being on this email list is the first step to protecting your business – I’m still throwing out weekly advice and tips to help you protect your business.
The webcourse, BizRevamp is only for those truly ready to revamp and take their business to the next level.
No matter which you decide is the right path for you and your business at this time, I’ll see you right here next time!