I’ve posted examples from last year. Be sure to include a lighting plan showing placement of lights and ratios with your plan.

When forming your business would you be better off as a sole proprietor or an LLC (limited liability company) ?

For most of you the answer is that you’d be better off as a sole proprietor.

I changed from being a sole proprietor to an llc when I began hiring people to shoot weddings for me. I did so on the advice of my attorney and CPA. An LLC gives you just a little more protection of your assets in case there are problems. But you must be sure that your personal and business assets and accounts never mingle.

The best defense against lawsuits is to be very careful in everything you do. And make sure you have adequate insurance. A good business insurance policy will protect you far better than an LLC designation.

As always, check with your professional team, your attorney and CPA, to advise you on what’s best for your situation.

MTG is the company I told you about last week. Its rates for credit card processing are the best I’ve found. www.midtrans.com  is the website.

To adapt the CODB calculator to reflect income from another job simply subtract that income from your expense total. Then divide that number by the number of days you anticipate working.   Ex:  Expenses equal $10,000. Income from other job equals $5000. 10,000-5000=5000.  5000/100 days of shooting = 50 as CODB.

To adapt the CODB calculator for portrait photography instead of shooting days total your expenses.  Just change the description “number of days shooting” to “number of portrait sessions” and divide into your expense number. This will give you the amount you must make on each portrait session to cover your CODB.

Your Assignment Must Follow This Outline. Due October 29th

The Business Plan (50% of final grade)
Adapted by Natalie Fobes from the SBA website
www.sba.gov/smallbusinessplanner/

Most people think a business plan is only for entrepreneurs and those looking for financing but it is a valuable tool for every businessperson. A good business plan will crystallize your thoughts about your business, help you see weaknesses and strengths as well as enable you to make and achieve goals.

Please write your plan for the business you hope to be in upon graduation from school.

1. The Executive Summary
The executive summary is the most important section of your business plan. HINT: Write this AFTER you have written the rest of the plan. The knowledge and insight you gain while researching the rest of the plan will help you craft this section. The summary has three parts.

A. The Mission Statement explains the thrust of your business in two sentences, or a short paragraph. It should be as direct and focused as possible. It should leave the reader with a clear picture of what your business is all about. You should be able to use this when a client asks you what kind of photography (or other business) you do. HINT: Practice this out loud. Think of it as your elevator speech. It should take no longer to recite it than it takes to go up 5 floors in an elevator.

B. A concise history of the business: when it began, who started it, number of employees, location, services and past growth. These can be in bullet form as opposed to writing complete sentences.

C. Your financial and job goals for one year, two years and five years. These can also be in bullet form.

2. Market Analysis
In this section describe the industry, the trends, the potential growth areas, your target audience and your competition. Analyze the businesses you are competing against. List their strengths, weaknesses, pricing, advertising and approach. If you find out your competition is having problems try to figure out why so you can avoid the same mistakes. BE SPECIFIC.

3. Company description, Organization and Management
This is NOT a repeat of the business history you wrote about in the Executive Summary. This is an overall view of how all parts of your business fit together. You should answer the following questions:
A. Is your business an llc, s-corp or sole proprietor? Who owns it?
B. What are your responsibilities? Are there other people in your business? If so, what are their responsibilities? Who is in charge? Even for a two-person business it is important to develop a clear flow chart of duties and responsibilities.

4. Your Service or Product Line from your customer’s point of view
Pretend you are a consumer of your service or product. Use their words to describe what you offer. For example, “I photograph people, places and wildlife” tells you nothing. This statement tells you a lot more. “I create well-lit, compositionally intriguing images that tell a story about my subject. I never miss a deadline and always come back with a
great photograph. I am dependable.” Another example: “The Gourmet to Go Shop has 89 foods in stock.” Better “I will offer busy people a convenient way to buy the food they want by keeping track of their purchases and keeping those items in stock.” Focus on areas where you have an advantage. Identify a problem that your target group might have and how you can solve it for them. Try to put yourself in the customer’s shoes. What is it about what you offer that they can’t get anywhere else? What is the value in your products and services?

5. Potential Clients
A. What are the needs of potential clients/customers that you are trying to satisfy? How are you going to satisfy them?
B. List at least 10 companies or individuals you want to target. Why? Be specific.

6. Marketing and Sales Strategies
Marketing is the process of creating customers. You need customers to survive. Simple statements but ones difficult to achieve. Your marketing strategy is a living, growing creature that needs frequent feeding, attention and adaption.

What is your marketing message? Are you marketing a service or a product? This will determine to whom you send your marketing materials. How are you going to get your customers? Advertising, direct mail, word of mouth? Where are you going to advertise? Are you going to use a service for direct mail or do it yourself?

7. First year budget and start-up costs
While you may not be looking for funding you should act like you are. Create a budget for your first year of operation. This will help you figure out when you might need money and how much. Obviously your initial costs include camera/studio gear. But what about the advertising and promotion campaign you should be mounting six months later? Office supplies? Taxes? Be sure to include the amount you want now to start your business and the amount you will need in six months. BE SPECIFIC.

8. Second year budget
Once you’ve established your start-up costs for the first year create a second year budget based on your CODB. Include your projected income and where it might come from. List office expenses, computer and camera costs, software upgrades, wages, etc.

Projecting budgets is easier after you have been in business for a while. At that time you can use your income/expense information from previous years.

9. Appendix (optional)
This is made up of documents on an as needed basis. It should include you resume, letters of reference, magazine articles and licenses. It may include your credit history, leases, contracts, permits and list of professional service personel like attorneys and cpas.

CORPORATE PORTRAIT ASSIGNMENT INFORMATION AND PROJECT DEADLINES

PHOTOGRAPHER
CLIENT and COMPANY
ADDRESS
EMAIL AND PHONE

Assignment: Two corporate portraits shot on location for one client.
1. Environmental portrait. Choose the location and use props to help explain what that person does for a living. Print must be 8×10 and retouched to minimize bags, dark circles, blemishes and other problems.
2. Vertical head and shoulders shot. Photo should have good lighting and expression. It should be retouched and prepped as a jpg file sized at 768pixels x 1024 pixels, 72 ppi.
Overview: The client must be outside of the college community and can’t be a friend or family member.
The photographs must be taken on location.
You will provide the client with an 8×10 print of his/her choice at the end of the assignment.
The client’s print should be professionally presented to them in a folder or box.
All paperwork and disks must include your name and complete contact information and the client’s name and complete contact information. (name, company name, address, email, phone)
All paperwork must be typed
Please make hard copies of Part 1 and Part 2 for grading in addition to putting them in my drop box.
Final production notebook must be a black, three ring binder with topic tabs and separation sheets. Be sure to include everything requested

Part 1. Client Information and job analysis 30% Due: Nov. 5th
_____ Cover sheet with your contact info and the name, address, phone and email of your client.
_____ Two paragraph description of what he/she does and his/her personality.
_____ One paragraph outlining client’s license needs for the photos.
_____ SWOP analysis of the location.What are the Strengths of the location? The Weaknesses? The Opportunities? The Threats or what might get in the way? (For example there are no electrical outlets near your location or there is high foot traffic through the potential site.)
_____ Permits or permissions needed to shoot at the location, if any.
_____ Extra insurance needed?
_____ Analysis of the person. Does he/she have a prominent nose? Bags under their eyes? Do they have concerns about their features? What lighting and lens would be best for their features?
_____ Shot plan: include the schedule and location for both shots and any assistant duties
_____ Lighting plan (include a diagram and list the lighting ratios)
_____ Equipment list

PHO 234 BUSINESS OF PHOTOGRAPHY 2010 FALL QUARTER
Natalie Fobes Natalie@fobesphoto.com 206.937.9375

Part 2. Estimate 20% Due: Nov. 19th
_____Estimate of shoot including creative fee, scope of work, license granted, expenses, front and back terms and conditions (T&C)
_____Estimate must be signed by your client or approved via email

Part 3. Shoot and Online Web Gallery 30% Due: Dec. 3rd No hard copies of photos or gallery needed
_____ 30 photographs edited from session displayed in a LR web gallery
You will be graded on the following:
_____Quality of light
_____Compositional strength
_____Posing strength
_____Stylistic continuity of images
_____Technical quality of image (color balance, exposure, detail in shadows/highlights)
_____Gallery color palette selected to compliment photos
_____Gallery title and text appropriate to photos
_____Metadata (copyright, keywords, usage agreement)

Part 4. Production Notebook 20% Due Dec. 10th
Divide the notebook into four sections:
1. Paperwork
Include estimate and proof of estimate approval (either a signature or an email)
invoice
delivery memo
thank you note
2. Deliverables
Environmental portrait printed on 8×10 paper. Retouched.
Jpg file of head and shoulders sized 768×1024 pixels, 72 ppi. Include metadata and copyright info. Retouched.
3. Client info
Include all materials from Part 1 of the assignment
4. Support documentation
Include this cover sheet, all emails related to shoot, a phone call log with date and topic covered, any permits or permissions if needed and an insurance rider if needed.

Instructor: Natalie Fobes

Office Hours: By appointment before or after class on Fridays. Email me at Natalie@fobesphoto.com or nfobes@sccd.ctc.edu or call me at 206.937.9375.

Credits: Three (3)

Text/Supplies: ASMP Best Business Practices, 7th Edition. Assignments are to be turned in as both digital files in my dropbox and hard copies. BLOG: Assignments, lecture notes and other resource material will be posted at www.fobesphoto.com/blog Password: phobiz

Time/Location: Thursdays at 9. Lab after lecture. 5158

Course Objective: To develop an understanding of real-life photography business practices. By the end of the quarter you will have learned what is considered when setting your fees, you will have shot a corporateportrait assignment, created all paperwork associated with that assignment and written a business plan that you can use when you graduate.

Classroom standards
• My expectations will be based on real world business behavior, services and products
• Don’t schedule shoots or appointments until after noon.
• As stated in the student contract, late assignments are not accepted and are graded as zero unless you have extreme circumstances. Assignments are due at the beginning of class.
• Absences not emailed or called in before class starts are unexcused
• Poor grammar and misspelling in assignments will be considered. Choose a partner to help you edit your assignments.
• I suggest you “Dress for Success” when guest speakers visit
• I suggest you take notes in class and don’t rely on handouts
• Check the blog regularly.
• No active cell phones except for designated security person
• I expect active involvement and participation and it will be part of your grade
• Your computer must be off unless you are using it to take notes
• No side conversations please. If you have something to say please say it for all to hear
• Any questions or concerns please make an appointment to meet with me.
• Please review the Student Code of Conduct

To get the most out of this course you must be:
• willing to work hard with a professional attitude
• aware that each assignment is a potential portfolio piece
• motivated to learn more than required for class
• willing to take the responsibility to research on your own

ADA Accommodation: If you need course accommodations based on a documented disability, have any emergency medical information I should know about, or need special arrangements in case of building evacuation, please let me know at beginning of the quarter or as soon as possible.

Schedule: While this schedule reflects my plans for the quarter, I reserve the right to adapt the curriculum as needed. I will let you know if and when any changes occur.

Week 1: Oct. 1
Introduction of business practices
Review difference between commercial and retail photography
Discuss licensing for stock and assignment and work-for-hire contracts
Discuss jobs in photography but not as photographers
What it takes to be in business: licenses, insurance, online banking,
money accounting system like Quicken or Money
Establishing fees: using CODB, COGS and Personal needs
other photogs rates, stock prices for images
Resources for pricing information: Editorial Photographers, ASMP, sethresnick.com
The Business Plan Assignment

READ: Chapters 1-2 Professional Business Practices (Licensing, Pricing)
ASSIGNMENT: Create CODB and target fee for assignments. Due Oct. 8th

Week 2: Oct. 8
CODB and reading review
The business plan: company description, organization and management
.
Week 3: Oct. 15
The business plan: The Mission statement, Group discussions about individual mission statements
Librarian Helene Williams lectures on deep-internet research methods
Service or product line from customer’s point of view; Group discussions

Week 4: Oct. 22
First year’s budget and startup costs (includes list of expense accounts)
Business plan assignment last minute questions
Introduction to the Corporate Portrait Assignment

READ: Chapters 3-4 Professional Business Practices (writing a license, selling yourself)
ASSIGNMENT: Corporate Portrait Assignment Part 1 (Client Info) Due Nov. 5th

Week 5: Oct. 29
Business plan presentations: Presentations of 5 minutes each in front of the class and a professional photographer Christopher Conrad. Everyone must be there until the end. Class will go into the early afternoon. Bring a sack lunch.

READ: Chapters 23-26 (Paperwork)

Week 6: Nov. 5
Guest lecturer: Rick Dahms talks about the Corporate Portrait
Introduction to the five basic business forms (if there is time)

ASSIGNMENT: Corporate Portrait Assignment Part 2 (Estimate) due Nov. 19th. Will be reviewed in class
READ: Chapters 7-8 (Metadata)

Week 7: Nov. 12
Basic Business Forms: Estimate, change order, delivery memo, invoice, thank you
The importance of license (usage) agreements, scope of work and terms
Creating an estimate with scope of work, license (usage), creative fee, expenses and terms
Importance of having invoice look like estimate
PLUS picture licensing glossary

Week 8: Nov. 19
Review of estimate
Invoice
Licensing terms that apply to both stock and assignment
Sequence of a job and paperwork tracking
Creating a web gallery: Lightroom makes it simple

ASSIGNMENT: Corporate Portrait Assignment Part 3 (Shoot and web gallery) due Dec. 3rd. Please drop in my drop box only, no hard copies required
Corporate Portrait Assignment Part 4 (Production Notebook) due Dec. 10th
READ: Chapters 12, 15 Optional: 13, 14, 16 (Assignment photography, Multimedia)
READ: Chapters 5, 6, 9, 10, 11 (Copyright)

Week 9: Nov. 26 Thanksgiving break, no class

Week 10: Dec. 3
Test on Business Forms
The importance of copyright and metadata
Online registration of copyright

Week 11: Dec. 10
Corporate Portrait Assignment Gallery and Production Notebook due
5 minute presentation of paperwork to the class and an outside professional
Review of Paperwork
Class will run long. Students are required to be here for all presentations

Week 12: Goals review

Winter Quarter topics
Selling yourself and your photography
Marketing and promotion
Taxes (city, state, federal)
Insurance needs and retirement planning

Winter Quarter topics continued:
You will be required to have a state and city business license, copyright a body of work and reserve a domain name.
You will be required to join a professional organization like ASMP or PPA.
You will need to buy the book “Selling 101” by Zig Ziglar

Grading Standard:

The following grading standard is from Seattle Central. The final grade will be based on assignments (90%) and class participation (10%).

A 3.9 – 4.0 Excellent
A- 3.5 – 3.8
B+ 3.2 – 3.4
B 2.9 – 3.1 High
B- 2.5 – 2.8
C+ 2.2 – 2.4
C 1.9 – 2.2 Average
C- 1.5 – 1.8
D+ 1.2 – 1.4
D 0.9 – 1.1 Minimum
D- 0.7 – 0.8
E 0.0 – 0.6 No Pass

Grading: See assignment sheets for more information

1.Each assignment will be graded on how well you follow the instructions and whether you complete the task.
2. Written assignments will be marked down for poor grammar and spelling errors.
3. The business plan and the presentation grades will be evaluated using real business considerations.
4. The assignments are based on real business situations you will need to know in the future.
6. If you do not understand an assignment or need more help please schedule a meeting with me asap.
7. Assignments are to be turned in both digital and hard copy formats.

Reminder: Both digital and hard copies please!

Business Plan Assignment due October 29th 50% of final grade
(Written plan is 90% of assignment grade. Presentation of plan is 10% of assignment grade)

Corporate Portrait is 40% of final grade.
The due dates: Part 1: Nov. 5th Part 2: Nov. 19th Part 3: Dec. 3rd and Part 4: Dec. 10th
Ten percent of the quarter’s grade will be based on class participation and tests

Here are the links to the codb calculator and codb sample

I remember when I graduated from school. I was tapped out financially. Each week’s paycheck meant that I could slowly add to my household goods. A sleeping bag on the floor was my bed,  stacked newspapers were my chairs, extra plastic forks from KFC were my cutlery and when it came time to buy gas, I scrounged on the floor of my 1972 super beetle for small change.

Times were tight, no question about it. But I realized even then that I had to start saving a small portion of my paycheck for emergencies. It started out as just $10 or $20 a week. My first big purchase was an antique Hoosier Kitchen Cabinet. My next was a mattress. Eventually I had furniture, plates and silverware.

I raised the amount earmarked for my savings.

When my VW’s engine needed to be rebuilt I paid for it with my savings. Two years after graduation when I grew tired of unreasonable landlords I bought a house.

I didn’t have a credit card until I was 27.

It isn’t only smart that you save for the unexpected, it is absolutely imperative that you save.

Saw this interesting article in the Seattle Times this weekend that I thought you’d enjoy.

Congratulations to the class of 2010! I can’t wait to see what you do next!

Ran across this article today and thought you all might like it. John Mireles is a photographer and business coach who knows his stuff.