I am excited that I was asked to attend my former high school today and speak at career day. I told the students all the information would be available on my blog so here it is!
In the past 19 years I have seen some of the best photographers that were the worst business men, and some of the worst photographers that were the best business men. What was the difference? Cash Flow & Net Profit.
So much goes into a successful business. You have to have a Great product, competitive price, terrific customer service, a memorable logo, an easy location to find, effective advertising, the list goes on and on…….It only takes one of these to make you a quick success, but it takes all of these to keep you in business for a long time.
If you would like to own your own business, this tutorial will give you ideas and my experience over the past 19 years in professional photography, and the past 14 years running my own business.
First a quick analogy on the basics of business. The key to a profitable business is cash flow and net profit. Think about a lemonade stand that two young girls decide to open on their neighborhood corner. They buy the lemons for $2. Glasses for $1, and are selling lemonade for .25 cents per glass. They have to sell 12 glasses just to break even on the $3 they spent for supplies. But if they can sell those 12 glasses, then the next 12 glasses are all profit. This is an example of net profit.
A good example of cash flow is this: 24 glasses of lemonade is not a lot, only $6 gross profit and $3 net profit. But if they can sell 24 glasses of lemonade at 24 corners throughout the city, they now have $72 left after expenses to buy lots of Jonas posters and DVDs.
Gross profit can increase by getting more sales (cash coming in). But net profit can increase by selling the same, but lowering your expenses. If you could buy the lemons from Aldi’s for $1 instead of $2 it only takes 8 glasses to break even now. Increasing the cash coming in and decreasing your costs is the holy grail, but rarely both happen in business at the same time.
#1 Do what you know.
If your dad is a farmer, I’ll bet you grew up learning about farming. Thus you would probably have a good foundation to be a farmer.
If you work in a restaurant for 30 years, doing everything from busing tables to cooking, I’ll bet you would have a pretty good foundation for opening your own restaurant.
Now the big question, what happens if you want to be a farmer, but have no experience. Or maybe you want to be a photographer, but you don’t know anything about it. This is where you can start to plant seeds in high school that will one day grow into the career you want.
#2 Sowing Seeds.
Get a job that is in the direction of your career aspirations.
John Bon Jovi is the lead singer of the Rock N Roll band Bon Jovi. When he was 17, he took a job sweeping floors in a recording studio. Was this glamorous? No. But he played in bands and sang when he wasn’t at work, and one day got lucky when a producer asked him to sing. Was he lucky? Sure. But luck is when preparation meets opportunity. He was prepared to sing when his time came.
My story is that I graduated from Truman High School in 1991. I took photography, art, and business classes while in school here. The summer after I graduated I found a job listing for an artist job with a Professional Photography lab. I took my portfolio and went to apply for the job. I was pretty naive. Most of the other applicants had a degree from the art institute or had worked for Hallmark for 20 years. I didn’t have a chance at that job I went in to apply for. However, there was a job that was open in customer service and I had worked in customer service part time at a job while in high school. I persistently called them every 3-5 days to ask for an interview (my high school business teacher Mr. Jackson had urged us to be proactive). Turns out I got the job, and this entry level job started my career in photography.
#3 Education.
There are so many skills you need to operate a business, and so many different hats you have to wear. I can’t just be great at taking photographs. I have to be good at selling my photographs, communicating to clients, advertising our products, understanding technology and knowing how to use it, how to save money, manage employees, and predict our finances to name a few. After all, if I don’t have enough money to pay the rent, none of the rest of these would matter.
A good way to round your skills and personality is community college. If you don’t have a career in mind, you can always take courses to better round your personality or improve your resume to get your foot in the door to the profession you would like. It may not be as impressive on a resume, but the resources available through the local libraries are also an incredible resource. Auto biographies of successful entrepreneurs, “how to books” on everything from building a home to professional photography lighting. All of you, teenagers, have access to unlimited resources online through the internet. You tube tutorials can teach you a lot. I know graphic artist with degrees that have to watch these tutorials monthly to keep up with the newest software. Many professional’s photographers and business owners have their own blogs and websites with tons of industry information and veteran insight.
College is where you will have the most employment opportunities. You may be in a engineering program and have a business come in an recruit you even before you graduate.
You will also have better access to job listings and meeting class mates with the same ideas and goals you have. You all know who Bill Gates is, founder of Microsoft. He went to college for 2 years then dropped out. This may not look good on a resume, but I think he is doing just fine.
#4 Building a network.
It takes years to build up a client base. Who is your client? Everyone is your potential client. Help your neighbor mow her lawn, and do a great job of it, she will not forget. When you want to quit your part time job, don’t tell you boss to shove it, give an admirable resignation letter with good diction to tell why you no longer need this position. Your boss will never forget. Your classmate sitting next to you is a great resources for a job. When you open your lemonade stand, and advertise it on face book, who do you think will be the first person to read about it?
You are never too young to build these resources. YOU ARE BUILDING YOUR NETWORK RIGHT NOW. If you screw it up, you just have to start over again like the board game Sorry.
#5 Technology.
I am only 36, but it is incredible the transition of computers in my life. In high school I got to work on a dos computer my senior year for a few hours total all year. By 1993 I realized how much it hurt me that I could not type or use computers, so these were 2 classes I took in college (typing and Microsoft office). Because of this exposure to computers in college I embarrassed technology rather than being scared. I first saw the internet in 1995 and realized how incredible it was. I launched Freeland Photography in 1996 and was the first photography studio in the country to put all of the images from a wedding online.
Now a lot has changed in the past 14 years, but I survived the transition from film cameras to digital cameras, mostly because I understood and utilized computers. I know of probably 2 dozen incredible photographers that did not survive in the business simply because they had chosen to ignore technology. Whether you students end up owning your own business, or “work for the man” you had better understand the world around you and learn to adapt and change. Otherwise technology may replace you or outsource you.
#6 On the job training.
This is the tough one, isn’t it. How do you get a job without the training. How do you get the training without a job? You have to look at your career choice. If you are going to be a nurse or computer engineer, your future employer will want you to have a degree. Your best opportunity in any specialty trade, or in the arts is probably through an internship or mentoring. These usually are volunteer jobs that can lead to a paying position. Thus when you are living with your parents with few expenses this is one of the only times in your life when you can afford to work a job for free. Now once again you can take advantage of opportunities in high school. Volunteer for the newspaper staff. This is a great way to have fun and work with people your age. If you are lucky enough to get an entry level job if your career choice, don’t screw it up. There are hundreds of applicants waiting to take your spot if you quit or fail. So go the extra mile, stay late, volunteer to work a double shift. Something I look for in an employee is a great work ethic. This is usually inherit from a parent, but can be learned through perseverance and determination to want something so bad that you are willing to work harder than you ever have.
Now keep in mind there is working hard, and working smart.
But if you can get your foot in the door, you can have access to resources only reserved for professionals including membership organizations, trade magazines, seminars, job shadowing, etc.
#7 Competition.
You must know your competition, without it you have no idea where you sit in the market.
The world is a competitive place. McDonald’s offers a $1 hamburger, then Wendy’s offers one bigger and better for only .99cents. The average job has you work 8 hours a day, but the average entrepreneur works 10-12 hours a day. If someone will always work harder or cheaper, how do I stay competitive as an employee or a business owner? Passion.
Find something you love to do and find a way to make a living at it. If you can do this you will never feel like you are working again. But instead you will find something rewarding and worth working hard for. There is no such thing as get rich quick, retire young. This is what every high school kid is looking for. This is something I was looking for 20 years ago. But what I did come to realize is that if you find something you love to do, it is not really work at all.
#8 It takes money to make money.
You must understand how important it is to balance your checkbook, and save money. If you cannot save money you will never be able to get ahead. You will never be able to pay for that college class you want, or buy that camera you need. Accessing debt can be good for buying a car or paying for college, but stupid debt can be paralyzing. You would be amazed how many adults get in debt right out of high school, and they never get the opportunity to ever start a business simply because they are in too much debt all their lives. They never have any savings to dip into for their own business ideas. Society makes small amounts of credit easy to get, but pay it off timely and wisely so that you can choose when to be in debt and when to save. Most businesses are funded by their owners. You cannot just go to a bank and say “I want to start a photography business, I need $50, 000”. They will show you the door very quickly. I have paid for everything in my business with cash in the bank including my very first professional camera (Mamiya 645) when I was 19 for $600.
#9 Feeling Lucky?
Luck is when preparation meets opportunity. If you can take finance and business classes in high school you will be so much better prepared.
Business courses are important, but so are:
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Good communication skills
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Understanding and using technology
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Current events and consumer trends
When I read the USA today and Wall Street journal daily during the stock market crash in 2008, I understood where most consumers hearts and pocket books were. I made some adjustments to our prices and packages before most of our competitors did. Consequently I know two photographers that went out of business during the recession of 2009. On the other hand Freeland Photography had its best year ever with almost 30% surge in sales.
#10 Wanna be a professional photographer?
In High School taking photography and art classes classes; volunteer for the yearbook staff. There are so many online tutorials and manuals on how to use cameras and take pictures. Find a few settings that work good and start taking pictures. Volunteer at work, church, or in your community. Start a blog with your photos. When you get good enough start to offer services cheap on craigslist and use the money to buy better lenses and equipment.
For training and degrees, local College Classes at UMKC and CMSU are great programs. I personally know around a dozen professional photographers that got degrees from CMSU.
Successful in life/Successful in Business
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Continue education throughout your life: read, Read, and READ
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Manage debt (or stay out of debt) and save, Save, SAVE
Keys to success in life and in business:
In closing, I cannot tell anyone what the right theme or time to start a business is. But generally the best entrepreneurs or those that are experts in a certain field, and find a new or cheaper way to sell a product or service. If you are educated, and have money saved, you will find the right opportunity to pursue. And remember, luck is when you are prepared and you get an opportunity.
