(Remember, my business is in Iowa, so this may not apply to where you are located but I am sure something similar might.)

I recently got a “Notice of Assessment”. This official and scary document was charging me a few hundred dollars in taxes.

In the section of the letter called “What should you do” they gave me some options of actions I could take.  None of them looked good or correct to me!

I checked the date. It occurred to me that what if I simply forgot to file that month? No option for “make sure you filed that month” was given in the scary letter. But I checked and that is exactly what happened. I forgot to file.

When I called the Department of Revenue to make sure that by filing for that month I was caught up and did not have to pay the assessment tax and penalty I was told that I was correct. I asked why the option of simply making sure that I filed was not listed on the “what you should do list”. She joked (but I think she meant it) “that is because they are hoping you will pay anyway”.

I also double checked with my accountant. He confirmed that I was okay and he told me a client he had once was incorrectly charged thousands and they just paid it before checking. They had a hard time getting this money back.

Every experience I have ever had in calling for help, have proved that the people are very nice and helpful. But the bottom line of my advice is: read these letters carefully and get help before you panic and pay them. And…get a good accountant.

The photography business is similar to other industries in regard to business operating procedures. You must market, promote, and advertise your services.

You make sales, record your transactions, pay sales tax, pay income tax, pay overhead, be properly insured, train and pay staff, pay yourself, and other expenses.

What makes the photography business different, besides the fun factor, from other industries is that there is no licensing, no unions, and no special regulations. Doctors, hair stylists, and teachers, for example, have to be licensed, photographers do not.

At the bare minimum you do need a sales tax permit and a business trade name registered. But in general there are no other regulations to become a photographer. Be sure to check your local zoning laws.

I would also encourage you to research proper insurance for the type of work you do, the equipment you have, and for the location your rent or own.

Although there are terrific photography colleges, many photographers in business do not have a photography, art, or business degree. This is not a requirement but having the proper credentials will support your expert status.

If you are new to the photography business, my free report- Making Photography More Than a Hobby: Planning for Success Before You Take the Leap is a great place to start. There are many things for you to consider and do before you open your doors to customers.

It depends on your perspective if you think licensing photographers is a good idea or not. It is very easy to saturate the market with photographers when there is no licensing or testing required. Many full time professional photographers making their entire livelihood on providing photography services are feeling the pinch of the number of photographers that came onto the scene especially as digital photography was developed.

A great thing about the business of photography is how flexible the business model can be. You may choose to work strictly on location, have a studio in your home (if zoning laws permit), set up a retail location, or do a combination. You can even change from one form to another as your budget, personal preference, and customer base grows.

I like the flexibility of operating my studio the hours I please. Not all industries, like retail stores, have this luxury.

If you like change, the photography business is ever changing. In addition to improvements in technology, each photography assignment is different.

A photographer wanting to create a successful business should learn as much about business as possible. You can create pretty pictures all day long but if you can not write a business plan, market your services, or manage your money you will not stay in business for long.

Use accounting software and create a budget or spending plan. It is quite easy to go overboard on purchasing props, backgrounds, and other fun stuff. Be careful to know how much you can afford your overhead and other expenses to be. You will also want an accountant you can rely on at tax time even if you learn to handle monthly and quarterly tax filings.

As a professional photographer you would also make sure that all of the products and services you use are of the best quality.

Buy the best equipment you can afford and learn how to use the manual settings for professional results. A serious photographer creates images using depth of field and shutter speed in addition to seeing and recording light accurately.

Use quality vendors to produce your products. I would insist that you use a professional color lab for the printing of your images. Do not print images on your own printer or go to a cheap big box store for printing and call yourself a professional. Printing lasting images with the correct color profiles is a huge part of the process.

Use a real digital artist not a computer program for your retouching and enhancements. A good digital artist knows where to stop for a natural look. Most clients do not want to be over retouched like a fashion model.

You can increase your sales by offering quality framing and matting services. You already have the customer in your studio, so these additional sales are not going to cost you any more money in marketing. My Photographer’s Complete Framing Guide will show you how, if you are interested in getting started in a matter of weeks, for less than a hundred dollars in tools and supplies.

I would also suggest evaluating how you spend your time. It is easy to waste time or spend too much time on tasks like e-mail or Facebook for example. Track your time and see where it goes. Find out how much time you spend on everything from being on the phone, to cleaning your restroom, to how long you chat when a customer picks up their order.

Find out what are the most profitable jobs in the studio you do yourself. You will find that you make the most money when you are photographing, selling, or marketing. This is where your time is best spent. For the other jobs like cleaning, order assembly, making back ups, and other routine activities consider hiring or contracting someone at an hourly rate. With someone handling the minimum wage activities you can work on generating more income with active income producing activities.

Don’t assume you are getting the most out of your product offerings. Test your packages, sessions, and other products you offer for maximum profitability.

One example from my portrait studio is the difference in the final sales results from the orders I have gotten from my “Deluxe” vs. my “Elite” sessions. I found that the “Elite” session, that is twice the price, takes three times longer, and has some material costs does not produce any larger of a portrait sale than the “Deluxe” session. I thought I was doing great, until I tested this and found that it was not more profitable.

I also tested some different collage products. I showed different sizes, styles, and a different number of photographs in each one. I was surprised to find that people were willing to spend more on one product than others. So I was able to simplify and eliminate some of the not so profitable ones.

When you pay attention to the business of photography you can remain a photographer with a business.

© 2012 Barb Gordon Photo Coach

Jim, an excellent photographer, is very knowledgeable about dogs as well as photography. I am working on my questions for him as I have a lot of them.

What about you? Send me your questions for Jim about photographing dogs, cats, and birds and join us on February 20!

Learn more and sign up here. You can also read more in today’s e-zine in the teleseminars and events section below.

Remember, even if you can not be on the call live, sign up anyway. A recording will be made available to those who sign up!

I couldn’t find my small white baby fabrics and wondered out loud if I sold them at my yard sale. Then I was looking for ribbon, couldn’t find it. Talking to myself again, I figured I sold that also. Then it was a lamp. You know little kids, they pick up on everything. “Did you sell that at your yard sale too?”

Soon the ten year old asked if someone used to live in the studio, as it is an old Victorian home. “Yes, a long time ago it was a home for a family.”

“Finally! Something you haven’t sold!” I had to burst out laughing as the building actually is for sale.

The portrait I set up was this little girl drawing and painting. Mom and Dad had her do a few art pieces ahead of time so we had a more interesting, decorated scene rather than a lot of white paper.

One of her watercolors was most interesting to me so I took a photograph of it too. I just set it flat on the floor, and shot with my same light set up so it took only a matter of seconds.

During the photo session I took other photographs without the full scene to mix it up and hopefully sell other poses. One was perfect. I dropped out the background in Photoshop and replaced it with the girl’s own artwork. The result was pretty fun!

Do not discount or renegotiate your prices when pressured.

Study your business. Know all of your expenses, overhead, and goals. With accurate information you will be able to arrive at prices you know are correct for your studio. You do not have to justify your prices to your customers but you will have confidence behind the numbers and will less likely to feel pressured.

Selling is a numbers game. Ask any good marketing person and you will learn that a postcard mailing, for example, has a typical response rate of three percent. By tracking each step of your process and looking at the results, you can develop a formula for success. You might also find that 20% of your clients account for 80% of your income, so spoil those clients and keep them!

Write a sales script. One way to overcome your own hang ups or programs about money and sales is to write out scripts that are the message you really need to say. We all get ideas, or programs, about money and sales as we grow up. If your parents had issues, you may carry those issues on or behave in the extreme opposite. Well, these programs that might say “that art is too expensive,” “you are not worth it,” or “you can not afford it” need reprogrammed. Writing a sales script is a good way to prepare yourself for discussions about money and prices.

I found once I wrote out responses, or scripts, to difficult questions or unreasonable requests, the questions and requests stopped coming.

Practice with clients you are more comfortable with. If something is scary, who wants to start with strangers?

This is a great strategy I use when I am making any kind of change. For example, when I wanted to start having clients sign an agreement that they had place an order and will pay for it, I simply said to them, “thank you, I know you would not break this contract, but it helps me practice and build my confidence for when I have someone new that I am unsure of here.” There is no reason you can’t say this to everyone indefinitely either, no one will know who is who.

Remain calm. It is easy to get emotional whether it is excited or scared. Keep your cool and act as if you get huge orders every day. Stay optimistic as your thoughts and body language can give you away and influence the outcome of the sale.

Set a sales goal and assume you will make it. Again, your assumptions can influence the outcome. If you remain optimistic you will do much better than starting out negative and with no idea what the sale should be.

If you are anything like me, it is easy to be overwhelmed. You want to do it all and you want to do it well. The advice I go back to again and again is to start with one. Pick the most important step that will make the most positive difference the fasted and start with that. As time allows, go to the next.

This is the most complete album line ever created by a photo lab. You can see more at http://www.acilab.com/products/press/riveli-albums/

The Premier line is from Italy. I asked him if he went to Italy to search and buy albums. “No, I brought them here!” he said. He even has a special machine, the only one in the US that makes album covers.

Mark said that in Europe people have beautiful albums for much more than weddings.

I loved the cases that come with the albums I saw in the catalog. (Pictured here.)

I have been invited to visit the lab and learn more on Valentine’s Day. So I will get to see all of the albums, the machine, and the materials. I will have much more to share with you then!

Oh, and I suppose we will work on the content for the upcoming free teleseminar also.

Find ways to not to let your preferences or assumptions get in the way. Here are a few ideas to consider.

Be aware that everyone has their own money personality. Do not assume other people respond like you do. Some people are driven to hold onto money for security. Some people are spenders, some are savers. Others are risk takers and some do not really think about money at all. (A great book: First Comes Love Then Comes Money http://www.amazon.com/First-Comes-Love-Then-Money/dp/0061649910 )

Don’t take it personal. When you work for yourself, especially if it is for the first time, it is a personal undertaking. I was fortunate to work for many retail companies and photography studios before I started my own business. Working for a successful studio with substantial pricing helped desensitize me to pricing sensitivities. It helped me see those prices as normal, correct, and valid. When I started my own studio the prices felt right, I did not have to get comfortable with them. Try and take yourself out of the numbers.

Do not assume what someone is willing to spend. If someone really appreciates your work they might even save up or use a credit card to be able to use your services. A family that is losing a member or has lost a member may be more willing to invest in portraits than a family that has never considered a tragedy striking.

Do not assume what someone is able to spend. Have you been ignored in a fancy store if you are dressed down? I sure have. You are not alone if you have ever misjudged someone’s ability to spend money. Sometimes the most unlikely person will surprise you with a substantial order. Have you ever read the book The Millionaire Next Door? The insight it provides about who people with money really are is good business information.

Remember that not all people are going to be good clients. Sure we believe that everyone needs a family portrait but we certainly do not want to deal with all people and the headaches they bring. It is okay to pre-quality customers to find the right ones for you.

Next week we will discuss some action steps you can take.

“By ‘poverty consciousness’ I mean the set of attitudes and beliefs and feelings and values associated with material lack or fear of material lack. Poverty consciousness equals a belief in limitation, and almost always includes fear.

Poverty consciousness is not directly related to the amount of money you have. Rather, it’s the relationship to that money or to material possessions. If you worry about not having enough money, you’re in poverty consciousness. If you believe there is not enough for everyone in the world, you operate from poverty consciousness.

You can live in conditions of poverty without necessarily living in poverty consciousness, which is a state of mind and heart. The amount of money or other material possessions is a matter of fact. Your relationship to that amount is a matter of thoughts and feelings.”

Your attitude and your staff’s attitude about money will affect your sales. If you are uncomfortable with the prices you charge or don’t feel worthy, you will not be able to charge what you are truly worth.

I have been in many situations where people put their poverty consciousness onto me and it is a big turn off. I have been ready and willing to spend money on something important to me only to have the salesperson say something like, “oh, that one is so much, maybe you would prefer this one.” Talking themselves right out of a sale.

As a photographer, you will be selling your photographs. You must find ways to not to let your preferences or assumptions get in the way. We will talk about that next week.

(Credit information for the above quoted paragraphs: © 1995, 2007 Marshall House, http://www.mhmail.com. Jeanie Marshall, a Personal Development Coach specializing in deep transformation and personal success, writes extensively on subjects related to personal development and empowerment. She assists professional coaches and consultants to write their knowledge, wisdom, and experiences.)

Whether it is a script as an answer to a question I usually didn’t handle very well or a script for setting up expectations of a client, they serve me well. Whether it is a one sentence answer to a series of fact finding questions, I have become more efficient and profitable.

More importantly as the title suggests, I feel in control of my business. Join us!