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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on October 15, 2021
Investment range
$9,100 - $15,800
Revenue potential
$78,000 - $156,000 p.a.
Time to build
0 - 3 months
Profit potential
$50,000 - $100,000 p.a.
Industry trend
Growing
Commitment
Flexible
When starting your photography business, keep these essential aspects in mind:
Starting a photography business requires time and effort. You need to fully understand what’s involved before you decide if it’s right for you.
The pandemic set back the industry significantly in 2020, particularly wedding and event photography, but as the pandemic recedes, the market for photography services is expected to recover.
Overall, the industry is very sensitive to economic fluctuations because when consumers have less disposable income, they spend less on photography services.
Trends in the photography industry include:
Challenges in the photography industry include:
The start-up costs for a photography business can range from $9,100 to $15,800. Equipment and a website are the largest investments. If you’d like to brush up on your skills, there are many free and paid photography courses online, from beginning to expert.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $200 - $200 | $200 |
| Licenses and permits | $200 - $300 | $250 |
| Insurance | $100 - $500 | $300 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Initial marketing budget | $200 - $500 | $350 |
| Cameras | $3,000 - $4,000 | $3,500 |
| Lenses and flashes | $2,700 - $4,000 | $3,350 |
| Computer and other equipment | $1,500 - $3,000 | $2,250 |
| Total | $9,100 - $15,800 | $12,450 |
Your profit will vary depending on:
Photographers charge from $100 to $250 per hour, plus about $50 for each final edited print. Based on the low end when you’re just starting out, we’ll use a benchmark of $150 per hour of work including prints. Your profit margin should be about 65%.
When you launch, if you can work 10 hours per week, your annual revenue will be $78,000 and profit will be about $50,000, assuming that 65% margin. As your brand gains recognition, you could work 20 hours per week, taking in $156,000 in annual revenue and a tidy profit of about $100,000.
There are very few barriers to entry for a photography business. Your biggest challenges will be:
Now that you know what is involved in starting a photography business, it’s a good idea to hone your concept in order to be able to enter a new market with tough competition.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Since you will have no track record in the business, you’ll need to find a way to stand out from the competition.
Look for an opportunity in the market where there may be a gap and try to specialize in that niche at first so that you can start to build a portfolio.
For example, there may be a large number of wedding photographers but not very many fashion photographers. If you market yourself to people in the local fashion industry, you can start to build a body of work.
Your website will need to have extensive photos of your work.
Make a list of all the types of photography that you could do based on the opportunities that you see in the market. Determine which types you would like to do, or if you want to specialize only in one type. Be sure to list all of your services on your website.
Some types of photography tend to be more popular and potentially more profitable as business ventures:
When you are just starting out, you may have to charge a lower rate until you have a track record. Average prices range from $100 to $250 per hour, plus $25 to $100 per final edited print. You will need to make a name for yourself and show your experience and success to command a price that is at the higher end of the range.
Research other photography services in your area to determine what prices are in your local market. Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will depend on what you choose to specialize in and offer. Determine where you should market to reach that target. For example, if you plan to be a wedding photographer, you can market to wedding planners.
After you get started, word of mouth referrals will be your biggest source of business.
In the early stages of your business development, you can operate your business from home to help you keep your overhead expenses in check. But as your business grows you may hire workers and decide to rent out an office.
You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to photography.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your photography business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a photography business. You might also try crowdfunding if you have an innovative concept.
Starting a photography business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your photography business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software such as Photo Workflow, ShootQ, and Sprout Studio to book sessions, manage and send large photos to clients, send digital contracts, and more.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your photos meet their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your photo business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a photography business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in a photography studio for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in photography. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
You may not need to hire any employees if you are starting out small from a home-based office. However, as your business grows, you may need to recruit full-time employees for various job roles. The potential employees for a photography business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Congratulations! You’ve now accumulated all the business knowledge you need, it’s time to get out there and start shooting your way to photographic success.
A photography career might seem glamorous, but it requires a lot of hard work and patience. To capture the essence of your photographic subject and take the best shot, you’ll have to do more than aim and shoot. It’s wise to hold a pre-photo session and make your subject comfortable first. If you’re covering an event, you’ll have to research the event beforehand, get up close and personal with the participants, and set up your gear for the action shots.
Unless you already have all the equipment you need, you are going to need some money. You may be able to get financing of some kind, or you could buy second-hand equipment to save on costs. You can also do free marketing on social media.
A photography business can be very profitable. You could make a profit of $38,700 to $117,200 just by yourself. If you grow your business and hire employees, you could potentially earn more.
Licenses required will depend on your state and local requirements. Check their websites to see what you need. There are generally no specific licenses related to a photography business, but you may need general business licenses.
Create a professional website showcasing your portfolio and services. Use social media platforms to share your work, engage with potential clients, and leverage photography-related hashtags to expand your reach. Identify a specific photography style or niche that sets you apart from competitors. This can help you target a specific audience and establish yourself as an expert in that area.
Popular genres include wedding photography, portrait photography, commercial photography, and lifestyle photography. It’s important to research and understand the needs and preferences of your target market to identify the most in-demand photography services in your area.
Making a living as a photographer is possible, but it requires dedication, skill, and effective business management. Success in the photography industry often comes from a combination of factors such as talent, marketing, client relationships, and adaptability.
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