A large part of being a successful photographer lies in understanding the difference between profit-generating and profit-leeching activities. Minimizing activities that aren’t adding to your profit will allow you to spend more time on activities that are helping your bottom line. Sounds like a simple equation, right? It is. But in the day-to-day busy-ness of running your business, it’s easy to get sidetracked by tasks that not only drain your energy, but also drain your bottom line.
Set up your business so that you have time for profit-generating activities
Shooting, building relationships and managing your business from a high level perspective to keep on track with your goals are all profit-generators. (Plus, shooting is why you got into business in the first place!) Ideally, you want to set up your business systems so that you can devote the majority of your time to these areas.
Activities that are necessary but aren’t helping your bottom line include editing, bookkeeping, album design, studio management and slogging through emails. Although these tasks are all necessary, they’re not directly generating profit for you. Recognizing the tasks that aren’t directly profitable is important so that you can find ways to manage these profit-leeching activities as efficiently as possible. That way, you can get back to making money and stay focused on reaching your business goals.
Tip: Look at the ratio of how your time is spent—are profit-leeching activities taking up a majority of your work hours?
Measure the opportunity cost of doing profit-leeching activities yourself
If you’re considering partnering with a specialist, you should measure the opportunity cost of doing everything yourself versus outsourcing.
Whether it’s marketing for print orders and image fulfillment, album design, or editing, there are numerous areas you should consider the opportunity cost of doing yourself. For instance, the photo editing services that ShootDotEdit provides photographers includes the UNLIMITED PLAN that costs $299 per month. The cost for a year of the UNLIMITED PLAN is less than or equal to the profit of a single wedding shoot for many photographers. Editing eats up hours of your precious time over the course of an entire year. By investing in the UNLIMITED PLAN each month, you can do additional shoots in all the hours that are freed up. These profit-generating activities will easily cover $299 per month (and likely allow you generate much more in profit than this monthly cost). In this instance, the opportunity cost for you to do all of your own editing is far greater than the cost of the monthly plan.
Manage your profit-leechers with partner solutions
So, what’s the most efficient way to manage the areas of your business that aren’t adding to your bottom line? Partner with someone who can do these tasks more efficiently than you can. By allocating business funds toward partner solutions, you’ll free up your time to shoot more and earn more!
Partner solutions for accounting, album design, post production and print fulfillment can be key to growing your business. Use systems that fit naturally with how you already operate your business. Finding specialists for areas of your business that aren’t efficient will allow you to focus on what you do best—shooting and relationships. Specialists are experts in their respective areas and because of that, they can do that task fast AND do a great job. Learn more about how to implement Specialists into your business in our Free Guide on How to Grow Your Wedding Photography Business.