After coming up with the idea, the next step in starting your business should be to write a business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

Related: How to write a business plan

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for a photography business name

A business structure (also referred to as a business entity) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of structure has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business structure is best for a photography business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay. The corporation can be a good choice because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC
 

A photographer who plans to lease a studio space will need to account for monthly lease fees. The cost of a lease will depend on a studio’s location and size. Studios in retail locations that see heavy traffic may bring higher lease costs, but they may be worth this extra investment in terms of the public awareness and walk-in traffic they can generate. When considering a studio space, you can calculate how many customers it will take to break even to see if the investment is worth it.

Many photographers shoot at picturesque locations or have a studio in their home. If running a studio from your home, be sure to look at neighborhood covenants and city ordinances to make sure you can legally operate.

Related: Choosing a business location

There aren’t specific licenses for photography businesses; however, some common local, state, and federal registrations most businesses need include a sales tax permit, Employer Identification Number (EIN), and Occupancy Permit, and others.

Unfortunately, protecting the copyright of photos is becoming even more challenging, and photographers will often face the situation of having people screenshot and use their work illegally. Having a lawyer who you can reach out to at these times can be helpful. Customer’s printing copies of photographers’ work has been a constant struggle and, as a result, impacts these businesses’ income. This is copyright infringement, and for most operators, it’s often cost-prohibitive to go after customers who are using this work without permission. Legislation has been introduced over the years but hasn’t fixed the situation.

Related: Common business licenses, permits, and registrations by state

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a photography business is another. Fortunately, the cost to start a photography business is relatively small, but seeking funding for studio renovations, furniture, and equipment can be difficult due to a lack of collateral. In order to get a loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards the total start-up costs.

Related: Finding the money to start a business

Keeping your business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

All photography businesses need to have an active marketing presence. Marketing budgets will vary according to how much marketing a photographer can do themselves, as well as the type and volume of marketing efforts. Common marketing techniques for photographers include marketing on social media, paid advertising, e-newsletters, handing out business cards, and more. Word-of-mouth testimonials and referrals from happy clients will be an effective marketing channel once the business is up and going.

Part of your marketing will be building a portfolio of your work. Make sure potential customers can easily find your work by putting your pictures on your website, Facebook, Instagram, and Pinterest.

The biggest competitor to professional photographers is the cell phone, so it’s important to have a niche in your area and be known for that type of photography.

Related: Low-cost ideas to market a new business

There are several types of small business insurance to consider when starting a photography business. A few of these include:
– General liability insurance protects a photographer if a customer is ever injured during a shoot or while at the studio.
– Equipment insurance is necessary to cover damage or loss of photography equipment like lenses, camera bodies, and equipment, especially since that loss can affect a photographer’s ability to do business.
– Commercial auto insurance is necessary if a photographer’s personal auto insurance doesn’t cover accidents or damage incurred in a vehicle used for business purposes.

The cost of insurance policies varies depending on the value of equipment and the studio being insured. Different insurance companies may offer policies at different costs. To get the most accurate idea of what insurance will cost, request quotes from several companies. Then, compare factors like the policy premium, deductible, coverage exclusions, and coverage limits.

Related: What types of insurance does a photography business need?

Most photographers operate without hiring employees, but in some cases, a larger photography business may benefit from hiring staff. For an occasional second shooter or help at only certain events, photographers may hire independent contractors. For regular work, it may be necessary to hire a second full-time photographer to help with shoots and editing.

According to PayScale, entry-level photographers earn about $13.20 per hour. Photographers with 5 to 9 years of experience earn about $19.36 per hour, while photographers with between 10 and 19 years of experience earn about $20.15 per hour.

In addition to budgeting for employee salaries, a business that hires full-time employees will need to budget for expenses like paid time off, health insurance contributions, unemployment insurance contributions, and workers comp insurance.

Related: Hiring your first employee

Setting up an accounting system is critical to the long-term success of your business.

Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up the accounting for your business