The term expenses is something small business hear a lot of. We are constantly trying to reduce our expenses and raise profits. The problem with this is that some expenses, actually end up making you money in the end. Instead of looking at it as expenses, I want you to start focusing on it being an investment. Hopefully, by the end of this article, you'll understand that sometimes the saying;
you gotta spend money to
make money holds a lot of truth
My brother is one of those guys who's fascinated by numbers, especially the ones in the stock market. We chatted for a few minutes, and I told him that I wish I could wrap my head around investing, and the stock market, because I think it's something I would actually be pretty good at.
He asked me one simple question, and it completely opened up a new way I look at my business;
How much are you currently getting as a return from investing into your business?
I stopped for a second and thought about that. I usually get about a $3+ return on my investments. I know this because I invest into my business daily and measure my return on it.
Sidenote: If you don't know how to invest or how to measure your return I'll explain that below!
He stopped me right then and there and told me I was silly if I bothered with the stock market and that with my type of return I should simply continue investing into my own business.
After we had that talk, I realized that although it's not the stock market, it's my business, which is a million times better than any stock I can put my money in.
This little piece of advice has stuck with me, and I hope that for those who are reading this, you too can see that investing into your own business is the best way to go.
Now that we talked about that, some of you might be wondering, how the heck is a small business supposed to invest into itself?
Here are some examples for you:
PURCHASING A NEW LENS
I love giving this example because lenses are pricey, and all too often photographers wait a long time to get their dream lens. I waited years to purchase a good macro lens for my newborn sessions. There was something special missing from my newborn galleries, those tiny little details I wanted to document for parents. I couldn't do that with the 50mm I had. I eventually purchased that lens, and it has allowed me to create more beautiful galleries for my clients. Those detail shots are something every parent adores, and it has landed me more bookings than any other lens I have.
Same goes for my fisheye. Having a fisheye to use at the beach is something I love, and it has landed me so many new clients who want those extra wide shorts with the dreamy sunset. It has made it possible for me to create different types of portraits in my client's gallery and they love it.
Yes, a new lens is expensive, but look at it like an investment. You getting that lens might mean you'll be able to book more sessions!
It's no secret that I love using FB ads to market my businesses. I have used it for my sessions, my workshops, my products, literally everything you could think of. I can put money into advertising and then track my return from it over time. There are hundreds of different ways you can advertise your business services and products.
Yes, putting money on advertising can get costly, but what if you managed to get a $3 return for every dollar you spent? You could be making thousands a month with the right advertising!
SIGNING UP FOR MY PHOTOGRAPHY BUSINESS SUCCESS CLASS
I'm going to throw this example in for fun, no pressure to actually sign up unless you really want to. You can take the plunge and sign up for my class for $37 a month. By taking my class you'll learn how to price yourself accordingly, how to attract the right clients, you'll have me as your personal business coach guiding you along the way to make sure that you build a vision for your business and a plan to get there. I'll go as far as guaranteeing that by following my business strategies, you'll make your money back over and over again. By booking one single session, it will pay for the class. Think about it, what do you have to lose? What if you took this class and were able to build a successful business that was booking clients within a few months of putting in the hard work? What if this class showed you how to build a six-figure business? That $37 investment on day one, would have been the best decision you made for your business.
Investing into education can be expensive, but what if you learned valuable information in this class and in the end had a solid plan on reaching your personal goals?
Now many people get confused on how to calculate their ROI, it can be confusing especially with a service. If you're a photographer I recommend advertising a specific type session and tracking how many of those sessions you end up booking per month. If you are selling a product, then it's a little easier, all you have to do is promote a specific type of product, and then track how many items you sold.
HOW TO CALCULATE YOUR ROI
ROI = Return On Investment
Super easy. Figure out how much you are spending, and then calculate how much you made, or sold from a certain type of session or product that you were promoting. Decide what you made by what you spend. If you are selling a product
To give you an example let's pretend you put $500 into marketing your newborn sessions (this would inclusive whatever advertising you choose to do + expenses that it cost you to set everything up)
You had five people book newborn sessions with you at $500 per session.
You Invested $500 and made $2500.
ROI = $5 for every $1 you spend.
Let's think big here and pretend like this will be your return on ALL advertising you spend money on. Look at the numbers below to see the unlimited possibilities!
If you spend $500, you'll make $2500
If you spend $1000, you'll make $5000
If you spend $5000, you'll make $25,000
And so on...
You can see how investing into your own business is the best decision for you in the long run because it will end up making you more money as long as you invest it wisely!
Turning dreams into reality is my specialty! I teach photographers and creatives how to build their dream business. With strategies they can implement right away to build a striving business that has an income they can count on! This class is for photographers who are truly ready to build the business of their dreams and learn the important steps in developing a strong business, brand, and client base. When I first start my photography business I had to learn a lot of important things by trial and error. After years of building a business of my own I'm excited to share all my business knowledge with those of you that are ready to build something you are truly proud of. Something that will make you independently strong as a person and as a business owner. If you have a dream and are willing to work hard at it then you'll absolutely love this class -- It will completely pay for itself over and over again after implementing my business plan and strategies!