What did I learn from this weeks assignment? The goal for this weeks class was to work on our financial statement for our business plan. Playing with Excel spreadsheets and plugging in numbers of what we hope to make in the near future. It is an eye opener because it puts numbers on a page and helps me realize how close or far I am from my goals. I know that the type of photography I want to do, weddings, can be very lucrative and it can also go up in smoke. The key to my success is all in the pricing and in my efficiency of time so that I am able to do quick turnarounds. Quick turnarounds lead to more business opportunities which can lead to more earnings. It's a giant domino effect that can lead to some wonderful financial gains. Being aware of my taxes, depreciation and reinvestment in equipment and myself is important to know. Businesses fail when they don't prepare for all of the expenses involved. Granted my business has very little overhead, I still need to pay on the "basics" and keep one my options open to other photo opportunities. Weddings go in seasons and in the slow months I would have to adjust my forecast accordingly to show the changes in business. A financial plan like this allows for strategy and awareness. Having months and years of information can lead to spotting trends and knowing when to ramp up new promotions or prepare for events (senior portraits, Christmas cards, etc)
The financial statement is a flowing piece of information that can easily adapt to changes made and help me be more aware of my goals. I know can't have "cookie cutter" months and I will have to make changes. Knowing that will lead to my success.
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