As a photographer and for many other creatives, managing money can be one of the most daunting aspects of running a business. Take control with these 3 simple steps!
Cash flow is one of the most important aspects to budget for as a creative business owner. As a photographer, and for many other creatives, it can mean the rise and fall of your business. It’s time to take control and set up your budget with these 3 simple steps, so you can save money while managing cash flow effectively!
The popular proverb, “If you fail to plan, you’re planning to fail,” is true with one exception: freelancers and creators who are paid irregularly. The question is: how do you overcome this obstacle and set goals for your income ambitions?
You will never grow or exceed your current level of success if you don’t have goals. And budgeting is the first step to reaching those goals because it forces you to examine exactly what has been happening with your money and how much more value are you getting by spending that extra pound/dollar on a latte.
Once I learnt goals and planning were a core element in the journey to financial mastery, I set out to read every book I could on finance, goal setting, and the psychology of money. Why? Because I love my business and I don’t want it to fail because of cash flow, and I don’t want other creatives to go through the same issues either.
Planning for the future is an essential part of life. It helps us be more successful when we take steps to plan ahead and create a budget. So what often leads people to not do this with their finances?
Let’s be honest: it can be boring, complicated, and sometimes we don’t want to face the truth about our financial situation…
You should start your first budget with a simple tool, as you’ll overwhelm yourself by using a complicated one. It will be far too hard to keep it up, and you’ve already got a lot on your plate as a business owner.
Using a simple, free budget template like the one I created here is recommended (which is basically like an online version of the paper-and-pencil type). While there are a number of great options out there, many of them can become too complicated and the more confused you are about the tool you’re using, the less likely you’ll keep up with your budget.
Don’t let this happen to you. Instead, stick to simple tools (especially when you’re just starting out), and stick to a monthly or weekly routine.
Have you read Profit First? I’d highly recommend it. The key takeaways are to change your thinking from
“Sales – Expenses = Profits” to “Sales – Profit = Expenses.”
Here are the steps I recommend you take to start saving:
“Profit must happen now and always. Profit must be baked into your business. Every day, every transaction, every moment. Profit is not an event. Profit is a habit.”Mike Michalowicz
Cut your expenses and don’t add to them when you have a great month or quarter (which means don’t go buying new equipment if you don’t need it!). I’d buy equipment if I can foresee the same job happening more than once and only then would I weigh up the cost of hiring versus buying.
Following a 70/30 rule will also guide you when dividing up your income and budget. I’ve found that this budgeting technique is the best because it’s so simple and effective for businesses with variable incomes, such as photographers who don’t know what their next job will be or how much they’ll make from it.
The 70/30 rule means you put away 30% of your income into savings and after you’ve paid the tax, learn to live on 70 per cent of your after-tax income.
Once you’ve done this, it’s important to look at how you allocate your remaining 30 percent. Let’s allocate it in the following ways:
Charity can be hard to stomach when you’re struggling and I by no means insist this is something you should do if you are indeed in financial difficulties. Firstly, help yourself and then you’re better equipped to serve others.
Charity comes in all forms, and these little acts of kindness have been documented to help with your wellbeing. Those who have spent money on someone else have reported happier moods than those who’ve spent money on themselves.
“Thinking about money may propel individuals toward using their financial resources to benefit themselves, but spending money on others can provide a more effective route in increasing one’s own happiness.”2 Elizabeth W. Dunn, Lara B. Akin, Michael I. Norton (2014). Prosocial Spending and Happiness: Using Money to Benefit Others Pays Off. Current Directions in Psychological Science 2014 23:41.
This means, where and when you can, treating a loved one, a friend or a stranger will promote wellbeing two times over. I’d say that is a win-win.
With the next 10 percent of your after-tax income, you will make money. You can buy or fix or sell things, but the important thing is to do something with the money, even if it’s only a part-time job. There are many ways to make money.
Imagine what you can do. Think about the skills you have in your job or other things you like to do. You might be able to turn these into a business. For example, if you want to buy something for a lower price and sell it for more, this might be an innovative idea for your business. And then the other option is investing in the stock market, which is one of my favourites. It doesn’t have to be loads, £25, £50 or £100 a month is a great place to start.
Use this 10 percent to purchase your equipment, products or equity—and get started. There is no telling what genius is inside you waiting to be awakened by the spark of opportunity.
Check out the investment apps I like to use:
Who do you want to be?
Where you want to go?
The last 10 percent should be put in savings. I consider this to be one of the most exciting parts of your wealth plan because it can offer you peace of mind by preparing you for the “winters” of life.
“Poor people spend their money and save what’s left. Rich people save their money and spend what’s left.”Jim Rohn’s
With saving and investing it’s the long game: put the money in and act like it doesn’t exist.
Once a year I check on my savings and once a month on my investments (depending on how volatile the market is). But I’m in it until I’m 60 and that’s how you have to think about it.
Twenty years ago, two people had each earned £1,000 a month. They earned the same amount every year. One person spent money and saved what they had left. The other person saved first and spent what was left.
Today, if you knew both people, you would call one poor and the other wealthy.
Give, invest or save like any discipline. The results are only seen at the end of the day, week, month, or year. They are not noticeable. But if you wait 5 years–the difference will be big. Wait 10 years and there is a huge difference in your life.
Where I save my money:
Overall you have to look for ways to make more money as well as a way to save the money you have in your business to keep it profitable when times get hard (and they do get very hard). Here are my final top tips to flourish and thrive as a creative business owner.
The most important thing you can do as a creative in your business is to save and invest your money. Every pound that goes to work for you, rather than working for someone else is something powerful.
Let’s talk about how we can help make the cash flow more freely so you have time to focus on doing what it is that makes your heart sing!
Book in your content brand shoot, supporting you in showcasing your professional and personal personality.
So, you can engage with clients with passion and confidence, while you promote your product and services.
Guiding, supporting, and serving high achieving creative trailblazing freedom seeking self-employed souls on how to get control over your mindset and personal development, enabling you to work towards your goals and profit from your passions with the "PURPOSEFUL PLAN Coaching Container"
Products and services to support, empower and enable growth for the ambitious freedom-seeking self-employed, business owners and proffesionals. You are not alone, my friend, with years of experience in the visually creative marketing space. As well as, being accredited in the psychological and coaching area, I'm here to walk alongside you and support you on this ever-changing personal and professional life journey!
No time like the present, right! On my new channel, I'll teach techniques to overcome external and internal obstacles, provide tools to grow personally and professionally, and inspire motivation to keep you moving forward while always supporting you on your self-employment journey. COMING SOON
(Undertaking UK Psychologist training BPS)
MAPPCP & EMCC COACHING AWARDED
(Brain Station Training)
You deserve to be happier, healthier, and wealthier.
So, let's get to it!
This is complete guidance at the highest level. First, Jerri opens her Rolodex of industry contacts and shares all her business and personal success secrets. Then, with a single deep dive session, we will work out what is holding you back and lay down a path to guide you towards your goals. These sessions are created for the newbie self-employed, freedom-seeking freelancer or the stuck self-employed veteran who can't seem to get out of their own way.
The package is tailored to provide solutions, answers, and steps so you can progress forward and upwards onto inspired action. Dissolve the self-doubt, limiting beliefs, and procrastination and work on the simple, effective steps that move you towards your dreams, ambitions, and goals.
My tailored 1:1 coaching, and mentoring will support, guide, and nourish your growth while providing practical, solution focus steps to expand personally and beyond.
I've been a freelancer and business owner for the past two decades. My superpower is supporting other self-employed, business owners and professionals in personal and professional development space so that they can STAND OUT and feel confident in this digital environment.
As your coach, I'll be guiding you in portraying your best personal and business vision, so you can flourish, grow, and thrive day to day and beyond.
Let's go on this journey together and discuss where you're now and where you want to be in this highspeed laptop lifestyle.
Book now, or get to know me better, either way, I'm excited to see you soon and watch you grow!
BOOK YOUR SUPPORT SESSION WITH ME!
I understand that feeling of uncertainty when it comes to hiring a coach. But fear not! I'm here for you and happy to answer any remaining questions on our call.
I want you to know you're in safe hands, I've been self-employed since I was 18yrs, so I know what it takes to succeed (I've been at the game longer than most). I'm also a certified coach, with dual masters in Positive Psychology and Coaching. Plus, I hold a variety of qualifications in the personal development space. So, tell me, what do you need? I believe a little guidance or support will go a long way--something small might even help tremendously giving you clarity when planning your next steps. Ensuring your mental and emotional success in your personal and professional life. Most importantly, you'll have the momentum and confidence you need to become unstoppable.
SEND, I'M READY TO START!
I want you to know you're in safe hands because this isn't my first shoot (I've been at the game longer than most). If you feel you need a little guidance or support after you've read the FAQs, then I'm here for you. So feel free to ask me anything before booking your photoshoot.
I understand that feeling of uncertainty when it comes to hiring a photographer. But fear not! I'm here for you and happy to answer any remaining questions on our call.
If you feel you need a little guidance or support after you've read through the FAQs, then I'm here for you. So feel free to ask me anything before booking your photoshoot.
I want you to know you're in safe hands because this isn't my first shoot (I've been at the game longer than most). So tell me, what do you need? I believe a little guidance or support will go a long way--something small might even help tremendously in planning your shoot, which ensures it's successful, creative, productive, and fun!! And most importantly, you feel empowered, authentic and inflow!
DOWNLOAD YOUR BRANDING BROCHURE
Unlock your full potential and achieve personal success with our free guide: "Unleash Your Potential - A Personal Growth Guide." Packed with practical tips and techniques, this guide empowers you to overcome obstacles and create positive habits. Whether you're seeking career growth or personal fulfillment, start your journey towards success today by downloading your free copy.