Do you Draw a Regular Salary?
The majority of photographers I meet, do not enjoy a regular pay check; instead they hope there will be enough money left at the end of the month to provide their families with a reasonable standard of living. That causes additional stress on everyone. Right!
As a matter of fact, many have to rely on their spouse to make ends meet.
Is this your situation?
- How can you ever insure financial security?
- Would you like to learn the recipe to calculate a salary in line with your desired lifestyle?
All is based on planning and this message will show you exactly how to provide, you and your family, a secured future while helping you enjoy your passion without the stress of running out of resources.
1st step:
Determine the salary you wish to have: 50,000.$/€, 60,000.$/€, 75000 $/€. Doesn’t matter, you need a target number to be able to visualize and better yet, reach it. Do not base this number on your actual salary if you are not happy with it. You have to take into account your basic needs plus additional savings for a good retirement fund.
This requires a personal budget and business budget for your studio. If you do not have any of these documents or don’t know where to start, call on your accountant or a business coach.
The studio budget must include all salaries plus the employers’ deductions. This will then provide you with the total cost of having employees. If you are a registered or sole proprietor studio, it does not matter; do your calculation the same way.
Once the budgets done, you’ll be to know exactly what are your personal and business needs. Hence, your target salary will be more present in your mind.
2nd step:
Calculate the fringe benefits, all social charges for all employees including yourself. Ask your accountant to give you these numbers (%) if they are unknown to you. Add them to the net salary. This will give you the total cost dedicated to salaries
3rd step:
Calculate the % of what salaries are of your total sales.
Formula : Salaries x 100 / total sales = % of total sales
Example : Salaries : 75000$/€ x 100 = 7500000 / 250000$/€ = 30%
In my PhotoCoach System, I teach my clients to aim for an average of 35 – 40% of your total sales dedicated to salaries. However, this may vary according to your gross profit margin and administration expenses. The gross profit margin should be around 80%. If not, a more in-depth analysis must be done to reach that level.
4th step:
Create a bimonthly pay schedule over the entire year et proceed writing checks each two weeks just like you do for your employees. Double check your numbers with your accountant.
In committing yourself to such a process, you’ll have the obligation of meeting those payments and it should act as a good motivational boost to use a planned marketing strategy to generate regular business and not just respond to the demand.
I know, it worked for me!
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