The key to profitability? Know your numbers!
That applies to business as much as to personal spending. In fact, as a solo-preneur, your personal spending and all costs related to you as an individual (things that are not business related) are going to be a pretty large indirect cost for your business in the form of your salary. That’s why you need to know what your personal spending looks like and where your money goes. Check out my other blog post about the cost of doing business.
How much do you spend on the following items on a monthly or yearly basis? I strongly encourage you to take some time and do this exercise.
Food - Clothing - Utilities - Transportation - Vacation - Leisure - Home - Insurance - Etc
I track my personal expenses through this app I’ve been using for years and it works great for me. You can easily customize the categories that are relevant to you and track your expenses by recording each transaction and mapping it into the correct category.
This is extremely useful because it is so easy to just spend money and don’t have a clear idea of where the money went at the end of the month or year. Certain expenses are easier to track because they are fixed, such as rent, insurance, utilities. Others are a lot more variable and those are the really tricky ones, they can add up to a lot of money and that’s why it’s key to keep track of them.
Make it a habit to record your transactions so you know where your money goes and you can make changes to specific areas of your life, if necessity arises. Such a practice is extremely important for photographers and creative entrepreneurs who might have a very unstable revenue stream and need to quickly adapt to changes in order to make it through the rough patches.
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Thank You and Happy Shooting!