579: Venus Michael – How to apply profit first to your photography business

PhotoBizX The Ultimate Wedding and Portrait Photography Business Podcast

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Venus Michael of www.profitfirstforphotographers.com and www.one21accountability.com appeared on my radar via good friend of the podcast, John Glaser, who messaged me to say this…

You need to have Venus Michael on the podcast. She is my book keeper and she is a profit first professional and just published the Profit First for Photographers book.

I started doing profit first this year and it has completely changed my business!!!

I am no longer concentrating on the top line of my business but on the bottom line, and with her help and the methodology of profit first has transformed the profitability of my business.

The funny thing is I had a zoom call scheduled with Venus 2 years ago, after I read the original profit first book by Mike Michalowicz, and my accountant at the time talked me out of meeting with her because she said Profit First was a bad idea, but she had no idea what it really meant.

I REALLY wish I would have done that zoom 2 years ago. My business would be in such a different place right now!!!

I can't speak highly enough of Profit First and the fact that there is a version of the book written specifically for photographers is AWESOME!!!

Following that message and the release of her book… Profit First for Photographers — The definitive guide for photographers ready to escape the cycle of entrepreneurial poverty and achieve financial freedom, I had to get Venus for an interview.

In this episode, learn the concept behind profit first, how it applies to you and your photography business and how it will change your approach to money and profits and haw to apply it to your life.

Here's some more of what we covered in the interview:

• Venus wrote “Profit First for Photographers” to guide her clients out of entrepreneurial struggle and towards financial independence using the Profit First method.
• It's time to shift your mindset from treating your business as a side hustle to embracing it as a genuine, thriving enterprise.
• Venus Michael simplifies the Profit First framework for managing business finances effectively.
• Set aside funds for business essentials like taxes, gear, and ongoing education.
• Keep personal and business finances separate by creating dedicated accounts for specific expenses such as taxes, training, and equipment purchases.
• Venus offers strategies to manage such situations if your designated account falls short of a necessary purchase.
• Mastering business finances also involves finding new revenue streams and adapting to financial challenges by analysing percentages and adjusting your budget.
• Maintaining the correct percentages within your operating budget is key to sustainable growth.
• Explore alternative revenue avenues, like hosting events or selling educational resources, to boost your income.
• Venus highlights the importance of multiple income streams to minimise financial risk.
• Plan by saving for specific expenses like holidays or new lenses instead of relying on credit.
• For creative entrepreneurs, managing finances includes regular software audits and setting clear financial goals.
• Understanding your client's goals and desires is essential when helping them save money.
• Venus provides scenarios for guiding clients to save for self-care and relaxation, such as setting aside funds for shopping as a treat.
• Audit your software expenses regularly to avoid overspending, and use debit or credit cards for easier tracking and cancellation of unwanted subscriptions.
• Quickly identify and cancel unused software by reviewing statements from providers.
• The Profit First system advises small business owners to set aside a percentage of revenue for profit before covering personal or business expenses.
• For sole traders, keeping personal and business expenses separate is vital.
• Venus explains profit distribution and investment strategies tailored for small business owners.
• She offers a straightforward approach to calculating owner's pay based on your revenue.
• Emphasising the fun in profit distribution, Venus encourages using a portion of profits for personal enjoyment.
• Venus also advises on smart investing and saving, helping you use profits to achieve personal goals.
• Setting up separate bank accounts and allocating a percentage of income to them makes saving for specific goals easier.
• Clients can see their savings grow, track progress, and stay motivated to reach their financial targets more quickly.
• While creating separate bank accounts for different goals is beneficial, Venus notes that some countries may limit the number of accounts you can open.
• Venus explores budgeting apps and envelope systems specifically for photographers.
• She advises tracking expenses and revenue early on to build strong financial habits and achieve your goals.
• Venus illustrates how even small profit distributions can significantly boost your motivation.

The idea of the book is literally to stop thinking of your business as a side hustle and treat it like an actual business, and to pay yourself. It is very important you pay yourself. – Venus Michael

What’s on Offer for Premium Members

If you’re on the fence about becoming a premium member, join with the $1 trial today and get access to the FULL interviews each week, a fantastic back catalogue of interviews, and have ALL future interviews delivered automatically to your phone or tablet.

Plus, special member-only interviews.

It's better if you start this process when you're smaller, because you build a habit and you think about your goals, then once you start actually making six figures, you're like, ‘Oh, you know, I messed up.’ Or ‘I wish I would have known this earlier.’ ‘I wish I would have taken the call two years ago.’ – Venus Michael

You'll also receive access to the members-only Secret Facebook Group, where you can connect with other Premium Members and interview guests to help, support and motivate you to take ideas you hear in each episode and put them into action. The group also has FB live video tutorials, role-play, and special live interviews. You will not find more friendly, motivated, caring and sharing photographers online.

Seriously, that's not all.

In addition to everything above, you'll get access to instructions on forming or joining a MasterMind Group with other premium members. These groups are super motivating, make you accountable, and build friendships with other pro photographers with motives similar to yours – to build a more successful photography business.

When you are dealing with smaller revenues, you have to be a more precise in your expenses, and you don't have a lot that you can take home, but you may find that once you implement this system, you're taking home more than you did before, because you actually have a system that now you are watching your expenses, and you're paying attention to what's going on, instead of, you know, when your revenue is that low of 50, or it's a side hustle, you kind of get stuck in this trap of going back and forth, and you just keep reinvesting. – Venus Michael

What is your big takeaway?

Following this interview, I’d love to know if you're taking anything from what Venus shared. Is there something you heard that excited or motivated you to the point where you thought, yeah, I'm going to do that! If so, leave your thoughts in the comments below; let me know your takeaways and what you plan to implement in your business based on what you heard in today's episode.

If you're ever sitting there thinking about your business and ‘Would I?’ Should I?’ or ‘Can I afford something?’ That needs to be a trigger of, ‘Do you need an account for that?’ You know, like, ‘Could I get my business to pay for my $10,000 bike?’ ‘Could I get my business to pay for the down payment of this house I want?’ Those were all triggers for ‘Let's get an account for that.’ – Venus Michael

If you have any questions I missed, a specific question you’d like to ask Venus, or a way to thank you for coming on the show, feel free to add them in the comments area below.

iTunes Reviews and Shout-outs

I check for any new iTunes or Google reviews each week, and it's always a buzz to receive these… for several reasons.

Firstly, it's confirmation that I'm on the right track with the interviews and that they are helping you improve your photography business. That's awesome!

Secondly, iTunes and Google are the most significant podcast search engines, and your reviews and ratings help other photographers find PhotoBizX. More listeners mean more interviews and, ultimately, a better show.

Once a quarter, you actually take a profit distribution, different from your owner's pay, because you are the business owner, you take a profit distribution. And how you figure that out is you take 50% half of whatever the balance is. If you have accumulated $1,000 in your profit account and it's distribution day, you actually go and take 500 out. You stick it in your pocket, you do something fun with it. Do not reinvest it into the business…Do not do that. Go do something fun. – Venus Michael

If you have left a review in the past, thank you! If you haven't and you'd like to, head to https://photobizx.com/itunes or https://photobizx.com/google. You can leave some honest feedback and a rating, which will help both me and the show. I'll be sure to thank you on the show and add a link to your website or blog if you let me know the URL of your website and your name.

Alternatively, if you've left a review for PhotoBizX and are looking for more backlinks to help your SEO, leave a review for the new Photography Xperiment Podcast. Email me your keywords or phrases and where you'd like me to link them.

You make a conscious decision to take your profit first. – Venus Michael

Another great way to get a backlink to your site is to send a video testimonial. It doesn't need to be fancy, and your phone will be perfect. Click record and tell me how PhotoBizX has impacted you and your photography business.​

Links to people, places and things mentioned in this episode:

Profit First for Photographers Website

Venus Michael Website

One21 Account-Ability

Profit First for Photographers: Develop the Habits to Transform Your Photography Business from a Cash-Eating Monster to a Money-Making Machine by Venus Michael on Amazon

You Need a Budget (YNAB)

Episode 538: John Glaser – Facebook Ads and what you need to be aware of when running yours

Thank you!

Thanks again for listening and for Venus' candid thoughts, ideas, and experience on how to apply the profit-first methodology and concepts to real and working photographers, no matter the size of their business.

Because there is so much AI coming at you and so much software coming at you, and the newest, greatest, latest CRM and all this stuff, you want to audit your software list at least once a quarter and ask yourself, ‘Am I using it, and do I get the value for it?’ So if they're charging you $97 and you're only using it 10% of the time, then maybe you're not getting the value for that, right? And if you're like, nope, not really getting the value, then you need to look for alternatives or just flat out cancel it. – Venus Michael

That’s it for me this week; I hope everything is going well for you in life and business!

Thanks, and speak soon
Andrew

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