An interesting proposal....

[clachnacuddin]

So my local photo shop has put forward quite an exciting proposal, they have purchased an existing photo studio which has it's own shop front in order to create a collective of around 6 local photographers who will share the space. The way it's supposed to work is by the day being sectioned into 3 hour slots where members of the collective book the time they want either in the studio or meeting clients in the front, each member of the collective paying a monthly fee for being a member. Sounds good so far, obvious concerns would be over getting an equal share of the space and 6 photographers all competing for the same clients, although the 6 are supposed to be diverse in styles and what they offer to avoid competition from within. It's also a great opportunity to collaborate and learn new things as you go on, although the monthly fee for membership isn't cheap at £350! Now the organiser did say at the beginning that the shop front may be hired out for very infrequent use to other photographers who need to meet clients but don't need a studio, as well as a darkroom being installed in the basement for teaching old school students and the like. Now however I find that the studio is being offered up for casual hourly hire to non members, and casual membership is also being offered, thankfully no contract has been signed so far, but with an opening date of 1st March alarm bells are ringing! I have been advised that this casual hire is just in the event of the collective not having enough members initially to cover the overheads, yet I'm also told they have enough members for the collective already! This, along with the costs and uncertainty that money will actually be made have really got me thinking that this could go badly wrong, so I'd welcome any thoughts you guys have about this venture? Has anyone ever been involved in anything like this before? Here is the link to the organisers blog telling the story from their point of view.
http://www.photoghostlab.com/blog/studio

 

[Pherdinand]

you can stop it after 3 months if you wish, right?

 

[clachnacuddin]

3 month notice period required, would seem a bit of a waste of money just to sign up for three months though, would take a while to get established enough to get the customers in through the door....

 

[lynnb]

Looked at from their perspective, they're providing studio space and equipment (or is that extra?) and getting £2100 a month, recoverable from the 6 photographers. Sounds like they're doing OK.

What about you - what do you get for your £350?
- Time-share of facilities: will the hours you get suit your business plan and customers? In practice, are the other photographers all going to want the same time slots as you? How do you resolve that? With 6 photographers sharing the same space, what happens if someone is running overtime and you have a client waiting?
- Can you generate enough cash flow to cover the committal plus any other expenses? I would be discussing my business plan with my accountant before committing.

This is a short time frame to get organised. It might suit you if you already have a business generating cash flow and these facilities are exactly what you need right now. If you aren't in that position and are just dreaming about it, you don't have much time to get organised.

I've never participated in such a venture so please listen to advice from people who have industry experience. I am just giving you my thoughts on the proposal.

 

[lynnb]

3 month notice period required, would seem a bit of a waste of money just to sign up for three months though, would take a while to get established enough to get the customers in through the door....

If you sign for 3 months you're committed for £1050. Is that play money or serious money for you? I have high regard for your portrait photography you have posted here but the only thing that matters is whether you think realistically you can get enough paying clients to cover your ongoing expenses. Also whether this particular studio-share arrangement would work both for you and for your clients.

Good luck if you decide to go ahead. I'll repeat that I think you should write out your business plan and discuss it with an accountant.

kind regards,

 

[David Hughes]

Hi,

You don't have to jump in with both feet. Why not see if you could hire it for an hour from time to time for the odd occasions when you need a studio etc?

I doubt if it would be in use full time, and there's the tea and coffee bait...

Regards, David

 

[kxl]

I echo all the questions that Lynn posed. If you cannot answer those questions with conviction and to your satisfaction, do not go forward.

Also, I would explore the casual hourly rate and casual membership. If a commitment of 1050E for 3 months is too much, then your casual hourly rate can be built in to the contract when you have a paying client. But make sure you understand what you get / don't get with an hourly rate or as a casual member.

 

[Mcary]

Hi,

You don't have to jump in with both feet. Why not see if you cold hie it for an hour from time to time for the odd occasions when you need a studio etc?

I doubt if it would be in use full time, and there's the tea and coffee bait...

Regards, David

Agree!
Also it may turn out that one or more of the six base/primary users doesn't expect to use all their allotted time each month so you may be able work something out to sublet a few hours from them each month or as needed.

 

[clachnacuddin]

Thank you all for your input, I think I already knew that it would be a risk too far going ahead with full membership, especially considering this would be pushing my budget to a point where I'd be unable to afford to advertise my services, and allied to the fact that no website would be set up until after the project was well under way I'd have no customers and be paying lots of money for a studio with nobody in it!

 

[robbeiflex]

I know a few local photographers who banded together, formed a company, and rented a space for themselves. It has gone quite well for them, and they rent or lend free time to friends who are amateur or part time photogs as well. My daughter's Godfather and some friends and I did some baby photos there in exchange for them taking photos of the kids for their own portfolios. They are all well enough established, and the space cheap enough, that they do very well with it. In your case, I would say it's a question of whether or not there is an immediate business case for you. If not, then go for the casual option and use it on an ad-needed basis until you can justify one.

Cheers,
Rob

 

[clachnacuddin]

I know a few local photographers who banded together, formed a company, and rented a space for themselves. It has gone quite well for them,

That sounds like a great idea, in this case however the members have no say on who joins and you are at the mercy of the actual owner who is more interested in making money from the studio than the members who pay him and are trying to run a successful business.

 

[David Hughes]

Hi,

But that applies to everyone and, in any case, if you've a contract with the owner you are not at his mercy.

I can see what you are worried about; in your shoes I'd wait and see what happens. The owner may not get what he wants and may change things before then. And the hourly hire is what I'd go for, especially if you've managed without a studio until now. Just hire when needed. The users can easily tell you when slots are available. It won't always work out perfectly but life never does...

Regards, David

 

[jesse1dog]

Aberdeen - what do business prospects look like for the area?
My feeling is that there is too much uncertainty with an election imminent, and closures of North Sea platforms. I would imagine that the local economy might take a downturn and would ask if this is the time to make a major investment as far as you are concerned.
Some good advice has been given in previous posts. You don't seem to be in a rush so to investigate occasional use seems to make a lot of sense. I would be more than interested in who the other possible users might be. The chances are they will be guys in your sort of position if they actually exist!
£1000 outlay for the first three months might be better spent to enhance what you already have.

j

 

[tstermitz]

Starting and running a small business is not easy -- especially in photography, where your competition is uncle Joe with a Canon Rebel. You have to keep expenses to an absolute minimum, and your real differential is your personal business & artistic skills and reputation, not necessarily the storefront.

Can you write a business plan that makes you net profitable from Day One while you build your reputation? Assuming you have already invested in your capital expenses: camera, computer, lights, what else do you really need? You can photograph on site or rent an hourly space, where the price is covered by the job-contract. 350 (pounds, Euros or dollars) is a lot of overhead unless you already have enough clientele to require that much usage.

I don't know about tax laws in Scotland. Here in the US, business use of your home is a tax deduction based on the percent of your home. If you own your home you can deduct expenses AND depreciation. Would 350 get you a larger home in a convenient part of town with a living room studio? In many months, my side business doesn't net very much, but I can still write off the tax deductions against my day job income. It's one benefit or strategy that applies equally to big and small businesses.

Kirk Tuck writes a photography blog as a successful portrait and commercial photographer. He operates at much higher level than the average portrait photographer. He gave up his commercial studio a number of years ago. If you read through his (prolific) postings, you can get a lot of ideas about business strategy.