When you're thinking of starting a photography business, one of the first things to consider are the different ways things could go wrong.
This isn't an exercise in being negative; it's simply a necessary step in understanding what you're getting yourself into.
In other words, you need to plan ahead. If you don't, it could spell disaster for your business.
Here are a few ways that starting and running a photography business could pose great financial risk to you.
Lost, Stolen, or Damaged Gear Could Spell Disaster
As noted above, there will come a time when your camera, lens, memory card, or another part of your kit goes down.
In some cases, they might get lost or stolen. You might drop a lens or spill coffee on your laptop. There could be a natural disaster that ruins your studio space - gear included.
Naturally, any of these scenarios poses a significant financial risk because without your gear, it's a little hard to take photos.
While we all hope that nothing goes wrong, sometimes they do, and spectacularly so. That means you need to protect your gear and yourself to ensure your business won't flounder when things go awry.
An equipment insurance policy is a must-have for any photographer.
That's true whether you only work locally or if you travel across the country or the world.
With complete coverage like that from Athos Insurance Services, you can have peace of mind that if any of the following occur, you're covered:
- Floods and water damage
- Hail, lightning, and windstorms
- Earthquakes and damage from falling objects
- Fire and smoke damage
- Transit and shipping
- Explosions and acts of terrorism
- Theft
- Accidental damage, including scratches on your lenses
And, like I said, no matter if these incidents occur at home or abroad, you'll be covered worldwide.
What's more, with replacement cost coverage offered, you get money for what your gear is worth in today's dollars without depreciation factored in.
That's a huge bonus that will help protect you against some major financial pitfalls if something happens to your gear!
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Photography Business Risks: Unpredictable Income
Ask any self-employed photographer what the most concerning financial aspect of their business is, and they'll likely say the instability of their income.
It truly can be a feast or famine scenario - wedding photographers, for example, nearly kill themselves working every weekend in the summer only to see their business fall off in the colder months.
However, the ebbs and flows of photography can be overcome.
You can work as a second shooter, expand your niche to include other types of photography, sell photos on stock sites, and a host of other things to earn extra income and help build a buffer for when your primary means of photography income hits a slow period.
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Lawsuits Happen All the Time
We live in a litigious world, so thinking that "I'll never be sued" is quite short-sighted.
Sure, the hope is that you're never sued, but the fact of the matter is that it happens to photographers all the time.
Sometimes it's because the photographer simply doesn't live up to their end of the bargain or delivers terrible products.
However, some lawsuits happen because of things like ruined memory cards or the inability to take photos due to gear that gets damaged or stolen at the last minute.
Whatever the case may be, it's necessary to have legal protections (and great insurance, too)! If you ever get sued, you can rest assured that the likelihood of your business going under has at least been reduced.
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Final Thoughts
Yes, there's a lot that can go wrong when you work as a photographer...
In addition to the potential disasters listed above, you might damage someone else's property, crash your drone into someone's head, or fall ill and not be able to work.
But despite all that can go wrong, photography is a hugely rewarding profession. Besides, there are things you can do to protect yourself against the potential financial risks.
Get educated. Get insurance. Consult with attorneys and accountants to get your business set up the right way.
If you can do those things and be smart about your business approach, you can insulate yourself (as much as possible, anyway) from business disasters.