Hi,
I'm looking for advice and critique regarding a photography business that I am starting. Feel free to tear down my plan if it is way off base.
The photographer: I'm a college student who has been doing photojournalism in one way or another for four years. I'm currently employed (full-time during summer, part time during school year) at a daily with a circulation of around 10,000. I own all my own Canon equipment, 1D bodies, 70-200, 50 1.4 and 20-35. Lighting equipment is basically a Strobist setup, 1 550ex, 1 vivitar 285, umbrellas, stands, wireless triggers, etc... My portrait work is limited to work in a basic studio (white BG, black BG, 4 white lightnings, and various modifiers) and on location PJ stuff with my strobist setup. I have done paid headshots for local actors before, so I'm not totally new to non editorial photography. (The actors were happy with their shots and did send more customers my way)

The business: I want to center the business around senior photography. My reasons for this are: 1)that the schedule is exceedingly convenient. From what I understand the majority of the shooting is done during the summer and fall, and they will be at school while I will during the day. 2) In my area the market is pretty unsaturated, there are approximately seven high schools within 60 miles and there are only two photographers taking pictures that are better than mom with a camera. There are other photographers, but their portfolio's show that they are lacking in understanding in the basics, like lighting (one shoots with on camera flash in full sunlight) and post processing.

Marketing: I want to aim for the upper-end of the seniors grossing $500-$1000 per senior. Right now I've booked a few seniors on my days off at about half what I would like to be charging simply because I don't want to charge full price without a reputation or extensive portfolio. In other words I am building my name by charging less.

I have designed packages at the $149, $279, and $449 level. These include the sitting fees and are lower than the competition. I will do shoots for people that don't want a package, but am not advertising that as I know there is a lot of profit in the packages. To recruit more people I am offering incentives (read $20) for referrals that buy a package. The seniors that I am shooting this summer are to build portfolio and reputation only. I plan to bump my prices more in line with what I would like to be charging around the beginning of the new year. At that time there will be only one high school that will not be past the yearbook deadline. That high school will hopefully carry me into the spring, at which time I can start marketing towards the class of 2010. If I can shoot three seniors a week that spend more than $500 I will be having enough profit to open my own studio space, which would be very nice.
I have signed up for a printroom account as this will allow me to serve more rural customers without too much traveling hassles (they can view proofs and order online). It will also allow me to tell my customers that family can purchase prints online too, which means more sales.

I want to try and do as much location work as I can for now, since I can only borrow a studio.
Before you mention it, I already have a CPA, am planning on a lawyer once I have some revenue, and have applied for a business license.
Are there any obvious holes? What else should I consider?

Not too downgrade Printroom, but think about Instaproofs. I used Printroom for a couple of years with success, but feel like since moving to Instaproofs I've built more relationships with customers.

Self-fulfillment sounds hard, but it's really not. What it does is give you the final step in a customer interaction and leaves your customer with a lasting impression of you (and not your lab). It's one more chance to get a business card, a referral card, or something else in. It also opens you up to offering a wider variety of products.

Do you have your liability insurance?

The problem with self fulfillment for me is that I would have to use a mail order service either way. There is only one pro lab in my local area, and he only offers print sizes up to 11x14 and is priced at about double what printroom charges. Perhaps I can just order the prints myself through printroom as much as possible and hand deliver? I know that in printroom I can just not give people the option to buy online, which effectively turns printroom into an online proof viewing station. This would require my customers to order through me.

Any other thoughts or glaring holes in my business plans?

You don't consider 2 photographers for 7 high schools to be saturated? How big are these schools?

Mdude, I appreciate the feedback, here are my thoughts on market saturation, and my reasoning behind it.

Do you have some numbers from your market about photographers per number of students?
No, I don't think that that is incredibly saturated. Between all of the high schools there are about 7-10k students. If 1/4 of those are seniors and 1/2 of them opt for a high-end package and the other half go with the school photog or mom in the back yard, that leaves around 1,000 to 1,500 that are going to be looking for a photographer. If these other photographers work 365 days a year doing two shoots a day (yeah right) then they might have it covered. As it is, these other photographers don't specialize in seniors, they do weddings, families and whatever else comes their way. I know that this might be a sign that there aren't enough seniors to sustain these other two, but I take it as a sign that there aren't enough weddings to sustain them. I think that by specializing in senior portraiture I can be known as the first choice in the area for senior portraits. I think the fact that I've already booked three sessions by word of mouth only says that there is at least a little bit of demand for services.

Besides, like I said, there are other photographers, but the students want to look good, and I plan to take photos that look better than others. I'm not selling the same low quality, poorly lit, blurry effect photos that anyone sells. I do believe that what I am providing is a notch above.

Let me know if I'm just sounding crazier, or if my reasons are good.

mdude85 wrote:
You don't consider 2 photographers for 7 high schools to be saturated? How big are these schools?

Hell, there are probably 50 photographers in this area. And we're all competing for a hand full of schools. You just have to be better than the rest and offer a unique product.