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FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography 
Thread started 18 Sep 2016 (Sunday) 13:49
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Buying an existing photography business

 
kjonnnn
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Post edited over 2 years ago by kjonnnn.
     
Sep 19, 2016 00:06 |  #16

Get ...
- Income and Expense Statement
- Cash Flow
- Balance Sheet

These are basic documents. Saying the business made $20,000 last year is meaningless without knowing its debt and equity.




  
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happysnappy8989
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Post edited over 2 years ago by happysnappy8989.
     
Sep 19, 2016 01:04 |  #17

Thanks for your replies everyone.

Just to clear couple of things up, I have worked with this brand from the start and I have helped building it to the stage it is now, I know the business inside out and I know exactly what the client expect in terms of the quality and how to deliver it. I have also worked and delivered for quite a few of his high end clients and have build a relationship (under his brand name) , so I am aware and can deliver to the highest of standards that his clients expects. There is also a great deal of returning clients.
There are no debts or physical assets being transferred over, simply the full ownership of the brand, email address logins, the client base, website login, social media logins and google analytics login included in the sale. He is also offering support for as long as I would need for a smooth transition . There is also no debt.


The area that I live in is very competitive so the price for that business is really for the number 1 ranking for various terms in this particular area(which is not an small or limited area)

For me it is very hard to value this particular business as the owner has never put 100% of his efforts into it and yet it has been somewhat successful considering the efforts.
Also to mentio, he has branded his website as a group of pro photographers (no names on the website, designed and presented as professional photography agency) and it is not associated with just himself whatsoever.

I personally think there so much that can be done with this brand and the foundations are there to built a successfull business and make 3-4 times more profit.




  
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PhotosGuy
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Sep 19, 2016 09:14 |  #18

^ ^ You might have told us that at the beginning?
Why not offer him a % if the first years profits for the site?


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Scott ­ Spellman
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Sep 19, 2016 09:45 |  #19

happysnappy8989 wrote in post #18132593 (external link)
Thanks for your replies everyone.

Just to clear couple of things up, I have worked with this brand from the start and I have helped building it to the stage it is now, I know the business inside out and I know exactly what the client expect in terms of the quality and how to deliver it. I have also worked and delivered for quite a few of his high end clients and have build a relationship (under his brand name) , so I am aware and can deliver to the highest of standards that his clients expects. There is also a great deal of returning clients.
There are no debts or physical assets being transferred over, simply the full ownership of the brand, email address logins, the client base, website login, social media logins and google analytics login included in the sale. He is also offering support for as long as I would need for a smooth transition . There is also no debt.


The area that I live in is very competitive so the price for that business is really for the number 1 ranking for various terms in this particular area(which is not an small or limited area)

For me it is very hard to value this particular business as the owner has never put 100% of his efforts into it and yet it has been somewhat successful considering the efforts.
Also to mentio, he has branded his website as a group of pro photographers (no names on the website, designed and presented as professional photography agency) and it is not associated with just himself whatsoever.

I personally think there so much that can be done with this brand and the foundations are there to built a successfull business and make 3-4 times more profit.

Very few business people would agree that a small local brand without a storefront can be easily transferred to a new owner without some loss of customers and revenue. The best way to calculate the value of this business is to identify the revenue from brand new customers in the last year. This is the best tool to identify the actual revenue of top Google ranking plus social media marketing.




  
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kjonnnn
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Sep 19, 2016 10:40 |  #20

It sounds the "brand" is being given to you for use. You get to use their name and clients, media outreach, etc with assistance from the owner. Thats a little different than buying a business as your title states. Id be sure, in your case, that the owner and the brand arent seen as "one in the same" by the clients. Because once he's gone, they may be too.




  
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golfecho
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Sep 25, 2016 17:42 |  #21

IMO, the value in buying an existing business and client base depends on how many of the clients are return or repeat customers. If their business name is so great that it attracts new clients merely because of reputation, that is good, but can your work maintain the reputation? How much of the "reputation" is in the photographer, and how much is in the business name? If very few of the clients actually return for repeat business, then the value is very little.


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kenwood33
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Post edited over 2 years ago by kenwood33.
     
Sep 25, 2016 21:42 |  #22

25-50% of the average revenue over the last 5 years

The most value I see is the google ranking - it takes quite a bit of time to appear on p1.


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Buying an existing photography business
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