How to Create a Photo Booth Business Plan
hello and welcome to the photo booth financial planning template version one yes it's going to be that exciting well that little excitement i don't think i'll be able to keep up throughout the whole of the video but uh let's do the best let's let me do my best so you think about starting a photobooth company or you're running a photo booth company and and you're looking to do some more financial planning to see if the business is still profitable and also some maybe some modeling to see if you're if you increase the price by 10 what will that do to the bottom numbers is it still profitable do you need to cut costs basically everything you can think of for a photo booth or events company i've hopefully should have covered in this template now i've been running a photobooth company now six or seven years boofco is a fairly new business um but i'm trying to use the experience that i've got of running business and share it with the worlds and hopefully it'll help help you either set up your photo booth business or make your current photo booth business more profitable so shall we dive into it so here we go then here we go here we go i made myself a little bit smaller so you can see the whole of the spreadsheet and i let the fun at times start so first thing we need to look at um in any business this is basically the summary sheet but we'll go through the the level levels of information that you need to put in to get to this level to get to this summary more than anything right so the first bit is let's talk about your fixed costs so your fixed costs are anything to do with running of the business so that could include your wages or any staff wages it could include office rental business rights electricity gas water internet and telephone connection everything so i've put in some uh numbers um they're similar to mine so let's let's go for it so first we've started with a salary now this can be this is mainly for the people who manage the business so it's not going to be your event staff which tend to be more part-time and you tend to pay them per event um especially when you're starting up and because most of the events will be at the weekend so the first thing is what's going to be your wages actually you know the cost to the business so that's going to include all your local taxes that you have to pay to the government um in in wage in in tax basically so allowed like 1800 pounds and now this isn't sterling but obviously you can change there's no currency on it so you can change it to to to your local currency um so of 1800 pounds that's 21 600 so you know it's not a massive amount but it's it's a decent stable stable wage which again at the moment in this current climate is he's good he's good so we go through it so i work from home we've set up a little studio at home we've got a nice little garage where we can store everything so i've got no real storage costs you know that that sort of paid for in my wages with my mortgage uh business rights no business rights um electricity gas i mean i could uh maybe you know allocate some money to the electricity and the heating and the water i think it just gets complicated tax-wise then i might be wrong i'm not a tax expert but you know you could maybe allow some in your business plan which then pays the uh the household obviously if you're renting an office you'll know you know you know you'll have say let's say 250 let's say let's go for this properly if you want so if you're renting a normal office we've rented before anything between 450 500 um storage maybe 250 so let's go for 350 so that's 350 pounds earnings so here we've got the the months so this is year one and then we've got january to december and then year two january to december so we have 350 in january but then obviously it would go through all the months and we could just click and drag straight across um and that's so that's your rent so in total for the year rent so if you look down here at the bottom it's some it'll show you 4 200 a year in salary in storage office business right you're probably still not paying any business right at that level um electricity um i would allow for you know for like a medium office maybe like 65 80 pound a month so we'll plug that through again um water covering on heating it's probably in the electricity cost so your standard like internet and and telephone connection in the uk is around about 60 pounds might be maybe 75 60 to 75. these um these are um so in the uk we have a vat so on top of that it might be 60 pound plus the 20 percent so it could be you know yeah you're 60 pound plus 20 72 pound i'm not that registered so if companies do charge me that i will have to buy it and not be able to recline it pens pens are not consumables just stuff that you use every single month office maintenance recycling bin so a lot of a lot of um offices have an additional cost for recycling um so check the lease if you ever look to take an office on because you know these things recycling your internet cost um your property insurance your gas your water electricity your business rights that's a a nice big chunk of money which sits on top of the 350 that you'll be paying him rights so just just have a check of that really have a check that you know do are they providing recycled bins and recycling within that 350. other stuff equipment finance so let's say you've brought a mirror or any photo booth equipment on finance you can put it here and obviously it'll go through i haven't got any finance so let's leave that off and event insurance so different in different countries i won't go into much detail but obviously in the uk we have like public liability insurance so that's if someone that's to protect the public being injured then you have like employee insurance so that's for your for if your employees get damaged hurt and that could include you and then obviously you could have like equipment insurance as well so you know insurance on the equipment being stolen or damaged you know so there's a big range and that can range literally from like 200 pounds to 1500 pounds yeah so check out your insurance maybe i'll put a few links down below of insurance companies that i've used in the past so so next bit is transport so if you're running like a company car or a company van and you've got to go places not not to events because we can we can model that out um a bit further on but if we um we look at say if you had like a company car and you were going to meetings and you wanted to allow so much for the fuel per month so let's say you know 100 100 pound for fuel every single month and that's to my bc wedding venues um whatever uh vehicle higher and less so again if it's a van on lease you know you could put your lease so uh what a typical this is what 250 pound every single month and you can put your lease in so you've got a van you see you've got a van now you put in a hundred pound of fuel in it every single month um and then you might have maintenance with the lease you might not and then you've got your vehicle insurance so let's say 850 for the vehicle insurance and you'd have to buy that every year so again i'm going through not worst case but like a typical smallish photobooth company where you've got one van you've got that on finance you put you you know using it to get to work or maybe to you know go to different places all business obviously are actually have to pay some personal tax on that um yeah so that sort of covers your wages your fixed costs of running an office or storage and then any transport costs so one van a bit of a lease and and insurance now you get into the nitty-gritty of stuff that that you you can't really get away from so you've got your accountancy fees so normally you know a business would pay an accountant to for their accounts if you're a limited company i've allowed for like 360 pound per year to pay the accountants i tend to do my bookkeeping myself using xero and then i'll just send that to the accountant and he'll follow it for me um as i said so you've got bookkeeping faces some people employ another bookkeeper to to do the bookkeeping accountancy software so i use a software called xero um it links with your bank i buy 14 a month and that just basically allows me to create invoices collect money it links with like uh online card payments so it fully links with that and then so it really makes it easy for people to pay you um and it allows you to see how much money you're potentially making or losing any debt per uh might cry purchase orders or not mobile phone contract um so yeah you can't really live without phone you might as well put it through the business um so i've allowed for that bank account fees at the moment my business banking is free but you'll probably find after two years most business banking um there's a there's a charge for it boothbook so i couldn't live without boof book um it's an online booking system i think i might have it at home yeah online booking system which allows which allows people to basically get a quote get an instant quote and it manages and it manages all my inquiries coming in and current bookings it allows me to add an item to certain staff it allows me to basically anything to do with management of staff and equipment and events either taking the booking or or rescheduling the booking which is what we're doing a lot a lot of at the moment um booth book i couldn't live without it so 39 a month absolutely bargain next bit email g suite um i do actually play a bit for that i think it is about is it about 17 pound a month maybe i'd have to check that voip so not only do i use g suite but i use um voiceover ip um so i've actually got a birmingham as you can tell if you're in the uk from birmingham um or the black country or whatever so we've got voip phones with an o121 number which allows me to take calls at my my desk on my mobile phone anywhere in the world really and that's great don't get many calls but when we do it's great it's got a a real one two one number works perfectly adobe creative cloud so i couldn't live without this either so that includes photoshop illustrator premiere pro everything i would need to do to to create amazing experiences and to create videos like this fat testing so all your equipment every year has got to be fully packed tested um just allow 150 quid just a local electrician will do that for you right let's have a look um i'll try and slide down a bit marketing so we can have a bit of a deeper dive into the marketing side um but these are some generic figures that i've put in um of how to get bookings so i spend roughly 465 pound a month on marketing and from that i get so many bookings you might not advertise at all um i'll tell you what uh we could put in wedding shows there as well um it'd be interesting when we can start doing wedding shows again i haven't done one for many years but i'm looking forward to doing that it could be wedding fairs wedding shows whatever whatever you want to call it um other costs so if you've got anything else that you want to add you could add um say next year when hopefully business is booming again as i said it's 20 21 at the moment january i'm doing sober january it should be good let's see how it goes uh so next year you might be trying to allocate seven seven and a half thousand pound just to buy another another booth or another two booths depending on what you what you're looking for so i've just put that money money in there so this is you know i would say a fairly established photo booth fixed costs now i'm let's have a let's have a chat about it let's see if see what other people come up with um you might be in a similar you might be similar to this you might be running a lot less or a lot more i love to hear love to hear from you but here below is basically the fixed cost every single month so january february march april may all the months up here basically come down here and then at the bottom it will tell you you're running costs for the business 41 479 pounds sounds a awful lot of money which it is which it is includes the wages though and the tax and the rental of the office which i haven't got so this i said this is an example all this sheets completely free just drop me a message below and i'll i'll just hear you mad at you so company name and your email address and i'll send it over to you so that's the fixed cost we comply with that try and improve it you know maybe boy buy the vehicles instead of leasing maybe don't use them for the fuel maybe what else could you do um maybe don't spend as much on adwords maybe don't pay yourself as much but yeah you know that that's the fixed cost of a business pretty generic document for any kind of business the next pic we want to go on to and this is sort of the exciting bit is the yeah there's an exciting bit i i'm i'm sure of it so the next bit is the sales so different photo booth companies have different products and this is what i've tried to to emulate in this sheet so the first basically we have a couple of products here so this one could be let's say these digital photo booths are becoming more popular where you drop them off so basically you drop them off they've got an ipad in them you seem to people seem to charge less for them because there's less prints and you don't tend to staff them and they seem to be getting more popular i saw it last year with like lockdown parties where people didn't want them to be staffed but they wanted a photo booth in the house or at a small venue um so they're they're getting more and more popular um or use that big great bit of software there's others out there obviously um but yeah so you're saying like so i'm sort of putting in here how many events so i've looked at boof book have i got it here still um so this is like august this year and it sort of shows me what bookings i've got um and you can see when they are what time they are and it's a good estimate if these will go ahead i'm i'm not sure at the moment with with the current rona attacking our industry but you know it's good to try and if you've got data for like this year and next year basically to put it in here and then i've always found that there's always last minute bookings always um and at night next month you could do four events five events or you could do nothing you know it really depends on how good your marketing is and uh yeah and how the industry is at the moment so i've basically created these products here and if you go down here product one is this one product two is this one product three four and five and so on so let's go to product one first so this is where you're building the cost of actually running an event so the first bit you've got is the the fixed cost is the the the business if we don't do any events this is how much the business is going to cost to run and now what we've got now is the basically the the cost of sale the sale price and then the cost of sale so how much does it cost you to and traditionally how much would it cost you to manufacture this item but we're not manufacturing so let's do it so the selling price say for a drop-off photo booth let's say 350 i've seen as cheap as what two two nine five sometimes cheaper at the moment two four five but let's go for let's go for i don't know let's say 275 okay and then you've got a staffing cost so i i normally pay around about 100 pounds to the staff for a four-hour event but for a drop-off either i will try and do it myself so if it was me i would set it to zero so if i was only a one-man band i'd set it to zero because my staffing cost is is tied up here in the fixed cost of the other business and you wouldn't want to put another cost there and then you cost there because you know you're doubling up on your costs so if you set that to zero say if you're only going to pay yourself per event so say if you're a one-man band you only wanted to pay yourself every time you did an event so you would say that set that to zero and and obviously drag it through and then you would set this to okay for every one of these 200 275 events i want to get 150 quid and then that's what you would pay yourself but i'm not going to do that so i'm going to set that to zero and set that back to 1800. so 275 pounds i'm gonna drop these off personally the fuel so i've allowed for 13 pounds so this is based on 80 miles trip at 40 miles per gallon so 13 pound is basically 40 miles there 40 miles back which is what an hour's drive maybe a bit longer depending prince no prince no cost photo album no cost because there's no prints um print template design so sometimes i buy my templates from photobooth templates and to be fair the ipads i do like doing a customized start screen um i use booth motion so they're customized screens so we it feel like adding a little bit more value for when when they when we drop it off and it you know on the screen when the first average says congratulations or happy birthday and it's like a little video i think that that looks good looks good so i'll try and use them so here we go so we got selling price 275 total cost of running this event 13 pounds which is basically fuel okay next product product two so this is your your more traditional um dslr booth magic mirror enclosed booth so this would be for many weddings where you are doing a a four hour three or four hour event you're setting it all up you're running the whole experience you know so more of a premium product and and you know the bread and butter really of running a photo booth business in the uk especially um so we've got a setting price but again you can you can change this to whatever you want so setting price of let's say at the moment in the uk i would say 395 typical price um staffing cost so again i'm doing it myself but i would like to double up so i like to do for me to do one and then for someone else to do one so i'm going to allow 50 pound per event or or should we say 100 pounds and i don't do them maybe i'd go do drop off all the drop-off booths and then a staff member someone that i've trained will actually go and do the uh the more premium events either or again i've allowed the item all round trip prints so based on a box of so if you're not in the industry basically the equipment's in the in the mitsubishi printer which everyone tends to use the the d70 especially in the uk um you'll have the box of ink and that box of ink will be two rolls of paper two rolls of two rolls of ink sorry it's a box of media so i allow for basically 400 prints which is half of that box and that box is currently eight pound 40 included in vat so you can allow for half of it per event so that would be 400 prints per event for a typical wedding you tend to only really do say 200 prints 220 maybe you know doing double prints uh photo album so i think i'd pay about seven pound eight pound for a really really nice photo album um actually off the uh um off a fellow photo booth owner uh southwest photo booths down south um print design i can i've got a basically a database of probably about 30 of them now but if i need any more i can get them from here but it's not a cost i normally have per event and again customized screen on the magic mirror i would tend to pay for a customized start screen on the selfie pods i tend to not not just a bigger screen on the magic mirror so it looks more impressive so setting price of 3.95 total cost 162
profit per event 233 now that's allowed for everyone to staff in so let's lower that 75 pounds i think that's maybe probably more reasonable so basically this is me not staffing this event and and me you know basically doing the more drop-offs of people to this product three is more of a corporate so this is like a corporate branded experience so there's a lot more to it software wise to learn how to set up your email accounts how to do branding having a photo booth that can be branded custom graphics um [Music] social media uploads green screen so corporate events is a stride run because one event can be a simple oh can i have a branded photo booth in the center of london for two days and that's fine it's easy really simple to do and then the next corporate event can be oh can we have virtual props custom virtual props and can we have two ring roamers three staff so it is difficult to to model what kind of corporate events you're going to get but i think if you work around you know of making so much per event that's what i've tried to do here i've based it on like a typical drop off you know like a at a tried show again when are we gonna have trade shows again i do not know but you know we've i've tried to allow it for it let's see what happens the branding costs the software costs and it's all there if you've got other products you can now do that add product four and product five but i've got two my products really three main products with corporate um which i've now filled in now we can go back to the sales star section so in the sales section we know now um how much we hope to sell the higher for and how much what the cost of each event is going to be and now let's forecast the sales so in the yellow backgrounds we can have so in january 2021 if anyone in in in the uk has got an event in january i'll tap my hat off to you fair play um but let's my i think might be the start of events you know a couple of local drop-offs um i hope it's earlier but i just can't see it at the moment um so let's say uh the photo booth industry in the uk will probably start i shouldn't say probably that's jinx in it um let's say it starts sometime in towards the the second quarter of the year and then i plan to do two drop-offs a month and i'll tell you what let's increase that a little bit because i reckon i can do i've got two drop-off booths i could probably do it you know i could do two or nine if if we there was the demand for it so we'll do the drop-off booths and then let's do a couple more december is always busy well it tends to be always busy um so the christmas parties whatnot and to be fair when the industry does come back it's going to be crazy i mean who wants everyone wants to go to a party now january's always a bit lighter a couple of birthdays normally but let's say the year after a couple more and basically when you add these numbers in um so let's let me show you so one revenue which is the the fee you've charged so you can see here 275 selling price 275 plus the sale cost of style there sorry there gross profit and you can see when i go um i'm going to do five of them it basically takes these numbers and times them by five and then you could do them for each month so that's roughly and again if you've been running a photo booth company for a while you should have the data especially if you're using boothbook on how many events you've done each year really and then you know you you can have maybe 10 graph on top of that or or maybe it's going to be a 20 decrease in bookings let's let's just put all these in at the moment inside two there so again roughly what i want to do this year roughly what i want to do next year i would like to expand that it is a it's not easy work because it's still a drop off and then a collection so you're still dropping it off in the day and then collecting it you know light at night so it's not not easier but people seem to want it which is good um dslr booth this is more your wedding so i think i've got about i think i've got about 70 70 events next year already booked in well this year sorry this year so 70 events yeah so i think we'll probably get a few more a few more maybe not actually thinking about it might be a few less a couple of cancellations and a couple being moved the size 60 the 60 events there um hopefully it will go mad at christmas and then the year after so i think the events from last year and then the events from this year will be moved to 2022. so i'm at the moment there's if you look at the bottom 115 oh you can't six on there but there's 115 events there um i would like to do more on that i think i like to do better look how many is that 125 i'd like to i think my target would be 130 events so in essence you know that that 130 events would be pound 51 one thousand three hundred and fifty just pound sterling um revenue but then it would cost me seventeen thousand pounds in in uh cost of sale but again remembering that the dslr booth we've actually got a staffing cost in there so if we remove that staffing cost so let's take that out so now i'm dropping these booths off and i'm also doing these events so it's a it's a lot of events to be doing in a year so like you know next year 2022 178 events doable but it'd be hard work right so took that cost out so i'm doing all the events now and you can see how the cost of style went down considerably so now it's only 8 000 pounds for next year in cost and the gross profit 43 000 corporate higher so i've not really got any this year i did plan to but let's see what happens um next year i would like to you know how many ever got in there so there's like uh eight events yeah i'll take that i'd be happy with that act events um i like doing the corporate it's the designing and the creativity of putting something together um they are more hard work because you know like the bride and groom it's pretty much easy easier to set up at the at the start because you've got your backdrops you've got your equipment you know the the experience for the broad and groom is pretty much the same whether experience for the the corporate customer could be completely different so what you'll find is you have to charge more corporate because you're spending more time in the week getting that ready so you can see here so we've got all the products and again if you want to add others you can i've got other revenue so let's say if you had um an installed photo somewhere and you're generating a profit off that we can drag that across and we said we've got one this month 300 one this year i should say and every year they're paying 300 pounds and then next year we plan to have two and they're paying 600 pounds so this is basically all your sales and if you want to go in there and think actually my selling price is a bit higher four four five actually i want to pay the staff i want i don't want to do any events myself i'm going to pay the staff 100 per event or let's say 75 pound event um drop off maybe i want to offer the prints as well so how much do i allow for i think it's 30 pound is it 4000 so let's say we wanted to do prints and we wanted to do um a photo album like fiverr so again whatever you change of the product to configure you know whatever you configure the product to be basically charges this sheet and the numbers come out at the bottom so january which is now for for me when i'm recording this video 300 and again basically the uk i don't think will really open up till maybe my dream next year towards the middle of this year but then hopefully i'll make some decent money going forward and then you know just building to to the year after but again if you're starting a photo booth business in the future you probably won't have these issues and hopefully you know this this spreadsheet helps you uh financially plan so i've got the fixed cost done we got the sales and we've got all the products in next thing we need to look at is what do the numbers look like so unfortunately by the looks of it first year we're going to make a loss of 8462. so here we go so total size 45 000 cost of sales 12 000 gross profit so that's the total sales minus the cost of sales to give you the 33 000.
then the fixed costs 41 000 equals your projected profit of minus 8 000 pounds so you won't pay any tax on that but in the uk you won't because you ride a loss and then year two looks a bit dif looks different so you're gonna make a some money next year so let's you know let's play with the numbers let's let's have a look at the fixed costs so i said let's i'm not going to use a vehicle i haven't got a vehicle on lease i tend to use my my wages to pay for the fuel um i haven't got an office it's basically i work from home now and everything is stored in the garage electricity as i said we don't i could probably allocate some money to it but again it's coming off after taxes internet telephone event insurance you've got to have that office internet connection accounts yeah zero that tested in i need my adobe adwords hosting yeah so that's pretty much everything and then we've got this purchase of equipment here for the second year which which i want to do because i know the next year's going to going to be busy okay so we've crept it back so we've we've now got a small profit of 1868 and again that's based on doing how many events here so let's have a look so many drop-offs doing something like 95 events which again should be doable should be doable even last year i did a fair few events even during the i said the roanoke um but we'll say we'll say so this this this year treadwater maybe spend some more time like working out what to do on corporate and then next year hopefully make a nice profit and if you remember we've put in the that seven and a half thousand pound allocation to buy equipment in the uk we've got a 19 tax corporation tax and your country say if it was less 10 cents so basically you've got your projected profits before tax then you got your company tax and then that minus your projected profits equals yeah your actual profit at the end of the year so and here's a breakdown every single month throughout the years so you can see you know that big purchase there so you need some cash flow to buy that but then the following months you'll make thirty one thousand pound in the the following months that's the plan anyway so hopefully you've enjoyed this sheet and hopefully it's helped um either making you more profitable or you know help you decide is if the photo booth industry is for you it's definitely is profitable the business industry um but you just got to get your numbers right and there's no real burying your head in the sand with it you know you've got to plan this and then you'll hopefully make well you should make a profit then um so another little thing we've got on this sheet is the simulator and then in the simulator i've tried to predict so we've got your current results here which basically emulates here exact same numbers but let's say if we increase the selling price by 10 so typical selling price four four five so that's pretty pretty high in the uk but let's say if we added it so four four five times 10 489 490 is that doable in the uk yeah it probably is obvious 290 if you're offering something special um we've now extra costs you know better templates maybe some photos of the events you know you could probably get 295. it's not not unheard of so if you increase the profit increase the selling price by 10 and this is not just on that product but it's on the the drop-offs and the corporate by 10 and this shows you what happens so let's set it to zero and set the fixed cost to zero so you can see that mirrors your current results a 10 increase in the selling will now show you a profit of 5197 pound versus the 1513 so let's let's say a five percent increase and then and then the year after instead of doing 19 413 39 you would be doing 22 000 and 997.23 so 5 increase would make a big difference to your business and then let's say we could decrease the fixed cost by 10 and again same kind of effect the question is can you reduce your fixed cost by 10 um and can you put the price up by five percent or what you should be asking what do i need to do to to put the price up by five percent and what do i need to do to to decrease your fixed costs that might be better that might be you know negotiating a a better rental price it might be taking recruitment and trying building something at home it could be anything you know trying to reduce that cost is is key especially during uh current times now i hope you like this if you want it completely free of charge i really want to help the photo booth community at the moment we are hurting anyone in the event industry is actually hurting very painful if this is in the future 2020 2025 let's say uh i can imagine everyone's making a load of money at the moment and everything's all good i hope i hope but if you if you're watching it now in uh yeah january um i hope this sheet's helpful if you want it simply drop a message in youtube or on the website i'll put the link below um property now email address and i'll send it over to you and then if you if you've got any questions about maybe setting up a photo booth business or anything anything um you think needs adding to the sheet let me know i'll add it i'll make it version two i'll do another video on it and then uh we'll build from that you know i think i think as an industry we've we've really got to support each other to pull through so let me know what you think and yeah look forward to hearing from you cheers
2021-01-12 12:35
