Budgeting and Finding Your Cost of Doing Business: A Guide for Photographers

Do you know what your cost of doing business (CODB) is?

Like, actually know it—or are you just making a rough guess?

For many photographers, managing finances can feel overwhelming. It’s not uncommon to feel anxiety about the money side of things, and there are a lot of reasons why. We all bring our past experiences with money into the businesses we create.

And let’s face it, most of us didn’t choose photography because we love managing finances...

But here’s the truth: understanding your budget and knowing your CODB can be a game-changer for your photography business. It helps you take control of your finances, leading to a stronger, more sustainable business.

At Shoot and Thrive, our goal is to help photographers better understand things like this so they can create businesses that work for them and help them to live better lives spent doing the things they love (instead of tedious things). And maybe, just maybe, you’ll see some art in businessy things like budgeting…but we’ll work on that together 🙂

So…what is budgeting?

At its core, budgeting is about knowing where your money is going and making a plan for it.

It’s not just about cutting back—it’s about aligning your spending with your goals, whether personal or business-related.

When you start with a personal budget, you’ll gain a clearer understanding of your financial needs outside of the business.

• What does it take to cover your living expenses?
• How much do you need to save for the future?

By figuring this out, you can set a realistic salary for yourself, which will help guide your business budget.

I have personally been making personal budgets for myself (and my family) since a pretty young age, and by creating them (and sticking to ’em!) I’ve been able to achieve some massive personal goals for myself including buying a house, freeing myself up to travel more (and spend money on travel), invest for an early retirement, and more…Whatever your goals are, we can help you make sense of getting there!

Budgeting for Your Photography Business

Once you have your personal budget in place, it’s time to create a business budget.

Your business budget really builds on your personal one, since at the end of the day if you know how much you need to cover your personal spending needs – that sets a real benchmark for your personal salary.

Now, your business budget should account for everything from equipment and marketing costs to taxes and operating expenses. Basically – any money you are going to be spending in your business should be accounted for so you have clarity on how much it’s going to cost just to operate.

A key part of managing your photography business is ensuring you’re making enough money to cover these costs—while also paying yourself a fair salary.

With these 2 budgets in hand, we can now shift gears to making sense of our cost of doing business…Let’s do that now!

Finding Your Cost of Doing Business (CODB)

Your CODB is essentially the amount of money you need to generate in gross revenue each year to cover all your personal and business expenses, including taxes.

By knowing this number, you can confidently set your pricing, ensuring your business is profitable and sustainable.

Here’s how to break it down:

• Personal Budget: Determine your “reasonable salary” by assessing how much you need to meet your personal financial goals. Your salary could range from “just making enough” to cover your living expenses (if you want to live lean and mean), to more if you want to set more money aside for “fun” and saving towards things like retirement, a house downpayment, or anything else.
• Business Overhead: Account for things like studio space, gear, software, marketing, and other recurring business costs. This is the things you identified in your business budget!
• Taxes: A good rule of thumb is to estimate 25-30% of your revenue for taxes (including income and self-employment taxes). Everyone’s actual tax liability may vary, but this is a good, simple estimate to get started.

To give yourself a solid financial cushion, it’s helpful to calculate two CODB figures:

1. Minimum Viable Earnings (MVE): The bare minimum you need to sustain your current lifestyle and business, even if cost-cutting is required.
2. Ideal Earnings: Your MVE plus an additional amount that would allow you to achieve bigger financial goals, like saving for a home or traveling more.

Knowing your CODB helps you make smart decisions about how to price your services, take on the right number of clients, and ultimately build a business that supports your financial goals.

Strengthening Your Business Through Financial Control

Budgeting and understanding your CODB aren’t just “nice-to-haves.” They’re essential for building a strong, thriving business. When you have a clear picture of your finances, you can make more informed decisions, avoid unnecessary spending, and take steps toward long-term success.

If you’re unsure where to start with budgeting and calculating your CODB, we’ve got you covered. At Shoot and Thrive, our Financial Management Course is designed to help photographers take control of their finances. The course includes custom resources and tools to make budgeting and CODB calculations simple and straightforward—so you can focus on what you love: photography.