Top 5 Mistakes Photo Booth Businesses Make
Starting your very own photo booth business or looking to improve and grow? Exciting! But what now? It’s a nerve-wracking and anxiety-inducing experience starting a photo booth business or changing up the way you do things - that much is probably clear to you now.
You’re probably worried about making the wrong moves and getting your business off to a bad start or making decisions that may be detrimental to your growth - that’s okay! Everyone in the industry has been in that position, and luckily because of that - we know what you need to do to avoid the classic mistakes that plenty of photo booth businesses make and exactly what you can do to help set your business off on the best possible foot forward.
1. Not Having a Clear Business Plan
At the absolute minimum your business plan needs to be as comprehensive as possible and include practicable points and key performance indicators that help you understand what you’re achieving and how you’re achieving that. There are several factors that you’ll need to keep in consideration with your business plan like:
- Knowing and understanding your underlying costs
- A defined target audience
- Clear and actionable marketing strategy
- How does your business plan on making money?
What you should also cover in your business plan is how many events or customers you’ll need to service each month to cover your expenses and how you’ll make a monthly profit. You should also ideally note how you expect your business to grow over the next couple of years.
Understandably, this may feel a little intimidating, but we have another guide on how to perfect your business plan for you to have a look over here, so that you have all the necessary tools at your disposal, and to make the process easier and more comfortable for you.
2. Not Knowing Your Cost-to-Serve
If you’re not aware, your cost-to-serve (CTS) is the total amount of money amassed from everything that it takes to service a customer or produce a product. If taken into consideration with your revenue, a CTS analysis allows you to calculate profitability by various categories as well as identifying potentially unprofitable aspects of your business.
So why is it so important to know your CTS? If your business isn’t fully aware of their CTS, you and your business will miss out on golden opportunities for innovation, operational efficiencies, and pricing shifts that can improve your business’ profitability.
So now that you know all this - what do you do? For a photo booth owner such as yourself, you can use our handy calculator - tailored explicitly to your needs as a photo booth professional - to calculate the costs of your operation.
With the knowledge of your CTS, you can directly compete with your competition by driving out waste and imparting those savings onto your own customers by reducing costs. You could also find yourself investing in better equipment and paying better wages and bonuses to your employees. The benefits are countless.
3. Charging Based on Competition and Not Business Planning
The allure of competition based pricing is evident - and plenty of businesses do it. It’s fairly simple, low risk, and it can - at times - be accurate. But as Vivian Guo said in her article on competition based pricing, it can also often feel like ‘ineffective plagiarism’. But why?
Like I said - plenty of businesses do this. So much so that if you also do it you’ll just be another indistinguishable tree in a massive forest. Your brand won’t be able to stand out in comparison to your competitors providing the same products and services. You’re also taking a pretty big gamble…
Want to know more? Download the Full Content Pack for Free
Enter your email to be sent the download link.