Well, 2021 was a bit of a s**t show wasn’t it! Like the whole events industry, the photo booth industry has been hit hard with the COVID-19 pandemic but with the vaccine just around the corner we can see a glimmer of hope.
We have put together a comprehensive financial business planner for the photo booth industry to help the recovery.
You must be thinking… so this photo booth company is helping other photo booth companies and the honest answer is yes! We all need events to start and photo booths to be back at these events.
If we can help you set up your photo booth company or help in any way during these difficult times please drop me a message below.
Plan for the worse and hope for the best is how to be successful for 2021 and onwards. We all know photo booth hire can be profitable, but all those subscriptions and storage costs can quickly build up.
What are your aims for 2022 and 2023?
If you’re looking for a business plan for starting a photo booth company this guide will also be perfect.
Firstly, Calculate all your fixed costs. This is all the cost to the business before you undertake an event.
This should include wages, office or storage costs, banking costs and all those month costs to the business. Add any others that you may have. This should include the costs of running the event (ink and paper, photo album, travel costs).
At the bottom of the fixed costs sheet, you should now see your total costs for running the business per month.
Staffing costing = £1500
Storage rental =£250
Property insurance =£30
Mobile phone = £35
Accountant fees = £25
Bank account fees =£15
Online booking system (Booth Book) = £39
Adobe creative cloud = £50
Google Paid Advertising = £350
Facebook Pad Advertising = £100
The total fixed cost for the month would be all these items added together. This example of fixed costs would be £2,394.
To pay for the running costs for the company we must generate a profit of £3,394 just to break even.
Let’s talk about how many events you estimate to undertake each month for the next 2 years. Most companies have a couple of different package options.
Typical costs in the UK would be.
Selling price for DSLR booth = £395
Staffing costs = £75
Fuel costs = £15 based on a 40mile range
Printing costs = £41 based on 400 prints
Photo album =£15
Total cost of £146
Gross Profit = £249 per event
Now go back to the Sales tab and enter the estimated numbers of events per month. This is highlighted with a yellow background. At the bottom of the sales sheet, you will see the estimated gross profit for each month.
Now you have all your fixed costs insert and your events information you can go back to the Summary sheet and see your financial forecast.
This sheet will add up all you fixed costs and events for the next two years. Remember to change the company / corporate tax for your country.
Understanding the information.
Total sales is the revenue from all your events without any costs included. 100 events x £395 =£39,500
Costs of sale the cost of running the event. Ink, paper, fuel, event staff costings.
Fixed costs This is the total cost of running the business. This includes office rental, van lease, mobile phones and anything else that isn’t associated with running the event.
Tax – Don’t forget that your profits will be taxed.
Hopefully, this photobooth business planner has helped you. Running a photo booth company can be profitable and fun!
Feel free to drop a comment below if you have any questions.