Many photographers, graphic designers, and other creative workers find that having a separate workspace where they can take photos of people or products, work on design projects, or shoot other projects is important. But the purchase price of a studio space can be very expensive for someone who is starting out as a freelancer or even a small business person. This is highly advantageous because it will mean a lot of saving on costs rather than taking a studio then paying a lot of money for rent to practice. Here are the breakdowns of the general costs involved in each of the following options.
Upfront Costs
Looking at the cost that one is likely to encounter while buying a studio there are some significant one off expenses to consider before even moving to the direct costs. First, there is the cost of the property which will be at least tens of thousands of dollars or even hundreds of thousands when purchasing through a real estate agent depending on the market prices in your locality. On top of the acquisition cost, one has to factor in more for remodeling, licensing fees, equipment, insurance, and others just to open the doors.
On the other hand, if you choose to rent the studio time, there are very minimal costs that you would incur. The only initial cost may be simple set, backgrounds, lights, accessories, etc. if you do not have them at all. Utilities such as electricity, lighting, washrooms, and the actual studio are considered to be part of the rental charges. This means that you can get shooting right from the onset without necessarily having to invest a lot of money.
Monthly Expenses
Even if you manage to buy a studio free and clear there are a multitude of other expenses that occur on a monthly basis. First of all, you have to take into account mortgage and property taxes, utilities and maintenance for the actual structure. Maintenance and replacement of some equipment will also be required over time. Specialized business property insurance is also a requirement. When aggregated, anticipate overhead expenditures of at least a few thousand dollars on a monthly basis.
In the case of renting a studio, it is as easy as paying for time you spend there. This means paying only for utilities, equipment depreciation, other costs related to the hours occupied by the space and so on. To those who do not need a studio 40+ hours a week – freelance photographers, for example – these costs will be several times less than owning. You may be required to pay only a few hundred of dollars for the sessions you have agreed to have provided while the conventional setup may cost you thousands of dollars fixed fees per month.
Unused Space
Another major benefit that can also be attributed to the renting process than owning a studio is flexibility in space. A studio owner assumes all the monetary liability implicated by vacant space during lean months of the year. This entails paying for all the exact same fixed ownership costs even for weeks or months where one is not constantly shooting in studios very much or at all. The most important aspect to consider is that having unused space can quickly turn into a costly proposition.
Concerning a rental model, you only pay for the space and the exact time that you require using it. For instance, during the holiday season or wedding season, you can schedule more hourly sessions to satisfy customer demand. What you do is reduce the number of bookings to fit your budget and the amount of work you have when business is slow. This kind of flexibility helps in avoiding situations where you are charged for space that you do not use.
Recouping the Investment
A lot of time, major financial investments that come with owning a studio are usually paid off in the long-run. If you’re paying thousands a month in fixed ownership costs out of pocket, it may take five years or even more to build up enough earnings from studio shoots to offset the initial cost. New photographers who are yet to establish themselves, and thus have few clients, are affected by this long journey to profitability.
Renting space also gives photographers a chance to start profiting right away and make up for the money spent on renting a studio in a few years. Renting space for client sessions for as low as a few hundred dollars generates revenues as soon as the payment is made. While these hourly rentals are essentially similar to having a private studio, they do not create a long-term exposure to financial risks.
Access to Amenities
Having a professional photography studio with proper background, props, lighting accessories among others is very expensive and most freelancers cannot afford it or they do it at the initial stage of their business. However when renting studio time, one gains access to virtually all these features and equipment which would prove very costly to procure. This enables you to enhance the quality of your studio shoots without having to incur the actual ownership expenses.
To this effect, it can be highly advantageous to rent from a studio that is dedicated to photographers alone. For instance, equipment rental from a specialty vendor like ShootSuite gives each and every lighting, grip equipment, high-quality backdrops and prop item required to get superior results, minus the thousands of dollars of personal investment in equipment. Availability of high-end studio facilities can be a great plus in the growth of your business.
In Summary
Depending on all the costs that one will incur in owning a photography studio space as opposed to renting the space by the hour, the latter is indeed cheaper. As a result of not having to pay for overhead and office space, equipment and furniture, utilities, maintenance and insurance, rent, phone and internet, rent allows freelance photographers and small studios to run cheaper, more efficiently, and profitably as they only pay for the precise amount and time of space and equipment needed while getting access to professional quality rental equipment. Thus, the major benefits of renting studio time can be found in the flexibility of access to studio space coupled with the potential for substantial cost savings as compared to more conventional ownership models in the majority of situations. When considering, it is important to evaluate your specific business’ requirements, but do not lose sight of the fact that rental models are easily scalable and fiscally efficient.
