Money question

The thing I am thinking is this, Ehm, how do I explain?

I am just starting out with doing paid gigs...
At this point I would like to invest in promotional stuff, for advertising.
The only thing is, that I have spend a certain amount of money in materials already but so far I just have had 2 paid gigs.
Is it wise to spend a lot of (private) money, even though, I don't earn so much money with paid gigs yet?

Do you understand what my question is? How did you guys do that when you first started out?
Did you have a certain amount as seed (?), to invest in paints, banners, businesscards and so on...or did you invest after being paid for gigs???

Yes! The saying that you have to spend money to make money is true! It is a leap of faith and courage but it's a worthwhile leap - if it's backed up by your conviction that you are really building a business and are committed to the process.

Spend only what you can reasonably afford to, and spend it first on the things that are likely to bring you customers and to present your business well. If you can have really nice business cards printed, this is what your customers take away and remember you by (besides that beautiful face you did on them). It is also what people see when you leave the cards in public places to be picked up.

Once business picks up, you might consider spending any party money that comes in (which you don't need for bills, cost of living, etc.) right back into the business. That's how real businesses grow. Lots and LOTS of hard work (for a limited income in the beginning.).

yes, either print your own or get the basic freebie business cards from Vistaprint until you can afford to buy the customized ones. get a small banner until you can afford a larger one, then use the smaller one on the backside of your tent (nice to have more than one side advertising at a time) or hang it on your table.

Makes perfect sense.
I have spent most of what I've made so far (in the past three years) on my business. (business cards, mailers, festival booth set up, website, paints and supplies, etc.)
It takes a few years to be established enough to be "making money" because it all gets funneled back into the business to grow it.
I'm finally starting to see a bit of income from my business. And what do I do?? I contact my advertising agency and order a feather banner, lol. Sheesh. One of these days I will just make money to have...
Someday.
Meanwhile, yes. You have to spend money to grow your business. Don't buy anything you can't live without. It is so easy to be enticed by all the pretty pretties.
If you dig the festival route, make sure your booth looks professional. You won't be able to do it without spending some money.
If you dig only the private party sector, you will want your website to be top notch, with pro-looking pictures. You can take decent pics yourself these days, so no worries about paying a photographer. Work on that website regularly and put in meta-tags on all your pictures. Make a facebook page and post pictures regularly. Link your website to every. single. picture. The more your website is mentioned online, the more visible you are. This part is free, relatively. It just costs time.
Prepare yourself that pretty much everything you make for a while will be going to promote and grow your business, and you will be doing great.
As for spending private funds on your business, it is really up to what you can manage. I try really hard to not spend personal budget money. Sometimes I have to borrow from our general fund when my business funds are running low, but I always pay it back as soon as possible. I don't let my business take away from my family responsibilities, financially speaking. I pay the bills as they are due, and feed the family. I would never sacrifice our budget to my business.

rthling - too too funny - I'm at the 2 1/2-year point and a feather banner is NEXT on my list! The money keeps a-flowin' and a-flowin' ...  

What's a feather banner?

A feather banner is one of those banners that is on a long vertical pole. It is able to rise above a booth tent, building, etc., for maximum visibility. The banner itself is suspended in a long vertical manner (sort of feather-shaped) and your wording on the banner is vertical, usually.

This is my feather banner. I love it!!

Every time I see a photo of your stall, Diane, it makes me happy. It looks like it could set sail on the seven seas, staging random raids on passing ships and leaving the victim crew far more colourful (if much more confused) than before.....and then you'd sail off again, into the sunset, humming a jaunty sea shanty.

Or am I just a bit odd?

Argh, Matey, it may so be that I could be sailin the seven seas!
When the wind kicks up, the mighty banner is very much like a sail! I have to ballast the tent to keep from flying away!

It looks fabulous Diane!

Thanks, Ella! I love it!

to be honest it really depends on what your specialty is....

let me explain. rthling has a fabulous booth set up! she is seen as a professional face and body painter. so what she has spent on her image is needed for her to make profit. she had to spend money out of pocket as any small private owned business would.

BUT>>>

if she were just performing birthday gigs she would not need most of what she has purchased as the demands for banners are not needed.

you really need to decide what types of venues you wish to offer and then build the set up for that venue. some people start out working birthdays as it is so much easier to get started in. the initial out put is far less then the festival worker set up. once you have a steady income coming from the birthday market, then you may choose to expand and add another income stream to your business. and that is exactly what it is, another income stream. with different demands and needs.

just some thoughts

Tnx! That is a good thought to think about!

Michael Magick wrote:to be honest it really depends on what your specialty is....

let me explain. rthling has a fabulous booth set up! she is seen as a professional face and body painter. so what she has spent on her image is needed for her to make profit. she had to spend money out of pocket as any small private owned business would.

BUT>>>

if she were just performing birthday gigs she would not need most of what she has purchased as the demands for banners  are not needed.

you really need to decide what types of venues you wish to offer and then build the set up for that venue. some people start out working birthdays as it is so much easier to get started in. the initial out put is far less then the festival worker set up. once you have a steady income coming from the birthday market, then you may choose to expand and add another income stream to your business. and that is exactly what it is, another income stream. with different demands and needs.

just some thoughts

Yep yep!
I do both the festival route and the party route, so I have quite a bit of stuff. Hubby keeps threatening to build me a trailer to house it all, so we can reclaim the corner of the dining room, where my ever-expanding pile of stuff lives.

Which isn't the only thing ever-expanding in my life, but that's a while 'nother story.

And thanks for the kind words, Mike.

lol we have the entire down stairs for our storage.

Michael Magick wrote:
you really need to decide what types of venues you wish to offer and then build the set up for that venue. some people start out working birthdays as it is so much easier to get started in. the initial out put is far less then the festival worker set up. once you have a steady income coming from the birthday market, then you may choose to expand and add another income stream to your business. and that is exactly what it is, another income stream. with different demands and needs.

just some thoughts

very true.

ever since you joined the forum, I've asked myself
"what would mike do?"
lol.

lol I am actually in the process of writing a marketing program for magicians and mentalists.but ill work with you guys free. lol

Feather banner looks amazing. I don't like to do festivals because I know I don't have all that stuff (tables, chairs, tent....). And the long hours... I prefer birthday parties.