As reported at the end of last year, Annie Leibovitz is having money troubles allegedly resulting from non-payment of her vendors. It seems as though she has further exacerbated the situation by borrowing money from the Art Capital Group and creating a stir about repaying it. The loan is secured by prints, rights and real estate which is available for sale, liquidation or auction if the loan is not repaid per the terms of the agreement. Obviously, this becomes a really bad situation if you can possibly lose your life’s work and the home you live in.
I was interested in this story when it first came to light because I spent the better part of a decade and a half in New York City. During that period, Annie Leibovitz’s images where a big part of the photographic fabric of New York, featuring celebrities, politics and religion, the art world, well-known families and fashion icons. There would be an air of excitement around a new release of a magazine that contained her work and the cocktail party conversations that week would revolve around a critique of those images.
We assume that Leibovitz’s situation is the result of the slow down in the economy. But the quickness by which you adapt to the current business cycle could mean the difference between failure and success. I think it also points out that you can’t lose sight of some of the key business principles (KBPs):
1. Periodically review the appropriate overhead for the business opportunity,
2. Minimize the reliance on debt to fund a business,
3. Capture and analyze the important metrics driving your business,
4. Read and comprehend any legal document before signing it, and
5. Hire the best people possible and instill a culture.
This is not an all-inclusive list of sound business fundamentals but instead a list that will help keep you clear of the pitfalls in business 90% of the time. I don’t know if Annie Leibovitz’s photography business uses a studio management software — I do know that our PhotoOne Software can be an important part of your control process and allow you to better run and manage your business.
Please let me know what is your favorite business principle in our comment section below.
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