Found a stat about studio failure rates that surprised me

I was reading a report from the Creative Business Network last week about how many creative studios close within 5 years. The number was 62 percent. That seems high for a field where people start with a lot of passion and skill. But the report said most failures come from bad pricing and not understanding cash flow, not bad work. I wonder if that means we should be talking more about business basics in forums like this instead of just gear and portfolios. Has anyone else seen data like this or have their own story that backs it up?

2 comments

2 Comments

betty_ward16d ago

You know, I used to think it was all about having a killer portfolio and the right gear too. This stat really made me stop and think. I spent my first year as a freelancer totally guessing on prices and ended up working for almost nothing on some projects. Now I spend way more time on my spreadsheet than I do on my camera settings, and it's made a huge difference. Your mileage may vary, but I'm pretty sure that 62 percent figure is spot on for how many folks don't know their numbers.

olivia_barnes9716d agoMost Upvoted

Ngl that 62 percent number is wild when you think about it. Like almost two thirds of freelancers are just throwing darts at a board hoping they land on the right price? I mean I get it because I was one of them but still, that's a lot of people leaving money on the table. Honestly the part about spending more time on your spreadsheet than camera settings really hit me, I used to think the creative work was the only thing that mattered.