business plan for production house

Film Production Company Business Plan: The Complete Guide

The process of film production is a long and arduous one. It starts with the writing stage, where screenplays are written by a writer or multiple writers.

The screenplay typically has at least three acts that have to be edited for pacing and story development purposes. Once the script is finished, it’s time for pre-production!

There’s a lot of misconception about what film production really entails. This article will clear up some of the misconceptions and give you an idea of what it is like on set, as well as how to break into the industry.

FILM PRODUCTION COMPANY BUSINESS PLAN

What is a film production company business plan.

A film production company business plan is a document that can help you to get investors and loans from banks, but it’s also useful for you to see if your idea is viable. It helps you determine if it’s worth investing money, time, and effort.

Film production company business plans are documents that should be created before starting the business.

They will help you gain investors so you can start your film production company and make money out of your films.

A business plan should have all the necessary information about your film company , including the mission statement, executive summary, market analysis, funding request, financial projections, and management team.

Starting a film production company is an exciting venture that blends creative storytelling with the thrill of entrepreneurship.

Crafting a solid business plan is our roadmap to success, ensuring we navigate the complex landscape of the film industry with confidence.

We’ll jump into the essentials of a film production company business plan, from financial projections to marketing strategies.

Stick with us to learn how to lay the groundwork for a thriving production company that’s ready to take on Hollywood.

Executive Summary

When embarking on the exhilarating journey of starting a film production company, the executive summary stands as a pivotal introduction to the business plan.

It provides a snapshot of the company’s vision and objectives, ensuring that potential investors or partners grasp the core of what we’re building.

In our executive summary, we’ll outline the major points that distinguish our company, such as our unique storytelling capabilities and innovative distribution strategies.

We hone in on our competitive advantage – a blend of seasoned industry professionals and fresh talent that pushes the envelope of what’s possible in film.

We’ll also touch upon our foundational goals:

• Captivate a diverse audience with groundbreaking narratives,
• Create a slate of projects that showcase profitability and creative ingenuity,
• Establish a brand synonymous with quality entertainment.

Financial plans are succinctly summarized to demonstrate the strategic allocation of resources and the anticipated financial trajectory.

Here, investors will find confidence in our capability to manage budgets effectively and produce high-return projects.

Marketing strategies are briefly yet powerfully presented, showcasing how we plan to penetrate the market and gain substantial traction.

We outline our approach to leveraging social media , partnerships, and film festivals to amplify our presence and stake our claim in a crowded industry.

Each element of our executive summary is designed to pique interest and invite deeper exploration into our full business plan.

Through it, we lay the foundation for a dialogue with stakeholders that could translate into lasting support for our creative endeavours.

Company Overview

In the heart of our business plan lies the comprehensive Company Overview section, a detailed portrait of who we are and what we stand for.

As seasoned filmmakers at Filmmaking Lifestyle, we take pride in our ability to tell gripping stories through the lens of our cameras.

We offer a range of filmmaking services, but here’s a snapshot of our core offerings:

• Narrative Film Production – Our signature offering includes developing and producing feature films that resonate with audiences globally.
• Commercial Video Production – We craft compelling marketing videos that help brands tell their stories and engage with their target demographic.
• Innovative Content Creation – With the digital space evolving rapidly, we stay ahead of trends producing content that stands out in crowded platforms.

Our mission goes beyond the visual aesthetics; it’s about weaving narratives that leave a lasting impact.

Each project is an opportunity for us to push the envelope in creative storytelling.

At the core of our operation, we strive to achieve a convergence of artistic vision and commercial viability.

Anchored by a team of dedicated professionals, we bring diverse perspectives and skills to every production.

This synergy creates a fertile ground for innovative filmmaking.

Our work ethic revolves around a relentless pursuit of excellence and a commitment to staying on top of the latest industry advancements.

Focused on scaling our film production capabilities, we’re actively exploring emerging technologies and distribution channels to enhance our impact in the industry.

We’re all about staying ahead of the curve, making sure our films are not just seen, but remembered and revered.

With a portfolio that spans various genres and styles, our flexibility allows us to tailor our approach to each unique project.

Collaboration is key – by joining forces with talented writers, directors, and producers, we amplify our ability to craft unforgettable cinematic experiences.

Investing in our growth, we’ve equipped ourselves with state-of-the-art equipment and editing suites, ensuring professionalism and efficiency in our production workflow.

Convergence of art and technology is critical in our approach and is reflected in every piece of content we produce.

eventually, our Company Overview is not just an introduction to who we are; it’s an open invitation to jump deeper into the possibilities and potent potential of partnering with Filmmaking Lifestyle.

We’re here to bring visions to life and curate a portfolio of work that speaks volumes of our passion for filmmaking.

Vision And Mission

Partnering with these key figures elevates our visibility and strengthens our network within the film industry.

Attendance and participation at industry events ensure we stay current and visible.

Film festivals , screenings, and conferences act as platforms for networking and showcasing our latest productions.

Our sales approach hinges on:

• Fostering strong relationships with distributors and streaming services,
• Offering competitive pricing while ensuring high production value,
• Developing a feedback loop with our audience to refine our portfolio according to their preferences.

As the film industry evolves, so must our approach to marketing and sales.

Employing dynamic strategies that align with the latest trends will ensure that Filmmaking Lifestyle continues to thrive in a competitive marketplace.

Production And Post-production Plan

Developing a thorough production and post-production plan is crucial for us at Filmmaking Lifestyle.

This ensures streamlined operations from the initial storyboard to the final edit.

In the planning phase, we focus on script finalization, casting, location scouting , and securing permits.

Each of these elements is critical, as they set the stage for successful filming.

During production, our attention shifts to the practical application of our strategies.

This includes advising on shooting schedule s, budget adherence, and logistics management.

We’re dedicated to fostering a cooperative environment where cast and crew can work efficiently towards a common artistic goal.

Our team ensures that every day on set counts towards creating a compelling final product.

Entering post-production, our plan transitions into editing, sound design , and visual effects.

We have a robust workflow that includes:

• Dialogue editing and ADR,
• Soundtrack composition and sound effects,
• Color correction and grading,
• Special and visual effects integration.

Each of these post-production processes is handled with precision.

Our skilled editors and technicians bring the director’s vision to life, polishing the film to meet both artistic and market standards.

We maintain meticulous records and backups to safeguard against data loss ensuring our projects are delivered without hiccups.

also, we constantly adapt our production and post-production tactics to suit the evolving landscape of film and video.

By staying ahead with the latest software and editing techniques, we guarantee top-notch quality that resonates with our target audience.

Engaging with industry advancements allows us to uphold our reputation for innovation and excellence.

Financial Projections

Financial projections serve as the fiscal compass for our business, providing a snapshot of the anticipated revenue and expenses.

We carefully calculate these projections to forecast the financial health of our film projects and overall operations.

When crafting our financial outlook, we factor in all potential sources of income – ranging from theatrical releases to streaming platform deals.

Our expense list is comprehensive, with line items for production costs, marketing campaigns, and distribution fees.

Revenue streams typically include:

• box office sales,
• Licensing agreements,
• Merchandise sales,
• Syndication rights.

Meanwhile, expenses often encompass:

• Actor and crew wages,
• Equipment rental,
• Post-production services,
• Marketing and advertising costs.

We maintain a cautious approach with our projections, especially considering the volatile nature of the film industry.

For each project, we provide conservative estimates that take into account various market conditions and audience trends.

Navigating the financial aspects of film production doesn’t have to be overwhelming.

By regularly revisiting and refining our financial projections, we stay prepared for unforeseen expenses or shifts in revenue.

Never resting on our laurels, we Use cutting-edge analytical tools and industry benchmarks.

This enables a level of precision that helps safeguard our investments and optimize profitability.

We prioritize transparency in our financial dealings, ensuring that stakeholders and investors have a clear understanding of where their money is going.

Our detailed projections form the basis for robust investment strategies, securing the bedrock of our financial planning.

With each new project, we build upon our knowledge base.

Our financial foresights become increasingly accurate, guaranteeing that Filmmaking Lifestyle not only survives but flourishes in the competitive film production landscape.

Funding And Investment

Securing the financial backbone for film projects is a critical step in the execution of our business plan.

Harnessing a mix of funding sources allows us to diversify risk and tap into various pockets of opportunity.

Crowdfunding has become a significant source of investment, enabling us to engage our audience from the outset.

Platforms like Kickstarter and Indiegogo offer a ground for community support and validation of our creative endeavors.

Equity financing is a traditional route where investors receive a stake in the production’s potential returns.

This method aligns investor and producer interests, creating a mutually beneficial relationship.

Here are some of the key components of our funding model –

• Pre-sales of distribution rights,
• Tax incentives and rebates,
• Grants and subsidies specific to the film industry,
• Partnerships with production companies and studios.

We also look toward film financing companies that specialize in entertainment.

Their knowledge of market trends and distribution strategies makes them a powerful ally in our financial planning.

Engaging with angel investors and venture capitalists who have a vested interest in creative projects provides us another avenue.

These individuals or groups often bring more than just funds – they carry expertise and networking opportunities to the table.

With meticulous fiscal management, we ensure that each investment is allocated effectively.

Diligent tracking of expenditures and returns keeps us ahead in our financial undertakings, and prepares us for sustainable growth and development.

By staying flexible and open to emerging investment opportunities, we sustain our production capabilities.

Our approach is continually refined, allowing us to capture new investment while fostering ongoing partnerships.

Risk Assessment

When crafting a business plan for a film production company, it’s pivotal to conduct an exhaustive risk assessment.

In our experience, this analysis isn’t just a formal requirement – it’s a precautionary step to safeguard our investments and efforts.

Understanding the potential risks allows us to develop strategies proactively.

We account for everything from casting issues to weather disruptions, ensuring that our backup plans are as robust as the primary ones.

Market volatility must not be underestimated.

The film industry is susceptible to trends and consumer preferences that can shift overnight.

Our vigilant eye on market trends helps us adapt quickly and effectively.

The risks of technological advancements cannot be ignored.

They might render our current methods obsolete, demanding constant innovation and flexibility in our approach to filmmaking.

A substantial risk in film production stems from financing and budget constraints .

Here are factors we consistently monitor and mitigate:

• Sudden increases in production costs,
• Delays in funding release – Unanticipated post-production expenses.

Legal challenges also pose a significant threat.

Maintaining meticulous records and obtaining all necessary rights and permits is standard practice for us to prevent costly disputes.

To stay ahead, we evaluate risks associated with distribution and audience reception .

Strategies include:

• Targeted marketing campaigns – Building strong relationships with distributors – Diversifying our portfolio to appeal to a broader audience.

Finally, we face the universal risks of unexpected events like natural disasters or global crises.

We establish insurance and emergency response plans to manage such unpredictable scenarios.

Film Production Company Business Plan – Wrap Up

Crafting a solid business plan for our film production company, Filmmaking Lifestyle, is crucial for our success.

We’ve laid out the groundwork to understand our market position, devised strategies for marketing and sales, and outlined our production processes.

Our approach to securing diverse funding sources ensures we’re financially prepared to bring our cinematic visions to life.

We’re also proactive in assessing and mitigating risks, ready to adapt to the ever-changing film industry landscape.

With these strategies in place, we’re not just making films—we’re building a resilient, forward-thinking business ready to captivate audiences and withstand the tests of time.

Frequently Asked Questions

What is competitive analysis and why is it important in the film industry.

Competitive analysis in the film industry involves researching and understanding competitors to identify both the strengths and weaknesses within the market.

This helps Filmmaking Lifestyle to determine their own position and create strategies for success.

How Does Filmmaking Lifestyle Approach Marketing And Sales?

Filmmaking Lifestyle develops a robust marketing and sales strategy that encompasses identifying their target audience, creating compelling promotional materials, and implementing innovative sales techniques to reach viewers and generate revenue.

What Are Some Sources Of Funding For Filmmaking Lifestyle?

Filmmaking Lifestyle’s sources of funding include crowdfunding, equity financing, pre-sales of distribution rights, tax incentives, grants, subsidies, and partnerships with production companies and studios.

They also work with film financing companies, angel investors, and venture capitalists.

How Is Fiscal Management Handled In Filmmaking Lifestyle?

Fiscal management at Filmmaking Lifestyle involves careful allocation of investments, ensuring that funds are spent efficiently and preparing for sustained growth and development within the company’s financial capabilities.

Why Is Conducting A Risk Assessment Vital For Film Production Businesses?

Conducting a risk assessment is vital as it helps in identifying potential issues like market volatility, budget constraints, legal challenges, and distribution risks.

It allows for the creation of strategies to mitigate these risks, ensuring the stability and adaptability of the film production business.

What Strategies Does Filmmaking Lifestyle Use To Mitigate Production Risks?

Strategies include adapting to market trends, staying flexible with technology, monitoring costs, securing rights and permits, targeted marketing, working closely with distributors, diversifying their content, and having insurance and emergency plans in place.

Matt Crawford

Related posts, what are first-look deals in film: examples and impact, the 48 laws of power: a complete guide to the life changing book, the ranch – redefining film & tv studio location, how to sell a tv show idea with a sizzle reel, control your emotions, or they will control you, notion app review 2024: is this the best project management tool.

Iam having a movie by the name from the streets to the world

Best of luck, Kelvin!

Matt .. would you have template of the Biz Plan .. and are you Fine with sharing the same? – AMAAN

Here’s an idea for a template: https://toskaproductions.com/wp-content/uploads/2013/06/TEA-Business-Plan.pdf

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How to Start a Production Company: A Complete 12-Step Guide

S tarting a production company can be incredibly daunting. There are so many business aspects that appear mundane and confusing to the typical creative starting a production company. But the truth is that laying down a proper foundation is essential for any new production company to grow and prosper. In this article, we outline twelve steps on how to start a production company in the modern age. Let’s dive in. 

How to start a production company 

1. research the market.

Getting started right away and shooting anything and everything possible might sound like a great idea when starting a production company. But before you shoot a single shot, it is important to do your market research. This is important for companies producing either independent films or commercial advertisements. 

When producing an independent film, research doesn't mean you must write a film according to what is popular. But rather understand and determine how the film you want to make can be positioned in the world of indie films, streaming, and top film festivals .

On the topic of the latter, researching film festivals can be the deciding factor that gets your film into film festivals. Here are a few tips on how to choose the right film festival. 

Starting a Production Company Through Film Festivals

If you are aiming to produce commercial work, research is just as, if not more important. Research the market in your specific area and determine how to position your company to fulfill the market needs of your area. 

Research also may involve reaching out and learning from others. Here are the founders of a small production company Dose of Society. They reached out to Gary Vaynerchuk, a well-known and successful entrepreneur, to ask him how to scale a small media company. 

How to start a production company  •  Meeting With Dose of Society

While the advice Gary Vaynerchuk gives them is valuable in and of itself, it is important for you to conduct your own research in your area. It is also important to research competing companies and take note of the services they are offering. Understanding what you’re up against will help you determine how to position and market your company.

Starting a film production company

2. determine your niche.

When starting a production company, you may find that a specific niche excites you the most. For indie film companies, this may be a certain genre such as horror or science-fiction. In commercial production, companies this may be a focus on weddings, restaurants, start-ups, or even gyms. 

Starting a film production company with niches

As the video states, it is important to follow your instincts when determining your niche rather than what others tell you is a great niche to pursue. When first learning how to start a production company, take a look at existing companies and understand what markets are saturated in your area. 

How to start a film production company with no money

3. name your company.

Naming a company can be incredibly fun, but often difficult. When naming your production company, definitely include your personality and have fun with it, but keep in mind a few guidelines. 

It is important to come up with a name that is memorable and easily searchable. It’s easy for company names to get lost in the minutiae of the internet. Utilizing a city name in your company name is a great way to help potential clients find your company more easily. Here is a great Ted talk that discusses how to come up with a great brand name.

How to name your production company  •  Brand Names

It is also important to make sure that your name is original and legally avoids copyright problems. Enter your possible company names into the National Business Register to check if your name is taken. 

How do you start a production company?

4. create a business plan.

One of the most important steps when creating a production company is creating a production company business plan . Without a business plan, starting a company may be easy, but growing it in a sustainable way will be incredibly difficult. 

Putting your business plan on paper will help you and your team gain a clear direction on the company with actionable steps. Here is some first hand advice on how to think about growing a production company.

How to start a production company and grow it

Perhaps most importantly, a business plan can be presented to potential investors, advisors, team members or clients to prove to them that there is a plan for the future of the company. When people are going to invest their money or time into a company, they will want to know that there is a plan behind the idea. 

5. Assemble a team and equipment

While it is always an option to start a company alone as a sole proprietor (we’ll get to that in the next section), working with friends is not only more fun, but it can increase your production value immensely. 

Being a one man or woman show can spread you thin and decrease the level of production on your projects. There will inevitably be projects that come up where you will need to find and hire a great film crew . A proper set will entail a few key positions. What positions are absolutely necessary? Here’s a video to give you a better idea. 

How Many Crew Members Do You Need?  •  Starting a film production company

This team will either be composed of freelancers, employees, or business partners. To determine which you will employ, refer to your business plan and finances to see what best suits your company.

Once you have your crew, using StudioBinder’s film crew list management software will help you stay organized and efficient when managing your crew.

In addition to a team, you will need equipment. When starting a production company, it is common to be on a very tight budget. Production lighting kits , mirrorless cameras , and camera lenses can get pricey. Here is a video that breaks down some essential equipment needs that won't completely break the bank.

How to Start a Production Company With Under $10,000: What Should You Buy?

Keeping your team and production organized is the difference between amauteuer productions and professional productions. Production softwares like StudioBinder’s production management software will help take your company to the next level. 

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• The Best Mirrorless Cameras for Filmmaking →
• Plan your productions with scheduling software →

Register a film production company

6. determine your type of company.

Types of businesses to register a film production company

To recap, here are your options as stated here by the U.S. Small Business Association where you can find more information:

1. Sole Proprietorship:

A sole proprietorship is easy to form and gives you complete control of your business. 

Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Still wondering what a sole proprietorship is? Check out the video below for more information.

What Is A Sole Proprietorship?  •  QuickBooks US

Sole proprietorships can be a good choice for low-risk businesses and owners who want to test their business idea before forming a more formal business.

2. Partnership:

Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).

Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability.

Limited liability partnerships are similar to limited partnerships, but give limited liability to every owner.

Partnerships can be a good choice for businesses with multiple owners, professional groups (like attorneys), and groups who want to test their business idea before forming a more formal business.

3. LLC (Limited Liability Company)

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures.

LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits. LLCs can also have a limited life in many states. 

These can be a good choice for medium- or higher-risk businesses, owners with significant personal assets they want to be protected, and owners who want to pay a lower tax rate than they would with a corporation.

LLC vs S-corp vs C-corp

4. c corp (corporation).

A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable.

Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.

These can be a good choice for medium- or higher-risk businesses, businesses that need to raise money, and businesses that plan to "go public" or eventually be sold.

5. S Corp (Corporation)

An S corporation, sometimes called an S corp, is a special type of corporation that's designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners' personal income without ever being subject to corporate tax rates.

S corps also have an independent life, just like C corps. If a shareholder leaves the company or sells his or her shares, the S corp can continue doing business relatively undisturbed.

These can be a good choice for a business that would otherwise be a C corp, but meet the criteria to file as an S corp.

How do I start a production company?

7. consult a lawyer or legal advisor.

Creating a production company legally can be complex. Consulting a legal advisor or lawyer will help ensure that you are taking the necessary steps in starting your company. Many people jump into starting a production company without laying the foundations. 

Here is a video with first hand experience explaining why this is such an important step for anyone starting a production company. 

5 Tips from Starting my own production company from scratch

There are many small business lawyers and entertainment lawyers who specialize in production services that can give great legal advice throughout the process. This step will help you avoid any costly problems in the future.

How to start your production company’s bookkeeping 

8. set up your bookkeeping.

Entertainment payroll, production insurance , and other expenses can get complicated and unorganized very fast. Consulting a CPA and setting up your bookkeeping right away will also help you avoid costly problems in the future as well as any legal ramifications for overlooked processes. This step will pay off when it's time to file your taxes, apply for a loan, or pay your employees.

How to start a production company website

9. establish an online presence.

Whether your production company produces independent films or commercial work, having an online presence is incredibly important. A website will enable you to showcase your work and allow clients or audiences to find you. 

In this day and age, it is a great idea to develop a social media presence as well. Instagram, Facebook, and YouTube are all places where trailers, commercials, and other video work can live and be discovered by clients or potential Hollywood players. 

How to create a production company portfolio

10. produce proof of concept projects.

Once you create a website and online presence, you will need to produce work that lives there. This gallery of work will obviously grow as you take on more client work, but initially you may have to shoot some proof of concept ideas that will help clients get a better idea of what your production company is capable of creating. 

StudioBinder's web series,  Making It , followed the entire proof of concept process from the script to the first day of shooting. Here's the first episode on how it all began.

Making It Ep. 1  • Watch Entire Series

When shooting independent films, sometimes creating a short film as a proof of concept for a feature film is a great way to get eyes on your project and potentially funding. 

11. Build a client network

Once the foundations of your company have been established, the next most important step is getting new clients. This is where you will actually see a return on your investment. Here are some fundamental tips for finding new clients for your production company. 

How to start your production company client network

The keys to building a client network is networking and delivering consistent, high quality work. Your initial clients will be your best allies in getting new clients, so maintaining a good relationship is essential.  

How to start a production company plan

12. plan for the future.

Planning for the future of your production company can be difficult in an industry that shifts and changes so often. In this day and age, technology progresses and changes at the blink of an eye. Keeping your focus on how the market is changing, what’s trending in the industry, and what new tech is emerging will help you steer your company like a ship in the right direction. 

Starting a production company is no easy feat by any means, but if you are passionate, persistent, and willing to put in the work it is absolutely achievable. Hopefully these tips bring you one step closer to executing your plan of starting your own production company. Remember there are endless resources online that will help you get started. 

• The Best Video Lighting Kits for Filmmakers →
• How to Master Lighting with 3-Point Lighting →
• Redefined Production Calendar for Easier Shoots →

A guide to creating your business plan

A key part of starting a production company is creating a business plan. And creating a business plan for your new production company can be daunting. Luckily, we’ve covered the fundamentals of how to create a production company business plan in our next article and even included a free template to lay out your business plan. 

Up Next: Creating a business plan →

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Production Company Business Plan Template

Written by Dave Lavinsky

Production Company Business Plan

You’ve come to the right place to create your Production Company business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their production companies.

Below is a template to help you create each section of your Production Company business plan.

Executive Summary

Business overview.

ABQ Reels Video Production is a startup production company located in Albuquerque, New Mexico. The company is founded by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.

ABQ Reels Video Production will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels Video will be the go-to production studio in Albuquerque for its tailored approach and client-first focus. The company will be the ultimate choice for customer service while ensuring the highest quality standards for production in the area.

Product Offering

The following are the services that ABQ Reels Video Production will provide:

• Content Development
• Sourcing & Hiring Film Crew
• Planning & Logistics
• Post-Production Services

Customer Focus

ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects, commercials, and social media. No matter the customer, ABQ Reels Video Production will deliver the best communication, service, and customized production tailored to fit each project’s needs.

Management Team

ABQ Reels Video Production will be owned and operated by Mark Johnson. Mark is a graduate of New Mexico University with a degree in Film Production. He has over 25 years of experience working in video production, and over ten years as a production manager. Mark will be the company’s Chief Executive Officer and Production Manager. He will oversee the production process, production equipment, and production staff’s activities.

Mark has recruited a business management expert, Emily Martinez, to be the company’s Chief Operating Officer and help oversee the production business operations. Emily will handle the day-to-day operations, including budgeting, client relationships, and logistics.

Mark and Emily have recruited an experienced marketing director, Steve Smith, to become a member of the ABQ Reels Video Production management team. Steve is a graduate of the University of California with a bachelor’s degree in marketing. Mark and Emily rely on Steve’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

ABQ Reels Video Production will be able to achieve success by offering the following competitive advantages:

• Skilled team of production experts and project management professionals who will oversee each project from start to finish and ensure the customers’ needs are met.
• ABQ Reels Video Production is able to provide production services for a wide range of purposes using the latest production technology.
• The company is able to leverage the expertise of its leadership team to provide customers with the best possible production services from knowledgeable industry veterans.

Financial Highlights

ABQ Reels Video Production is seeking $800,000 in debt financing to launch its production business. The funding will be dedicated towards securing the production facility and purchasing production equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Facility build-out: $340,000
• Production equipment, supplies, and materials: $280,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for ABQ Reels Video Production.

Company Overview

Who is abq reels video production.

ABQ Reels Video Production is a newly established production company in Albuquerque, New Mexico. The company will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels will be the go-to production studio in Albuquerque for its tailored approach and client-first focus.

The company will be the ultimate choice for customer service while providing the highest quality standards for production in the area. ABQ Reels Video Production will be able to guarantee the highest quality standards for all of its productions thanks to the latest and most innovative production equipment and oversight from industry veterans. The company’s team of highly qualified professionals experienced in production and project management will oversee each project from start to finish.

ABQ Reels Video Production History

ABQ Reels Video Production is owned and operated by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.

Since incorporation, ABQ Reels Video Production has achieved the following milestones:

• Registered ABQ Reels Video Production, LLC to transact business in the state of New Mexico
• Has identified the ideal facility for lease to set up the business operations
• Reached out to numerous contacts to include former colleagues, employees, and production assistants to start putting a skilled core team together
• Began recruiting a staff of accountants, production assistants, and sales personnel to work at ABQ Reels Video Production

ABQ Reels Video Production Services

Industry analysis.

The production industry in the U.S. is a $26B market with approximately 6.3K businesses and over 46K employees nationwide. The outlook for the production market is positive with demand expected to remain steady over the next several years.

The production industry can be categorized by type of production. Some of the most common types of production companies are film production, TV production, commercial production, and post-production. Production companies perform a wide range of services including scripting, casting, hiring, planning, and logistics. Some production companies handle large-scale projects like major motion pictures, while others specialize in small-scale projects like commercials.

Some of the most significant demand drivers are the growing popularity of streaming content, consumer preferences for viewing on smartphones, and social media influence. All of these factors have contributed to increased demand for content, which leads to increased demand for production services.

Customer Analysis

Demographic profile of target market.

ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects such as video for commercials and social media.

The precise demographics for Albuquerque, New Mexico are:

Customer Segmentation

ABQ Reels Video will primarily target the following customer profiles:

• Small Businesses in Albuquerque in need of commercial production services
• Mid-Sized Businesses in Albuquerque in need of commercial production services
• Individuals and groups of people in Albuquerque who need video production services for small personal or professional projects

Competitive Analysis

Direct and indirect competitors.

ABQ Reels Video Production will face competition from other companies with similar business profiles. A description of each competitor company is below.

VIEWR 1st Video Production

VIEWR 1st Video Production is one of the largest commercial production companies in Albuquerque, New Mexico. The company provides a variety of production services including content development, logistics, and film crew recruitment. VIEWR 1st Video Production specializes in creating commercials for local businesses to use in their advertising campaigns. VIEWR 1st Video Production aims to deliver high quality production through the latest production equipment and experienced crew. VIEWR 1st Video Production’s team of production professionals are well-known in the area for their outstanding commercial work.

Albuquerque’s Best Productions

Albuquerque’s Best Productions is a small production company established in 2005 that caters to local businesses and residents in Albuquerque, New Mexico and surrounding areas. Albuquerque’s Best Productions provides pre-to-post-production services for projects of various sizes and purposes. The company also provides tours of the production facility to local residents, businesses, and schools for a nominal fee. The owners of Albuquerque’s Best Production are former production assistants of some of the biggest production companies in the nation so they understand the production process from start to finish.

SPESHAL EFFEX

SPESHAL EFFEX is a trusted Albuquerque, New Mexico-based production company that provides superior production services to clients in Albuquerque and the surrounding areas. Established in 2018, the company is able to provide a wide variety of production services using its state-of-the-art production equipment. SPESHAL EFFEX serves local business owners, students, and individuals on small-to-large scale video projects. The company prides itself on being the number one choice for innovative special effects used in all of its videos.

Competitive Advantage

ABQ Reels Video Production will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

ABQ Reels Video Production will offer the unique value proposition to its clientele:

• The company is able to leverage the expertise of its leadership team to provide customers with the best possible production process from knowledgeable industry veterans and project management professionals.

Promotions Strategy

The promotions strategy for ABQ Reels Video Production is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure ABQ Reels Video Production maintains an active social media presence with regular updates and fun content to get customers excited about production.

Professional Associations and Networking

ABQ Reels Video Production will become a member of professional associations such as the American Production Company Association, Albuquerque Video Production Society, and the New Mexico Video Production Association. The leadership team will focus their networking efforts on expanding the company’s vendor and client network.

Print Advertising

ABQ Reels Video Production will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local businesses who are in the target market.

Website/SEO Marketing

ABQ Reels Video Production will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that ABQ Reels Video is able to provide. The website will also list information on the company’s events and client success stories.

The marketing director will also manage ABQ Reels Video’s website presence with SEO marketing tactics so that when someone types in a search engine “Albuquerque production company” or “video production near me”, ABQ Reels Video Production will be listed at the top of the search results.

The pricing of ABQ Reels Video Production will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s production services.

Operations Plan

The following will be the operations plan for ABQ Reels Video Production.

Operation Functions:

• Mark Johnson will be the CEO and Production Manager of the company. He will oversee the production staff, production process, and the production equipment. Mark has spent the past year recruiting the following staff:
• Emily Martinez – Chief Operating Officer who will manage the budgeting, vendor and customer relationships, and day-to-day logistics.
• John Miller – Accountant/Bookkeeper will provide all accounting, tax payments, and monthly financial reporting.
• Steve Smith – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

ABQ Reels Video Production will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease on the facility

12/15/2022 – Finalize personnel and staff employment contracts for the ABQ Reels Video Production management team

1/1/2023 – Begin build-out of the facility, purchase equipment, and set up for production

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2032 – Finalize contracts for initial production assistants, sales personnel, and office staff

3/15/2023 – ABQ Reels Video Production officially opens for business and starts taking on projects

Financial Plan

Key revenue & costs.

The revenue drivers for ABQ Reels Video Production are the fees charged to customers in exchange for the company’s production services. When it comes to pricing, the studio will monitor production costs, average prices charged by competitors, and market demand to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a production company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of minutes produced per month: 12,000
• Average fees per month: $36,000
• Overhead costs per year: $840,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Production Company Business Plan FAQs

What is a production company business plan.

A production company business plan is a plan to start and/or grow your production company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your production company business plan using our Production Company Business Plan Template here .

What are the Main Types of Production Companies?

There are a number of different kinds of music companies , some examples include: Feature Film Production, Commercial Production, Post Production, and Niche Production Company.

How Do You Get Funding for Your Production Company Business Plan?

Production companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a film production company  or a film production company business plan.

What are the Steps To Start a Production Company?

Starting a production company  can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Video Production Business Plan - The first step in starting a business is to create a detailed video production company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your production company . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your production company  is in compliance with local laws.

3. Register Your Production Company   - Once you have chosen a legal structure, the next step is to register your production company  with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your production company , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Production Company Equipment & Supplies - In order to start your production company , you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your production company . This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Here's how you start a profitable production company.

Launching a production company can be an exhilarating venture for creative minds looking to bring compelling stories to life on screen.

Whether you're a seasoned producer with a track record of successful projects or an aspiring filmmaker aiming to make a mark in the industry, establishing a production company requires strategic foresight and unwavering commitment.

In this blog post, we'll navigate you through the critical stages of starting a production company, from developing your brand identity to premiering your first production.

How you should prepare to start a production company

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in starting a production company because it defines the core identity and direction of your business. It influences the type of content you'll produce, the target audience you'll cater to, the style and tone of your productions, and the overall branding of your company.

This foundational decision will shape your future choices regarding the genres you'll focus on, the talent you'll collaborate with, the equipment you'll need, and the marketing strategies you'll employ. A well-defined concept can help your production company stand out in a crowded market and attract the right clients and viewers.

In essence, selecting the right concept is like choosing the genre and theme for your production company's portfolio before you start casting and shooting your projects.

To assist you in making an informed decision, we have summarized the most popular concepts for a production company in the table below.

Pick an audience

When launching a production company, it's crucial to identify and understand your target audience, as this will shape the type of content you produce and how you market it.

For instance, if you aim to produce content for families, you might focus on creating family-friendly movies or TV shows that are suitable for all ages. Your marketing efforts would likely include family-oriented platforms and events that parents and children attend together.

Conversely, if your target audience is young adults, you might produce edgier, more contemporary content such as web series, reality shows, or films that tackle relevant social issues. The location of your production company might be in urban areas with a vibrant cultural scene to attract creative talent and foster collaborations.

Understanding your audience is essential because it influences the genres you choose, the talent you work with, the marketing strategies you employ, and even the distribution channels you select. It's akin to crafting a story; you need to know who you're telling it to in order to make it resonate.

Moreover, knowing your audience allows you to communicate with them more effectively. If you're aware of who you're producing content for, you can tailor your promotional campaigns to reach them where they are most engaged, whether that's through social media, online advertising, or industry events.

In our business plan for a production company , we outline various customer segments that could be relevant for your venture.

To help you envision potential audiences for your production company, we've compiled a few examples in the table below.

Get familiar with the industry trends

As a production company, staying ahead of the curve and understanding the emerging trends in the industry is crucial for success. These trends can guide you in developing content that resonates with audiences and sets you apart from the competition.

Emerging trends can dictate the direction of consumer interests and preferences. By aligning your production projects with these trends, you can capture the attention of a broader audience and create content that is both relevant and engaging.

Our business plan for a production company is updated biannually to include the latest emerging trends. We believe this will assist you in crafting a more successful and forward-thinking production strategy.

For instance, there's a growing demand for diverse and inclusive content that represents a wide range of cultures and perspectives. Production companies that embrace this trend are more likely to connect with a global audience.

Additionally, the rise of streaming platforms has led to an increased appetite for high-quality, serialized content. Audiences are looking for compelling storytelling that keeps them engaged over multiple episodes or seasons.

Moreover, with the advancement of technology, there's a trend towards incorporating virtual reality (VR) and augmented reality (AR) into productions, offering immersive experiences to viewers.

Environmental sustainability is also a key concern, with a push towards green production practices and reducing the carbon footprint of film and TV production.

Below is a summary table of the emerging trends and their descriptions.

However, there are also some declining trends.

With the shift towards digital and streaming services, traditional cable TV productions are seeing a decline in viewership.

Also, productions that fail to address or incorporate diverse casting and storytelling are increasingly seen as outdated and are less likely to attract a modern audience.

Finally, with the growing concern for the environment, productions that do not adopt sustainable practices or that are perceived as wasteful are facing criticism and may be less supported by consumers and investors alike.

Choosing the right location

Selecting the optimal location for your production company is a strategic decision that can significantly impact your operational efficiency and profitability. It requires a comprehensive evaluation of several key factors.

Begin by assessing the industrial landscape and local workforce. Understanding the availability of skilled labor in the area is critical, as a production company relies heavily on its employees' expertise. If the region has a strong technical education system or a history of manufacturing, it may offer a rich talent pool for your company.

Accessibility to suppliers and distribution channels is essential. A location with proximity to major highways, railroads, or ports can reduce transportation costs and improve supply chain efficiency. This logistical advantage can be a significant factor in timely delivery and overall customer satisfaction.

While visibility may not be as crucial for a production company as it is for a retail business, the ease of access for employees, suppliers, and clients cannot be overstated. Consider locations with good infrastructure and transportation links to ensure smooth operations.

Analyze the competitive landscape. While some competition can validate the market for your industry, too much can lead to a saturated market. Look for areas where your production company can fill a niche or offer something unique.

The cost of industrial space is a major consideration. Areas with lower costs can reduce overhead, but ensure they don't come at the expense of other critical factors like accessibility or workforce availability. Calculate the balance between affordable space and the potential for increased logistical costs.

Negotiating favorable lease or purchase terms for your property can have a long-term impact on your company's financial health. This might include long-term leases with fixed rates or the option to buy the property, which can provide stability for your company.

Consider the growth potential of the area. Is the industrial park or region expanding, with potential for infrastructure improvements that could benefit your company? The option to scale up operations in your current location without relocating can be a significant advantage.

Market research and analysis tools can offer insights into the best regions for your production company. These tools can help identify areas with the right combination of workforce, infrastructure, and economic incentives.

The choice between an urban industrial zone and a more remote location depends on your specific needs. Urban areas may offer better infrastructure and talent availability but at a higher cost. More remote locations might offer cost savings but could pose challenges in logistics and workforce recruitment.

Being in proximity to technical schools, universities, or research institutions can provide access to innovative technologies and partnerships that can enhance your production capabilities and product development.

Understanding local zoning laws, environmental regulations, and other legal requirements is vital to ensure that your chosen location is suitable for a production company. Ensuring compliance from the outset can prevent costly legal issues and delays.

Finally, evaluating the long-term prospects of a location is crucial. Consider future developments in the area that could impact your business, such as infrastructure projects that improve access or new regulations that affect manufacturing practices.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a production company can vary significantly, ranging from $50,000 to $200,000 for a small-scale operation to $500,000 to over $1,000,000 for a more comprehensive setup with high-quality equipment and a prime location .

If you want to know the exact budget you will need for your own production company and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to production companies . This excel file is designed to be very user-friendly and will provide you with an instant and detailed analysis of your future project.

The budget can vary the most due to the location of the production company. Prime locations in major cities or near industry hubs tend to have higher rental costs, which can significantly increase startup expenses.

The scale of the production company also plays a crucial role in determining the initial investment. A larger facility not only increases rent but also requires more equipment, staff, and materials, leading to higher operational costs.

The quality of equipment is another significant factor. High-end cameras, lighting, and sound equipment are expensive but can save money in the long run through better production quality and efficiency. Conversely, starting with used or lower-quality equipment can reduce initial costs but may lead to higher maintenance or replacement costs over time.

If the available capital is limited, it's still possible to open a production company, but careful planning and prioritization are crucial. The very minimum budget could be around $30,000 to $100,000 if you choose a low-cost location, minimize the scale of your operation, buy used equipment, and manage much of the work yourself. This approach requires a hands-on strategy, focusing on a niche market to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a production company include equipment purchases, studio rental or purchase, licensing and permits, insurance, marketing and advertising, technology and software, staff training, supply chain establishment for materials, and a reserve for unexpected expenses.

Essential equipment for a production company includes cameras, lighting, audio equipment, editing software, and computers. Costs can vary widely based on whether you buy new or used equipment. On average, you might spend between $50,000 to $500,000. High-end or new equipment will be at the upper end of this range, while you can save by purchasing used equipment. Cameras and editing software are among the most important, as they directly impact the quality of the content you produce.

Studio space is another significant expense. Renting a space can cost anywhere from $2,000 to $20,000 per month, depending on the location and size of the property. Purchasing a property would require a larger upfront investment, potentially in the millions, depending on the market.

Licenses and permits are critical for legal operation. Costs vary by location but typically range from a few hundred to several thousand dollars. This includes business operation licenses, filming permits, and possibly broadcast licenses if you plan to air content.

Insurance is, obviously, non-negotiable to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $3,000 to $15,000 or more, depending on your coverage levels and company size.

Allocating funds for marketing and advertising is crucial for attracting clients and audiences. Initially, you might spend between $5,000 to $20,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for video editing, sound editing, and project management is important. Costs can range from $5,000 to $30,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff and professional development. Setting aside $1,000 to $5,000 for initial training and ongoing professional development can help ensure high-quality production and service. This also includes any costs for obtaining or maintaining personal certifications.

Establishing and maintaining a supply chain for materials such as set construction materials, costumes, and makeup is an ongoing expense that can fluctuate based on market prices and your production company's volume. Initial inventory setup can cost between $10,000 to $50,000. Developing relationships with reliable suppliers and considering bulk purchases for non-perishable items can help manage costs.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, equipment failures, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for production companies .

Business plan and financing

Make a solid business plan.

You have probably heard it already but, yes writing a business plan when starting a production company is essential.

Why? Because a business plan is the blueprint for your venture, detailing your objectives, strategies to achieve them, and the obstacles you may encounter along the way. A comprehensive business plan is not only a tool for keeping you on track but is also critical when seeking funding from investors or banks, as it shows the feasibility and potential profitability of your enterprise.

The core elements of a production company business plan include industry analysis, financial projections, and operational strategies, among others. Industry analysis helps you understand the market demand, the specific needs of your target audience, and the competitive environment. It involves examining trends in the production industry, pinpointing your primary competitors, and determining a niche or unique value proposition that distinguishes your production company.

Financial planning is another vital component. This section should detail your anticipated income, cost of production (including equipment and materials), labor expenses, and other operational costs. It should also feature forecasts for profit and loss, cash flow statements, and a break-even analysis. Financial planning offers a transparent view of your company's fiscal status and prospects for growth to both you and potential financiers. You will find all of this in our financial plan for a production company .

While the structure of a production company business plan has similarities with other business plans, the focus on certain areas may vary.

For instance, a production company will emphasize product development (creating high-quality content or products), supply chain management (securing reliable equipment and material sources), and location scouting (finding suitable spaces for operations). Additionally, ensuring compliance with industry-specific regulations and licensing is crucial.

To succeed and develop a persuasive business plan for your production company, you should conduct in-depth research and maintain realistic expectations about your financial forecasts and operational capabilities. Engage with potential clients to grasp their requirements, preferences, and willingness to invest in your production services. Also, consider how scalable your business model is and how you might grow or modify your services in the future.

In the case of a production company, special attention should be given to establishing a strong brand identity and marketing strategy that connects with your intended audience. Emphasizing the quality of your output, the innovation of your production techniques, or the storytelling prowess you bring can set your company apart in a competitive industry.

Success depends not only on the excellence of your productions but also on meticulous planning, understanding your market, managing your finances prudently, and implementing your operational strategy with precision.

Remember, a business plan is not a static document but a dynamic one that should be reviewed and adjusted as your production company expands and adapts.

Get financed

Starting a production company can be a capital-intensive endeavor, but there are various financing options available to help you get your project off the ground.

Financing for a production company can come from multiple sources: equity investments from individuals or production partners, loans from banks or financial institutions, and film grants or tax incentives.

Each financing method has its own set of benefits and things to consider.

Equity investment involves seeking funds from investors who will own a share of your production company. This can be a great way to raise a large amount of capital without the obligation to repay a loan. However, it does mean that you will have to share profits and decision-making authority with your investors.

For a production company, this might be a good option if you're looking to fund a slate of projects or need substantial capital for state-of-the-art equipment or a studio space. To attract investors, you'll need a compelling pitch that includes a solid business plan, clear revenue projections, and an understanding of the film and television industry's competitive landscape.

Debt financing through loans is another common method. This allows you to maintain full control over your company but requires regular repayments with interest. Loans can be used for a variety of purposes, such as purchasing high-quality cameras, building sets, or covering post-production costs.

Banks will typically look for a down payment or collateral, which might range from 20% to 50% of the loan amount, depending on the risk assessment. It's crucial to ensure that the loan amount is manageable and that your production company's expected income can cover the repayments, as well as allow for sustainable growth and operational costs.

Film grants, tax incentives, and subsidies are also available to production companies. These are often provided by government bodies or cultural institutions to promote the arts and encourage local filmmaking. While these funds do not need to be repaid, they are highly competitive and may come with restrictions or requirements for the type of content produced.

For a production company, these can be an excellent way to fund specific projects or to offset some of the costs associated with production, such as hiring local crew or filming in certain locations.

To secure financing, whether from investors, lenders, or grant committees, you must present a detailed business plan that outlines your company's vision, the projects you plan to produce, your target audience, financial projections, and a marketing strategy. Your plan should also emphasize your production company's unique selling points, such as innovative content, strategic partnerships, or a talented team.

Financiers will evaluate your production company based on the experience of your team, the viability of your business model, the quality of your collateral, and the robustness of your financial projections.

They will scrutinize your financial forecasts to determine whether your company is likely to generate sufficient revenue to cover expenses, repay debts, and achieve profitability. A thorough understanding of the industry, including current trends, audience preferences, and a competitive analysis, will also strengthen your case for funding.

Below is a summary table of the various financing options mentioned for starting a production company, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Starting a production company involves a complex array of legal and regulatory considerations to ensure the safety of your employees, the quality of your productions, and the protection of your business interests.

The specific permits, licenses, industry regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need can vary significantly depending on your location and the type of productions you intend to create.

First and foremost, you'll need to secure the necessary business permits and licenses.

This often includes obtaining a general business license from your city or county, and if applicable, a sales tax permit if your state requires one for the sale of goods or services. Depending on the nature of your production company, you may also need special permits related to filming in public spaces, copyright and trademark registrations, and possibly a Federal Communications Commission (FCC) license if you're broadcasting content.

It's imperative to consult with your local government and industry-specific agencies to understand the exact requirements for your area and field of production.

Industry regulations for production companies typically involve workplace safety standards enforced by the Occupational Safety and Health Administration (OSHA). These regulations ensure that the work environment is safe for all employees, with proper training, equipment, and protocols in place to prevent accidents and injuries.

Inspections by OSHA or other relevant agencies may occur periodically, and the frequency can depend on the specific risks associated with your production activities. Some agencies may also require a pre-operational inspection before you can commence operations.

Failure to comply with industry regulations can lead to a range of penalties, from fines to shutdowns of production. In extreme cases, non-compliance can result in legal action or even criminal charges. Therefore, it's crucial to maintain a rigorous compliance program within your production company.

Insurance is a vital component of risk management for a production company. At the very least, you'll need general liability insurance to cover potential accidents or injuries that could occur on set or in your office.

Property insurance is essential to safeguard your company's equipment, sets, and facilities from damage or loss. If you employ staff, workers' compensation insurance is typically mandatory to cover any work-related injuries or illnesses.

Additionally, you might consider professional liability insurance, also known as errors and omissions insurance, which can protect against claims of professional negligence or failure to deliver services as promised. For productions that involve stunts, special effects, or valuable property, specialized insurance policies may also be necessary.

Understanding and adhering to these requirements is crucial for the smooth operation and long-term success of your production company.

Business Structure

The three common structures for starting a production company are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has distinct features and implications for your business operations.

Please note that we are not legal experts (our expertise lies in business and financial planning) and that your choice should be informed by your willingness to take on risk, your preferred tax handling, and your plans for expanding and potentially selling your production company.

In simple terms, a sole proprietorship is the easiest to manage but comes with personal liability. A partnership allows for shared responsibility but necessitates clear agreements to mitigate risks. An LLC provides a mix of liability protection and operational flexibility, which can be very advantageous for businesses aiming to grow.

Think about your long-term objectives, and seek advice from a financial advisor or attorney to make the most suitable decision for your production company.

To help you out, here's a summary table.

Getting started to start a production company

Offer development, design and lay out.

Designing and laying out your production company for operational efficiency and an enhanced production flow requires meticulous planning and strategic implementation.

Let's explore how you can achieve this, focusing on production workflow, balancing equipment needs with budget, and ensuring health and safety.

Firstly, envisioning production workflow is critical.

Your production company's design should facilitate a logical sequence from the receiving of raw materials to the processing areas, through assembly lines, to the quality control stations, and finally to the shipping dock. This flow should be streamlined, minimizing unnecessary movement and ensuring a seamless transition from one stage to the next. Position your most critical machinery and workstations in a way that aligns with the natural progression of the manufacturing process.

This setup not only improves efficiency but also reduces the time and cost associated with moving materials and products through the production cycle.

Regarding the design to facilitate this workflow, consider the layout's functionality and flexibility.

Spacious aisles, clear signage, and a logical arrangement of the space promote efficient movement and adaptability. The processing areas should be clearly defined and separate from the assembly lines to prevent bottlenecks and confusion. If your production company includes a research and development section, ensure it's suitably isolated from the main production area to maintain focus and prevent disruption.

Balancing the need for high-quality equipment with budget constraints is a challenge many face.

Start by prioritizing essential equipment that directly impacts the efficiency and quality of your production, such as CNC machines and robotic assembly arms. These are worth investing in because they are the backbone of your company's operations. For other items, consider leasing or purchasing certified pre-owned equipment from reputable suppliers to save money without significantly compromising quality.

Additionally, plan for equipment that offers versatility and automation, like modular assembly stations or multi-purpose CNC machines, to get the most value for your investment.

Health and safety in the production layout are non-negotiable. Your design must incorporate zones designated for different tasks to prevent accidents and ensure worker safety. For example, separate areas for raw material storage, heavy machinery operation, assembly, and packaging ensure that each step of the process is contained and controlled. Install emergency stops and safety stations at key points, especially near the heavy machinery and assembly areas, to encourage regular safety checks among staff.

Specific protocols for equipment handling, maintenance, and operation are crucial for safety and compliance. Implement a system that ensures all machinery is regularly inspected and maintained, with safety guards and features in proper working order.

Train your staff thoroughly in operational safety practices, emphasizing the importance of using personal protective equipment, adhering to machine safety protocols, and maintaining a clean and organized work environment.

Regularly review and update these protocols to comply with local safety regulations and best practices.

Craft your offer

Your product lineup and the services you offer will be the cornerstone of your production company's success (or the reason for its struggles).

To begin, it's crucial to understand the demands and preferences of your target market. This can be achieved through direct methods such as surveys, interviews, and feedback from industry events, as well as indirect methods like market analysis reports and studying the strategies of successful competitors.

With a solid grasp of your market's needs, you can start to design a product portfolio that not only meets but exceeds their expectations, while also distinguishing your company from the competition.

Integrating innovative technology and sustainable practices into your production processes can significantly enhance your appeal and operational efficiency.

This strategy not only positions your company as environmentally responsible but also can lead to cost savings and higher-quality products. Forge partnerships with technology providers and stay informed about advancements in your industry to ensure that your production methods remain cutting-edge. Seasonal or market-driven product launches can generate excitement and attract customers looking for the latest solutions.

To differentiate your offerings in a crowded market, focus on innovation and superior quality.

This can be achieved by developing proprietary products that address specific industry challenges or by customizing services to meet unique client needs. Sharing the story behind your innovations, such as the research and development process or the inspiration for a new technology, can also add a compelling dimension to your brand.

Guaranteeing consistency and excellence in your products requires the establishment of strict quality control protocols and standards.

This includes detailed production processes, comprehensive training for your staff, and regular product testing. Consistency is essential for building trust with your clients, as they will come to rely on the dependable performance of your products. Invest in top-tier materials and state-of-the-art machinery, and continuously refine your processes to ensure they align with industry best practices.

Leveraging client feedback is vital for ongoing enhancement and optimization of your product range. Implement feedback mechanisms such as follow-up calls, online reviews, and social media interactions to gauge client satisfaction and identify areas for improvement.

Be receptive to constructive criticism and prepared to adapt your offerings based on client suggestions. This not only aids in perfecting your product lineup but also demonstrates to your clients that their input is valued, encouraging loyalty and repeat business.

Determinate the right pricing

When launching a production company, it's crucial to establish a pricing strategy that balances profitability with customer appeal. Here's a structured approach to setting your prices effectively.

Firstly, you must thoroughly understand your production costs, which include raw materials, labor, machinery maintenance, overhead, and any other expenses associated with manufacturing and distributing your products.

Ensuring your prices not only cover these costs but also provide a healthy margin is fundamental to your business's success.

Next, analyze your competitors and the market to gauge the going rate for similar products. While you don't need to mimic these prices, this research will help you position your products within the market context.

Understanding the price sensitivity and preferences of your target demographic is also key. Gather insights through customer interactions, surveys, or by experimenting with price adjustments and observing the effect on sales volumes. This will help you pinpoint the optimal price points that your customers are comfortable with.

Psychological pricing strategies can subtly influence purchasing decisions.

For example, pricing a product at $99.95 instead of $100 can create the illusion of a better deal. This tactic might be suitable for entry-level products or components within your production line.

However, you should apply this strategy carefully to avoid undermining the perceived quality of your offerings.

The perceived value is critical in the manufacturing sector.

To enhance this, focus on the quality and distinctiveness of your products, as well as the overall customer experience and brand image. High-quality materials, responsive customer service, and strong branding can justify higher prices by elevating the perceived value.

Implementing seasonal or volume-based pricing can incentivize purchases during slower production periods or move larger quantities of inventory. For instance, offering discounts on last season's models can clear warehouse space for new inventory, or providing bulk purchase discounts can attract larger orders.

When introducing new products, consider using introductory pricing tactics like special launch prices or package deals to entice customers. Once the product gains market traction, you can adjust the price according to its performance and production costs.

For direct-to-consumer sales versus wholesale, take into account the different cost structures and customer expectations. Direct sales might include additional costs for packaging and shipping, which could be incorporated into the price or listed separately. Exclusive online promotions or bulk discounts can also drive sales through these channels.

Finally, be cautious with discounting strategies. While they can boost short-term sales and attract buyers, excessive discounting can diminish your brand's perceived value. Employ discounts judiciously, perhaps to move discontinued items or excess stock, without setting a precedent for constant price reductions.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder your production company's ability to meet deadlines and maintain quality.

On the contrary, nurturing robust partnerships with suppliers ensures a consistent supply of high-quality materials and components.

Engage in regular communication, make payments on time, and show appreciation for their products and services to build loyalty and dependability. Be clear about your production needs and quality standards, and make an effort to visit their facilities. This will give you insight into their manufacturing capabilities and constraints, which is crucial for a collaborative relationship.

Consider negotiating long-term contracts for essential materials to lock in favorable prices and secure a steady supply. However, it's also wise to cultivate a network of alternative suppliers to protect against potential disruptions.

For inventory management, strategies such as Just-In-Time (JIT) can be particularly effective in a production environment. This method minimizes inventory holding costs by receiving materials and components close to when they are needed in the production process. However, JIT requires accurate production scheduling and reliable suppliers to avoid delays.

Technology plays a pivotal role in streamlining inventory management and reducing excess in production.

Adopting an inventory management system that integrates with your production planning software can provide real-time visibility into material usage and availability. This integration helps in forecasting needs more precisely, optimizing procurement, and identifying patterns that can guide product development and efficiency improvements.

Digital tools also enhance supplier communication, allowing for quicker adjustments to orders and better collaborative planning.

As production scales up, challenges such as ensuring consistency in output, managing rising costs, and maintaining stringent quality control become more pronounced. Tackle these by standardizing production methods, providing comprehensive training to your workforce, and investing in advanced machinery that boosts productivity without sacrificing the quality of your products.

Scaling up also means a greater volume of materials, so you should negotiate with suppliers for volume discounts, but without compromising on the quality of materials. Quality control is crucial as output increases, necessitating rigorous adherence to standards and more frequent inspections.

Effective cost control in a production company involves a detailed examination of every aspect of material sourcing and usage. Regularly reassess contracts with suppliers to ensure you're receiving the best value for money. Explore alternative materials that may reduce costs or take advantage of seasonal fluctuations in pricing. Employ technology to monitor and analyze expenses, waste, and inventory levels to pinpoint opportunities for cost savings. Reducing waste not only lowers expenses but also supports sustainable practices, which can enhance your company's reputation among eco-conscious customers.

Hire the right people

When starting a production company, you should carefully consider your staffing needs. You don't have to hire a full team right away, especially if you're working with a limited budget.

At the core, your production company will require a team that covers manufacturing, quality control, and management.

For manufacturing, you'll need skilled machine operators and technicians who can efficiently run your production lines and maintain equipment. A production manager with experience in overseeing manufacturing processes and improving efficiency is also crucial.

Quality control is essential to ensure that your products meet industry standards and customer expectations. Hiring experienced quality control inspectors or engineers will help you maintain product quality and address any issues that arise.

On the management side, you'll need a strong operations manager who can handle administrative duties, manage staff, and ensure compliance with industry regulations. This role is vital for coordinating between different departments and keeping the production process smooth and efficient.

Some positions, such as specialized engineers for product development, marketing specialists, and additional administrative staff, may not be necessary at the start. These roles can be filled as your company grows and the demand for such expertise increases. Outsourcing can be a strategic option for roles like accounting, marketing, and logistics, allowing you to focus on your core business while utilizing external expertise.

When hiring for key positions, prioritize candidates with a mix of technical skills, relevant experience, and a commitment to manufacturing excellence.

For machine operators and technicians, look for individuals with technical training and hands-on experience in a production setting. Quality control staff should have a background in quality assurance and be detail-oriented. For managerial roles, seek candidates with experience in production management, a strong understanding of business operations, and leadership capabilities.

To ensure potential hires are a good fit for your company's culture and demands, consider practical assessments during the hiring process, such as technical tests for machine operators or problem-solving exercises for quality control staff.

Look for candidates who demonstrate a genuine passion for manufacturing and a willingness to adapt to the dynamic nature of the industry.

Finding candidates with the right background and commitment to manufacturing can be challenging. Utilize technical schools, industry forums, and social media platforms to reach potential candidates. Networking within local manufacturing communities and attending job fairs can also be effective strategies. Consider offering internships or apprenticeships to tap into emerging talent from technical programs.

Here is a summary table of the different job positions for your production company, and the average gross salary in USD.

Running the operations of your production company

Daily operations.

Efficiently managing the daily operations of your production company is key to maintaining a competitive edge and ensuring customer satisfaction. By adopting the right strategies, you can optimize your workflow and reduce unnecessary stress.

Firstly, implementing an Enterprise Resource Planning (ERP) system tailored for production companies can greatly enhance your operational efficiency.

Choose an ERP system that integrates production planning, inventory management, quality control, and customer relationship management (CRM). This integration enables you to monitor production processes in real-time, maintain optimal inventory levels, ensure product quality, and maintain a comprehensive database of customer interactions and order history.

Many advanced ERP systems also include modules for supply chain management, which can streamline your procurement process and improve collaboration with suppliers and distributors.

For inventory management, you need a system that provides precise tracking of raw materials, work-in-progress, and finished goods. The best systems offer features like real-time tracking, automated reordering based on predefined thresholds, and detailed reporting on inventory turnover rates.

These systems can also support lot and serial number tracking, which is crucial for traceability, quality control, and managing product recalls if necessary.

As we've highlighted in this article, maintaining strong relationships with your suppliers is vital for a production company's success.

Establish effective communication channels and set clear expectations from the outset regarding delivery times, product specifications, and payment terms. A strong relationship can lead to better terms and more reliable service. It's also prudent to have contingency plans and maintain connections with multiple suppliers to ensure uninterrupted production.

Creating a positive work environment is essential for keeping your team motivated and productive. This involves regular training, clear communication of objectives and expectations, and timely feedback.

Acknowledging and rewarding dedication and achievements can significantly boost morale. It's also important to manage work schedules fairly, respecting your employees' need for work-life balance.

Ensuring a positive customer experience is crucial and begins with the quality of your products, the efficiency of your production process, and the professionalism of your customer service team.

Train your staff to be knowledgeable, responsive, and courteous. Encourage them to understand the clients' needs and preferences, adding a personal touch to each interaction.

Maintaining a clean and organized production facility, with clear safety signage and an efficient layout, also contributes to a positive perception of your company.

Effective customer service policies for a production company might include quality guarantees, transparent return and refund policies, and a system for collecting and responding to customer feedback.

Facilitate feedback through various channels, such as your company website, email, or social media platforms. Address feedback swiftly and constructively, demonstrating that you value their opinions and are dedicated to enhancing their experience.

When dealing with customer feedback and complaints, you should listen fully before responding. Offer an apology when appropriate and propose a solution or compensation, like a product replacement or a discount on future orders.

View negative feedback as an opportunity to refine your operations, products, or customer service. Converting a negative experience into a positive one can often secure a loyal customer for your production company.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a production company is crucial for its success and growth.

We have an in-depth article on the profitability of production companies that you can refer to for more details. Below, we'll provide a summary of some key points.

One important metric to consider is the average project size, which is the average revenue a production company earns per project.

The average project size can vary greatly depending on the type of production company. For example, a company specializing in commercial production might have an average project size of $50,000 to $200,000 , reflecting the budgets typically allocated for commercial advertising campaigns.

On the other hand, a production company focused on independent films may work with smaller budgets, with average project sizes ranging from $10,000 to $100,000 .

Production companies that provide services for corporate events and training videos might see average project sizes between $5,000 and $50,000 , depending on the scope and complexity of the project.

When it comes to revenue, production companies can have a wide range. Urban-based companies with access to a larger client base and high-profile projects might see annual revenues from $500,000 to several million dollars .

Production companies in smaller markets or rural areas may have more modest revenues, potentially ranging from $100,000 to $500,000 annually .

Startups in the production industry often face lower revenues initially as they work to establish their brand and portfolio. It's not uncommon for these companies to earn less than $50,000 in their first year.

Established production companies with a strong client base and repeat business can achieve higher and more stable revenues, sometimes exceeding $1 million annually .

Now, let's explore the various revenue streams available to a production company. Diversification is key to financial stability in this industry.

If you're looking for inspiration, here's a table that outlines many different ways a production company can generate income.

Understand your margins

As you may be aware, revenue is not synonymous with profit, especially in the context of a production company. It's crucial to examine the company's expenses and margins to determine the actual profit at the end of the fiscal year.

Let's delve into the gross and net margins, which are critical indicators of a production company's profitability.

To calculate your own margins and gain a precise figure regarding your potential profit, feel free to adjust the assumptions in our financial model designed for production companies .

The typical range of gross margins for production companies can vary significantly, often ranging from 30% to 60%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the direct costs associated with the production of the goods sold by the company, such as raw materials and direct labor, from the revenue generated from the sales of products, then dividing this number by the revenue, and finally, multiplying by 100 to get a percentage.

Net margins, however, factor in not just the COGS but also all other expenses a production company incurs, including facility costs, utilities, administrative expenses, marketing, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more comprehensive view of a production company's profitability and are typically lower than gross margins, with industry averages often ranging from 10% to 20%, reflecting the tighter profitability after all costs are considered.

Different types of production companies—such as mass production, custom manufacturing, and niche production—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Below is a table to illustrate these differences.

Margins in a production company are significantly influenced by factors such as product complexity, pricing strategy, and operational scale.

A complex product lineup can cater to specific customer needs but may increase production complexity and costs.

Pricing strategy is essential; prices must be competitive yet sufficient to cover costs and yield a profit. Operational scale can influence cost efficiencies, with larger-scale operations often benefiting from reduced per-unit costs.

Ongoing expenses that affect production company margins include raw material costs, labor, facility overhead, and utilities. Raw material costs can be volatile, impacting gross margins. Labor is a major expense, especially for custom products requiring skilled workmanship. Facility costs can vary greatly by location, and utilities can be a significant cost, particularly for companies with energy-intensive manufacturing processes.

Production companies focusing on niche markets may experience different margin dynamics compared to those with a more extensive product range.

While niche companies can command higher prices, they also face potentially higher production costs and a possibly limited market size, which can affect overall margins.

External factors such as economic conditions, industry trends, and technological advancements also play a critical role in the margins of a production company. Economic downturns can lead to reduced demand for certain products, while technological advancements can either reduce costs or require significant investment.

The challenge of maintaining healthy margins amidst fluctuating raw material costs and labor expenses is significant. Production companies can address these challenges through efficient cost management, strategic pricing, optimizing operations for energy efficiency, and investing in automation and technology for productivity enhancements.

Regular monitoring and analysis of financial performance, including gross and net margins, is crucial for ensuring the financial health and sustainability of a production company (and yes, you can track all of this with our financial model specifically for production companies ).

Implement a strong marketing strategy

Marketing doesn't need to be as complex as some experts make it seem. We understand that you'll be focused on managing your production company and may not have ample time for extensive marketing campaigns. That's why we'll keep our advice straightforward and practical, similar to the marketing strategy we've detailed in our business plan for a production company .

Creating a brand for your production company is not just relevant; it's essential.

Your brand is the way clients recognize and remember your company. It encompasses more than just your logo or the colors you choose; it's about the feelings and experiences you deliver. Your brand should reflect the quality of your productions, your company's creative vision, and the values you uphold, such as innovation or social responsibility. This helps your production company stand out in a competitive industry and builds a dedicated client base.

For your marketing plan, begin by identifying your target audience. Who are your ideal clients? What do they look for in a production company? Are they seeking cutting-edge technology, exceptional storytelling, budget-friendly options, or something else? Knowing your audience will inform your branding and promotional efforts.

When it comes to promotion, social media and digital marketing are invaluable tools for production companies. Platforms like LinkedIn, Instagram, and Vimeo are ideal for showcasing your portfolio and engaging with potential clients.

Share behind-the-scenes footage of your production process, which adds a personal touch and demonstrates the skill and dedication that goes into each project.

Client testimonials and case studies can build credibility and persuade others to choose your services. Sharing industry insights or how-to guides can also engage your audience, providing them with value and positioning your company as a thought leader.

Content strategies that work well for production companies include highlighting the diversity and innovation of your projects, showcasing your technical capabilities, and featuring any unique storytelling methods or technologies you employ. Collaborating with industry influencers or related businesses can also increase your visibility.

However, not all techniques may be suitable for your production company. For instance, if your target clients are local businesses, international advertising might not be the most efficient use of your resources. Similarly, if your company specializes in documentary filmmaking, focusing on commercial advertising production might not align with your brand.

Even with a modest budget, there are several strategies you can use to attract new clients.

First, consider participating in industry trade shows or festivals where you can network and showcase your work. This not only can lead to direct business opportunities but also enhances your company's profile.

You can also host screenings or workshops to engage with your community and create buzz around your projects.

Forming partnerships with other businesses, such as advertising agencies or event organizers, can extend your reach.

Implementing a referral program can encourage repeat business and new client acquisition. Simple incentives for clients who refer new projects can be very effective.

Also, don't overlook the power of word-of-mouth marketing. Encourage your satisfied clients to share their positive experiences by offering them benefits for successful referrals.

Grow and expand

We want your production company to thrive. The insights provided here are designed to help you reach that goal.

Imagine your production company is already performing well, with solid profit margins and a strong cash flow. Now is the time to consider strategies for scaling and expanding your business.

There's always potential for greater achievements, and we're here to show you the path to even more success.

Also, please note that we have a 3-year development plan specifically for production companies in our business plan template .

Successful production company owners often exhibit traits like resilience, adaptability, a thorough knowledge of their industry, and the ability to connect with their clients and understand their needs. These characteristics are essential as you embark on the journey of business growth.

Before expanding your production company's services or product lines, assess the market demand, how new offerings will integrate with your current services, and the impact on your operations.

Conducting market research is critical. By examining client needs, industry trends, and the performance of similar services in the market, you can make informed decisions that are in line with your company's strengths and client expectations.

To evaluate the success of your current operations, review sales trends, client feedback, and operational efficiency. If your company consistently hits or surpasses sales goals, receives positive client feedback, and operates efficiently, it might be time to consider expansion.

Opening new facilities should be based on clear evidence of demand, a deep understanding of the target market, and the financial stability of your existing operation.

Franchising can be a way to grow with reduced capital risk, tapping into the entrepreneurial drive of franchisees. However, it demands a strong brand, established operational systems, and the capacity to support franchisees. Opening company-owned facilities offers more control but requires more capital and hands-on management. The choice between these models depends on your business objectives, resources, and preferred growth strategy.

Digital channels can significantly extend a production company's reach and sales. An online presence allows you to serve clients beyond your immediate area, meeting the growing need for convenience.

This approach necessitates knowledge of digital marketing and an understanding of logistics for delivery and maintaining service quality.

Branding is key as it sets your company apart in a competitive market. A robust, consistent brand identity across all facilities and platforms can build client loyalty and attract new business. Enhance your brand by ensuring every client interaction reflects your company's values and quality.

Ensuring consistency across multiple facilities is a challenge but is vital. Achieve this through comprehensive operational manuals, training programs, and quality control systems.

Regular visits and audits, along with cultivating a strong, unified culture, help ensure each facility maintains the standards that made your original operation successful.

Financial indicators that you're ready for expansion include consistent profitability, robust cash flow, and meeting or exceeding sales forecasts over a considerable time.

Having a scalable business model and the operational capacity to support growth are also essential.

Forming partnerships with other businesses and participating in industry events can expose your production company to new clients and markets. These opportunities allow for innovative collaboration, community engagement, and increased brand visibility, all contributing to your company's growth.

Scaling production to meet growing demand requires logistical planning, such as upgrading equipment, optimizing inventory management, and potentially expanding your physical space. It's crucial that your supply chain can support increased volumes without compromising quality.

Ultimately, it's important that your expansion efforts remain aligned with your production company's core values and long-term objectives. Growth should not compromise the principles that have contributed to your success.

Regularly revisiting your business plan and values can help ensure that your expansion strategies stay true to your vision and mission, preserving the essence of your production company as it evolves.

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How to Start a Production Company: A Concise Guide

By: Author Paul Jenkins

Posted on June 29, 2023

Categories Business , Filmmaking

Starting a production company can be both exciting and challenging. You can turn your passion for the TV and film industries into a successful business with the right planning and dedication. Before diving in headfirst, it’s essential to thoroughly research the market, learn from successful production companies, and identify your company’s unique vision.

Once you clearly understand your goals and the type of work you want to produce, it’s time to create a solid business plan, choose the right business structure, and secure funding. Building your team, developing your brand, and assembling a portfolio of projects will increase your chances of success in the competitive film and TV production market.

Key Takeaways

• Research the market and learn from successful production companies to establish a strong foundation.
• Create a comprehensive business plan and choose the right business structure to set your company up for success.
• Develop your brand, assemble a top-notch team, and build a project portfolio to propel your company forward.

Establish Your Vision and Goals

Before diving into the world of production, take the time to establish your vision and goals. This will guide you through the process and help bring your company to life.

Start by crafting a vision statement that reflects your company’s core values and aspirations. This statement should be ambitious and inspiring, allowing others to understand what you are working towards. Don’t be afraid to dream big; ensure your vision is feasible.

Next, set specific, measurable, and achievable goals to lay the foundation for your production company. This may include:

• Identifying your niche – Are you focusing on independent films, commercial advertisements, or something else?
• Building a strong team – Surround yourself with talented and passionate collaborators who share your vision and can help bring it to life.
• Defining your target audience – Understanding who you want to appeal to will help you better tailor your content and marketing efforts.

Once you have these goals, establish a timeline for achieving them. Breaking them into manageable milestones will allow you to track progress and stay motivated as you embark on your journey.

Create a Business Plan

When starting a production company, developing a comprehensive business plan is crucial. A solid business plan will guide your company’s future, helping you secure investors and achieve your goals. Here, we’ll explore some key sections to include in your plan.

Market Analysis

Begin by conducting a thorough market analysis. This process involves researching the market and understanding existing companies, customers, and trends. Assess the competitive landscape while identifying potential niches and avenues for growth. This information will help you make informed decisions about your production company’s direction.

Production Strategy

Next, outline your production strategy. This includes defining your company’s focus, whether you’ll produce independent films, commercial advertisements, or a mix of content. Consider the types of projects you’re interested in and your target audience. Additionally, think about the resources required for production, such as equipment, crew, and locations. A clear production strategy can enhance your efficiency and help you hone your vision.

Financial Plan

Developing a financial plan is an essential aspect of starting a production company. This section should provide an in-depth look at your company’s financials, including:

• Start-up costs: The initial investment required to establish your company, including equipment, office space, and legal fees.
• Revenue projections: Estimated income based on your production output, target market, and industry trends.
• Cost structure: A breakdown of your company’s ongoing expenses, such as salaries, insurance, and marketing.

It’s important to be realistic and conservative when creating a financial plan, as unanticipated challenges may arise.

Marketing Strategy

Lastly, create a marketing strategy for your production company. This involves determining how you’ll present your services to clients and promote your projects. Consider incorporating various marketing channels, such as social media, email campaigns, and content marketing. Develop a comprehensive marketing plan that targets your potential clients and builds brand awareness.

By addressing these key elements in your business plan, you’ll be well-prepared to start your production company. Remember, your plan is a living document, and it’s essential to revisit and update it regularly as your company grows and evolves.

Choose the Right Business Structure

When starting a production company, selecting the best business structure for your needs is crucial. Consider factors such as liability protection, taxes, and ease of administration. Below are some common business structures, each with its pros and cons.

Sole Proprietorship

A sole proprietorship is the simplest business structure, requiring minimal paperwork. You, as the owner, have full control over the company. However, this also means you assume all liability for your business’s debts and legal issues. Essential considerations for this structure include lower taxes but limited funding opportunities, as banks and investors are more hesitant to fund sole proprietorships.

Partnership

A partnership involves two or more people sharing ownership of the business. The partners share profits and losses and are responsible for the company’s debts and legal issues. Partnerships are relatively easy to set up and involve lower taxes than corporations. However, they provide less liability protection than other structures. It’s essential to draft a clear partnership agreement to outline each partner’s responsibilities, investments, and decision-making authority.

Limited Liability Company (LLC)

An LLC provides a balance between liability protection and managerial flexibility. It offers personal liability protection for its members, meaning you’re not personally responsible for your company’s debts and legal issues. LLCs have pass-through taxation, allowing you to avoid double taxation. One drawback is that LLCs typically have stricter regulations and more complex paperwork than sole proprietorships or partnerships.

Corporation

A corporation is a more complex business structure with the highest protection against personal liability. It’s a separate legal entity, meaning that the assets and liabilities of the company are not connected to your finances. Corporations also have more funding opportunities through stock issuance. Downsides include double taxation (corporations pay taxes on their profits, and shareholders pay taxes on dividends) and extensive record-keeping requirements.

Evaluate your specific needs and preferences to determine the best business structure for your production company. Remember that you can always change structures later, but doing so may require additional time, money, and paperwork.

Secure Funding

Personal savings.

One option for securing funding for your production company is using your savings . This demonstrates your commitment to the project and can help attract additional investors. Evaluate  your financial standing before investing significantly in your production company.

Another method to fund your production company is by bringing on investors . These individuals or firms provide capital in exchange for ownership or a percentage of profits. To secure investors:

• Develop a solid business plan detailing your vision and financial projections.
• Research potential investors that align with your industry and goals.
• Prepare a compelling pitch showcasing the value of your production company.
• Be prepared to negotiate the terms and conditions of the investment.

Equity financing is a popular option for film production, where investors receive a percentage of future revenue until an agreed amount has been earned.

Film Grants

Film grants are another viable funding source for production companies. Governments, foundations, or industry organizations typically provide these grants. To increase your chances of securing a film grant:

• Research relevant grant opportunities for your project or genre.
• Tailor your project proposal to align with the grant’s objective.
• Provide a clear budget and timeline for your production.
• Demonstrate your ability to complete the project successfully.

Crowdfunding

Finally, consider using crowdfunding to generate capital for your production company. Crowdfunding platforms like Kickstarter or Indiegogo allow you to raise funds from backers who believe in your project and are willing to contribute financially. To create a successful crowdfunding campaign:

• Develop a concise and engaging pitch explaining your project’s vision.
• Offer unique rewards or experiences for different pledge levels.
• Promote your campaign through social media, email marketing, and personal networks.
• Keep your backers informed and engaged throughout the entire campaign.

By exploring these funding options, you’ll be well-equipped to secure the financial resources necessary for your production company’s success.

Assemble Your Team

Starting a production company requires assembling a reliable and skilled team. This section focuses on two key aspects of team building: hiring key production personnel and collaborating with creatives.

Hire Key Production Personnel

Your production company’s backbone is its key production personnel . These professionals oversee the essential functions of a project from pre-production to post-production. Consider hiring the following:

• Producer : This person oversees the project from inception to completion, including securing funding, managing the budget, and coordinating with the crew.
• Director : The director works on the creative aspects of the project, guiding the cast and crew toward the intended vision.
• Cinematographer : This person is in charge of capturing the production’s visual elements through camera techniques and lighting.
• Editor : An editor plays a crucial role in refining the final product, ensuring the footage aligns with the director’s vision and the script.

Collaborate with Creatives

In addition to key production personnel, your company should collaborate with creative individuals to bring unique and fresh ideas to your projects. These creatives can include:

• Screenwriters : Including experienced and emerging screenwriters in your team allows for diverse storytelling and helps your production company stand out.
• Actors : Build a network of talented actors by attending casting events, working with casting directors, and seeking referrals from industry peers.
• Production Designers : A good production designer enhances the visual aspects of a film or shows by creating the appropriate atmosphere, sets, and props.

By carefully assembling your team of production personnel and creatives, you set the foundation for a successful production company that consistently delivers high-quality and engaging content.

Build Your Brand

Building a brand for your production company is vital to stand out in the industry. A strong brand will help you attract talent, clients, and projects. This section will focus on creating your company’s name and logo and establishing an online presence.

Create Your Company’s Name and Logo

A memorable name and logo are essential to creating a brand identity. Start by brainstorming words, phrases, or concepts related to your production company’s vision and goals. When choosing a name, consider how it will sound and translate it to other languages if necessary. Once you have a shortlist of potential names, check their availability as domain names and social media handles.

Your logo should represent your company’s personality and values while conveying a sense of professionalism. It should be simple yet distinctive so it’s easily recognized. You may want to hire a graphic designer or use free logo makers available online to create a logo representing your brand.

Establish an Online Presence

An online presence is crucial for any production company, as it helps you showcase your work, connect with clients and collaborators, and establish your brand in the market. Create a professional website showcasing your portfolio, services, and contact information. Choose a clean and user-friendly design that highlights your brand identity.

In addition to your website, establish your presence on social media platforms such as Facebook, Instagram, LinkedIn, and Twitter. Regularly update your social media profiles with relevant content, behind-the-scenes footage, and project updates to engage with your audience and showcase your company’s culture.

Additionally, consider listing your production company on industry directories and platforms for increased visibility. This will help potential clients find your company when searching for production services.

Following these steps will create a strong brand for your production company that will help you attract the right projects and talent to grow your business.

Develop a Project Portfolio

Identify projects.

When starting a production company, developing a solid project portfolio is essential. Identify prospective projects that align with your company’s goals and vision. Gather scripts, treatments, or proposals that showcase the types of productions you want to work on. These include commercials, short films, feature films, and television shows. Assess each project carefully, focusing on its artistic and commercial potential. Creating a diverse portfolio will help you establish your expertise and appeal to a broader range of clients.

Pitch and Secure Deals

Once you have identified the projects you want to include in your portfolio, pitch them to potential clients or investors. Crafting an enticing pitch requires understanding your target audience’s needs and preferences. Be prepared to adjust your pitch accordingly, highlighting the unique aspects of each project that make it stand out.

Consider creating a pitch deck containing essential information about your projects, such as loglines, synopses, character descriptions, and production requirements. Also, including visual elements like concept art, storyboards, or mood boards can help sell your vision more effectively.

Securing deals involves negotiation skills, professionalism, and persistence. Establish clear lines of communication with clients or investors, addressing their concerns and expectations. Whenever possible, leverage your professional network to connect with decision-makers who can greenlight your projects. Additionally, don’t be afraid to present your portfolio to multiple clients or investors, as this increases your chances of securing deals and getting your projects off the ground.

Expand and Diversify Your Services

When starting a production company, expanding and diversifying your services is crucial to remain competitive and grow your business. You can attract diverse clients and projects by offering a wide range of services, leading to increased revenue and stability.

To begin with, assess your current expertise and research the market to identify gaps or areas where your skills can be applied. As a production company, you might already be proficient in producing films or commercials, but consider expanding into other forms of content, like online videos, documentaries, or even corporate training material.

In addition to diversifying the format of your content, consider offering related services that can complement your main business activity. These could include post-production services such as editing, color grading, or special effects. Another option is providing pre-production services like scriptwriting, storyboarding, or casting. By offering comprehensive services, you increase your value to clients, making your production company a one-stop shop for their needs.

Forming partnerships with other industry professionals can also help you expand your range of services without developing new skills from scratch. For instance, you could collaborate with a freelance sound designer to provide audio solutions or with a distribution company to help promote your client’s content. These strategic collaborations enable you to build a more robust network and offer more comprehensive services to your clients.

Investing in ongoing professional development is essential to stay ahead of the curve and adapt to evolving industry trends. Keep honing your skills, attend workshops, and stay informed of the latest advancements in the field of production. This continuous learning approach ensures that your company remains on the cutting edge, providing your clients with innovative and creative solutions to their needs.

Remember, as you expand and diversify your services, communicate these changes to your existing and prospective clients through your marketing materials, website, and social media channels. Showcasing your wide range of services helps demonstrate your versatility and adaptability, attracting a more extensive client base and setting your production company up for success.

Network and Join Industry Organizations

Building a strong network is essential when starting a production company. Connecting with industry members lets you learn from their experiences, gain insights, and find potential collaborators. Start by attending networking events or joining industry organizations in your area. These groups offer a platform for professionals to meet and exchange valuable information, which can be a tremendous asset for your business.

In addition to local events and organizations, consider participating in online communities and forums relevant to your niche. This allows you to expand your network beyond your immediate location and exposes you to broader perspectives, trends, and opportunities.

When networking, remember to be genuine and engage in meaningful conversations. Focus on building long-term relationships rather than just collecting business cards. Share your expertise, provide value to others, and ask for advice. This approach will help establish your credibility within the industry and pave the way for future collaborations.

Joining industry organizations is another crucial step in establishing your production company. Being a member of these organizations provides access to valuable resources and expertise and signals your commitment to the industry. Look for national and local organizations like the Producers Guild of America or any regional film commission to stay informed about the latest trends and connect with like-minded professionals.

Lastly, don’t forget the power of leveraging social media to showcase your work and connect with other professionals. Create profiles on LinkedIn, Instagram, and Twitter platforms to share updates, engage with peers, and follow influential industry leaders. This online presence will help you stay informed, foster connections, and increase the visibility of your production company.

Remember, a solid network and active involvement in industry organizations will be key elements in the success of your production company. Invest time and effort in nurturing these relationships; your business will ultimately benefit from the connections you establish.

Frequently Asked Questions

What are the first steps to starting a production company.

To start a production company, conduct market research to understand the demand and competition in your niche. Next, decide on the type of content you will produce, such as independent films or commercials. Lastly, establish a clear business structure and register your company.

What legal requirements must be considered?

Before starting your production company, you must register your business and obtain any necessary permits or licenses. This may include local, state, and federal regulations. You should also consider creating contracts, copyright agreements, and liability waivers to protect your company legally.

How do I create a business plan for a production company?

A strong business plan outlines your company’s objectives, target audience, market analysis, competition, revenue projections, and financial requirements. You should also include your company’s timeline, organizational structure, and marketing strategies. For more guidance on writing a business plan, consider following step-by-step guides .

What is the best way to finance a production company?

Financing options for your production company include personal savings, loans, investors, or crowdfunding. Each option has pros and cons, so evaluating your financial needs and risk tolerance is essential before choosing the best method for your business.

How can I attract clients for my production company?

Attracting clients involves building a strong portfolio showcasing your work, utilizing social media and online marketing, networking within the industry, participating in film festivals, and offering competitive pricing. Additionally, providing exceptional service and compelling content will help you stand out in a competitive industry.

What strategies can be implemented to ensure profitability?

To ensure profitability, focus on cost-effective production methods, efficient workflows, and maintaining strong client relationships. Continuously research market trends, stay updated on emerging technology, diversify your services, and seek new growth opportunities. Monitoring your finances closely and making data-driven decisions will also contribute to the long-term success of your production company.

How to Start a Production Company

Production companies source the funding, talent, expertise, and equipment needed for completing projects in the areas of film, television, music, radio, and live performances, and also manage the processes behind the production of such works.

The film and TV industry in the U.S. is made up of 93,000 businesses , employing 2.6 million people and paying total wages of $177 billion. The industry generates $17.2 billion in exports.

Over-the-Top streaming services are the fastest-growing distribution model globally, expected to reach $77.73 billion in revenue over the next four years.

Producing for radio is still lucrative with ad spending expected to grow to $18.4 billion over the next four years. And, the relative newcomer, podcasts are experiencing a major growth in listenership every year. Podcast companies made $1.73bn in 2022. Revenues are expected to reach 2.56 billion dollars by 2024 .

How to Start a Production Company — Checklist Download

Download this free checklist in PDF format to stay on track when starting your production company.

Production Company Business Plan — Free Template

How to start a production company:.

Starting a production company can be a rewarding endeavor, but thorough planning is required if you want to see your business thrive. You'll need equipment, a team of dedicated freelancers, a business plan, and a great strategy for drawing clients and landing gigs. Read through our detailed guide to find out how to start your own production company.

• Do the research.

Research successful production companies, both large and small.

Find out everything you can about other production companies that have made it in the industry. Find out more about:

• How they got started, the challenges they faced, and what worked and didn't work.
• The innovations they brought to their industries.
• What they did in the past and how they've adapted their practices in recent years.
• How their businesses are structured.
• Do they own equipment or rent it?
• What is their approach to distribution?

You will find lots of information about production companies you're interested in online , so search the internet first. Be sure to watch video interviews and/or conversations where industry professionals divulge their secrets.

Reading books written about the founders of production companies (or that they themselves have written), is also a great way to expand your knowledge.

Depending on the size of the company, you may be able to contact them directly with your questions. Try to connect with key players online or to participate in live Q & A streams.

Determine who your competitors are.

Find out as much about the competition as you can. Some aspects to focus on include:

• Their reputation, strengths, weaknesses, and market share.
• How do they go about funding projects or finding new clients?
• What services do they offer, and what are their fees?
• What are clients saying about them?

As you find out more about your competition, you may notice what makes them unique from other production companies. Start thinking about your own offerings in relation to theirs , and ask yourself what contributions you'll make to the industry and how you'll distinguish your brand.

Study industry trends and shifts in audience expectations.

Gather information about industry trends, and audiences' habits and preferences.

• Learn about the technology that is driving changes in distribution and marketing.
• How and when do people consume films, series, podcasts, etc?
• What do people look for in these products?

Reading comments and reviews by audience members is a great way to find out what they appreciate and also what's lacking in certain films, theater productions, series, podcasts, and more.

Join social media groups and communities related to your production company to keep up with important conversations.

• Refine your concept.

Determine what you want to produce.

Once you know what the ultimate goal of your production company is, you'll be better equipped to achieve it.

• Are you going to make films or television shows? Are you going into radio and podcasts? Is it live events and theatre you're interested in? Are you selling video production services?
• To break it down further: if you're making films, which genre? Comedy? Mystery? Historical drama? Are you Hollywood, or indy arthouse?
• How can your work experience and skills help you choose an area?

Don't let your lack of experience or skills prevent you from choosing a certain production type. If you have an interest in podcasts, find out more about podcasting courses you could take; just be sure to do your research before committing to a course.

Describe your company in one sentence.

One of the best ways to refine your concept is to fit the whole idea into one sentence that answers what your company does, how it does it, and why others should care. This is your mission statement.

Example: The agency is a full-service video production company specializing in business-to-business marketing videos.

When you have a good understanding of what your business is about, you'll be able to more confidently articulate your goals to potential investors, clients, as well as new hires.

Get feedback about your business from as many people as possible.

Approach friends, family, potential clients and investors, industry professionals, and online forums to hear what they say about your business idea. Asking people directly is a great way to get unfiltered, unbiased feedback from people in the industry, consumers, other production company owners, experts, etc.

Keep an open mind when receiving feedback. Always be ready for criticism. Remember, it's better to identify potential problems early on, before they cost money to fix.

Keep in mind that everyone has an opinion, and if you respond badly when someone points out the flaws in your plan, it may cause them to withhold honest opinions in the future.

Take the time to listen to the feedback, being mindful of why people love or hate the concept

Use this research phase to form useful networks.

• Name your business.

Choose an original and compelling business name.

The name you choose for your production company says a lot about your brand. There are a few things to consider before choosing a name that could help you land on one that is aligned with your company's values and identity.

Values: What are your business's core values? Why do you do what you do? And what values does your target market hold as important?

Discoverability: Your name should be easy to remember, spell, and pronounce.

Originality: Be creative. A unique name will set your company apart from the rest and will make it easier when securing a domain name later on.

For more information about naming your business, check out How to Name a Production Company .

If you're looking for a cool and convenient way to name your production company fast, try a business name generator like NameSnack .

Can't seem to get inspired? Read through this list of Film and Video Production Company Names to get started.

Register your name.

Once you've decided on a name, check that it is available by using the U.S. Patent and Trademark Office’s trademark search tool . If it is available, register it as a trademark .

Describe your business and outline your plan.

Prepare an overview of your business plan..

Doing some legwork beforehand will help you to gain a better understanding of your brand identity, goals, and offerings, which will result in a more refined business plan. Some of the information you collected during the market research phase may come in handy here.

Some important questions to answer include:

Who are you? What makes your production company superior or different? Consider how your products will contribute to the industry.

What services/solutions are you providing? Think about how your production company will ultimately benefit customers.

Who is your target market? What does your ideal customer look like? Think about the clients you'd like to work with, as well as the audiences who will enjoy your productions the most.

Who are your competitors? How does your production company differ from the competition? What makes you special?

How will you market yourself? How will you make sure clients know about your great production company? How will you create brand awareness?

Who will work for you? Provide an outline of your team. Think about anyone you've already employed and all the other freelancers you still need to hire to make a success of your production company.

How will you spend and make money? Provide a list of your expenses and your projected income.

What are your milestones? Create a timeline and fill it with all of the activities you need to complete before you can start your production company. Include due dates and the names of responsible staff members.

Write your business plan.

Your business plan should describe your business and brand, show how your business will grow, define what it will need to succeed, and outline possible challenges you're likely to face.

This business plan is a road map for you in the early stages , and it can be used to get financing and attract partners.

Essentials for a production company business plan:

• Executive summary.
• Industry overview.
• Market analysis.
• Sales and marketing plan.
• Ownership and management plan.
• Operating plan.
• Financial plan.

To streamline the process of writing a business plan, use our free template included above .

• Form a legal entity.

Choose a legal structure.

You must set up your production company as a legal entity for professional, financial, and tax purposes. Consult a lawyer and a tax professional to determine which legal structure makes the most sense for your business.

Independent production companies are generally set up as Limited Liability Companies, but there are a number of basic structures to choose from.

Familiarize yourself with each of the following before choosing the best one for you:

Limited Liability Corporation (LLC) : An entity that protects owners from liability, while passing taxes on to them. May use corporate or partnership tax rules.

Sole Proprietorship : A business that is owned and operated by just one person, who is then solely responsible for tax and liability issues.

Partnership : Two or more partners who share the business's tax and responsibilities.

Corporation : A distinct legal entity that assumes all liability and is taxed as a business at corporate tax rates. Has members and shareholders.

While going through the steps to making your company a legal operating entity, finalize an operating agreement. This sets out in legal terms how the company will be run, how labor will be distributed among partners (if there are any), and how any problems that arise will be addressed.

When drawing up an operating agreement, be sure to find out the reasons people are joining your company; contributions each person can make; what can be gained from the company; how long shareholders are willing to commit; everyone's expectations; how challenges will be handled; how responsibilities and authority will be divided; and who will make the final decisions.

Create an operating agreement.

An operating agreement is an outline of your business's rules, regulations, and key decisions. If you've registered as an LLC, it is advisable to draw up an operating agreement, but it may also be a mandatory requirement in your state. Be sure to visit your secretary of state website to find out more.

Some sections to include in your operating agreement are:

• Capital contributions.
• Shares and changes to membership.
• Voting rights and responsibilities
• Power distribution.
• Profit and loss distribution.
• Rules pertaining to buyout and buy-sell.
• Dissolution.

Be sure to seek legal and financial counsel when drawing up your operating agreement.

Operating agreements help to avoid misunderstandings and conflict between members, so you should consider drawing one up even if your production company is not an LLC.

Secure financing.

Get the capital to start your company..

The amount of funding your company will need to get started depends on what type of production company you have, whether or not you will be leasing property, how many staff members are employed, and the equipment needed to become operational.

Remember to have a professional business plan ready to show potential lenders and investors.

Carefully consider all funding options available before deciding which is best for you. Make sure you weigh up the pros and cons of each .

Apply for an SBA loan.

Visit the Small Business Administration website to find a lender. Enjoy great term lengths, and lower interest rates and down payments when you apply for an SBA loan.

Get a small business loan from the bank.

There are a number of different small business loans you can apply for with your bank, some of which don't require collateral. Shop around and carefully consider the terms and conditions before signing your loan.

Do your research before meeting with the bank. If you are well-prepared, able to answer their questions directly and produce the relevant figures/financial projections, you'll stand a better chance of securing your loan.

Be sure to send all the relevant information through to the bank in a timely manner.

Prepare a detailed plan of how the funds you're applying for will be used.

Find a financial backer.

Find a venture capitalist, private equity investor, or angel investor to believe in your idea and provide the start-up funds for your production company. You can search online to find these investors, or attract them by means of a crowdfunding campaign.

Comb through your professional and personal networks to find potential investors . Sometimes the person you're looking for could be a mutual friend.

Start a crowdfunding campaign.

A crowdfunding campaign is a great way to generate the funds you need to start your production company. By constructing a compelling narrative around your production company, you can get strangers and angel investors to back your business and donate some start-up capital.

Just be clear you've read the terms and conditions of the crowdfunding platform you're using.

Make sure you've clearly outlined your own terms on your crowdfunding page and that potential investors know if there are any incentives for those who donate to your cause.

Set up social media pages related to your business so you can better engage with your audience. Maintain an active presence and try to respond to all questions.

Use your crowdfunding campaign to establish your client base . You are already attracting people who are interested in your business, so set up a mailing list and keep them updated on opening specials and more.

Use your own savings.

Relying on personal savings to fund your start-up is a great way to remove debt from the equation , thereby reducing your risk when starting a new business.

Insure your production company.

Get quotes from different insurance companies..

Before committing to an insurance company, shop around and compare quotes and packages . Do your own research and make sure you are getting adequate coverage at the best price.

Find out about discounts. When you take out multiple policies from the same insurance provider or when you pay upfront, you may be eligible for a discount.

Consult an independent agent. You can gain valuable insight by speaking to an independent insurance agent. Use their knowledge to help you make the final decision.

• Purchase insurance.

Production projects are expensive, involving a range of valuable equipment and many people, and so you'll need to make sure you are covered project-to-project in case of unforeseen events .

Your production company should purchase several types of insurance, including:

• Media Liability Insurance.
• Publisher's Perils Insurance.
• Business interruption insurance.
• Small Business Liability Insurance.
• Commercial Auto Insurance.

Look for insurance companies that offer packages catering specifically for businesses in the media industry . These packages cover cast and crew, equipment, third party property damage, etc.

• Decide on a location.

Determine your office requirements.

If you're running a small operation, and outsourcing much of the work that goes into getting a product out to market, anything more than a home office isn't really necessary. The size and the nature of your production company will determine the features of your office space.

Some key questions to ask when determining your office requirements:

• What will I be using this office for?
• How many departments do I need?
• How fast should my internet be?
• How many staff members will work here?

Find an office.

No matter the size of your production company, you'll need a location that's secure and safe, and one that is ideally situated near a transport hub.

If you're not ready to commit to a permanent location, look into shared office space . Co-working environments can be great for creative projects.

To help keep your workers productive, happy, and healthy, consider investing in some basic gym equipment or having a dedicated recharge room or "chill space" where staff can unwind.

• Hire staff.

Determine how many workers you need.

In the beginning, you'll play most of the roles found in the average production company, but you can start with a basic staff that will ensure your company gets off on the right foot.

Basic staff:

• Head of development.
• Head of production.
• Head of post-production.
• Sales and distribution head.
• Certified public accountant.

Be sure to factor in budgetary constraints when determining the size of your team.

Advertise available positions.

Write enticing job descriptions and post them on job sites, local job boards, social media. Be sure to use your professional networks to help spread the word as well.

Hire employees or freelancers.

For a small production company, it is best to build up a network of freelancers to tap into for each project. You can do that through platforms like Upwork .

For full-time staff you can use hiring software to help you streamline the process of posting jobs, accepting applications, scheduling interviews, and sending out final job offers.

Always look for freelancers whose experience align with your project or the outlined job requirements.

To protect your work, have your freelancers sign a legal document that states you are the owner of all completed work.

To protect your clients, you may want freelancers to sign a non-compete agreement . This agreement essentially prevents them from stealing your clients.

• Market your company.

Create a company website.

Register a domain and build a site that explains who you are and what you offer, and that allows you to showcase your work. Having a website increases your visibility, discoverability, and legitimacy . Use a website builder to design a website or pay an expert to help you.

You may want to hire an Search Engine Optimization (SEO) specialist to help drive traffic to your website and improve its ranking.

Start social media accounts for your business.

Facebook, Instagram, and X pages will make it easier for people to engage with you. Share snippets of projects you're working on and those that you've completed.

Use your social media platform as an extension of your brand. It is a direct link to your audience and it can be a powerful tool for generating interest in your products and services.

Publish a blog.

Blogs keep your website active and full of fresh, topical, and interesting information. They're also a great way to showcase your writers, short films, trailers, music, etc. Blogs give you a strong platform for conveying your values, approaches, and mission.

You can share links to your blog on social media to encourage audience engagement with the content you publish.

Attend as many industry events as possible, with the aim of forming relationships with insiders The film, television, radio, and music industry is well-known for being network-driven.

Join relevant guilds and societies.

There are a number of guilds and societies dedicated to supporting and protecting the craft of producing films, music, radio, etc. Joining a guild or society offers you access to a larger network and support. Relevant guilds include:

• The Writer's Guild.
• The Producer's Guild of America
• The American Society of Cinematographers.
• The Art Director's Guild.
• The Director's Guild of America.
• The Motion Picture Editors Guild.

Costs of Starting a Production Company:

Rent Your Equipment to Start:

In the beginning, rent the equipment you need for each project. This will keep startup costs down and give you the chance to work with a range of equipment before deciding what is worth owning.

Common Rates for Film/Video Production Crew:

Production Company Metric: Cost of Production

Whether recording albums, producing corporate videos or weekly podcasts, the cost of production tells you how much money your company uses to make one unit of production (a video, a song, a radio show). The cost of production becomes a factor later when working out how much to charge a client after adding your mark-up.

Unit cost = (fixed costs + variable costs) ÷ number of units

For example:

Your video production company produces a corporate marketing video for a client. It takes two days to shoot and three to edit before delivery of the final product. Over those five days, your company rented equipment, paid for a location permit, and paid various freelancers (videographers, editors, voice-over artists, actors, sound engineers, etc). At the same time, your company pays monthly rental and utility costs plus software licenses and salaries.

How to calculate the cost of production:

Step 1: add up all your variable costs for the five days..

• Freelancer rates total: $10,000.
• Equipment rental: $5,000.
• Location permit: $2,000.
• Transport: $1,000.
• Catering: $1,200.

Variable costs total: $19,200.

Step 2: Work out the fixed costs for the five days.

Simply divide your fixed costs for the month by the number of days your business operates, and then multiply the result by the number of days needed to complete the production.

• Rent: $2,000.
• Software licenses: $1,000.
• Lights and Water: $800.
• Salaries: $10,000.

Total fixed costs for the month: $13,800.

For this example, let's say your company operates 20 days out of each month.

13,800 ÷ 20 = $690

Your company pays $690 toward fixed costs every single day. Now multiply that by the number of days required to produce the video.

690 x 5 = 3,450

Fixed costs over five days: $3,450.

Step 3: Calculate the cost of production.

Unit cost = (3,450 + 19,200) ÷ 1 Unit cost = 22,650 ÷ 1

Unit cost = $22,650.

For this example, it costs your company $22,650 to make the corporate marketing video.

Production Company Logos

What does a production company do?

Production companies source the funding, talent, expertise, and equipment needed for completing projects in the areas of film, television, music, radio, and live performances, and manage the processes behind the production of such works.

How much does it cost to start a production company?

It can cost anything from a couple of hundred dollars to hundreds of thousands to start a production company. It costs around $160.00 to register a company. Bigger operations can cost up to $85,000.00 to get started and cover running costs for the first six months.

How is a film studio and a production company different?

The simple answer is that film studios own facilities where films and TV programs are made, and they also often do the distribution. Production companies make films, TV shows, podcasts, radio shows, video content, etc.

Is Netflix a production company?

Netflix is predominantly an OTT (Over-the-Top) service provider of films, documentaries, and series, but is also a production company in that it produces its own content.

What is a production manager responsible for?

Production Managers plan production schedules and ensure that the production process runs smoothly, on time, and within budget.

How do you create a production company?

• Create a business plan.
• secure financing.

How does a TV production company make money?

Television production companies make money either through accepting commissioned projects or by selling or licensing the ownership rights of a product (TV show) to a network.

What is a full service production company?

A full-service production company handles the entire production process from the planning and creative development phases right through to post-production.

What is media production?

Media production is the business of conceptualizing and producing material intended to inform and entertain mass audiences through various media channels such as TV, radio, and the internet.

What does a production assistant do?

A production assistant, or PA, does a variety of tasks involved in making a production. Being an entry-level position in the film and TV industry, PAs help with catering, answer phones, run errands, shuttle people and equipment around, and do just about anything asked of them.

What is a music production company?

A music production company records, manufactures, and distributes music.

What is an independent production company?

An independent production company is one that is not owned by a parent company.

What is the oldest film production company?

The Gaumont Film Company has been producing, co-producing, and distributing films since 1895.

Is a production company an LLC?

A production company can be set up as an LLC.

How do I write a media production company business plan?

To write a successful production company business plan, you should answer these questions in-depth:

• What makes your production company superior or different?
• What services/solutions are you providing?
• What does your ideal customer look like?
• How does your production company differ from the competition? What makes you special?
• How will you make sure clients know about your great production company? How will you create brand awareness?
• Who will work for you?
• How will you spend and make money?
• What are your milestones?

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Production Company Business Plan Template [Updated 2024]

Production Company Business Plan

If you want to start a production company or expand your current company, you need a business plan.

The following business plan template gives you the key elements to include in a winning business plan for any type of production company. It can be used to create a film production company business plan, or business plans for music production, a video production company and/or a media company.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Production Company Business Example

I. executive summary, business overview.

[Company Name], located in [insert location here], is a one-stop video production company that is fully equipped with the latest technology used in the film and video production industry. The Company focuses on producing high-quality videos for its clients in the surrounding community. The Company’s goal is to become one of the leading video production brands and compete with the leaders in the industry not only in the United States, but also on the global stage in the near future.

Services Provided

[Company Name] will provide high-quality video production for its clients. Its services include:

• Product videos
• Corporate training videos
• Brand videos
• Documentaries
• Scriptwriting and editing
• Storyboarding
• Single-camera and multi-camera shoots
• Professional video and lighting equipment
• Animations/Motion graphics

Customer Focus

[Company Name] will primarily serve businesses in [Location]. It will also look to offer its services to advertising agencies and local filmmakers who need professional video engineering and advertising.

Management Team

[Company Name] is led by [Founder’s name], who has been in the video production industry for [x] years. [Founder] is a certified and licensed video producer. He has extensive experience in the video production industry, working for leading video producing companies prior to starting his own video production company. He will have the help and support of his business partner, [Insert Name], who will handle the marketing and admin tasks for the company.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently no video production studio in the area having the latest video production equipment that the company has.
• There has been significant growth in VFX and Aerial videography over the past few years. Those who cater to this market have been thriving.
• The management team has a track record of success in the video production business.
• The video production company is a proven, successful business in the United States.

Financial Highlights

[Company Name] is currently seeking $380,000 to launch a video production company. Specifically, these funds will be used as follows:

• Build-out and Startup costs: $150,000
• Video production equipment: $180,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], located in [insert location here], is a new, independent video production company focusing on producing high-quality videos for its clients. The Company seeks to cater to the needs of a wide range of clients ranging from individuals to corporate organizations, national clients to international clients. [Company Name] is a video production company that is fully equipped with the latest technology and equipment used in the industry.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for videography. He seeks to provide a one-of-a-kind upscale video experience for his clients. [Company Name] will become a renowned video production company in [Location].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the video production studio.

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo, and website
• Determined the list of services to be offered
• Determined equipment requirements
• Began recruiting key employees with experience

III. Industry Analysis

There are 4,510 movie and video production businesses in the US with a market size of $17 billion.

The primary positive factors affecting this industry are the demand from movie theaters and the trade-weighted index. In recent years, film producers have begun to subsidize production costs through the sale of in-movie product placement. In addition, high-profile films often attract co-branding deals with marketers outside the industry.

Total advertising expenditure is also expected to drive revenues, representing a potential opportunity for the industry. As a majority of content is video-driven, the need for the industry’s services is expected to continue to rise.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve filmmakers, artists/celebrities, advertising agencies, corporate organizations, as well as TV stations in the [Location] area. Over time, the company expects that the studio will gain regional and national attention.

The precise demographics of the town in which the retail location resides is as follows:

Customer Segmentation

The Company will primarily target the following customer segments:

• Filmmakers: The city has quite a number of creative and independent filmmakers that are in need of professional video engineers and production to polish their works.
• Artists/Celebrities: A large part of the clients will be independent artists as well as celebrities that want to put their talent out there. The Company will record and produce good-quality videos for these artists.
• Advertising agencies: The Company will help agencies create the best quality video for their advertisements.
• Corporations: The Company will serve businesses by making corporate videos to help them increase their brand awareness and generate new business leads.
• TV Stations: The Company will serve various TV stations in the area and produce video content for TV, ranging from pre-production activities to post-production.

V. Competitive Analysis

Direct & indirect competitors.

VidTech VidTech is the town’s most well-known video production company and has been in business for xx years. VidTech specializes in producing influential films for global businesses that want to stand out. Competitor 1 offers product video, corporate video, brand video, internal communication, documentary, animation/motion graphics, VFX, training video. VidTech caters to businesses only, but the company will be catering to business as well as other customer segments like independent artists.

HHR Production Studios HHR Production Studios caters to various groups of customers. HHR Production Studios was designed with state-of-the-art facilities and technologies, and in turn, has been the studio of choice by artists, corporate organizations, and advertising agencies. HHR Production Studios focuses on the advertising and marketing industries. However, HHR Production Studios’s layout of the product portfolio is very comprehensive, but it still lacks in providing 3D animations and VFX.

Star Video Services Star Video Services is one of the renowned video production companies in the United States. Star Video Services’s is a strategic video solution company producing videos for the fitness, health, and wellness market. The company’s strategic insightful approach for every project is what sets it apart. Star Video Services, on the other hand, does not produce videos for all segments and is only confined to the fitness, health, and wellness industry.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has x years of video production experience that allows them to serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
• Location: [Company Name]’s location is near the center of town, giving the company access to budding artists, corporate organizations, filmmakers, and advertising agencies.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the video production market. Customers can expect a high-quality and concept-to-reality video production experience.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Convenient location.
• Offering high-quality service to independent artists/celebrities, ad companies, corporate organizations, TV stations, and filmmakers.
• Professional video engineering for any type of video production.
• Providing excellent customer service and customer experiences with high-quality production.

Promotions Strategy

[Company Name] expects its target market to be the filmmakers, artists, corporate agencies, advertising agencies and TV stations. The Company’s promotions strategy to reach the audience includes:

Pre-Opening Events Before opening the video production company, [Company Name] will organize pre-opening events designed for prospective customers, local artists, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like podcasts, television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of video production and post customer reviews that will increase audience awareness and loyalty.

Customer Loyalty Programs [Company name] will create a winning customer loyalty program to keep its best clients coming back again and again.

Ongoing Customer Communications [Company Name] will maintain a website and publish a monthly email newsletter to notify customers about new events, products, and more.

Pricing Strategy

Pricing strategy is one of the most important functions that any business can plan for attracting customers. Prices are a foundational element of a company’s revenues—if managed carefully, they can generate high profits.

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the video production services. The customer can expect to receive quality video production services at a more affordable price than what they pay at an ultra-premium video production company.

VII. Operations Plan

Functional roles.

[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available specialist, but priority will be given to clients who booked an appointment prior.

To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:

Service Functions

• Videographer
• Scriptwriting
• Pre-production and Post-production
• Professional video engineering
• Sales manager
• Customer service

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s name], who has been in the video production industry for [x] years. [Founder] is a certified and licensed video producer. While [Founder] has never run a video production business himself, he has been active in the industry as he has worked for leading video production companies as a video production engineer and managed it for xx years.

[Founder] graduated from the University of ABC, where he majored in video production and cinematography.

Hiring Plan

[Founder] will serve as the CEO. In order to launch the video production studio, the company will need to hire the following personnel:

• Studio Manager
• Video Producer
• Recording Engineer
• Administrative staff [Number]
• Marketing and Sales Executive

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from:

• Video production contracts
• Video editing
• Video Production Consultancy and Advisory Services

The major costs for the company will be the cost of construction of facility/set production, logistics, video production equipment, and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].

Capital Requirements and Use of Funds

[Company Name] is currently seeking $380,000 to launch a video production company. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

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How to Start a Film Production Business

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How To Start a Film Production Business

• How To Start a Film Production Business FAQs

Helpful Slideshows, Videos & Images

Additional resources in the film production industry.

Starting a film production business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching your own production company.

Importantly, a crucial step in starting a film production company is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

Download our Ultimate Business Plan Template here

17 Steps To Start a Film Production Company

• Find Your Niche
• Choose the Name for Your Film Production Business
• Develop Your Film Production Business Plan
• Hire an Entertainment Lawyer
• Choose the Legal Structure for Your Film Production Business
• Secure Startup Funding for Your Software Company (If Needed)
• Secure a Location for Your Business
• Register Your Film Production Business With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Film Production Business
• Buy or Lease the Right Film Production Business Equipment
• Develop Your Film Production Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Film Production Business
• Build a Team
• Open for Business

1. Find Your Niche

When you’re thinking about starting a film production business, the first step is to find your niche. There are all sorts of different niches in the world of film production, and finding the one that’s right for you is essential to your success. Are you interested in feature films? Documentaries? Commercials? Music videos? Once you’ve figured out what kind of films you want to make, you can start building your company. Figuring out who you want to be as a production company early on will help as you create your business plan and start marketing your business.

2. Choose the Name for Your Film Production Business

The next step to starting a film company is to choose a production company name.

This is a very important choice since your film company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable that represents the type of films you produce. Here are some tips for choosing a name for your film production business:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your film production business.

3. Develop Your Film Production Company Business Plan

One of the most important steps in starting a film production business is to develop your film production business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your film production business.
• Company Overview – this section tells the reader about the history of your film production business and what type of film production business you operate. For example, does your production company make short films or feature-length films?
• Industry Analysis – here you will document key information about the film production industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? What types of films do they watch?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products you will create and offer
• Prices : Document how you plan to set prices and sell your products to film distributors or other buyers
• Place : Where will your production company be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your film production business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing. You might also plan to be active in film festivals.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your film production business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

4. hire an entertainment lawyer.

An experienced entertainment lawyer can help you navigate the legal landscape of the film industry. Your lawyer can help you set up your business structure, draft contracts, and obtain the necessary permits and licenses required to operate in your jurisdiction. Additionally, your lawyer can advise you on copyright and trademark issues, and help you negotiate deals with distributors, actors, and other professionals involved in your project.

Before you begin production on any film, it is important to have a clear understanding of the legalities involved. Hiring an experienced entertainment lawyer is the best way to ensure that your production is in compliance with all applicable laws.

5. Choose the Legal Structure for Your Film Production Business

Next you need to choose a legal structure for your film production business and register it and your business name with the Secretary of State in each state where you operate your business. Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a legal entity in which the owner of the film production business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business and there is no clear separation of personal assets.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a film production business together. The business partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a film production business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a film production business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your film production business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

6. Secure Startup Funding for Your Film Production Business (If Needed)

In developing your film production business plan, you might have determined that you need to raise funding to launch your production company.

If so, the main sources of funding for a film production business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a film production business that they believe has high potential for growth. There are also entertainment financing options that often require profit sharing as a way to pay back the initial investment.

7. Secure a Location for Your Business

If you plan to start a small film production company, you may be able to run things from your own home and shoot your films elsewhere. For a larger operation, however, you will need to find a space that is large enough to accommodate all of your production equipment and staff. If you plan on doing any post-production work, you will also need to have space for that. Make sure that the space you choose is in a good location and is easily accessible for your employees and clients.

To find the right space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

8. Register Your Film Production Business With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

9. Open a Business Bank Account

It is important to establish a bank account in your film production business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

10. Get a Business Credit Card

You should get a business credit card for your film production business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

11. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License -Every business needs a general business license, which you can obtain from your local city or county government office. This is usually a very simple and inexpensive process.
• Filming Permits – In order to film on public property, you will need a filming permit. This can be obtained from the local city or county office that handles permits for filming in your area.
• Noise Permits – If you plan on doing any filming that will involve making noise, you will need to obtain a noise permit. This can be done through the city or county office that handles permits for filming in your area.

Depending on where you operate your film production business and whether you film outside of your physical location, you will have to obtain the necessary state, county and/or city licenses.

12. Get Business Insurance for Your Film Production Business

Business insurance policies that you should consider for your film production business include:

• General Liability Insurance – A film production company needs general liability insurance to protect against third-party claims of bodily injury, property damage, and personal and advertising injury. Film production companies are at risk for lawsuits arising from accidents that occur on set, personal injuries to cast and crew members, and copyright infringement claims.
• Business Interruption Insurance – Business interruption insurance can protect against lost income and extra expenses incurred if their operations are disrupted by a covered event. Covered events can include natural disasters, equipment failure, and power outages.
• Workers’ Compensation Insurance – Your production company needs workers’ compensation insurance to cover medical expenses and lost wages for employees who are injured on the job. In some states, workers’ compensation insurance is mandatory for all businesses.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

13. Buy or Lease the Right Film Production Business Equipment

You might be able to start a small production company with just a decent digital camera and some other basic equipment. A larger film production studio needs more advanced video and audio equipment, such as high-end cameras, recorders, microphones, and editing software. It also needs a studio space with good lighting and soundproofing. Film production equipment can be very expensive, so be sure to do your research and find options that you can afford. You can always make upgrades after you start bringing in profits.

14. Develop Your Film Production Business Marketing Materials

Marketing materials will be required to attract and retain customers to your film production business.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your production company. Your logo might appear onscreen, get printed on clothing, and be used across all your marketing efforts. The right logo can increase awareness of your brand and help you stand out from other production companies.
• Website – Likewise, a professional film production business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how your target market perceives you.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your film production business. A good social media presence can also help you draw attention to new projects.

15. Purchase and Setup the Software Needed to Run Your Film Production Business

A film production company needs software to help with the creation and distribution of its films. This can include software for editing, visual effects, and DVD production. Popular software options include Adobe Premiere Pro, After Effects, and Sony Vegas.

16. Build a Team

An important step in starting your own film production company is to put together a great team. This team will be responsible for bringing your vision to life and making your films a success. You’ll need talented individuals with a passion for film, as well as a strong work ethic and good communication skills.

Some roles you might need to fill at your film production company include producers, directors, cinematographers, editors, and production designers. Some larger film production companies have individual teams for areas like casting and costuming. Start with what you need and can afford and plan to build out your team as you grow.

17. Open for Business

You are now ready to launch your film production business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Film Production Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How To Start a Film Production Company FAQs

Is it hard to start a film production business.

No, it's not hard to start a production company. However, it does require some initial investment and planning. But if you're passionate about film and have a good story to tell, then starting your own production company can be a great way to bring your vision to life. Some common challenges when starting a film production business include funding equipment and employees. Following the steps outlined above will help you get started.

How Can I Start a Film Production Business With No Experience?

Turning a passion for film into a business without any industry experience can be difficult. One important thing to do is research. Investigate how other successful film production companies got started and see if you can find experienced professionals to mentor you or offer some business advice. Having a good entertainment lawyer is also beneficial since they can help you navigate the unique legalities of the film industry. Finally, look around for online courses on film production that might help you.

What Type of Film Production Business Is Most Profitable?

There is no definite answer on which type of film company you should start if you want to earn the most profit. The film industry is a very competitive one, so it is important to choose a niche that will allow your company to stand out from the rest. There are many different types of film production businesses, such as commercials, music videos, feature films, documentaries, and more. Each type of business has its own set of challenges and opportunities. The biggest factor impacting your profits will be creating content and offering services that many people are willing to pay for.

How Much Does It Cost To Start a Film Production Business?

The cost of starting a film production business varies depending on the size and scope of the operation. For a small business, the start-up costs may be as low as a few thousand dollars. However, for a larger production company, the costs can be tens or even hundreds of thousands of dollars. Some of the factors that will impact your startup costs include the type of equipment you need, the cost of commercial rent in your area, and employee salaries.

Initial costs include: 

• Filming and editing equipment and software
• Studio space/office space
• Legal and insurance fees
• Website and other marketing/promotional items

What Are the Ongoing Expenses for a Film Production Business?

Running a film production business can be expensive. Hiring a production accountant can help you keep track of ongoing costs. The key financial metrics in the film production market are as follows:

• Purchases – This is the largest expense category for the industry, and includes things such as 3D and $K production equipment, other equipment, on-site amenities, craft services, makeup, movie rights, etc.
• Wages – Wages consume almost 1/5 of industry revenue, and go to high-salary positions such as producers, cinematographers, talent, directors, etc.
• Marketing – This is a significant expense for film production companies. Attracting large first-weekend audiences is a priority for most films, and increased publicity also improves distribution revenue.
• Rent & Utilities – Movie producers often rent large facilities in high-traffic areas, as well as trailers for the cast. Industry operators also sometimes rent some or all the equipment needed to make the film.
• Miscellaneous – Other costs for the industry include things like transportation, depreciation, and subcontractors.

Other ongoing expenses include:

• Equipment depreciation
• Production costs (highly variable)
• State and federal taxes 

How Does a Film Production Business Make Money?

There are many ways that a film production business can make money. 

The most common way is through the sale of distribution rights to distributors. These distributors then sell the rights to exhibit the film in various media, such as theaters, television, home video, and online streaming services. The production company may also earn royalties from the exploitation of these distribution rights. 

Additionally, a film production company may generate revenue through the sale of merchandise related to the film, such as DVDs and Blu-rays, soundtracks, posters, and toys. 

Finally, a film production company can also earn income from product placement deals struck with companies that want their products featured in the film.

Is Owning a Film Production Business Profitable?

Yes, owning a film production business can be quite profitable. The film industry is growing at a rapid pace and there is a lot of money to be made in this business. However, it is important to remember that this is a very competitive industry and it takes a lot of hard work and dedication to be successful. Some things you can do to increase profitability include finding an untapped niche market, closely monitoring your expenses, and effectively marketing your productions to the right audiences.

How Much Do Film Production Operators Make?

According to Recruiter.com, the average salary of a Producer/Director ranges from $72,000 to $108,000.

Why Do Film Production Businesses Fail?

There are many reasons why film production businesses fail. Some of the most common reasons are poor planning, lack of experience, and insufficient funding. Most production companies will also fail if they repeatedly spend more on producing projects than they make back.

How Big Is the Film Production Industry?

With moderate annual growth (2.7%), the Film Production industry’s more than 7,500 businesses are currently worth almost $43 billion.

What Are the Key Segments of the Film Production Industry?

Film production companies’ sales are segmented by the type of film produced: action and adventure, comedy, drama, thriller and suspense, and other (such as horror, musical, and documentary).

What External Factors Affect the Film Production Industry?

A number of factors affect the performance of the Film Production industry. These drivers include:

• Technological Change – Technology has made a huge difference in the Film Production industry. Better equipment and storage have increased the sophistication of production, and digital technology has cut production and distribution costs.
• Demand From Movie Theaters – Film producers try to release movies when people have more time to go see them, such as during the summer or over a holiday.
• Per Capita Disposable Income – When people have more money, they are more willing to spend on entertainment, including going to the movies and purchasing DVDs, Blu-rays, and digital copies of films.
• Total Advertising Expenditure – Product placement is an important part of financing a film. Therefore, film producers benefit when companies have large advertising budgets.
• Trade-Weighted Index –This measures how strong the dollar is compared to other currencies. When the dollar is strong, film production companies tend to make their movies in international locations to save money.

Who Are the Key Competitors in the Film Production Industry?

The largest players in the Film Production industry are The Walt Disney Company, 21st Century Fox, Comcast Corporation, and Viacom.

What Are the Key Customer Segments in the Film Production Industry?

More than half the film production industry’s revenue comes from the domestic market, while the rest comes from foreign distribution.

Film Finance – Raising Money For A Movie – A Film Courage Filmmaking Series

Building a Film Set From Start To Finish

The Business – Independent Film Producing Series: Financing

The Business: Goal Setting and Strategic Planning

The Flow of Money Through the Film Industry

IMDB By the Numbers

For additional information on the Film Production industry, consider these resources:

• Motion Picture Association of America:  www.mpaa.org
• Variety Magazine:  www.variety.com
• Screen Daily:  www.screendaily.com
• The Hollywood Reporter:  www.hollywoodreporter.com

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business planning can create your business plan for you.  

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Ultimate Guide To Creating A Profitable Production House Business Plan

Ever wonder why some production houses consistently rake in profits while others struggle to stay afloat? The difference often lies hidden in a well-crafted business plan. Understanding each component—from market analysis to financial projections—can turn a fledgling idea into a lucrative venture.

The origin of a successful production house often stems from meticulous financial planning . Statistically, companies with a robust business plan are 71% more likely to experience significant growth. By aligning creative goals with financial objectives, you can navigate the competitive landscape with confidence.

The Relevance of a Business Plan for a Production House

A business plan serves as the roadmap for your production house’s success. It outlines your goals, strategies, and the steps to achieve them . Without it, navigating the competitive entertainment industry can feel like driving without a map. Investors and stakeholders often require a solid business plan before they commit their funds. This document shows that you’ve thought through all aspects of your business. It also demonstrates how you plan to overcome potential challenges.

Moreover, a business plan helps in defining your target audience and refining your services to meet their needs. By understanding your market, you can position yourself effectively and win more clients. Finally, the financial section of a business plan is crucial. It includes revenue forecasts, profit margins, and funding requirements . These projections assure that your production house is financially viable.

Key Components of a Production House Business Plan

A comprehensive business plan is essential for a production house. It includes various elements that together build a solid foundation for growth and success. Let’s delve into some key components of a business plan.

Executive Summary

This section provides a snapshot of your business. It should highlight your company’s objectives, mission, and vision. Investors read this first, so keep it clear and engaging. Include a brief overview of your products or services. Mention what sets you apart from the competition. A compelling executive summary can capture interest quickly. Also, include your financial highlights here. Revenue projections and funding needs should be briefly stated. This helps potential investors gauge the profitability of your business.

Market Analysis

Understanding your market is crucial for success. A thorough market analysis helps you identify your target audience and their needs. It also sheds light on market trends and competitor strategies. Break down the demographics you aim to reach. Are you targeting a specific age group or industry? This helps tailor your marketing efforts more effectively. Conduct a SWOT analysis. Look at your strengths, weaknesses, opportunities, and threats. This will guide you in making strategic decisions.

Financial Projections and Funding

Financial projections show the viability of your business. Include income statements, cash flow forecasts, and balance sheets. These documents are vital for securing investments. Break down your funding needs. Specify how much money you need and where it will be used. Whether for equipment, staffing, or marketing, detailed breakdowns build investor confidence. Illustrate your break-even analysis . Show when you expect to become profitable. This reassures investors about the timeline for returns on their investment.

Market Analysis for Your Production House

Market analysis is a cornerstone of your business plan. It helps you understand your audience and the competitive landscape. By analyzing market trends, you can make informed decisions that drive success. Start by identifying your target audience. Consider age, location, and interests. The more specific you are, the better you can tailor your services.

Competitor analysis is also crucial. Study what other production houses are doing. This helps you identify gaps in the market and opportunities for differentiation. Include a SWOT analysis in your market study. List your strengths, weaknesses, opportunities, and threats. This helps you develop strategies to leverage strengths and address weaknesses .

Structuring Your Company’s Organizational Setup

Structuring your organization’s setup is crucial for efficiency. It clarifies roles and responsibilities. This ensures everyone knows what they are accountable for . Start by defining key roles. Typically, a production house requires a team of producers, directors, editors, and marketing experts. Make sure each role aligns with your business goals.

Form an organizational chart. This visual tool helps everyone understand the hierarchy. It also makes onboarding new employees easier. List the responsibilities for each role. This can be done in a simple table for clarity.

Finally, define your governance structure. This includes forming a board of advisors or directors. Their expertise can guide the company’s strategic direction.

Your Services and Pricing Strategy

Defining your services is the cornerstone of your production house. These may include video production, editing, and marketing campaigns. Clearly outline what you offer to attract clients . Next, develop a pricing strategy that aligns with market standards. You can opt for a per-project rate or hourly fees. Ensure your pricing structure covers costs and delivers profit. Use a table to present your services and their respective prices. This provides a clear view for potential clients.

Also, offer flexible packages. This caters to different budget levels and increases your client base. Highlight the benefits of choosing a package over individual services. Lastly, transparency in pricing builds trust. Provide detailed breakdowns to avoid any hidden costs. This ensures client satisfaction and repeat business .

Crafting the Marketing and Sales Strategy

An effective marketing and sales strategy is essential for any production house. It helps you reach your target audience and convert leads into clients. Start by defining your brand and its unique selling points . Next, choose the right marketing channels. Social media, email marketing, and SEO are popular options. Ensure your content is engaging and speaks directly to your audience.

Consider creating a promotional calendar. This helps in planning your campaigns throughout the year. You can time promotions around industry events and holidays. Your sales strategy should focus on building relationships. Personalize your outreach and follow-up efforts. This increases the likelihood of closing deals. Use a table to track your sales performance. Monitor metrics like conversion rates and ROI. Regularly review these numbers to refine your strategy.

Lastly, partner with influencers and other industry players. This expands your reach and adds credibility. Strong partnerships can lead to long-term business growth.

Frequently Asked Questions

Starting and running a successful production house involves various aspects, from business planning to marketing. Below are some of the most commonly asked questions, along with their answers.

1. What should be included in a production house’s business plan?

A comprehensive business plan for a production house should include an executive summary, market analysis, organizational structure, financial projections, and a detailed list of services offered. Each component helps outline the business goals and strategies for achieving them.

The plan should also cover marketing and sales strategies to attract clients. Detailed financial projections can provide insights into profitability and help secure funding from investors or stakeholders.

2. How do you conduct market analysis for a production house?

Market analysis involves identifying your target audience and understanding their needs. This requires examining age groups, interests, and geographic locations to align your services effectively.

It also includes studying competitor strategies to identify gaps in the market. Utilizing tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) helps make informed decisions about business direction.

3. Why is organizational structure important in a production house?

An organized company setup clarifies roles and responsibilities among team members. This ensures that everyone knows what they need to do and who they report to.

A well-defined organizational chart can streamline communication and improve efficiency. It also makes onboarding new team members easier as it provides clear guidance on job roles.

4. What are effective pricing strategies for production houses?

Pricing strategies may include per-project rates or hourly fees depending on the services offered. Flexible packages can cater to different budget levels while increasing client base.

Transparent pricing builds trust with clients by avoiding hidden costs. Providing detailed breakdowns of each service ensures client satisfaction and promotes repeat business.

5. How important is marketing for a production house?

Marketing is crucial as it helps reach your target audience and convert leads into clients. Effective marketing strategies could include social media campaigns, email newsletters, and search engine optimization (SEO).

A promotional calendar can assist in planning these efforts throughout the year. Partnering with industry influencers can further expand your reach and add credibility to your brand.

Crafting a profitable production house business plan is essential for long-term success. It serves as a roadmap, guiding you through market analysis, organizational setup, and financial planning. A well-structured plan attracts investors and clients alike.

Remember, clarity and thoroughness are key. Each element, from pricing strategies to marketing efforts, should align with your business goals. By focusing on these components, you set a strong foundation for a thriving production house.

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Video Television Production Business Plan

Start your own video television production business plan

Evergreen TV Productions

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

EvergreenTV Productions, Inc. is a multi-faceted company, with the potential to branch into new venues as the company grows. There are currently three phases to development, beginning with our home division. By developing this division to include three stores in the Tampa/St. Petersburg area, we can generate enough revenue to assist in the growth of two other divisions; tour and travel, and the business to business division. However, we will need additional funding to accomplish this plan.

The Home Division produces digital video scrapbooks by digitizing customers’ photos, setting them to music, and using selected digital effects to create the video memory. Our operations manual is a business system designed to produce the maximum number of videos per week while maintaining a rigid standard for quality. Using this system, and following this video production business plan, we will generate the revenue needed to allow us flexibility in accepting other projects more commonly associated with a production company, leading into the next division.

The Tour and Travel Division provides specialized production on a wide range of hand-picked projects, depending upon the client’s needs. This division creates videos of local interest for play in doctors offices’ waiting rooms, videos to promote area businesses, and tour/travel videos for tour companies. We will develop this division into a self-sufficient branch within the first year.

The Business to Business (B2B) Division markets the news stories of college and university communications students, and provides a resume posting service for said students. Those stories are sold to small market tv stations nationwide. This division is the heart of EvergreenTV Productions, and the reason for incorporation. After seven months of development, our website is complete. We are ready to revolutionize television news programming. Selecting only the best, we gather an impressive selection of “timeless” news stories produced by college and university students. Market research shows that nearly every day, small market tv stations need “filler” news, either local, regional or national, to complete their newscasts. Many subscribe to costly services, with little choice for story selection. EvergreenTV Productions will provide them with quality news stories, “filler news” which these stations can use for any time, any day, any cast. This division of EvergreenTV Productions is meeting two needs. First, those of students anxious to get professional experience and an introduction into the tv news industry. By promoting their news stories and publishing their resumes on our website, we’re helping them get that first foot in the door. Secondly, the needs of small market tv stations which cannot afford to budget tens of thousands of dollars for news programming.

Short Term:

• Open two stores in the Tampa/St. Petersburg area by the beginning of year two. Each store will follow a business system designed to operate at maximum efficiency while maintaining the highest standards of quality, as per a franchise.
• Produce an hour-long video of points of interest with the Tampa/St. Petersburg area to sell to doctor’s offices in the area by the end of month six. Revenue generated by tape sales will be used to support travel and expenses to meet goal three.
• Generate an inventory of 15 stories for the business to business division by the end of month six, and 50 stories by the end of month nine.
• Obtain 30 sales to small market tv stations by the end of year one.
• B2B Division sales increasing to XX by the third year.
• Build B2B news stories inventory to a minimum of 300 stories by the third year.
• Open two home division stores per year in various markets throughout state. i.e., Naples, Miami, Orlando, Jacksonville, Pensacola. Each store following our business system to maintain consistency and product control.
• Maintain a profit, to reinvest into business and further expansion.

Keys to Success

Home Division:

• Product quality. Begins with a complete customer’s understanding of the process. Customers should be comfortable turning over their treasured photos for production, and should be completely satisfied with the end product.
• Implementation of business system. Every employee should be fully trained and able to assist other employees in the goals and objectives as defined within the business system. This ensures that the first key to success is achieved.
• Marketing. Initial market saturation within key customer demographics is essential, followed by an extensive referral program, as outlined in the business system guidelines. Presentations to select demographics, such as retirement villas and professional photographers is vital. Building alliances and co-promotions programs with like businesses (such as wedding photographers, disc jockeys, travel agencies and photo processing centers) is key to further growth.

Tour and Travel Division:

• Product quality/customer satisfaction. All productions must meet the complete satisfaction of the client, regardless of genre. Employees must be trained to anticipate client’s needs and company’s ability to meet these needs. No project is too small to ignore the importance of quality and customer satisfaction.
• Development of referral program. This division will not actively seek projects, but will respond to the needs of referral clients. A well-defined web of referrals will contribute to the consistency of client’s expectations and this division’s output.

Business to Business Division:

• Product quality. Extensive review of each story submitted. Guidelines sent to communications professors to encourage the development of these stories.
• Marketing. Consistent, repetitious and personal contacting of colleges, universities, technical schools, as well as tv stations in the bottom 115 Nielsen markets. Fresh news releases notifying students and stations of upcoming stories. Faxes, newsletter mail-ins, and a constantly updated website promoting the students and product.
• Management. On-time product delivery. Budgets under control. Legal and accounting advice concerning new development or budgeting, such as QuickBooks instruction and copyright/trademark requirements.

“In the factory Revlon manufactures cosmetics, but in the store Revlon sells hope.” Charles Revson, founder of Revlon.

While EvergreenTV Productions, Inc. operates as a production company, it sells personal memories, opportunities and trust.

The home division creates video scrapbooks set to music, but sells memories and quality service. Customers must trust that we cherish their photos and will produce every video as if for our own families. Our employees must feel equal to the standards expected of them, and feel free to contribute new ideas to improve upon our business model. Employees are also our internal customers, and should be treated with the same respect given to customers who walk through the door.

The tour and travel division maintains an open mind to new video projects, so the client understands that his goal is our objective. While we will suggest alternatives and bring our experience to the table, we hold the client’s goal as the primary target. If we cannot achieve our client’s goal, we will present that information in our initial encounter and suggest other possible production means, rather than altering the project to our comfort level.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

EvergreenTV Productions is a multi-faceted production company operating on three basic levels.

The Home Division of EvergreenTV Productions is centered around one product. Using the most advanced, all-digital editing equipment, our company turns standard photos into video “scrapbooks” of various length and style, all set to selected music backgrounds. Customers are given a free consultation to review the process, help in selecting needed music, and given an explanation of each of the four packages of videos from which they may choose. Each package is a detailed rate plan, with varying costs. By using this free consultation, customers are assured a unique and personalized video.

The Tour and Travel Division handles various projects which may present themselves to our production company. This division is not primarily a revenue generator, but is vital to the growth of the company. Projects will be hand picked based upon a referral system. By minimizing the number of projects, we control quality and reputation as a production company which specializes, rather than an all-encompassing production facility which forsakes quality for quantity of projects. This division is responsible every quarter for producing a new hour long video of areas of interest around Tampa Bay.

The Business to Business Division (B2B) is the heart and soul of EvergreenTV Productions, the center of the vision for which the company began. It is a marketing service for college and university students of broadcasting, and a news programming service for small market tv stations. News directors are encouraged to contact the students for job openings, and students are given an account history of which stations purchased their story. These stories are marketed to the bottom 115 (Nielsen market) tv stations nationwide.

EvergreenTV Productions, Inc. started in Tampa, Florida in October 2000. It is a privately owned, Florida corporation, Subchapter S.

Company Ownership

EvergreenTV Productions is a privately-held Subchapter S corporation owned in majority by its founder and president, Louanne Walters. There is one other director, Bobby G. Walters, Louanne’s father, who is also vice-president. Louanne owns 70%, with Bobby owning 30%. Shares are available for additional ownership.

Company Locations and Facilities

All equipment and office management space is held within one room, approximately 10×10 feet at Louanne Walters’ home.

We are currently looking for an initial storefront, and have priced several in the North Tampa and Carrollwood areas. Needed space is 500-750 sq. ft. In these areas, price per square foot runs $1-$1.50, or approximately $500-$1,125 per month for rent. Many of these locations include utilities.

Start-up Summary

Expenses and funding for the business start-up are shown below.

Products and Services

As stated in the Company Summary section, Evergreen TV Productions is a company of three divisions, selling both products and services according to each division.

Product and Service Description

Services include:

• Marketing college and university students’ news stories to small market tv stations nationwide.
• Posting students’ resumes for a certain period (three months) on its website.
• Assigning each student an account from which he/she can contact stations which purchased his/her tape for potential job opportunities.
• Assigning each station an account from which the news director may contact students as potential future reporters.

Products include:

• Video scrapbooks, produced from photos digitized and set to music.
• Tour and travel videos of local, business or other interest for use in area businesses, as advertising of area businesses, or to promote tour agencies.
• All types of “evergreen” or “timeless” news stories, such as Health, Travel, Business, Leisure, Sports, Politics, Feature Personalities, etc., which may be of interest to stations and their viewers.

Competitive Comparison

We stand apart from our competition in price and value.

Home Division: Currently, production companies are hesitant to offer video scrapbooks due to the amount of work necessary for a minimal return on revenue. They would much rather produce corporate productions with a high fee. Locally, a few companies will produce these scrapbooks, but they charge enormous fees. The reason for this is that they do not have a business system in place to allow them to produce these scrapbooks on a timely schedule with minimal cost. From an informal phone survey we gathered rates for a 10 minute video from $500 to $2,000. Additionally, this phone survey showed no true committment to the production elements of music and digital effects. Again, this is due to having no business system in place to provide these essential elements. It can be compared to a hamburger stand trying to become McDonald’s with no actual system in place to keep quality consistent.

Tour and Travel Division: We offer high value and quality to our customers, and treat every project as if it were the only project. Production companies in general have a reputation for sloppy and careless producing, for overbooking projects, and for inconsistent and exorbitant charges. Our referral acceptance program ensure we will not overbook, we will have a higher degree of responsibility with each customer who is referred, and we cannot charge one customer amount X, and another customer amount Y, as they will probably know each other. The referral program sets us apart, and reassures otherwise wary customers.

B2B Division: CONUS sells yearly subscriptions of regional news to tv stations nationwide for $20,000/year. Dr. Dean Edell sells yearly subscriptions of health news only, for nearly $30,000/year. MedStar sells yearly subscriptions of health news only, for $24,000/year. Mr. Food, Mrs. Fixit, TravelNet and many others all rank in the $20,000 and above category, and all offer only one topic, either health, food, travel, or how-to’s, but not something from each.

At our online website, EvergreenTV Productions offers a variety of topics to chose from, and stations can pick their own five stories each week to match their news or specific story trends, at a lower cost. They can customize their filler news, instead of throwing in whatever is available, making their newscasts flow smoothly, and eventually helping them generate viewers and thus sales, and all at a much more affordable cost.

Sales Literature

EvergreenTV Productions will rely heavily on presentations to retirement villas, business clubs, and other social outlets for advertising the Home Division. The B2B Division will rely upon one on one sales calls to colleges/universities and tv stations, and upon the Internet for e-mails, faxes and advertising of products and services.

Fulfillment

All end product supplies can be purchased locally from Office Depot, Sam’s Club, or Staples, or from a production company on the Internet at minimal cost. End product supplies include tape labels, and VHS/Beta/DVC video tape.

For the B2B Division, we do not buy our stories, but trade our marketing and resume services to students for their stories. A legally drawn-up contract is held between EvergreenTV Productions and each student, once his/her story is accepted. By agreeing, the student gives us the story for any commercial use, and he/she agrees to use that story only in job-searching. We then sell the story for profit and expenses (such as video tapes for dubbing purposes).

We also own over $12,000 worth of video and editing equipment, and can do our own stories, at no further cost to the company.

We use both Windows and Macintosh technology in our company. Windows and Office products are used mainly for all databases, word processing, and accounting needs. Macintosh products are used primarily for video editing, and loading video onto our website. We also have all the necessary components for a digital video production center, including cameras, mini-disc recorders, microphones, and lights. All other items can be rented per project at a low cost. Eventually, we would like to include DVD-R drives on our computers, to allow us to copy to DVD, rather than simply VHS tape (Home Division).

In addition to standard computers, scanner-copier-printer centers, we also use electronic faxing via the Internet, cell phone, DSL Internet subscriber line and several video tape recorders of various formats, including Beta SP, SVHS, DVC, and 3/4″. We are currently in communication with a media streaming Internet company regarding posting these news stories on the Internet to be downloaded directly to the tv stations who purchase the stories. This would eliminate the need for hard tape, and would give the stations instant access to stories they could download to their specific tape format.

Future Products and Services

Within the next five years, we will add storefronts statewide, all following consistent guidelines in our business system.

We would like to franchise this store nationwide.

Within the next three to five years, we will add production of our own brand of travel news to our product line.

Market Analysis Summary how to do a market analysis for your business plan.">

Home Division: There are no production companies in the area which currently focus on video scrapbooks. Several smaller companies “can” and “will” produce this for a high cost to the customer. With the advertising by both Apple and Sony focused on home digital video production, the awareness of this type of production is growing within the community, but as yet, no company has stepped up to the plate to offer this product. Consumers are becoming more educated about what can be done, but they do not know how to do it themselves.

For several months, EvergreenTV Productions has promoted this concept via word of mouth to small businesses, consumers on the street, and educated professionals. All show a keen interest in buying the product.

Tour and Travel Division : Many production facilities exist in the Tampa Bay Area; and all are capable of producing professional projects. As this is a referral division only, we do not plan to compete regularly for business. Instead, we will build a web of quality prospects by maintaining high productions standards, and accepting only those clients who come highly recommended. This is not our main focus, but is a tool to generate business and reputation.

B2B Division: EvergreenTV Productions focuses on the bottom 115 (Nielsen) tv markets. These are the markets whose station budgets don’t easily allow an expense of $20,000+ per year for programming services. We will offer the affordable alternative.

EvergreenTV Productions conducted a mail-in survey of 113 stations in the bottom 65 markets. The majority of these do subscribe to CONUS, Dr. Dean Edell, MedStar, or Medical Breakthrough. Of the 10 responses received, four stations did not subscribe to any news provider, but did indicate an interest in “filler news” at a reasonable cost. The conclusion is that many stations need stories, but cannot stretch their budgets to accommodate the high cost of programming. At this time, no service exists like EvergreenTV Productions programming alternative. Numbers for projected growth are not possible without history.

Market Segmentation

Three loosely defined market segments are identified. The “Home Division” category  is by far the largest potential segment and represents the consumer most likely to be our client. 

Target Market Segment Strategy

Home Division: Strategy for the home division is two-fold. First, we must find the appropriate means to communicate our product to potential customers. Because nearly everyone today has the ability to take photos and has a wide selection of photos at home, we must first narrow down our customer base by appealing to the emotions people attach to their photos. Older persons with larger families are more inclined to want to share their family histories. Newlyweds want their family and friends to share in their newfound happiness. By emphasizing these traits (nostalgia and euphoria) we can begin to gain a following for our product. Second, we must find a suitable location for our storefront, which enables us to find customers who share these traits. Malls and movie theaters appeal to “togetherness,” shopping together for gifts, weekend outings, brunch/lunch/dinner dates. The right location will give us access to our primary customers, those who will help us launch the product in the area by word of mouth.

Tour and Travel Division: This division’s strategy relies entirely on our referral program. Doctors’ offices and travel agencies give us a wider demographic schematic, as patients and families of patients are confined to a waiting room during a visit. Instead of watching afternoon televised programming, doctors will be able to provide their clients with informative, educational and entertaining programming as compared to many daytime talk shows.

B2B Division: Because EvergreenTV Productions utilizes the stories of university students, it is important to recognize the average age of a station’s reporters. A previous survey conducted by our company did confirm our experience, in that most small market tv stations hire only young “cub” reporters, as experienced reporters tend to move onward to larger markets and bigger stations. The quality of our product will match the quality of the station’s news. Therefore it is essential to target the bottom markets. This is also important to recognize from the service end of our business, as news directors will be interested in hiring reporters from our pool of news stories.

Market Growth

Home Division: We will be better able to track market growth in this division following the first two quarters of sales. At this time, with no active competition, we expect our growth rate to double and triple weekly. As Tampa Bay is a large retirement community, these numbers could be increasing for several quarters. We then expect to see a slight down curve as the product finds its niche within the community, with a more consistent level of sales.

Market Needs

Home Division: With the advent of digital editing capabilities on home computer systems, more consumers are aware of the potential of creating video scrapbooks, but most are not familiar enough with the technology to accomplish a simple video. Apple and Sony are selling large numbers of these computers despite a recent turndown in the computer industry. Digital still cameras are a must have, with consumers expanding their vocabularies to include “Memory Stick,” “Pixels,” and “Jpegs.” Yet, in the Tampa Bay area, no production companies are actively marketing video scrapbooks. We can use the above product interest, and the continued success of photo processing centers, to create a gauge for interest in this product. However, as with any relatively new product, we will not know the market’s true needs until several quarters of sales.

B2B Division: A void currently exists in the area of news programming. Larger stations are able to budget tens of thousands of dollars per year to support their needs. Smaller stations often rely on extending the weather and sports segments, or sitting on credits at the end of cast to “eat up extra time.” This reduces the newscasts’ value, and thus reduces the price of selling advertising as commercials, which is where tv stations make money.

Other small markets may subscribe to one or two programming services, at the expense of hiring quality personnel. These services limit the news directors and producers, because they have to run whatever story comes down on the satellite link that day. It may have nothing to do with other stories in a cast, or interest to the local viewing audience.

EvergreenTV Productions allows the stations to pick their own stories and run them when needed. In addition, by ordering weekly, they can choose from a constantly upgraded catalogue and pick stories which relate to news they are already running or have run recently. In other words, on a slow news day, CONUS may offer a story from a station in another state about a family lawsuit which has no relevance to that station’s viewers. EvergreenTV Productions, however, may offer a story about “Buying a puppy for your five year old.” It is timeless, and applies to a greater percentage of the viewing audience than the distant family’s lawsuit.

Within the service branch of this division, there is a greater range of competition, but few meet student’s needs. Many news talent agencies and resume services exist. However, none of them offer posting of resumes, marketing of resume tapes, and especially an opportunity to earn professional experience while the student is still in college, at no cost to the student. By positioning themselves with EvergreenTV Productions, students can hone in on various stations who have purchased their stories. They can link directly to those stations for future jobs, rather than send out a multitude of resume tapes in a shotgun style to get a foot in the door. And, they will not have to pay our company 10% of their first salary!

Market Trends

Home Division: The advent of home computers capable of digital editing can certainly be considered a market trend, and one that is highly influential to our home division. As more consumers know of the technology, more interest is created in our product. While large corporations spend millions in advertising to promote these computers, we can take advantage of this advertising second-hand. The interest is created by the large corporations, and we use like advertising and terminology to increase interest in our particular product. A second major trend is with photo processing centers, such as those at Walgreens, offering pictures on CD-ROMS. These centers are already taking pictures to the next level, with the purpose of sharing these memories with family and friends. The logical next step is to put these pictures together in a creative and professional video scrapbook, then copy them to VHS tape or DVD.

B2B Division: One major trend in the television news industry is staffing cut-backs. Newsrooms are using fewer reporters and photographers and replacing them with bought programming. Instead of paying $18,000/year for a reporter and $16,000/year for a photographer, smaller markets are buying news programming services at $20,000/year and saving on salary and health care expenses, while increasing the number of stories running per day. On average, a reporter will turn out one or two stories per day, while CONUS offers the ability to run two or three stories per day.

Another trend focuses on freelancing opportunities for reporters. Many are now working on their own, producing stories bought by several different companies. As tv begins to reflect the magazine industry in freelancing opportunities, more and more reporters will make a living working for themselves. In a long-term analysis, EvergreenTV Productions will be able to utilize these freelancers to do specific stories which fit the mission of our company.

A third trend is greater reliance on the Internet for programming. With the advent of TIVO, viewers can choose what they want to watch when they want to watch it. An even further long-term analysis could lend EvergreenTV Productions the opportunity to provide news that viewers can access specifically without going through their local tv stations. In the short term, local news stations may soon be able to download news stories directly to their control centers, without needing a tape for playback. By initially locating on the Internet, EvergreenTV Productions is putting itself in the position to take advantage of the increasing opportunities of Internet business, while at the present time offering easy access to a catalog of stories for order.

Service Business Analysis

Home Division: We are primarily a production company within the retail industry. Some industries are similar, but as this is new technology, it is a unique industry. At the current time, we know of only a few other production companies which consistently turn out video scrapbooks. The photography industry is similar in creating still pictures for retail.

• Production companies: Most are individually owned and rarely produce small projects such as video scrapbooks. We do not know of any production companies designed solely for this type of product, but do know of several small corporations who have similar guidelines. The downside to these companies is that they are limited in timely production ability. They cannot accept 10 orders for video scrapbooks simultaneously, as they are set up to produce one scrapbook every two to three days, rather than two to three hours.
• Photography companies: Like-minded companies which produce wedding, family, vacation, etc., still photos for families to treasure. They do not produce video scrapbooks from these photos.

Tour and Travel Division: We are limiting our production output in this division to a referral basis only. In general, the production company industry is very large, with companies specializing in corporate training videos, tour videos, advertising, etc. They rarely limit their productions to referral only, which means most often they will specialize in one area. To the customer, this means outsourcing to several production companies to meet his needs. A corporate president may have to hire two production companies to produce a training video and a travel video.

B2B Division: We are both a marketing service and news provider. Therefore, half of our business deals within the marketing industry, promoting students, while the other half deals within the news industry, selling news programming to news stations.

• Industry magazines: For a nominal fee, students seeking employment can post a want ad, specifying the type of job they are looking for. These magazines have good responses from tv stations advertising jobs, but have a lower success rate for students seeking jobs.
• Internet websites: For a nominal fee, students may post their resume and information on an industry targeted website such as www.tvjobs.com. Thousands of students and currently employed reporters compete for the same positions, again with lower success rates.
• Network-based programming: Affiliates belong to network news services which provide daily programming on hourly feeds. These stories are limited in region and topic, extremely time-sensitive, and restricted to the affiliation only. NBC affiliates belong to NBC Newschannel. ABC affiliates belong to NewsOne, etc.
• Subscription programming: For an annual rate, any affiliate may subscribe to these programming services. Their downside is in limiting the stories they offer to one specific topic such as healthcare, travel, or politics, rather than offering a wide variety of topics from which to choose. In addition, stations do not have a choice in which stories to run each day. Either stations can take one story daily from a satellite feed, or stations are sent a week of stories on tape.

Business Participants

Home Division: Most production companies have a full plate with a wide assortment of projects. They are benefiting from the growing need for corporate advertising/projects, and prices on production equipment are continuing to fall.

B2B Division:

Student Services:

• There are hundreds of national talent agents within the tv industry. A select few work with esteemed firms and take on only proven, exceptional talent. Hundreds of others are available to college students for a fee of 10-13% of their salaries. This is where agents make money, searching for a job for the students, gaining an interview, then reaping the rewards. Fewer reporters are looking for agents due to the fee and the increasing abilities of the Internet. Like travel agents, talent agents are finding their once lucrative positions threatened by the Internet.
• There are dozens of job search services available, more in the past few years due to the insurgence of the Internet. Most require an upfront fee of $10-15 per month for resume posting service, and the privilege of searching for jobs on their website from those stations which have subscribed to them. They will continue to do well as long as reporters are seeking positions.

Station Services:

• While there are many production companies, few offer news to tv stations. Most programming services are based in larger markets where their product has taken hold. They offer topic specific news for tv stations nationally, at a high cost. Most generate stories by one well-known personality and offer only one story possibility per day. They make the majority of their revenue from mid-to-large markets. They have a strong position in the industry, and because they are topic specific, do not threaten each other. Internet news on demand, where viewers can watch their favorite station from their home computers, is the biggest threat.
• Freelance reporters infrequently sell their stories to stations.

Distributing a Service

Home Division: Customers are accustomed to going into retail locations to make purchases or place orders. Having a storefront will provide them with this opportunity. Initially, we will host presentations to explain the product at various outlets such as retirement villas and apartment clubhouses.

B2B Division: TV Stations buy directly from the programming source. A sales representative may call or visit a station for a programming product, or the station may purchase directly via the Internet.

Initially, it will be vital for us to visit one-on-one with small market stations to obtain a base clientele. Those stations across the country will be targeted via telephone and direct mailing promotional kits. Those stations which responded to our initial marketing survey are prime first clients–those who have already defined their needs according to our questionnaire.

Competition and Buying Patterns

Home Division: As with any retail line, customers feel more comfortable and believe they are truly getting their money’s worth when they are given one-on-one attention. It is this attention we will give them in our 30-minute free consultations. Our customers will be more inclined to refer our business and product to friends and family if they believe we do not see them as simply a sale, but as people with needs being met. At the same time, it is essential we see the photos the customer is bringing in, and have the customer present to ask questions and verify the photo placement within the video. This initial attention to detail will also provide our customers with the knowledge that we will produce exactly the video they have in mind.

B2B Division: TV stations are prone to purchase news stories based on the bottom line. If one programming service becomes too expensive, the station will spin off to another programming service for a few thousand dollars less. Small market tv stations do not have this option, as most services are too expensive for their budgets.

EvergreenTV Productions will offer quality news stories at a very competitive price–in fact, half the cost of most other programming services–to gain access to those smaller markets. In addition, having a variety of news topics makes us a hot choice. Stations do not have to spend thousands for only one brand of news, i.e., health stories. They can choose from a wide variety, health, politics, financial, innovative, unusual, personalities, etc.

Main Competitors

Home Division (Video Scrapbook Production Companies):

Family Tree Videos: Strengths: A franchise production company geared toward genealogy, but includes producing video scrapbooks. Good-looking productions revolving around family interviews, documentation, and photos. Weaknesses: The formula is too complex to generate quality products in quantity. Many smaller production companies learn this method first, then give up due to lost time and not enough revenue. Independent Companies: Strengths: Nationwide, dozens of independently owned production companies produce video scrapbooks. Most are your neighbors, businesses you want to trust. Weaknesses: Quality is inconsistent and depends entirely upon the owner’s ability. If you’re not a close friend or family member, you may not get the product you really want or thought you ordered. Due to time constraints and the need for revenue, many of these smaller companies will put video scrapbooks on the back burner for bigger projects, such as weddings.

B2B Division (Programming Services):

Dr. Dean Edell: Strengths: Well known after years of radio and tv broadcasting. Big service, using satellite feeds to get stories to stations. National image, high volume. Weaknesses: Very expensive. At the top of the scale at $24,000+ per year. Limited to one topic, health news. MedStar: Strengths: Competitive pricing, less expensive than Dr. Dean. Utilizes chain of universities for national syndication. Weaknesses: Still too high a cost for smaller markets. Limited to one topic, health news. TravelNet: Strengths: National syndication, high volume. Has satellite feeds to stations. Weaknesses: Generic writing for travel pieces. Limited to one topic, travel news. Too high a cost for smaller markets. Mrs. Fix It: Strengths: Appealing change of gender, national image, excellent writing and presentation. Weaknesses: Too high a cost for smaller markets, limited to one topic, do-it-yourself home/yard/car improvements.

Many other services fall within this category, too many to mention. Some are purely regional and do not appeal nationally. Most are of high cost to small market stations. None that we’ve found offers a variety of news topics.

Strategy and Implementation Summary

• Create a “gotta have it” campaign. Our marketing efforts need to focus on a) introducing our specific brand of video scrapbooks and b) telling our customers why they and their friends all need one.
• Emphasize service and quality. Especially as this is a fairly new product to be launched into the market, customers need to know that we will cherish their memories and create a quality video.
• Emphasize variety and cost savings. We must differentiate ourselves from the large programming services by detailing the variety of news stories and affordable pricing.
• Build a relationship with schools and stations. Build long-term relationships with professors, deans and news directors to continue service and sales annually.
• Focus on key schools and markets. We need to focus on building a client base of schools who know and believe in our student oriented objectives, and who will help promote those objectives yearly. We also need to build loyalty and consistent quality with target small market tv stations/news directors.

Competitive Edge

Home Division: Our competitive edge in producing video scrapbooks is in our business system, which allows us a) to produce large numbers of videos while retaining quality, thus giving more customers a grade A product with a short turn-around time, b) to maintain consistency at every location, so customers can be assured they will get the same quality at one store that their friends/family received at another, and c) to train all employees using consistent customer service guidelines from initial consultation through any complaints/issues.

B2B Division: For TV stations, our competitive edge is having a variety of news topics to offer, and at a much more affordable cost to small market tv stations than larger programming services can offer.

For students, our competitive edge is offering a FREE resume service, FREE marketing service for that first job out of school, and a DIRECT connection to news directors in markets known to hire graduating broadcasting students.

Sales Strategy

• We need to sell the memories and emotions of these videos, not the product. While we produce videos, we create and tap into a lifetime of emotions cherished by our customers. Our advertising and marketing need to reflect this concept.
• We need to understand exactly what our service is, so our customers will also understand. Our customers must feel confident that we value their memories and emotions as much as our own, and will treasure them individually. An order for a video is not a product order, but a piece of family gold we are holding in safekeeping.
• We need to sell both the company and the product. As this is a new venture into an antiquated system, generating sales will require an enthusiastic approach in order to renovate the tv news programming concept. In-person sales are essential in the primary stages of generating sales. A reputation for service excellence, news variety and affordable pricing will continue the momentum of sales in the future.
• We have to sell our service and support to schools nationwide. Gaining the support of deans and professors is a vital element to generating inventory on a yearly basis. By developing a loyal clientele of professors, we ensure continued inventory growth annually.

Sales Forecast

Yearly sales forecasts are shown below and the initial year’s monthly forecast is shown in the appendix.

Strategic Alliances

Home Division: Strategic alliances with photographers, photo processing centers and travel agents will be key to generating sales in the first few quarters. We plan to initiate a co-marketing campaign, by possibly adding on 30-second commercials at the end of each video, promoting a photographer or travel agency. These will be tasteful and placed at the end of the tape, but will also co-promote a like business. In the future, we could sell these spots to like businesses to generate revenue.

Additionally, our alliances with retirement villas will be instrumental from start-up. While these will not involve co-promotions, it will be necessary to build a strong relationship so the villa officials welcome us to their facilities.

B2B Division: We heavily depend upon building a strong alliance with schools to create a substantial inventory to generate sales. The greater the size of inventory, the greater the variety we have to offer stations. We need to concentrate on making as many contacts with schools as possible. If we cannot offer students a marketing position, i.e., a substantial time frame in which we market their stories and post their resumes, we will not have their interest and it would follow, their stories to add to our inventory.

After the first year, the inventory will grow at a consistent rate. However, the first year’s inventory size could well determine our company’s sales success.

Marketing Strategy

Home/Travel Divisions:

• Build relationships with primary target customers (Market Segmentation section) and like businesses, such as photography shops, photography processing centers, and travel agencies.
• Emphasize service and quality while building a referral basis.
• Emphasize variety and affordability.
• Emphasize service while building relationships.
• Focus on schools with tv stations and broadcast communications programs.
• Focus on small market tv stations, bottom 115 Nielsen markets.

Positioning Statement

Home Division: Initially, for people celebrating an event or recognizing a lifetime of memories who would like to share photos of those memories in a video scrapbook with friends and family, our videos provide a special and unique gift opportunity. Unlike standard production companies which produce video scrapbooks in a random and time-consuming fashion, our videos meet consistently professional standards in quality in a timely manner. (See Competitive Comparison section.)

B2B Division: For students about to graduate and seek their first job within the tv news industry, EvergreenTV Productions offers an incredible marketing and resume posting service. Unlike www.tvjobs.com and others, it offers these services for free, and for a longer period of time (i.e., three months as opposed to one month).

For small market tv stations which need news stories daily to fill their newscasts, EvergreenTV Productions offers an affordable programming service. Unlike larger programming services such as Dr. Dean Edell and TravelNet, it offers a variety of programming at half the cost.

Pricing Strategy

Home Division: Our business system has helped define our pricing strategy. If our video scrapbooks are too time-consuming, the customer will be charged an exorbitant amount. If our video scrapbooks are even middle to low quality, we cannot charge the customer low enough. By making the productions both time-efficient and consistent in high quality, we can maximize our pricing to acceptable market levels. Our strategy is also based upon the fact that we are introducing video scrapbooks on a large scale into the market, with no previous history for this product. As our video style becomes more popular, we will be able to adjust the pricing accordingly. We are offering four package styles from which our customers may choose. By charting the most popular package, we will better determine the right price for our product.

B2B Division: Our pricing strategy is key to our offering. If we charge too much, or even 3/4 the price of larger programming services, we are undercutting our potential orders. The market of small market stations cannot bear the higher prices offered by larger programming services.

Likewise, by offering a free resume and marketing service to students, we are ensuring continued interest in our service in exchange for news stories. We need to be positioned to offer payment for these stories a few years down the road. As the popularity of EvergreenTV Productions grows, so will the number of programming services offering similar services.

Promotion Strategy

Home Division: Initially, we will depend upon presentations and business relationships to reach new customers.

• Retirement villas “social nights:” We have been invited to attend certain nights set aside at retirement villas for residents and family members in which we will present Photo Memories thru discussion and a brief video presentation.
• Photographers, photo processing centers, and travel agencies: We will form business referral relationships with like businesses to promote the product.

B2B Division: We depend on direct contact with communications deans and professors as our main way to reach students. That contact will be made to specific schools.

• Promotional Kits. We are sending colleges, universities and technical schools with tv stations on campus promotional kits which will include our objectives and student guidelines for various topics.
• Campus Visits and Phone Calls. We are contacting the professors and deans directly, either through campus visits or phone calls, to gain the support needed from deans and professors, who in turn are encouraging their students to submit news stories to us.

Distribution Strategy

Home Division: Our primary distribution will be through our storefront, which will also be the order center, consultation location, and production office. To make it easier for our customers at retirement villas, we offer to accept orders at and deliver to these locations.

B2B Division: Our distribution will focus mainly around our website, taking orders and processing them through direct mailings. In the initial period, we will be distributing tapes during person-to-person presentations.

We are prepared to mail on order, via the USPS. Stations may order for regular three-day delivery, up to overnight shipments, depending upon their needs.

Part of the business’s success will be based on planned tasks and timely completion of those steps. The table below lists steps, timeline and estimated budgets.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

EvergreenTV Productions is owned and operated by its founders, Louanne Walters and Bobby Gene Walters. It is a small company with immediate plans for hiring one or two employees per store. Each employee’s responsibilities will be outlined in our business system “Operations Manual.”

As we grow into the Tour and Travel and B2B Divisions, we will evaluate which positions need to be filled first. Long term growth includes plans for an Operations Manager, who will report to the President and handle all accounting and marketing responsibilities. Three managers will answer to the Ops Mgr, one per division. Each manager will be primarily responsible for accounting and marketing within his/her division, and will handle all hiring/training needs.

We currently receive a great deal of advice from outside sources, such as our accountant and attorney; however, we follow the advice which meets our goals and needs.

Organizational Structure

As a start-up, our divisions and departments are inter-related and handled for the most part by Louanne Walters. With time and revenue, we will expand to accommodate several departments: sales & marketing, service and administration, product development, and finance. Each division manager will fill these departments according to specific needs and the company’s business system operations manual.

The following chart outlines the anticipated organizational set-up for the first three to five years of EvergreenTV Productions, Inc.

Management Team

Louanne Walters, president: 33 years old, extensive experience in the radio and tv news industries. Formerly a tv news producer, reporter and anchor. Degree in broadcast communications, seven years with three NBC affiliates (KPOM, Ft. Smith, Arkansas – KRIS, Corpus Christ, Texas – KWQC, Davenport, Iowa) and one year as video programmer with Royal Caribbean International. Extensive public relations background as anchor and cruise director with Royal Caribbean International. Strong writing skills, strong story development and news sense. Attending courses at Small Business Development Center USF. Louanne also has strong sales skills, and is formerly a Toyota new car product specialist, and Voice Stream territory representative.

Bobby G. Walters, vice-president: 61 years old, extensive management background during 33 years with USAF. Degree in business and management. Twelve years as manager with local Wal-Mart stores.

Management Team Gaps

We believe we have strong leadership for developing the concept behind EvergreenTV Productions. At present, our weakest area is in accounting. We are currently taking an accounting course produced by “Great Courses on Tape,” focusing on finance and accounting. Additionally, we have hired Jim Wessman, CPA to advise and aid us in the development of EvergreenTV Productions. Jim is a qualified management counselor, and QuickBooks advisor.

We also need to hire division managers with a well-rounded management background, including human resources, accounting, benchmarking and goal-setting abilities.

Following the opening of stores for the Home Division, we will need to hire an operations manager, with an MBA and at least five years experience with a start-up organization.

Personnel Plan

Details of store staffing is presented in the Personnel Table, below and in the appendix.

We assume hiring employees on hourly pay the first year, and adding a few salaried management positions with benefits the second year. Our management salaries (marketing manager, president, operations manager) as shown below include taxable benefits. Payroll taxes for all employees are shown in the Profit and Loss.

Financial Plan investor-ready personnel plan .">

The most important element in the financial plan is the critical need for additional capital to assist in business operations through the remaining start-up process, and to maintain a positive cash balance for the first fiscal quarters. We do not anticipate any changes to our financial plan through accounts receivables or inventory, as our company operates upon the “payment upon receipt” principal for all goods, and our inventory cycle does not meet the standard criteria.

Moving from a home office to a storefront with employees, introduces greater liabilities. During the past seven month start-up process, we have largely committed to EvergreenTV Productions through personal savings, cashed stocks, personal credit lines and personal long-term loan options.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

We assume access to equity capital and financing sufficient to follow and maintain our financial plan as shown in the tables. We anticipate our financing to hold higher long-term interest than our current loan against stock. We assume that as our company grows, we will be able to utilize a larger credit line, decreasing our expenses in cash. Likewise, our short-term credit line will be available with a lower short-term interest rate, making more cash available.

We assume opening and promoting three stores within the Tampa Bay area before reaching saturation. Likewise, we assume relatively quick initial growth within the Home Division, following our plan of two stores open within the first year, and 10 stores statewide within five years.

We assume many tv markets are, or will become, Internet proficient. We assume most colleges and universities are, or will become, Internet proficient. We assume slow initial growth within the B2B Division. However, the majority of our long-term payments are for one time, or long-term purchases which will not need to be replaced in the first five years.

Key Financial Indicators

The benchmark chart shows the nature of our company. We estimate consistent turns on inventory, as our inventory is available for resale on a constant basis. In our Home Division, we do not keep inventory, but customers bring their photos to us. In our B2B Division, our inventory consists of news stories we will keep on hand for multiple sales. Several stations may purchase the same story, we simply make a copy of that story. Our blank tape inventory will be replenished monthly to avoid keeping a large inventory of tapes.

Our Gross Margin increases with increased sales, but as we have a very low direct cost of sales, this number will only increase fractionally compared to sales.

Sales and Operating Expenses are our closest measurements in this forecast. While sales increase dramatically, operating expenses increase with new stores, additional employees and taxes. However, by maximizing the number of employees within each store, we are also maximizing our location and limiting further expenses that additional storefronts would incur. We are also able to save drastically on advertising expenses, which would naturally increase with each new location.

Break-even Analysis

We assume running costs which include rent, utilities, office expenses, and an average of travel, advertising and miscellaneous costs. Miscellaneous costs are equal to quarterly costs such as business cards, brochures, bulk tape supplies and occasional equipment rental. Payroll increases every other month as we add new employees.

Projected Profit and Loss

Profit and Loss projects look very good, with the usual start-up loss limited to the first two months. The monthly projections for the first year are included in the appendix.

Projected Cash Flow

Cash flow projections are good, as shown in the annual table below, and the monthly table in the appendix. There are only two months of negative cash flow the foreseen the first year, and the all important cash balance shows steady increases.

Projected Balance Sheet

The balance sheet below and in the appendix show steady increase in net worth over the life of the plan.

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7812, Motion Picture and Video Production, are shown for comparison.

Music Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector » Music Sector

Are you about starting a music production business ? If YES, here’s a complete sample music production business plan template & feasibility report you can use for FREE to raise money .

If you are conversant with the trend on how people become celebrities overnight, you will realize that releasing a music album that is widely accepted, is one of the ways youths and young adults carve a niche in the world today. Of course, good music recording and production companies always play a part in making celebrities and super stars out of ordinary folks who are gifted with singing.

If you have ears for good music and you have what it takes to mix sounds to produce music that can be widely accepted, then you should consider starting your own music recording and production company.

Suggested for You

• Record Label Business Plan [Sample Template]
• Dance Studio Business Plan [Sample Template]
• Recording Studio Business Plan [Sample Template]
• Mobile DJ Business Plan [Sample Template]
• Music Store Business Plan [Sample Template]

Although starting a music and production company requires moderate start – up capital, but it is indeed a very profitable venture to go into especially if you live in an urban area, where the demographic composition has enough young adults within the age range of 16 – 35 years.

These set of people are ready to do anything to hit the limelight; and music is one of the avenues for them to make their millions and by extension become famous.

Much more than being skilled in mixing sounds, and also having the required capital to set up a music recording studio, you would also need to be socially inclined if you must truly do well in this kind of industry. You should be able to go all the way to promote artiste that signs under your recording label.

The truth is that, once you are able to raise one celebrated music superstar under your label, you will struggle less to have artiste to work with. As a matter of fact, you will be screening artiste so that you can work with only the best.

Now that you have made up your mind to start a music recording and production company, you are expected to sit down and map out strategies on how to a raise startup capital, how to run the business, as well as how to make profits. That is basically what your business plan document should contain.

A Sample Music Production Business Plan Template

1. industry overview.

Music production business is without a doubt a thriving business that has loads of players making huge profits from the industry.

One thing is certain, if a music production company can successfully produce a major hit song / album, it wouldn’t be too long before musicians and corporate organizations (for commercials and jingles) come calling from all over the united states and beyond.

Statistics has it that the global revenue of the music industry is estimated at 15 billion U.S. dollars in 2013, and that is about the lowest revenue recorded since 2002; of course it is an indication that the record label industry need to become more creative and leverage on the changing tides in the world of technology.

Even the strong growth in streaming revenues was not enough to stop the music industry globally from experiencing income dropping below US $15bn for the first time in recent years in 2014.

Statistics also has it that in 2013 the three largest markets in the music industry, measured by the revenue they generated were the United States of America, Japan and Germany. Hence it is no surprise that the most of the leading music production company who dominate the music industry in the globe are all headquartered in The United States of America.

Recent statistics from the IFPI revealed that overall global music production industry revenues dipped by just 0.4% last year – but that was enough to pull the annual tally down from $15.03bn to $14.97bn.

The biggest offenders for the fall were an 8.1% decline in revenues from physical format sales (to around $6.89bn, according to MBW calculations) and an 8.0% decline in download sales (to around $3.56bn).Single track downloads declined by 10.9% in the year, while digital albums sales saw revenues drop by 4.2%.

The Music production industry is indeed witnessing a steady growth over the years especially in developed countries such as the United States. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.

One good thing about starting a music production business is that even if you decided to start it in the United States of America, your market will not be restricted to artists in the U.S.; the world will be your target market. Many thanks to the internet that has made the world a global village.

All you need to do is to strategically position your music production brand on the internet and you will be amazed at the rate people interested in producing their music will be calling you from all parts of the world.

2. Executive Summary

Clarkson Magic Finger® Music Production Company is a new player in the music industry that will be based in Los Angeles – California, U.S.

Our aim of starting this business is to work in tandem with both established and upcoming music artist and record labels in the United States of America and other countries of the world to help them produce good music that can compete with the best in the industry.

Although we intend starting out in Los Angeles – California, but we plans to have active presence in major cities both in the East Coast and the West Coast; we will position our agents to in strategic cities in the United States to help us source for music production deals.

Clarkson Magic Finger® Music Production Company is not just going engage in music production, but we will ensure that we play our part in marketing and promoting any musical album that we produced.

Part of our plans is to work towards becoming one of the leading music production companies in the whole of Los Angeles and in the nearest future compete with the leaders in the music production line of business not only in the United States but also in the global stage.

We are quite aware that starting a standard music production business from the scratch requires huge capital base especially for the purchase of world – class studio equipment (music production gadgets), which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry. Our workforce is going to be selected from a pool of talented and highly creative people with ears for good music in and around Los Angeles – California and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Clarkson Magic Finger® Music Production Company our client’s best interest come first and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Clarkson Magic Finger® Music Production Company will be owned majorly by Clarkson Dempsey and Bradley Jacksons. Clarkson Dempsey has an MBA from University of California while Bradley Jackson is a certified SOUND engineer.

This duo has been able to cut their teeth in the musical industry both at national level and international level. They have appreciable year of experience working with some of the leading international music production companies in the United States of America prior to start their own music production company.

3. Our Products and Services

Clarkson Magic Finger® Music Production Company is going to offer varieties of services within the scope of the music industry in the United States of America. Our intention of starting our music production company is to make profits from the music industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Our business offering are listed below:

• Music Recording
• Music Video Shoots
• Sound Production
• Studio Session
• Production of Jingles and Soundtracks for Organizations
• Marketing and Sales Music
• Setting up of Recording Studios for Clients
• Production of Audio Books
• Sell of Musical Equipment
• Music / Sound Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to become one of the top 10 music production company in the United States of America.
• Our mission is to build a music production company that will become the number one choice for both music artists and publicity and advertising agencies especially those that are involved in the production of jingles and soundtracks

Our Business Structure

The fact that we are set to compete with other leading music production companies in the United States of America means that we must build a business structure that can support our business goal. We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. Below is the business structure that we will build Clarkson Magic Finger® Music Production Company;

• Chief Executive Officer

Entertainment Lawyer / Legal Secretary

Studio Manager

Music / Record Producer

Sound / Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for drawing up contracts and other legal documents for the company
• Advise artists and the organization accordingly before producing their music album or singles
• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
• Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Responsible for tracking hours during studio session and billing clients.
• Responsible for managing the company’s recording studio
• Part of the team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
• Handles any other responsibility as assigned by the Chief Executive Officer
• Responsible for recording and producing music and jingles for music artists and clients
• Help decides the order the songs will play in throughout the album (i.e. the songs’ track numbers).
• Responsible for choosing top notch album cover for music artists
• Responsible for handle any sound related job for the company; helps achieve certain specific sounds or feelings to portray through that matches with the lyrics.
• Responsible for mixing and producing beats and sounds for our clients; mix the songs into the final version for the music album.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of studio equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinate strategic sessions.
• Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
• Oversees the smooth running of the daily office activities.
• Once the album is ready, then the marketing team will go out to market and promote the album
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients and music artists
• Develops, execute and evaluate new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via email and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Clarkson Magic Finger® Music Production Company engaged the services of a core professional in the area of music consulting and business structuring to assist the organization in building a standard music production company that can favorably compete with other leading music production companies in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Clarkson Magic Finger® Music Production Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Clarkson Magic Finger® Music Production Company;

Our core strength lies in the power of our team and the state of the art music studio equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can make produce world class musical sounds.

We are well positioned and we know we will attract loads of clients from the first day we open our music production studio for business.

As a new music production company, it might take some time for our organization to break into the market and attract some well – established music artists to sign under our label; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

The opportunities in the music industry are massive and we are ready to take advantage of any opportunity that comes our way.

Technology and the internet which of course is a major tool for the advancement and gains achieved in the music industry can also poses a threat to the industry. The truth is that with the advancement of technology, it is now easier for individuals to mix up their sounds and even form soundtrack with the help of music production software applications.

So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new music production company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

Entrepreneurs that are venturing into the music industry are coming in with creativity and good business skills. The fact that revenue is nose – diving in the industry does not in a way stop some music production companies from declaring profits year in year out.

The trend in the music production industry is that most music production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game. This is so because it is easier to find music mixer or music production software applications that a rookie can make use of to produce good sound.

8. Our Target Market

When it comes to music production, there are no exemptions to who you can market your services to. There are loads of people out there we are interested in releasing a single or a full musical album. There are corporate organizations that would need to services of a standard music production companies to help them produce jingles or soundtrack for advertisement and promotion purpose.

There are authors who would need the services of music Production Company to help the produce audio books and the list goes on. Over and above, our target market as a music production company cuts across people of different class and people from all walks of life and corporate organizations.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will our services.

We have conducted our market research and survey and we will ensure that all our music production company is well accepted in the marketplace. Below is a list of the people and organizations that we have specifically market our services to;

• Music Artists
• Record Labels
• Advertising Agencies
• Corporate Organizations
• Radio and TV stations

Our Competitive Advantage

We not unaware of the point that there are stiffer competition in the music production industry in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Clarkson Magic Finger® Music Production Company might be a new entrant into the music industry in the United States of America, but we are coming into the industry with core professionals and of course a standard world – class recording studio with the best equipment in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups music production companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Clarkson Magic Finger® Music Production Company is established with the aim of maximizing profits in the music industry and we are going to go all the way to ensure that we do all it takes to attract music artists that will sign under our record label. Clarkson Magic Finger® Music Production Company will generate income by offering the following services;

• Music Consulting Services

10. Sales Forecast

One thing is certain when it comes to music; music never dies and the demand for good music will continue to grow. This goes to show that any music production company that is known to always produce good music will continue to attract talented music artists and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Los Angeles – California to other cities in the U.S. and even the global market.

We have been able to critically examine the music production market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.

Below is the sales projection for Clarkson Magic Finger® Music Production Company, it is based on the location of our business and other factors as it relates to record label start – ups in the United States;

• First Year-: $100,000
• Second Year-: $250,000
• Third Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same music production services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Music production business is not a business that you have to retail products, which is why we must do all we can to maximize any opportunity that comes our way. Our sales and marketing team will be recruited based on their vast experience in the music industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent music production / top class music speaks for us in the market place; we want to build a standard music production company that will leverage on word of mouth advertisement from satisfied clients / artists.

Our business goal is to grow our music production company to become one of the top 10 music production companies in the United States of America, which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Clarkson Magic Finger® Music Production Company is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stakeholders in the music industry in Los Angeles and other parts of the U.S.
• Advertise our business in relevant entertainment magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local music expos, seminars, and concerts et al
• Create different packages for different category of music artists, authors and corporate clients in order to work with their budgets and still produce top notch music, jingles, audio book and soundtrack for them
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the music industry by storm which is why we have made provisions for effective publicity and advertisement of our music production company. Below are the platforms we intend to leverage on to promote and advertise our music production company;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows and radio programs
• Maximize our official website to promote our business
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (music online forums) to promote our business.
• Offer Pro Bono services as part of our community social responsibility
• Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
• Brand all our official cars / buses and ensure that our trademark label is boldly printed in all our music album covers and CDs et al

12. Our Pricing Strategy

It is important to point out that, though, music studio charge by the hour so it is the responsibility of the music producer to ensure that set target are met within the stipulated time. The more time you spend on the studio, the more money you would have to pay.

No doubt, hourly billing for music studios is a long – time tradition in the industry. However, for some types of music / record contracts, flat fees are adopted.

As a result of this, Clarkson Magic Finger® Music Production Company will charge our old clients (artists) a flat fee and charge new clients (new music artists) hourly when they make use of our music studio to record their music or produce music beats for their albums.

At Clarkson Magic Finger® Music Production Company we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce musical jingles for advert purposes.

• Payment Options

At Clarkson Magic Finger® Music Production Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of setting up a music production business to a larger extent has reduced from what it used to be; many thanks to the advancement of technology and perhaps the internet. These days it is now easier to see people set up a music production studios in their house. All they need to do is to register a business and set up a mini studio is their apartment!

Basically, it is not expensive starting a music production company in the United States of America except for the prices of setting up a standard studio. The amount required to start a music production company may vary slightly from country to country and from states to states.

Part of the factors that can influence the start – up cost of a music production company is the amount needed to rent or lease a facility, the cost of the equipment you would need and the money needed to brand your business et al.

When it comes to purchasing microphones and headphones, we will go for Neumann u87; it will cost us about $2000 or more. For mixer, we will go with Euphonix or any other brand of our choice. But Euphonix is great (especially with is sweet sounding preamp and on board compressors).

It will cost us about $30,000 or more. On the alternative, we can choose to go for purely digital and skip the mixer altogether. This means that we will need a good audio interface with multiple inputs. 12 stereo pairs minimum. The emu 1820m is a good one.

Then cables (nothing else but mogami cables. these are the best audio cable in the market for now; although we may explore other options). We would need to create budget for pre amp. Avalon is perhaps our best bet and we can get it for about $2500 or less.

We have also prepared a good budget for monitor; monitor is one of the most important gadgets we would need in starting our own record label and record studio. We have made provision for a Yamaha monitor; it is simply one of the best we can get in the market.

When it comes to acquiring a computer, we just have to budget for high end computer designed for such purpose. It is important for computer to have a very large memory, high end graphic card, and 2.6 GHz quad core processor and we will search for a good software to work with. Essentially, this is the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in Los Angeles, California – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility with enough space for standard music studio in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The cost for equipping the music studio with the required gadgets – $100,000
• The Cost of Launching your official Website – $600
• Budget for paying at least 5 employees for 3 months and utility bills – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $300,000 to set up a medium scale but standard music production company in the United States of America. Here are some of the key equipment and musical gadgets that we would need to set up our record label company;

• Mixing console
• Multi – track recorder
• Microphones
• Reference monitors, which are loudspeakers with a flat frequency response
• Acoustic drum kit
• Digital audio workstation
• Music workstation
• On Air or Recording Light
• Outboard effects, such as compressors, reverbs, or equalizers
• Audio interfaces
• Effects racks
• CD duplicator
• Supply of CD

Generating Funding / Startup Capital for Clarkson Magic Finger® Music Production Company

Clarkson Magic Finger® Music Production Company is going to start as a private business that will be solely owned by Clarkson Dempsey and Bradley Jacksons.

Both of them will be the financial of the business, but may likely welcome other partners later which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $60,000 and soft loan from family members $40,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of music production related services and also to work with music artists, corporate organizations and authors.

We know that if we continue to produce hit songs, albums, audio books, soundtrack and jingles, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members.

We know that if we implement our business strategies, we will grow our music business production business beyond Los Angeles – California to other states in the U.S in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Renting of Office Facility: Completed
• Building of Music Studio: In Progress
• Intellectual Property Protection and Trademark: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: In Progress

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Don’t Ignore Denver: Prohibition of Slaughterhouses Ballot Initiative Seeks to Stop Food Production

In November, Denver residents will cast their vote on a plan to ban slaughterhouses in the city. Denver, a hub of lamb processing for the state and nation, represents 15% to 20% of U.S. lamb harvest capacity.

The slaughterhouse provides many jobs in one of the city's poorest neighborhoods. This ban puts 160 jobs at stake and according to one study, at least $215 million in economic benefits, which could be as high as $860 million, counting indirect factors, Channel 9 reports .

In addition, the ban also threatens more than 2,700 jobs including independent ranchers, truckers, distributors, retailers, butchers, and restaurant owners and employees, according to a Colorado State University study .

The measure titled “ Prohibition of Slaughterhouses ” would outlaw “the construction, maintenance, or use of” any meat processing facilities in Denver beginning Jan. 1, 2026, as well as “require the city to prioritize residents whose employment is affected by the ordinance in workforce training or employment assistance programs.”

Pro-Animal Future announced it had collected enough signatures from residents to add this proposal to the fall ballot, threatening Superior Farms, the last remaining slaughterhouse in the city. According to Pro-Animal Future’s website, the organization is a “citizen-led movement away from the exploitation, animal cruelty, and environmental pollution of factory farming, and towards a brighter future based on a more just, sustainable, and compassionate food system.”

Organizations, restaurants and people coming together to stop the ban , say the ban is wrong for working families, wrong for animal welfare and the cost of a ban will be passed on to consumers. The additional cost of shipping more of Denver’s food supply from further away will increase carbon emissions and make the food supply chain less sustainable. Read more here.

In the Proposed Denver Ordinance Banning Animal Slaughter: Implications for the Animal Sector and Economy study by Colorado State University's Regional Economic Development Institute, analysts shared these additional concerns beyond the economic impact.

1. Some local businesses will suffer significantly. While the focus of the ordinance appears to be a single facility, economic spillovers will reverberate throughout the regional economy, because of the transport of goods and services to and from the Denver location. The meat slaughter and processing sector in Denver County is intertwined with other value-added food businesses who rely on the meat slaughter and processing sector for inputs.

2. The ordinance runs counter to demonstrated consumer preferences and choices.

Evidence suggests that consumers increasingly prefer local sourcing of food or products certifying sustainability and animal welfare innovations. The ordinance will eliminate the only substantive, local source of meat slaughter and processing for producers engaged in direct marketing of food products. Sales of domestic products are likely to be replaced by imported products.

3. The ordinance reduces the resilience of the meat supply chain.

Recent federal initiatives encourage investments enhancing the resilience of the food system including developing small and medium sized slaughter facilities. The purpose is two-fold: improving food security in times of disruption and enhancing the competitiveness of small and medium-sized livestock operations. The proposed Denver ordinance reduces the resilience of the meat supply chain and increases costs for small and medium sized livestock producers who are unlikely to find alternatives.

Chefs Join the Fight

Now, two new, high-profile stakeholders are joining the fight against the referendum, reports a Denver news source .

La Diabla Pozole y Mezcal Chef Jose Avila and II Posto Chef Andrea Frizzi are teaming up with president and CEO of the National Western Stock Show and Complex Paul Andrews, operations manager/employee owner of Superior Farms Isabel Bautista, president of the Colorado Livestock Association Kenny Rogers along with other Superior Farms employee/owners to oppose this citizen-initiated measure.

According to Complete Colorado, the Denver election website reports that issue committees have been formed both for and against the measure.

• “Stop the Ban, Protect Jobs” has raised $740,000 from an array of donors including Superior Farms, the American Sheep Industry Association, the National Pork Producers Council, the National Cattleman’s Beef Association, Visit Denver, the Colorado Livestock Association, United Food & Commercial Workers International, Concience Bay Research, LLC, Political Action Trust, and the Colorado Livestock Association.

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