If it wasn’t for professionals in the media space, the entertainment world wouldn’t be so advanced.
Some of the music videos, movies, commercials and TV shows that are indulged in today wouldn’t exist if not for them. It takes a level of creativity and technical skill to successfully produce any type of content.
It can also be relatively expensive depending on what exactly you’re producing. For those who are passionate about productions, you can create content that makes a major impact and has a positive influence.
Below, you’ll find things that you should know before going ahead and starting a production company.
1. You Need a Concrete Plan
The first thing you need if you want to successfully start a production company is a concrete business plan. Without it, you’re setting yourself up for what could be a lot of frustration.
Financial statements are a very big part of your business plan. This is because a production company is a business, so you need to project how much you’re going to make during the early days.
To do this, include an income statement, balance sheet, cashflow statement, and budget.
Customers and Competition
Another important component of a business plan is your customers and competition. Make a decision about who you’re targeting and why.
Do this by researching the types of people likely to be interested in your company and which businesses already have their attention. Three customer questions to ask are:
- Who is buying?
- What do they buy?
- Why do they buy?
You also want to find out how big your competitors are and what strategy they’re using to secure customers and clients.
After doing all of the background research, it’s time to document what your business is going to look like in the present and future.
Include things such as what your plans, organization, procedures, and company culture are going to be. This is also the time to write a strong vision statement that will guide your company activities.
2. Choosing a Niche Could Help Your Focus
As with any business, you could choose to focus on everything or narrow down your focus instead. When you choose to narrow down your focus and find your niche, you may have a better chance at standing out amongst your competition.
You may decide you want to focus on films, or perhaps you’ve found commercials are a better fit for your company, whatever the case, see which is more tangible and which niche gives you the best chance at success.
3. You Need a Good Distribution Strategy
You’ve got to think about what your distribution strategy is going to be and whether you’ll work with an existing framework or create one of your own.
The goal should be to get your work maximum exposure, so see what other successful companies have done and get inspiration from there.
To widen your reach, look at online distribution options and see how you can make the best use of them.
Remember that effective distribution is what will ensure your team gets paid and that your business is given the roots to grow exponentially.
4. Think About Financing
After you’ve drawn up a plan and chosen your niche, it’s time to think about how you’re going to finance your business.
Without the right funding, starting a business in productions can be difficult, you’re going to need to rent a space, pay staff, and purchase equipment which isn’t likely to be cheap.
Below are a few things to think about when it comes to funding your business.
If you have good credit, getting finances to start your business could end up being a lot easier. As you can imagine, good credit will open doors when it comes to taking out loans whether they’re personal or business-related.
Check your credit score and make sure you at least have a fair credit score range which is usually somewhere between 580 and 669. Crediful can help educate you more on what a fair credit score is, and how you can make it even better if that’s your goal.
Calculate the Costs
Before going out to hunt for finances, have an idea of how much you need to borrow. Calculate the startup costs and write down each expense whether it’s a one-off or recurring.
When you know how much you need, you’ll be able to determine the best course of action.
There is more than one way to fund a business, so try not to be too rigid. What you’re looking for is a finance option that’s not going to drain your business before you even start.
This means low-interest rates and a reasonable repayment plan. Aside from traditional means like loans, there is also the option of looking for angel investors, peer lending and saving towards it with your own money.
5. Equipment Can be Costly
As mentioned briefly above, you will need equipment to get a production company going properly.
You could start out by renting your equipment, or going ahead and buying everything you need upfront.
Some of the basic equipment that you’re going to need includes the likes of a camera, tripod, external microphone, lighting, editing software, and lavalier mic.
Aside from this, also think about how you’re going to edit your content. You could outsource it or do it in-house which would require you buy technology for that too. Some tools you’ll need are a video editing computer and video editing software.
Ultimately, it will be up to you to find out what equipment is within your budget, yet will still ensure quality production.
6. A Talented Team is Needed
Getting your production team right is a must if you want to do well. Before hiring a video production team, ask yourself a few key questions.
Think about who your main audience is, how you want people to feel, and what key messages you’re attempting to communicate.
Once you can answer these questions, you can go ahead and look for the right people to execute the job.
While some people hire freelancers or contractors, you could decide to get people on full-time if you’ve got the budget for it.
A few roles that you’ll want to fill are director, screenwriter, production designer, art director, cinematographer and editor.
You will also need actors depending on the production, but it may be best to outsource this role and have a pool of actors and extras you can always pull from.
It’s also worth exploring the idea of hiring in specific areas like post-production, sales, development and the actual production.
7. Marketing is Necessary
The good thing about marketing as a production company is that you can do so in very creative ways. Seeing as you produce content, the possibilities are endless.
Perhaps you could focus on putting out quality video content or showcasing snippets of jobs you’ve done.
Whatever the case, think about how best to reach out to your target customers and show them your best work and demonstrate your potential.
8. Registering Your Business is Needed
No matter how small your production company is, make sure you follow the right legal processes. This means registering your business, and opening an account that you’ll use for incoming and outgoing funds.
If you can afford it, look into trademarking your business as well so there are no problems with your chosen name in the future.