Video production companies are more in demand than ever before.
Businesses are increasingly moving their marketing and training online, which is where video production excels.
In the digital world, video content can be uploaded to streaming platforms and instantly reach a global audience.
This makes video production companies a valuable partner for businesses of all shapes and sizes.
In this article, we are going to look at the various steps you must take before you start a video production company.
Read on to make sure you are ready to make your dreams a reality and hire out your services to business clients.
What Does a Production Company Actually Do?
Production companies produce video content and animations. This content is designed to communicate, entertain, and sell a concept. Some production companies specialize in marketing materials, whereas others offer their services in the production of corporate training videos for seminars and online events.
There is no shortage of different niche areas a production company can target; it really depends on your skills, which neatly leads us on to the next section.
Do You Have the Right Skills?
You don’t need any formal qualifications to start a production company.
As long as you have basic editing and filming skills, you have something to market to clients.
How you gain these skills is up to you, but many people begin by creating their own video content for an online audience.
Once they have learned the basics, they sign up for a course that teaches them the necessary technical skills needed to produce a professional product.
There are several colleges offering video editing and production courses, so if you feel your skills could benefit from some tuition, consider signing up for one before you take the next step. The courses range from bachelor’s degrees to master’s and associate degrees. There are also online short courses in cinematography and media, which may be a good option if you don’t have time to study for a degree.
Don’t forget, the connections you make while embarking on formal education can be invaluable. These contacts could help your embryonic business secure its first client contracts.
Create a Solid Business Plan
The next step is to create a solid business plan. A business plan is your blueprint for where you see your business going in the next 1-5 years. Most experts recommend choosing a specific niche in the production world, as this will make it easier to build a brand.
For example, if you decide to specialize in wedding videography, you can build a portfolio and offer to do some jobs at a very low cost, in return for a positive recommendation.
Consider how you are going to finance the business.
In the early stages, it makes sense to keep your overheads as low as possible, which might entail working from a spare room or basement.
If you need some capital to buy equipment, think about where the money will come from.
Are you planning to apply for a business loan, or can you access savings?
If you want a loan, your business plan will need to be detailed and professionally prepared.
This is what lenders use to make their lending decision, and if you haven’t put much thought into how you expect to make a profit from the business, they won’t be impressed.
How Much Can You Earn?
Research the current rates for the type of video product you plan to produce.
Find out who your competition is and look at what they charge clients. Your rates will need to be competitive if you have any hope of attracting clients but bear in mind you do need to make a decent profit.
What Costs Do You Need to Budget For?
The next area to think about is your projected costs.
Will you need equipment, such as computers, tripods, audio equipment, cameras, lights, editing software, etc.?
if so, how much is this likely to cost?
What about insurance?
All businesses need standard liability insurance, and if you are hoping to take on employees, there will extra costs to consider, such as medical insurance.
Depending on whether you are planning to rent an office space, there may also be additional overheads, such as rent, utilities, internet, telephone, etc.
Prepare a full cash flow projection forecast, which takes into account all your anticipated income and expenditure.
This should give you an idea of how profitable your production company is likely to be.
Marketing the Business
The good news is that at least you’ll have video marketing all sewn up.
The bad news is that you will also need to build a strong social media profile and online brand.
Have a marketing plan and make this a priority, as to attract customers, you need a strong brand.
Once you have all the details in place, you can take the next step, which is looking for clients and working on your first commercial projects!