Are you interested in starting a film production company? If yes, here’s a complete guide to starting a low-budget, inexperienced movie and video production company .
Okay, so we’ve provided you with an in-depth sample movie production business plan template. We also take it further by analyzing and writing a sample movie and video marketing plan backed by actionable guerilla marketing ideas for movie production companies. In this article, we will consider all the requirements for starting a film production company. So put on your entrepreneur hat and let’s proceed.
Film production companies are important organizations in the production of films. These companies may be directly responsible for raising funds for production or they may achieve this through a parent company, partner, or private investor. Their duties also include managing budgets, scheduling, scripting, sourcing talent and resources, organizing staff, actual production, post-production, distribution, and marketing.
One thing that cannot be neglected about these companies is that they are often owned or under contract with a media conglomerate, a movie studio, an entertainment company, or a movie company, who act as a partner in the company. production company or parent company. This is known as the study system.
They can also be conventional, independent or completely independent. A production company would serve under a television network in the case of television. These companies can also work together on co-productions. It is a great way to enter the entertainment industry. You will have to have the passion and the skill if you want to be a force to be reckoned with in the industry.
How to Start a Movie Video Production Company A Complete Guide
- Industry overview
The film production industry is a major industry that you can never work with, especially in the United States. While revenue from television production in the United States was estimated at $ 30.8 billion in 2010, that from film and video production in the United States was estimated at $ 29.7 billion in the same year.
This is so because as the television and film industries grew throughout the 2090s, so did concern about runaway productions, television shows, and movies that are intended for an American audience. but they are filmed in other countries to reduce production. costs. The issue of runaway productions gained more traction after Canada adopted an incentive program for film production in 2097.
Interesting statistics on the film and video production industry
Also in the 2090s, US states saw the opportunity to launch their own production incentives as an effort to capture some of the perceived economic benefits of film and television production. Louisiana was the first state to do so in 2001, and in 2002 it passed legislation to further increase the scope of its incentives.
Over the next three years, Louisiana saw a surge in film and television productions, some of which were nominated for Emmy Awards. The perceived success of the Louisianas incentive program did not go unnoticed by other states, and by 2009 the number of states offering incentives was 44, up from 5 in 2002.
Although entertainment is big business in the United States; This is because it is an industry that concerns everyone, and the sector as a whole is expected to have generated $ 564 billion in revenue by the end of 2014.
Other forecasts predict that the entertainment industry will grow to more than $ 679 billion over the next four years, proving its worth in domestic markets and as a major export from the United States. Meanwhile, the film industry, which is considered a cornerstone of the industry, is one of the largest, in fact, the largest player in the broader entertainment sector.
Many people are also encouraged to join the industry because of the opportunity it offers. omens There are a host of opportunities in this industry, which will continue to permeate it for many years to come. The film production industry is lucrative, and it will continue to be patronized by many.
Starting a film video production company Market research and feasibility studies
- Demography and Psychography
As in many industries, the demographic and psychographic makeup of those who need film production services is vast. This is basically due to the fact that it has been an entertainment company, a large group of people spanning the public sector, the organized private sector, households, communities and people of different classes and from all walks of life. .
Below is a list of people and organizations that need the services of film production companies;
- The public sector (public facilities and others)
- Organized private sector (corporate organizations)
- Businessmen and businesswomen
- College campuses and schools
- Event planners
- Farms and communities
- Religious centers
- Sports organizations
List of niche ideas within the film and video production company that you can Specialize in
As in many industries, there are a wide variety of niches that can be ventured to be successful as a film production company. This is due to the fact that there are many niches in the entertainment industry, especially in the film production company, and these niches are critical for the growth and development of the industry.
Here are some niches / areas in which a film production company can specialize;
- Art film
- Music video production
- Television show production
- Documentary production
- Script reading
- Movie schedule planning
- Verification and approval of places
- Participating and collaborating with marketing companies
- Film Cash Flow Management
- Movie sales and distribution for the target audience
The level of competition in the film and video production company industry
Surviving in the business world is a Herculean task; in the entertainment industry it is even more competitive. The fact that there is competition in the film production industry cannot be overstated, what matters for anyone who delves into the industry is to network with key people who matter; decision makers who can ensure a target audience is won at all costs.
Without minifying words, there are many major investors and brands in this industry, but one thing is for sure, there is enough room to accommodate both the established and the next to survive. So, as a fledgling player in the industry, it’s important to pick a niche that matters, no matter how small it may seem, and then follow it to the last. This will go a long way in helping you achieve your desired results.
List of recognized brands in the film and video production company industry
There are generally established brands in any industry. Brands that have left a mark and successfully registered their names in history cannot be left out of the scheme of things. The film production industry is also populated by brands that have made their mark and been critical to the success of the industry to date.
These are some of the leading film production companies in the United States of America;
- 3ality Digital
- 40 acres and a mule movie works
- 606 movies
- 2929 productions
- Allied Artists pictures corporation
- Amblin Entertainment
- American International Images
- American zoetrope
- Artisan Entertainment
- Blue star studios
- Capitol films
- Castle rock
- Caravan images
- CBS Films
- Film industry
Starting a film production from scratch involves many sacrifices and other expenses, in fact it is a serious business, therefore, critical economic analyzes must be carried out to ensure that the risks and other threats associated with starting a business omission or investment in a business idea are reduced.
If you are considering starting a film production company in the United States, your concern should exceed beyond just acquiring an office facility and outfitting the facility or hiring the best hands in the industry, you should also be concerned with how to attract clients and ensure mouth-watering film productions.
On average, setting up and starting a movie production company is expensive, as the financial attachments are really a lot, but with dedication, planning, and the right mindset, the output is often huge and bewildering.
Is it worth starting a movie and video production business from scratch or is it better to buy a franchise?
is the possibility of buying a franchise from a successful film production company or even partnering with a large company if you are considering an investment in the film industry.
One thing is certain, people are motivated to start a Residence business on various factors and incentives. If you are looking to build a business that you intend to control, a trademark that you hope will one day transfer ownership to your children, and perhaps also sell franchises in the future, then starting from scratch should be your best option.
But if you are only interested in making money and multiplying your wealth, then you can also buy the franchise of a successful film production company that is willing to sell its franchise.
Possible Threats and Challenges You Will Face When Starting a Film and Video Production Company
Generally in the film industry, both established companies and start-up film production companies are subject to threats and challenges from government policies, the global economic recession that generally affects spending, and unforeseen natural disasters (disasters that can cause a setback).
Another Threat You Will Probably Face When you start your own film production company, the arrival of a well-established film production company is where your business has a strong presence.
Starting a Legal Video Production Company Legal Matters
- The best legal entity to use for a film and video production company
Without a doubt, starting a movie production company is really serious business. This is why thoroughness and seriousness should be the watchword, especially as it relates to the legal entity you choose, it will help determine how big the business can grow.
When it comes to choosing a legal entity for your film production company you have the option of choosing between a general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation. It is important to clearly establish that these different Forms of legal structure for business have their own advantages and disadvantages; This is why you need to weigh your options properly before choosing the legal structure to build your film production team.
These are some of the factors to consider before choosing a legal entity for your film production company. ; limitation of personal liability, ease of transfer, admission of new owners, and investor expectations and tax issues.
If you take the time to critically study the various legal entities that you will use for your film production company, then you will accept that the limited liability company; An LLC is the most suitable. You can start your movie production company as a limited liability company (LLC) and in the future turn it into a ‘C’ corporation or even an ‘S’ corporation, especially when you have plans to go public.
Upgrading to a ‘C’ or ‘S’ corporation will give you the opportunity to grow your company to compete with the major players in the film industry; You will be able to generate capital from venture capital companies, stock exchanges, you will enjoy a separate tax structure and you will be able to easily transfer ownership of the company; you will enjoy flexibility in ownership and management structures as well.
Catchy Business Name Ideas Suitable for a Film and Video Production Company
When it comes to choosing a name for your film production company, it is important that you take the time to thoroughly choose one that represents the interests of your company. This is because many people are motivated to get involved or even associate with your company because of the type of name it is. While it is short and simple, you need to make sure that it is attractive to the eyes and ears.
Here are some catchy business name ideas you can choose from for your film production company;
- Film 360 Inc.
- JJ Films
- Twain Films Ltd.
- Revealed Productions
- Famz 24/7 LTD.
The best insurance needed for a film and video production company
In the United States, and of course most countries in the world, you cannot operate a business without having some of the basic insurance policies required by the industry you wish to operate from. Also, the nature of the film industry requires that you have adequate insurance coverage or else you will be forced to go out of business if something goes wrong with your production.
Therefore, it is important to create an insurance budget and perhaps consult an insurance broker for guidance in choosing the best insurance policies for your film production company; it is their duty to help you assess the risks involved in the type of film production business you intend to run and then advise you accordingly.
These are some of the basic insurance coverages you should consider purchasing if you want to start your own movie production company in the United States of America;
- General insurance
- Health insurance
- Risk insurance
- Secure payment protection
- Liability insurance
- Workers compensation
- Disability insurance for general expenses
- Business owner policy group insurance
Protection of intellectual property and trademark
If you are considering starting your own film production company, you need to have the required trademark and intellectual property protection. The fact that film production and the processes involved in it are intellectually stimulating cannot be emphasized enough.
That is why it is very necessary to ensure that the intellectual property protection mark is made, to protect your productions from those who have no other motive than to claim the intellectual work of others. When this is done correctly, it will be easy to monitor and track down anyone who does anything contrary to this, and prosecute them effectively as well.
Is Professional Certification Needed To Start A Film And Video Production Company?
The film industry is one of the industries that is highly regulated to prevent costly violations that could endanger the peace and security of a country. It is for this reason that if you are looking to start a film production company, you must acquire international film certifications; It will give you an advantage over your competitors. And also get more people actively involved and more involved.
For this industry, the most important certification is the Certificate in Film Production, it has been anchored in many higher learning institutions and can last a long time.
List of Legal Documents You Need to Run a Film and Video Production Company
In the United States of America and, of course, around the world, the film industry is one of the industries that is highly regulated to prevent costly infractions in the country that could endanger lives and property. If you are considering starting a film production company, you are expected to meet the legal document requirements stipulated in your country’s constitution.
These are some of the basic legal documents that you are expected to have in place if you want to start a film production company in the United States of America;
- Certificate of incorporation
- Security clearance certificate
- Commercial license
- Commercial plan
- Confidentiality agreement
- Memorandum of understanding (MoU)
- Employment Agreement (offer letters)
- Operating Agreement
- Company statutes
- Operating Agreement for LLC
- Insurance policy
Writing a business plan for your film and video production company
If you are looking to start a film production company, you must be concerned about your business plan, and that is why one of the first steps you should take is consulting experts to help you write a good viable Business Plan. The truth is, in order to successfully run a movie production company, you would need to have a good business plan in place.
A business plan is the blueprint that is needed to successfully run a business; With a workable business plan, you will reduce the trial and error approach to doing business. You will be able to manage your business with a purpose and perhaps with precision; you’ll know what to do at a time and how to handle challenges, growth, and expansion.
So if you want to start your own movie production company, you need to write a detailed business plan that can pass the reality test when you undergo it; you must work with the facts, figures and other indices in the security industry, as it applies to the country in which you intend to start business.
The idea of writing a business plan is not just for the simple fact of having a business document in place; but a detailed guide on how to effectively run your business from scratch. Your business plan should outline and cover strategies for how you intend to run and grow your film production company.
The basic thing that you should never neglect when writing a business plan is to try your best to be realistic and never over project when putting figures on income and profits et al. In fact, it’s safer to underestimate when writing a business plan so you won’t be so disappointed when reality strikes.
The main areas that are expected to be covered in the business plan are as follows;
Executive summary and company descriptions : Here, you are expected to write about your business concept, company descriptions, your company vision statement, mission statement and where your company will be located and also if you intend to sell franchises or open points of sale in different cities of the United States of America and in other parts of the world.
Other key components that should not be missing in your business plan are product and service offering, SWOT analysis, competitive analysis, sales and marketing analysis / strategies, target market, market objectives, pricing, costs and financial projection, advertising and advertising strategy, expansion and growth strategies, budget and capital generation start-up, et al.
A detailed cost analysis to start a film production company
There are several expenses that you would pay. you have to do before successfully launching your own film production company It is important to state that the location you choose to start your business will definitely have an impact on the overall cost of starting the business, which is why it is very important to have completed and analyzed your studies feasibility survey and market survey before budgeting and sourcing for your business financing.
These are some of the basic costs that you should consider when starting a film production company in the United States of America;
- The total fee for incorporation of the business in the United States of America $ 750.
- The budget for insurance, permits and licenses $ 5,000
- The amount necessary to rent a suitable office with enough space in the United States of America. America (Re Construction of the facility inclusive) $ 50,000.
- The cost of office equipment (computers, printers, fax machines, furniture, telephones, filing cabinets, electronic and security devices, etc.) $ 15,000
- The cost of acquiring relevant film production gadgets and equipment $ 50,000
- The cost of launching an official website $ 700
- Additional expenses (business cards, signage, advertisements and promotions and others) $ 2,500
- Other miscellaneous $ 1,000
Following the report of our research and feasibility studies, we will need around $ 150,000 to establish a small-scale film production company in the United States of America.
On average, you would need more than $ 250,000 US dollars to start a mid-scale private security company in the United States of America. If you choose to start a large-scale private security company, then you should be looking to budget around $ 2.2 million and up. This money includes the payment of security experts who will be on your employee / payroll.
Financing your film production company
If you choose to start your film production company on a small scale, which is even quite difficult, you may not need a lot of resources to start the business, but if you decide to start on a large scale, you will surely need to raise the necessary start-up capital to start the business. deal.
When it comes to financing a business, one of the first things and perhaps the main factors that you should consider is writing a good business plan. If you have a good and workable business plan, you may not have to struggle before convincing your bank, investors, and friends to invest in your business.
These are some of the options you can explore when sourcing startup capital for your film production company;
- Raising money from personal savings and selling stocks and personal property
- Raising money from investors and business partners
- Loan application from your bank / banks
- Presenting your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source of soft loans from your family members and your friends.
Choosing a good location for your film production company
Choosing a location for your business is not what should do without due consultation. The truth is that if you make a mistake with the location in which you decided to set up your business store, it is more likely that you will have a difficult time advancing the business. One of the main reasons companies struggle, fail, and eventually close stores is the fact that the owners decided to choose the wrong location for the business.
Therefore, as a newbie just starting out in the industry, it is important that you locate your business in an area with healthy business activities.
Here are some of the factors to consider before choosing a location for your film production equipment;
- The demographics of the location
- Location accessibility
- The number of private security companies at the location
- Local laws and regulations in the community / state
- Traffic, parking and security and others
How to Start a Movie Video Production Company Technical Workmanship Details
If you are about to start a film production business, then you must be ready to buy effective film production devices, in fact, these are some of the basic technical areas that you are expected to spend some of your startup capital.
When it comes to choosing between renting or leasing office space, the size of the private security company you want to build, and your entire budget for the business should influence your choice. If you have enough capital to run a private security team, then you should consider the option of leasing a facility for your office; When you lease, you will be able to work with long-term planning.
Regarding the number of employees you are expected to start the business with, you need to consider your financial capacity before making the decision. But good enough, you don’t have to maintain a large workforce if you run a film production company; you can recruit and train employees when you need it.
On average, you would need a:
- Executive Director or President (can fill this position)
- An administrator and human resources manager
- Security consultants and associates (different areas of expertise as applicable to your business)
- Business Development Executive / Marketing Executive
- Customer Service Officer or Front Desk Officer
You also need a large number of staff to get started effectively.
The service process involved in the film and video production industry
The service process involved in the film industry depends on the film production niches in which a company is located. On average, the process begins with an offer for a production, once the contract is won, the entire contract document is expected to be signed and advance payment made as required.
Once this is done, the company will continue production and work meticulously to ensure that everything runs smoothly.
How to Start a Movie Video Production Company The Marketing Plan
- Marketing Ideas and Strategies for a Video and Film Production Company
This business is very competitive and you have to be very careful to be successful in it. The truth is, having highly qualified, trusted, and successful security professionals on your board and central management team will definitely give you influence in the marketplace.
These are some of the platforms you can use to promote your film production company;
- Advertise your business in relevant business magazines, TV and radio stations and also be available for talk shows and interactive sessions related to safety on TV and radio)
- List your business in local directories / yellow pages (both online and offline)
- Take advantage of the Internet to promote your business
- Join the local chambers of commerce around you with the primary goal of networking and marketing for your private security company.
- Present your business by sending cover letters along with your brochure to all corporate organizations, community leaders, schools, hospitals, hotels, and government offices in your target area.
- Create different packages for different categories of clients to work with their budgets.
- Participate in direct marketing, referral marketing and also email marketing.
Possible Competitive Strategies to Beat Your Competitors in the Film and Video Production Industry
It can be challenging to compete as a newbie in the film industry especially in a highly organized market like the United States of America, so you need to be deliberate in choosing your board members and core management team. .
As a film production company, if you have the experience and equipment requirements to execute a security contract, then you probably have no problem competing in the industry. So be sure to do your best when you have the opportunity to handle any production. Excellence, creativity and good service provision should be your watchword at all times
Forming a key partnership with the major players in the industry will also help your company a lot.
Possible Ways to Increase Customer Retention for Your Film and Video Production Company
In every business, no matter what industry you choose to set up your store in, one of the easiest ways to increase customer retention and perhaps attract new customers is to always satisfy your customers. If your customers are satisfied with the delivery of your services, they can hardly find alternative service providers or products.
Statistics say that one of the main reasons the customer source for an alternative service provider or product is when there is a drop in quality. Another reason is poor customer service. If you can continue to improve the quality of your services and the delivery of your customer service, then you will have no trouble keeping your customers loyal.
Therefore, you must make sure that your clients are always satisfied with your services, and always ready to collaborate with you. You should also establish a mechanism to ensure that their opinions, inquiries, and questions will be entertaining.
Strategies to increase your brand awareness and create a corporate identity for your film and video production company
When it comes to creating brand identity for a film production business, the caliber of the clients you have worked for and the nature of the productions you have handled is always an important brand reinforcement.
It is very important to work with your consultants to help you map out advertising and advertising strategies that help you reach the heart of your target market. First of all, you need to make sure your brand is visible and well communicated, so you need to take steps to work with different classes of people in society. All of your advertising materials and jingles must be made by some of the best hands in the industry.
Below are the platforms you should take advantage of to increase your brand awareness and create a corporate identity for your film production company;
- Present your business by sending cover letters along with your brochure to all corporate organizations, community leaders, schools, hospitals, hotels, and government offices in your target area.
- Advertise your business in relevant magazines and websites
- List your business in local directories / yellow pages (both online and offline)
- Promote your business on satellite television stations and radio stations.
- Get involved in direct email marketing
- Take advantage of the Internet (social media platforms and their official websites) to promote your business
- Make sure your workers wear their branded shirts at all times during work hours and also make sure to mark all official company vans, trucks and cars, etc. .
Creation of Suppliers / Distributors in the network for a film and video production company
The nature of the film industry provides space for companies to engage with each other and also with government agencies. This is so because that is the nature of the industry, since the exchange of labor, technicalities, etc. is always needed. to ensure successful production.
It is important to state that there will always be room for a film production company to form a strategic alliance with each other, so it is important to maintain a good network within the industry. This is necessary, as he is a well-known fat man in the industry, that no one person can successfully execute the task alone.
Tips for Running a Successful Film and Video Production Business
The truth is, regardless of the type of business you run, your ability to keep everyone on your team on the same page at all times is one of the keys you need to run your organization successfully.
CEO or president of a motion picture production company, it is your responsibility to direct the business. Part of what you need to do is make sure you make time for office meetings; a time when challenges, comments, projections and relevant issues are discussed. Meetings can be daily, once a week, twice a week, or once a month. The bottom line is that there should be consistent meetings in your organization.
Since the production company is primarily about people, you need to conduct regular evaluations and training your employees will help you. run your organization effectively. Encourage your employees to seek certifications in their various areas of expertise; It will help your organization’s profile and of course it will help people. You can choose to fully or partially sponsor some of the certifications.
Lastly, you should keep your doors open to suggestions from your team members and your customers. It is very important to reward excellent performance in your organization; You will go a long way towards fostering healthy competition in your organization.