If you have a passion for making videos, you may be considering a future in video production. The video production industry is a lucrative business, currently bringing in $27.9 billion in the United States. Experts expect that number to increase, though the competition is fierce. So, how do you start your own video production company that stands out from the rest?
Continue reading to learn how to start a video production company.
The Path to Starting a Video Production Company
Starting a new business of any kind can be exciting, but it can also be overwhelming. There are several things you need to do to get your business off the ground beyond just developing a business idea.
1. Decide What Types of Videos Your Company Will Produce
The beauty of video production is that it’s a broad industry. There are so many different kinds of videos, and you get to choose what you want to work on.
Generally, video production is divided into a few key categories, such as:
- Documentary videos
- Educational videos, such as training videos and online courses
- Entertainment videos, such as music videos, event or wedding videos, and YouTube videos
- Informational videos, such as public service announcements and TV newscasts
- Promotional videos, such as advertising videos, corporate and HR videos, product review videos, and real estate tour videos
It might be tempting to say, “We’ll take any client,” when you’re first getting started. However, it’s important to narrow down your field of focus so that you don’t take on a project or client that you can’t satisfy.
Focusing your business on a few video types has other benefits, including helping you:
- Develop a business plan
- Identify your target audience and potential clients
- Hire the right staff
- Purchase the right equipment
There are a few ways you can help yourself decide what types of videos you want to create. Look for gaps in your local market and consider what types of videos your skill set pairs best with.
2. Choose a Business Structure and Form a Legal Entity
The type of business structure you choose will influence factors like legal responsibility, paperwork, and taxes.
The most common types of business structures include:
- Sole proprietorship. This is the type of business you are automatically considered to be unless you register as another type of business. This type does not separate your business assets and liabilities from your personal ones, meaning you would be held liable for business debts. This can be a good option for businesses just starting out.
- Partnership. A partnership includes two or more business owners. You can choose to have a limited partnership, in which one partner has unlimited liability and the others have limited liability, or a limited liability partnership, in which all partners have limited liability.
- Limited liability company (LLC). An LLC allows you to separate your business assets and debts from your personal assets and debts. This is a good choice for businesses that carry medium to high risk.
- Corporation. Establishing a corporation requires more work and costs more money, but it offers the most protection to business owners. This is a good choice for medium to high-risk businesses or businesses hoping to one day go public.
Choosing your business structure is only one part of forming a legal entity. You’ll also need to choose a business name, and you’ll want to protect that name by registering it at the state or federal level. You’ll also need an address, whether that’s your home address or a business location.
Once you have those things established, you can register your business with the government. You’ll also need an Employer Identification Number (EIN), which is like a social security number for your business. You’ll also need to research your local laws to determine if you need a business license.
3. Write a Video Production Business Plan
Your business plan is a roadmap to help guide you through starting and managing your business.
Traditional business plans often include some or all of the following sections:
- Executive summary: an overall summary of your business, including your mission statement, what services and products you’re offering, and basic information about your employees and business location.
- Company description: details about what your company will do and how your company is different from competitors.
- Market analysis: an analysis of trends and themes in the market and how your business will compare with competitors.
- Organization and management: a breakdown of your company’s structure
- Service or product line: a description of what your products or services will be.
- Marketing and sales: an explanation of your initial marketing strategy and how you plan to attract and retain customers.
- Funding request: an outline of your funding requirements, if needed.
- Financial projections: a prospective financial outlook for your company.
- Appendix: a place to supply supporting documents or materials.
Keep in mind that your business plan is a starting point, and it’s okay if things change.
4. Obtain Business Funds and Invest in the Right Video Equipment
Depending on how experienced you are with video production, you may need startup funding to launch your business. Startup funding helps cover costs such as equipment, advertising, employees, licenses, and permits.
Start by calculating your startup costs. To do this, list your expenses and estimate what they'll cost. Divide this list into two sections: one-time expenses, like equipment and licenses, and monthly expenses, like employees, rent, or software and music subscriptions. Together, these two lists will give you a good idea of what to expect in startup costs.
Now that you know your startup costs, you can consider what type of funding is best for your business. There are three primary ways to fund your business:
- Self-funding, in which you use a savings account or your 401(k) to pay for your business.
- Venture capital, in which you offer investors an ownership share or active role in the company for their funding.
- Business loans, in which you get a loan through a bank to fund your startup costs.
You may also want to look into opening a business bank account for expenses.
Once you have your funding, you can purchase the equipment needed to start a video production company. This will depend on what you already own and what type of videos you’ll be making but may include things like cameras, software, and an editing station.
5. Build Your Online Presence and Your Portfolio
Building your online presence and portfolio are pieces of your marketing strategy that will help drive customers to your video or film production company.
An online presence is exceptionally important for a video production company. Ways to establish your online presence include:
- A professional website to showcase your portfolio and provide contact information
- Social media platforms, including Facebook, Instagram, Twitter, TikTok, and YouTube
- Online directories like Google My Business and Yelp
Creating and showcasing your portfolio is also an important way to build clients. Choose a video portfolio template for your website so you can show off some of the projects you’re most proud of. You can also cut together a video reel for social media.
6. Market Your Video Production Company
Marketing is one of the most important ways to help your company grow. Building your online presence and portfolio is a great start to your marketing strategy, but you may also want to consider options such as:
- Showcasing content on social media
- Using advertising platforms like Google AdWords
- Offering discounts or coupons
- Joining a business association or community group
- Participating in vendor fairs
- Taking out advertisements in newspapers, on bulletin boards, or with commercials
Tips for Starting and Growing a Successful Video Production Company
Starting your own business can be challenging, but there are a few things you can do to help you successfully start and grow your video production company:
- Start with a plan. Creating a business plan, budget, and marketing strategy will help you stay aligned with your goals and focus on the work ahead.
- Get organized. Keeping all your plans organized will make each step so much easier. Knowing where all your information is will also streamline the process of registering your business and getting the right licenses and permits.
- Network. Networking comes easier to some folks than to others, but it’s one of the best ways to spread the word about your business.
- Leverage social media. Almost everyone is on social media nowadays, and it’s one of the best ways to get your products and services seen.
You Can't Have a Successful Business in Videography Without Great Music
You can do everything right and have the perfect business launch, but your videos won’t be complete without music and sound effects. That’s where StockMusic.net comes in.
StockMusic.net has a comprehensive library of music and sound effects. Our licenses have been used by companies like Disney, Sony, HBO, Microsoft, and NASA, and all music is cleared for use on Facebook, Instagram, Twitch, Twitter, and YouTube.
StockMusic.net offers two ways to purchase: individual licenses or our unlimited monthly subscription plan. Any questions? Contact us at contact@stockmusic.net.
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