With advances in technology, making amateur films has become easy. Just gather your friends, pull out your phone, download a few filming apps and start shooting. Who knows—before you know it, you may become so interested in the craft that you’ll want to start a company to make production a full-time job. When this moment comes, it’s important to consider the numerous aspects that come with running a production company. To help with this, highlighted below are five things you need to know before you start your production company.
Make it a Legal Entity
You are going to be running a business, so you need to remember to make a legal entity. There is no special legal structure for a film company, so it might be helpful to get some advice to choose the best legal arrangement. It will also be beneficial to consult with an accountant to maximize your tax deductions. When choosing a name you will want to search and make sure no one has already used it. After finalizing your arrangement, get registered for local taxes and set up a bank account. After all the legal paperwork is done, start creating your website, social media accounts and YouTube channel so you can collect likes and subscribers.
Don’t be Scared of Poor Market Conditions
There are currently 28 million small businesses in the United States with entrepreneurs starting approximately 543,000 new companies each month. While the market fluctuates, there is no reason to you can’t create a lasting business, especially considering that recent university research notes that 57 percent of Fortune 500 companies were formed during a recession. Though the Great Recession forced many businesses to close or file bankruptcy, many startups were founded, because of a high rise in unemployment.
Find Partners or Team Members Early
You should look for partners and team members while you are in the early stages of building your business, as they can help you avoid being crippled by overhead. You should pay particular attention on hiring people in the back office first, such as finance and production personnel. These people will build the infrastructure of your company and help keep reporting accurate. These jobs are important and will allow you to grow your business faster and hire more creative personnel. The more people you have working for you, the more tasks you can get accomplished and the sooner you can get your company off the ground.
Conduct Market Research
Research show that the digital universe should reach 40 zettabytes by the end of the decade. With such large amounts of data, businesses will need analysts to help comb through the information. Data analysis can help your company make better business decisions by providing insights and successfully implementing them. Production companies can cover a range of topics and styles of filmmaking. You will need to do some market research to determine the most successful niche for your company preferably an untapped one. Your market analysis should consist of your industry outlook and trends, information about your target audience, their distinguishing characteristics and any regulatory restrictions that will affect your business. You will also want to get a competitive analysis that will identify your competition by their market share, strengths, weaknesses and any secondary competitors that will impact your success.
Write a Business Plan
Your business plan is an essential roadmap for your production company’s success. This document usually projects three to five years ahead and outlines how you plan to grow your revenues. You will also need a solid business plan to present your ideas to potential investors. Your business plan should include a mission statement, a company summary and what service you are offering. You will also want to describe the target market, financial projections and the cost of operating.
Starting your own production company can be stressful and will demand your complete focus, but it can also fulfill your professional goals. For those considering following this dream, be sure to consider these five insights to help get your production company off the ground as fast as possible.
About the Writer
Ryan Ayers has been a consultant for over five years within multiple industries including information technology, medical devices and logistics. Many clients call him the BizTech Guru. He is a freelance writer on the side and lover of all things related to business, technology, innovation and the LA Clippers.