Production Company Business Plan Template
Written by Dave Lavinsky
Production Company Business Plan
You’ve come to the right place to create your Production Company business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their production companies.
Below is a template to help you create each section of your Production Company business plan.
Executive Summary
Business overview.
ABQ Reels Video Production is a startup production company located in Albuquerque, New Mexico. The company is founded by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.
ABQ Reels Video Production will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels Video will be the go-to production studio in Albuquerque for its tailored approach and client-first focus. The company will be the ultimate choice for customer service while ensuring the highest quality standards for production in the area.
Product Offering
The following are the services that ABQ Reels Video Production will provide:
- Content Development
- Sourcing & Hiring Film Crew
- Planning & Logistics
- Post-Production Services
Customer Focus
ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects, commercials, and social media. No matter the customer, ABQ Reels Video Production will deliver the best communication, service, and customized production tailored to fit each project’s needs.
Management Team
ABQ Reels Video Production will be owned and operated by Mark Johnson. Mark is a graduate of New Mexico University with a degree in Film Production. He has over 25 years of experience working in video production, and over ten years as a production manager. Mark will be the company’s Chief Executive Officer and Production Manager. He will oversee the production process, production equipment, and production staff’s activities.
Mark has recruited a business management expert, Emily Martinez, to be the company’s Chief Operating Officer and help oversee the production business operations. Emily will handle the day-to-day operations, including budgeting, client relationships, and logistics.
Mark and Emily have recruited an experienced marketing director, Steve Smith, to become a member of the ABQ Reels Video Production management team. Steve is a graduate of the University of California with a bachelor’s degree in marketing. Mark and Emily rely on Steve’s expertise to execute the company’s marketing plan and advertising strategies.
Success Factors
ABQ Reels Video Production will be able to achieve success by offering the following competitive advantages:
- Skilled team of production experts and project management professionals who will oversee each project from start to finish and ensure the customers’ needs are met.
- ABQ Reels Video Production is able to provide production services for a wide range of purposes using the latest production technology.
- The company is able to leverage the expertise of its leadership team to provide customers with the best possible production services from knowledgeable industry veterans.
Financial Highlights
ABQ Reels Video Production is seeking $800,000 in debt financing to launch its production business. The funding will be dedicated towards securing the production facility and purchasing production equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:
- Facility build-out: $340,000
- Production equipment, supplies, and materials: $280,000
- Three months of overhead expenses (payroll, utilities): $160,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for ABQ Reels Video Production.
Company Overview
Who is abq reels video production.
ABQ Reels Video Production is a newly established production company in Albuquerque, New Mexico. The company will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels will be the go-to production studio in Albuquerque for its tailored approach and client-first focus.
The company will be the ultimate choice for customer service while providing the highest quality standards for production in the area. ABQ Reels Video Production will be able to guarantee the highest quality standards for all of its productions thanks to the latest and most innovative production equipment and oversight from industry veterans. The company’s team of highly qualified professionals experienced in production and project management will oversee each project from start to finish.
ABQ Reels Video Production History
ABQ Reels Video Production is owned and operated by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.
Since incorporation, ABQ Reels Video Production has achieved the following milestones:
- Registered ABQ Reels Video Production, LLC to transact business in the state of New Mexico
- Has identified the ideal facility for lease to set up the business operations
- Reached out to numerous contacts to include former colleagues, employees, and production assistants to start putting a skilled core team together
- Began recruiting a staff of accountants, production assistants, and sales personnel to work at ABQ Reels Video Production
ABQ Reels Video Production Services
Industry analysis.
The production industry in the U.S. is a $26B market with approximately 6.3K businesses and over 46K employees nationwide. The outlook for the production market is positive with demand expected to remain steady over the next several years.
The production industry can be categorized by type of production. Some of the most common types of production companies are film production, TV production, commercial production, and post-production. Production companies perform a wide range of services including scripting, casting, hiring, planning, and logistics. Some production companies handle large-scale projects like major motion pictures, while others specialize in small-scale projects like commercials.
Some of the most significant demand drivers are the growing popularity of streaming content, consumer preferences for viewing on smartphones, and social media influence. All of these factors have contributed to increased demand for content, which leads to increased demand for production services.
Customer Analysis
Demographic profile of target market.
ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects such as video for commercials and social media.
The precise demographics for Albuquerque, New Mexico are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
ABQ Reels Video will primarily target the following customer profiles:
- Small Businesses in Albuquerque in need of commercial production services
- Mid-Sized Businesses in Albuquerque in need of commercial production services
- Individuals and groups of people in Albuquerque who need video production services for small personal or professional projects
Competitive Analysis
Direct and indirect competitors.
ABQ Reels Video Production will face competition from other companies with similar business profiles. A description of each competitor company is below.
VIEWR 1st Video Production
VIEWR 1st Video Production is one of the largest commercial production companies in Albuquerque, New Mexico. The company provides a variety of production services including content development, logistics, and film crew recruitment. VIEWR 1st Video Production specializes in creating commercials for local businesses to use in their advertising campaigns. VIEWR 1st Video Production aims to deliver high quality production through the latest production equipment and experienced crew. VIEWR 1st Video Production’s team of production professionals are well-known in the area for their outstanding commercial work.
Albuquerque’s Best Productions
Albuquerque’s Best Productions is a small production company established in 2005 that caters to local businesses and residents in Albuquerque, New Mexico and surrounding areas. Albuquerque’s Best Productions provides pre-to-post-production services for projects of various sizes and purposes. The company also provides tours of the production facility to local residents, businesses, and schools for a nominal fee. The owners of Albuquerque’s Best Production are former production assistants of some of the biggest production companies in the nation so they understand the production process from start to finish.
SPESHAL EFFEX
SPESHAL EFFEX is a trusted Albuquerque, New Mexico-based production company that provides superior production services to clients in Albuquerque and the surrounding areas. Established in 2018, the company is able to provide a wide variety of production services using its state-of-the-art production equipment. SPESHAL EFFEX serves local business owners, students, and individuals on small-to-large scale video projects. The company prides itself on being the number one choice for innovative special effects used in all of its videos.
Competitive Advantage
ABQ Reels Video Production will be able to offer the following advantages over their competition:
Marketing Plan
Brand & value proposition.
ABQ Reels Video Production will offer the unique value proposition to its clientele:
- The company is able to leverage the expertise of its leadership team to provide customers with the best possible production process from knowledgeable industry veterans and project management professionals.
Promotions Strategy
The promotions strategy for ABQ Reels Video Production is as follows:
Social Media Marketing
The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure ABQ Reels Video Production maintains an active social media presence with regular updates and fun content to get customers excited about production.
Professional Associations and Networking
ABQ Reels Video Production will become a member of professional associations such as the American Production Company Association, Albuquerque Video Production Society, and the New Mexico Video Production Association. The leadership team will focus their networking efforts on expanding the company’s vendor and client network.
Print Advertising
ABQ Reels Video Production will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local businesses who are in the target market.
Website/SEO Marketing
ABQ Reels Video Production will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that ABQ Reels Video is able to provide. The website will also list information on the company’s events and client success stories.
The marketing director will also manage ABQ Reels Video’s website presence with SEO marketing tactics so that when someone types in a search engine “Albuquerque production company” or “video production near me”, ABQ Reels Video Production will be listed at the top of the search results.
The pricing of ABQ Reels Video Production will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s production services.
Operations Plan
The following will be the operations plan for ABQ Reels Video Production.
Operation Functions:
- Mark Johnson will be the CEO and Production Manager of the company. He will oversee the production staff, production process, and the production equipment. Mark has spent the past year recruiting the following staff:
- Emily Martinez – Chief Operating Officer who will manage the budgeting, vendor and customer relationships, and day-to-day logistics.
- John Miller – Accountant/Bookkeeper will provide all accounting, tax payments, and monthly financial reporting.
- Steve Smith – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.
Milestones:
ABQ Reels Video Production will have the following milestones complete in the next six months.
12/1/2022 – Finalize lease on the facility
12/15/2022 – Finalize personnel and staff employment contracts for the ABQ Reels Video Production management team
1/1/2023 – Begin build-out of the facility, purchase equipment, and set up for production
1/15/2023 – Begin networking at industry events and implement the marketing plan
2/15/2032 – Finalize contracts for initial production assistants, sales personnel, and office staff
3/15/2023 – ABQ Reels Video Production officially opens for business and starts taking on projects
Financial Plan
Key revenue & costs.
The revenue drivers for ABQ Reels Video Production are the fees charged to customers in exchange for the company’s production services. When it comes to pricing, the studio will monitor production costs, average prices charged by competitors, and market demand to ensure its prices will generate a healthy profit margin.
The cost drivers will be the overhead costs required in order to staff a production company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.
Funding Requirements and Use of Funds
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Average number of minutes produced per month: 12,000
- Average fees per month: $36,000
- Overhead costs per year: $840,000
Financial Projections
Income statement.
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Production Company Business Plan FAQs
What is a production company business plan.
A production company business plan is a plan to start and/or grow your production company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your production company business plan using our Production Company Business Plan Template here .
What are the Main Types of Production Companies?
There are a number of different kinds of music companies , some examples include: Feature Film Production, Commercial Production, Post Production, and Niche Production Company.
How Do You Get Funding for Your Production Company Business Plan?
Production companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a film production company or a film production company business plan.
What are the Steps To Start a Production Company?
Starting a production company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Video Production Business Plan - The first step in starting a business is to create a detailed video production company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your production company . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your production company is in compliance with local laws.
3. Register Your Production Company - Once you have chosen a legal structure, the next step is to register your production company with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your production company , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Production Company Equipment & Supplies - In order to start your production company , you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your production company . This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
How to Start a Production Company: A Complete 12-Step Guide
S tarting a production company can be incredibly daunting. There are so many business aspects that appear mundane and confusing to the typical creative starting a production company. But the truth is that laying down a proper foundation is essential for any new production company to grow and prosper. In this article, we outline twelve steps on how to start a production company in the modern age. Let’s dive in.
How to start a production company
1. research the market.
Getting started right away and shooting anything and everything possible might sound like a great idea when starting a production company. But before you shoot a single shot, it is important to do your market research. This is important for companies producing either independent films or commercial advertisements.
When producing an independent film, research doesn't mean you must write a film according to what is popular. But rather understand and determine how the film you want to make can be positioned in the world of indie films, streaming, and top film festivals .
On the topic of the latter, researching film festivals can be the deciding factor that gets your film into film festivals. Here are a few tips on how to choose the right film festival.
Starting a Production Company Through Film Festivals
If you are aiming to produce commercial work, research is just as, if not more important. Research the market in your specific area and determine how to position your company to fulfill the market needs of your area.
Research also may involve reaching out and learning from others. Here are the founders of a small production company Dose of Society. They reached out to Gary Vaynerchuk, a well-known and successful entrepreneur, to ask him how to scale a small media company.
How to start a production company • Meeting With Dose of Society
While the advice Gary Vaynerchuk gives them is valuable in and of itself, it is important for you to conduct your own research in your area. It is also important to research competing companies and take note of the services they are offering. Understanding what you’re up against will help you determine how to position and market your company.
Starting a film production company
2. determine your niche.
When starting a production company, you may find that a specific niche excites you the most. For indie film companies, this may be a certain genre such as horror or science-fiction. In commercial production, companies this may be a focus on weddings, restaurants, start-ups, or even gyms.
Starting a film production company with niches
As the video states, it is important to follow your instincts when determining your niche rather than what others tell you is a great niche to pursue. When first learning how to start a production company, take a look at existing companies and understand what markets are saturated in your area.
How to start a film production company with no money
3. name your company.
Naming a company can be incredibly fun, but often difficult. When naming your production company, definitely include your personality and have fun with it, but keep in mind a few guidelines.
It is important to come up with a name that is memorable and easily searchable. It’s easy for company names to get lost in the minutiae of the internet. Utilizing a city name in your company name is a great way to help potential clients find your company more easily. Here is a great Ted talk that discusses how to come up with a great brand name.
How to name your production company • Brand Names
It is also important to make sure that your name is original and legally avoids copyright problems. Enter your possible company names into the National Business Register to check if your name is taken.
How do you start a production company?
4. create a business plan.
One of the most important steps when creating a production company is creating a production company business plan . Without a business plan, starting a company may be easy, but growing it in a sustainable way will be incredibly difficult.
Putting your business plan on paper will help you and your team gain a clear direction on the company with actionable steps. Here is some first hand advice on how to think about growing a production company.
How to start a production company and grow it
Perhaps most importantly, a business plan can be presented to potential investors, advisors, team members or clients to prove to them that there is a plan for the future of the company. When people are going to invest their money or time into a company, they will want to know that there is a plan behind the idea.
5. Assemble a team and equipment
While it is always an option to start a company alone as a sole proprietor (we’ll get to that in the next section), working with friends is not only more fun, but it can increase your production value immensely.
Being a one man or woman show can spread you thin and decrease the level of production on your projects. There will inevitably be projects that come up where you will need to find and hire a great film crew . A proper set will entail a few key positions. What positions are absolutely necessary? Here’s a video to give you a better idea.
How Many Crew Members Do You Need? • Starting a film production company
This team will either be composed of freelancers, employees, or business partners. To determine which you will employ, refer to your business plan and finances to see what best suits your company.
Once you have your crew, using StudioBinder’s film crew list management software will help you stay organized and efficient when managing your crew.
In addition to a team, you will need equipment. When starting a production company, it is common to be on a very tight budget. Production lighting kits , mirrorless cameras , and camera lenses can get pricey. Here is a video that breaks down some essential equipment needs that won't completely break the bank.
How to Start a Production Company With Under $10,000: What Should You Buy?
Keeping your team and production organized is the difference between amauteuer productions and professional productions. Production softwares like StudioBinder’s production management software will help take your company to the next level.
Related Posts
- A Complete Buying Guide to Camera Lenses →
- The Best Mirrorless Cameras for Filmmaking →
- Plan your productions with scheduling software →
Register a film production company
6. determine your type of company.
Types of businesses to register a film production company
To recap, here are your options as stated here by the U.S. Small Business Association where you can find more information:
1. Sole Proprietorship:
A sole proprietorship is easy to form and gives you complete control of your business.
Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Still wondering what a sole proprietorship is? Check out the video below for more information.
What Is A Sole Proprietorship? • QuickBooks US
Sole proprietorships can be a good choice for low-risk businesses and owners who want to test their business idea before forming a more formal business.
2. Partnership:
Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).
Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability.
Limited liability partnerships are similar to limited partnerships, but give limited liability to every owner.
Partnerships can be a good choice for businesses with multiple owners, professional groups (like attorneys), and groups who want to test their business idea before forming a more formal business.
3. LLC (Limited Liability Company)
An LLC lets you take advantage of the benefits of both the corporation and partnership business structures.
LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits. LLCs can also have a limited life in many states.
These can be a good choice for medium- or higher-risk businesses, owners with significant personal assets they want to be protected, and owners who want to pay a lower tax rate than they would with a corporation.
LLC vs S-corp vs C-corp
4. c corp (corporation).
A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable.
Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.
These can be a good choice for medium- or higher-risk businesses, businesses that need to raise money, and businesses that plan to "go public" or eventually be sold.
5. S Corp (Corporation)
An S corporation, sometimes called an S corp, is a special type of corporation that's designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners' personal income without ever being subject to corporate tax rates.
S corps also have an independent life, just like C corps. If a shareholder leaves the company or sells his or her shares, the S corp can continue doing business relatively undisturbed.
These can be a good choice for a business that would otherwise be a C corp, but meet the criteria to file as an S corp.
How do I start a production company?
7. consult a lawyer or legal advisor.
Creating a production company legally can be complex. Consulting a legal advisor or lawyer will help ensure that you are taking the necessary steps in starting your company. Many people jump into starting a production company without laying the foundations.
Here is a video with first hand experience explaining why this is such an important step for anyone starting a production company.
5 Tips from Starting my own production company from scratch
There are many small business lawyers and entertainment lawyers who specialize in production services that can give great legal advice throughout the process. This step will help you avoid any costly problems in the future.
How to start your production company’s bookkeeping
8. set up your bookkeeping.
Entertainment payroll, production insurance , and other expenses can get complicated and unorganized very fast. Consulting a CPA and setting up your bookkeeping right away will also help you avoid costly problems in the future as well as any legal ramifications for overlooked processes. This step will pay off when it's time to file your taxes, apply for a loan, or pay your employees.
How to start a production company website
9. establish an online presence.
Whether your production company produces independent films or commercial work, having an online presence is incredibly important. A website will enable you to showcase your work and allow clients or audiences to find you.
In this day and age, it is a great idea to develop a social media presence as well. Instagram, Facebook, and YouTube are all places where trailers, commercials, and other video work can live and be discovered by clients or potential Hollywood players.
How to create a production company portfolio
10. produce proof of concept projects.
Once you create a website and online presence, you will need to produce work that lives there. This gallery of work will obviously grow as you take on more client work, but initially you may have to shoot some proof of concept ideas that will help clients get a better idea of what your production company is capable of creating.
StudioBinder's web series, Making It , followed the entire proof of concept process from the script to the first day of shooting. Here's the first episode on how it all began.
Making It Ep. 1 • Watch Entire Series
When shooting independent films, sometimes creating a short film as a proof of concept for a feature film is a great way to get eyes on your project and potentially funding.
11. Build a client network
Once the foundations of your company have been established, the next most important step is getting new clients. This is where you will actually see a return on your investment. Here are some fundamental tips for finding new clients for your production company.
How to start your production company client network
The keys to building a client network is networking and delivering consistent, high quality work. Your initial clients will be your best allies in getting new clients, so maintaining a good relationship is essential.
How to start a production company plan
12. plan for the future.
Planning for the future of your production company can be difficult in an industry that shifts and changes so often. In this day and age, technology progresses and changes at the blink of an eye. Keeping your focus on how the market is changing, what’s trending in the industry, and what new tech is emerging will help you steer your company like a ship in the right direction.
Starting a production company is no easy feat by any means, but if you are passionate, persistent, and willing to put in the work it is absolutely achievable. Hopefully these tips bring you one step closer to executing your plan of starting your own production company. Remember there are endless resources online that will help you get started.
- The Best Video Lighting Kits for Filmmakers →
- How to Master Lighting with 3-Point Lighting →
- Redefined Production Calendar for Easier Shoots →
A guide to creating your business plan
A key part of starting a production company is creating a business plan. And creating a business plan for your new production company can be daunting. Luckily, we’ve covered the fundamentals of how to create a production company business plan in our next article and even included a free template to lay out your business plan.
Up Next: Creating a business plan →
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