Starting a video production biz. Any business plan?
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Sherman
Well-known member
Starting ANY business without a plan is the first ingredient in a recipe for failure, even if you would like to think otherwise. A business plan is not something you put together to just appease the bank. It's something you do to help your business succeed. Any biz. I know our creative side doesn't want to hear that. So sit down and bounce your ideas off a pragmatist friend and take notes. IMHO
BrianMurphy
Veteran
The best advice is have a plan and get help to make a plan.
I recently sold my 3 companies in 3 different cities to return to what i love in this business, creating good stuff and also to complete my PhD. After 33 years in the industry and working for many many independants and running my own biz let me offer this insight.
I did well with my business by treating people well and encouraging development and the sharing of knowledge in the company. Your strength as a business is in the people on your team.
Be prepared to spend a great deal of time doing "business" and I don't mean shooting and creating. My experience was I eventually became a "suit" doing much less writing and directing and virtually no shooting. But taking meetings and cutting deals for projects.
Have a serious look at the market you want to penetrate and look at where the technology is going and how it will affect your vision. I was never in the wedding/event biz but I know it is getting more and more difficult for those folks with everybody having a camcorder and some form of editing program on their computer. I went to see a friend of mine who is a clown/dancer perform at a local"soiree for clowns"and there were honestly more than 20 cameras in the audience.
And if you do decide to go into business,let me wish you all the best and nothing but success in your future and make sure that you are having fun! Life is too short to not have fun while you are working and if you are not do something else.
Cheers
I recently sold my 3 companies in 3 different cities to return to what i love in this business, creating good stuff and also to complete my PhD. After 33 years in the industry and working for many many independants and running my own biz let me offer this insight.
I did well with my business by treating people well and encouraging development and the sharing of knowledge in the company. Your strength as a business is in the people on your team.
Be prepared to spend a great deal of time doing "business" and I don't mean shooting and creating. My experience was I eventually became a "suit" doing much less writing and directing and virtually no shooting. But taking meetings and cutting deals for projects.
Have a serious look at the market you want to penetrate and look at where the technology is going and how it will affect your vision. I was never in the wedding/event biz but I know it is getting more and more difficult for those folks with everybody having a camcorder and some form of editing program on their computer. I went to see a friend of mine who is a clown/dancer perform at a local"soiree for clowns"and there were honestly more than 20 cameras in the audience.
And if you do decide to go into business,let me wish you all the best and nothing but success in your future and make sure that you are having fun! Life is too short to not have fun while you are working and if you are not do something else.
Cheers
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Ming
Well-known member
First off, 4k is too low unless you're going to be putting out junk. Your computer alone should be around 4k. Figure 3k for a DVX, another 2k in misc tripods, cases, mics... another 2k (at least) for software, 1k for printers, scanners, office equipment. Doing photo's? Add another 3k for a nice camera and lenses.
If you plan on starting "small" and paying for your gear and then buying more you will likely just end up with 4k of toys to play with and a failed business.
If you're serious and want to be successful you need:
1. To be good at what you do. If you're a novice.. get experience first before investing a lot of money.
2. Get the gear you need to do it well.
3. Market the hell out of yourself. Don't half ass here, getting your name out there is everything. You need clients and you need those clients to rave to their friends about how great you are. See number 1. See number 1 again.
4. .. and this is most important of all.. you need to have the desire, hunger, tenacity, and energy to make it work. This means making calls, busting out the credit card to pay for advertising (not just toys) and getting out there. The biggest mistake I made at first was thinking "if you build it they will come." That's BS. You have to have the drive to actually get out there and do whatever it takes to generate revenue. Read again, you can't just sit on your ass in your new studio full of nice gear. You've gotta get clients.
If you plan on starting "small" and paying for your gear and then buying more you will likely just end up with 4k of toys to play with and a failed business.
If you're serious and want to be successful you need:
1. To be good at what you do. If you're a novice.. get experience first before investing a lot of money.
2. Get the gear you need to do it well.
3. Market the hell out of yourself. Don't half ass here, getting your name out there is everything. You need clients and you need those clients to rave to their friends about how great you are. See number 1. See number 1 again.
4. .. and this is most important of all.. you need to have the desire, hunger, tenacity, and energy to make it work. This means making calls, busting out the credit card to pay for advertising (not just toys) and getting out there. The biggest mistake I made at first was thinking "if you build it they will come." That's BS. You have to have the drive to actually get out there and do whatever it takes to generate revenue. Read again, you can't just sit on your ass in your new studio full of nice gear. You've gotta get clients.
BergVision
Well-known member
Your computer alone should be around 4k- NOT
Your computer alone should be around 4k- NOT
In regards to Ming's statement about your PC costing $4,000, this is NOT true.
Not if you custom build it yourself! I built a high-end, very fast editing PC System for around $1,200.
You can also buy Windows XP -OEM version for about $99 bucks!
CASE
Power Supply
Motherboard
Video/Audio card
CPU
Ram
Hard Drives
CD/DVD/Burner
etc.
Just start doing some research on PC hardware and read reviews at Newegg.com
It would have cost me around $3,800 to $4,000 had I paid for a PC already in the BOX that could do the same thing I built for $1,200
So if you are on a budget and you know something about computers, BUILD YOUR OWN SYSTEM! I recomend http://www.Newegg.com for all your PC parts!
THey have everything at great prices! Very fast shipping, always dependaple!!
You can easily build a the lastest and fastest PC out there for at least HALF of what you would pay for it off the shelf! If you don't know how, you can still purchase all the hardware and software, and pay a BigBox store $99 bucks to build it for you! Trust me, unless you are going with a MAC, you want to build your own system!
System is which, it's time to upgrade mine again!
rogar-Dum(DBG):
Your computer alone should be around 4k- NOT
In regards to Ming's statement about your PC costing $4,000, this is NOT true.
Not if you custom build it yourself! I built a high-end, very fast editing PC System for around $1,200.
You can also buy Windows XP -OEM version for about $99 bucks!
CASE
Power Supply
Motherboard
Video/Audio card
CPU
Ram
Hard Drives
CD/DVD/Burner
etc.
Just start doing some research on PC hardware and read reviews at Newegg.com
It would have cost me around $3,800 to $4,000 had I paid for a PC already in the BOX that could do the same thing I built for $1,200
So if you are on a budget and you know something about computers, BUILD YOUR OWN SYSTEM! I recomend http://www.Newegg.com for all your PC parts!
THey have everything at great prices! Very fast shipping, always dependaple!!
You can easily build a the lastest and fastest PC out there for at least HALF of what you would pay for it off the shelf! If you don't know how, you can still purchase all the hardware and software, and pay a BigBox store $99 bucks to build it for you! Trust me, unless you are going with a MAC, you want to build your own system!
System is which, it's time to upgrade mine again!
rogar-Dum(DBG):Ming said:
Ming
Well-known member
I will concede that a rig can be slapped together that will "edit video" for $1200.00, there's no question. If you want to do any serious editing though, you're going to have to shell out a lot more than that for both hw and software. Build it yourself, by all means if you have the knowledge, skill -and most importantly the time! Take the savings over buying off the shelf and reinvest. The old saying you get what you pay for does ring true in terms of gear as does, it takes money to make money. Look, if you're going to put out quality product, you need both skill and gear. If you just want toys, don't kid yourself about a "production company." Just make a cool gaming rig you can edit on and do a few videos while not quitting your day job and call it good. I'm offering advice for someone who's serious about succeeding.BergVision said:In regards to Ming's statement about your PC costing $4,000, this is NOT true.
Not if you custom build it yourself! I built a high-end, very fast editing PC System for around $1,200.
You can also buy Windows XP -OEM version for about $99 bucks!
CASE
Power Supply
Motherboard
Video/Audio card
CPU
Ram
Hard Drives
CD/DVD/Burner
etc.
Just start doing some research on PC hardware and read reviews at Newegg.com
It would have cost me around $3,800 to $4,000 had I paid for a PC already in the BOX that could do the same thing I built for $1,200
So if you are on a budget and you know something about computers, BUILD YOUR OWN SYSTEM! I recomend http://www.Newegg.com for all your PC parts!
THey have everything at great prices! Very fast shipping, always dependaple!!
You can easily build a the lastest and fastest PC out there for at least HALF of what you would pay for it off the shelf! If you don't know how, you can still purchase all the hardware and software, and pay a BigBox store $99 bucks to build it for you! Trust me, unless you are going with a MAC, you want to build your own system!
System is which, it's time to upgrade mine again!
Low overhead is nice, but there's also a thing called the cost of doing business.
edit- and don't forget... even with a million dollar studio you still need to somehow generate business. This is more important than any other aspect of a startup business, getting out there.
The thread is about a business plan. If you can come up with a plan that works with a 1200 editing rig, go for it. It's all relative. The point of a plan is to be able to show that income will eventually exceed startup costs.
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Hello,
First, take everything I say below with a grain of salt, since I've (more or less) just started my business (four months ago) and haven't had any positive cash flow. (On the other hand, I'm not bleeding to death, either.)
Second, every business (and every business owner) is different. Do what works for you.
Third, I favor taking a stab at writing a business plan. If it works for you, and you carry it through, you'll have gone through an experience that should give you a leg up on finding business, etc. However, if it doesn't work for you, laboring through a business plan when you have opportunities staring you in the face is probably not a good idea. I HIGHLY recommend seeking out the SCORE (Service Corp of Retired Executives) chapter in your area. Go to the URL below, and you'll find a great Q&A-driven business plan creation document. Once you've answered the questions in this doc, you'll have a rough business plan. http://www.score.org/downloads/Business Plan for a Startup Business_July.doc
Fourth, my business is "on the side", so I don't have to make my living off of it. I can make all kinds of mistakes and not starve. With that said, I think we're doing OK, having gone through all the business formation stuff (LLC, etc), gotten our tax stuff in order, creating a web site, getting cards, etc, working with friends with businesses to build up a portfolio and a network. We're on the edge of our first paying client, and we'll be able to go 'really public' soon. I'm satisfied with that.
Fifth, (with the above in mind) we're starting off with a PowerMac G5 system we had for general purposes (worth about $2800 two years ago when we got it), a DVX100B ($2800 after rebate), a LowePro case (~$250), a Bogen-Manfrotto 503-based head/tripod combo (~$480), FinalCut Universal (worth about $800), and various business and scriptwriting software (~$300). I expect my last major hardware purchase at this stage to be a good shotgun mic (probably the Sennheiser ME-66/K6 combo). We rent lights. And, I have business liability insurance at ~$700/yr. These are my major costs, and the capital costs are mostly paid for through one of those low-rate credit card checks, ~$4500 worth; I expect to have that paid off within six months.
Sixth, check out the following site, not because it's authoritative, but because there are a few good starter docs and pointers: <http://www.videosuccess.com/>. Similarly, check out: <http://www.videouniversity.com/>.
Lastly, but perhaps most importantly, have fun and learn.
Catalyst
First, take everything I say below with a grain of salt, since I've (more or less) just started my business (four months ago) and haven't had any positive cash flow. (On the other hand, I'm not bleeding to death, either.)
Second, every business (and every business owner) is different. Do what works for you.
Third, I favor taking a stab at writing a business plan. If it works for you, and you carry it through, you'll have gone through an experience that should give you a leg up on finding business, etc. However, if it doesn't work for you, laboring through a business plan when you have opportunities staring you in the face is probably not a good idea. I HIGHLY recommend seeking out the SCORE (Service Corp of Retired Executives) chapter in your area. Go to the URL below, and you'll find a great Q&A-driven business plan creation document. Once you've answered the questions in this doc, you'll have a rough business plan. http://www.score.org/downloads/Business Plan for a Startup Business_July.doc
Fourth, my business is "on the side", so I don't have to make my living off of it. I can make all kinds of mistakes and not starve. With that said, I think we're doing OK, having gone through all the business formation stuff (LLC, etc), gotten our tax stuff in order, creating a web site, getting cards, etc, working with friends with businesses to build up a portfolio and a network. We're on the edge of our first paying client, and we'll be able to go 'really public' soon. I'm satisfied with that.
Fifth, (with the above in mind) we're starting off with a PowerMac G5 system we had for general purposes (worth about $2800 two years ago when we got it), a DVX100B ($2800 after rebate), a LowePro case (~$250), a Bogen-Manfrotto 503-based head/tripod combo (~$480), FinalCut Universal (worth about $800), and various business and scriptwriting software (~$300). I expect my last major hardware purchase at this stage to be a good shotgun mic (probably the Sennheiser ME-66/K6 combo). We rent lights. And, I have business liability insurance at ~$700/yr. These are my major costs, and the capital costs are mostly paid for through one of those low-rate credit card checks, ~$4500 worth; I expect to have that paid off within six months.
Sixth, check out the following site, not because it's authoritative, but because there are a few good starter docs and pointers: <http://www.videosuccess.com/>. Similarly, check out: <http://www.videouniversity.com/>.
Lastly, but perhaps most importantly, have fun and learn.
Catalyst
Last edited:
Nik Manning
Well-known member
I am going to take a completely different route and say 4k is good to get started. Spend 4k on finding clients. Contract out your work to folks here at dvxuser. If someone here quotes you $2k to shoot and someone else charges you 2k to edit. charge the client 8k and have the shooter and editor send you their reel to show the clients. Get 4k from the client up front pay the shooter and the editor half upfront (2k). Get 4k back after everyone is paid and break even. Hopefully that 4k got you 2 clients then you double your money. I would actually learn to edit or shoot then your cost drops to 2k. This is the route I plan on taking shortly. Hopefully with more money but you get the idea.
BergVision
Well-known member
Just let me know when
Just let me know when
I'm here for shooting or EDITING.
I have a whole studio full of great stuff including a huge library of Digital Juice stuff.
I also own a DVX100b, Camera Crane, Steadicam, etc.
I'm in Orgeon State.
Just contact me when you need work done.
Just let me know when
I'm here for shooting or EDITING.
I have a whole studio full of great stuff including a huge library of Digital Juice stuff.
I also own a DVX100b, Camera Crane, Steadicam, etc.
I'm in Orgeon State.
Just contact me when you need work done.
Nik Manning said:
Jee $4000US? My partner and I are working on a business plan right now and it's working out around $15,000US for two people. Then a gain all the equipment in NZ is a lot more expensive than in America, just one macbook is $3000NZ and then the DVX is $4700! Then factor in monitors, legal fees, a car (sadly we have to budget for one) lighting, sound ...it's really really tough trying to remove what we don't need and economise without sacrificing quality of products, and I think I'd die if I didn't have a business consultant or a business plan on hand. There are just too many details to leave in the head.
As the business consultant says, an idea isn't an idea unless you have it in a tangible form. And it is shocking when trying to translate the basic principle of "I'm going to be a videographer!" to a working business model. All the things that seemed so easy up in the old noggin suddenly become a mind-numbing headache. And even writing down the more obvious things show up inadequacies or problems somewhere along the line.
So yeah, I can't imagine not using a business plan and I can't imagine doing it for $4K. Then again I guess if people have a really good computer and monitor setup, or audio then of course it's going to reduce costs quite considerably.
As the business consultant says, an idea isn't an idea unless you have it in a tangible form. And it is shocking when trying to translate the basic principle of "I'm going to be a videographer!" to a working business model. All the things that seemed so easy up in the old noggin suddenly become a mind-numbing headache. And even writing down the more obvious things show up inadequacies or problems somewhere along the line.
So yeah, I can't imagine not using a business plan and I can't imagine doing it for $4K. Then again I guess if people have a really good computer and monitor setup, or audio then of course it's going to reduce costs quite considerably.
Michael T
Well-known member
Hi, I almost bought a business last year like the one you are describing. I already do some conversion and a ton of editing and creation of DVDs. I do alot of sports things already and wanted to grow my business so I looked around and through a friend I found a company for sale. It was a one man shop that had quite a few private customers and he had 21 Federal Express stores signed up to do duplication with. He had displays in the FedEx-Kinkos stores and was doing a pretty good business. One week before I was to buy the business he called me and said that he didn't feel good in selling me the business because FedEx-Kinkos just droped him from 14 stores. He had decided to keep his pirvate companies and just take care of them. A week after this Wallmart started to do film and dv transfers at half the cost he was charging so I'm gald it worked out the way that it did. There are several large chains that now have entered the frey and the price for duping is cheap. If you plan on shooting and recording audio and doing editing and DVD production then I think that you will be ok. A business plan is a must for any investor and they want to see a realistic salary for yourself put into the plan. You have to get paid, just don't make it some unrealistic amount. Really look around the area your in and see how much competiton there is and what their doing.
Good Luck!
Good Luck!
BergVision
Well-known member
Good Bye And Good Riddance!
Good Bye And Good Riddance!
With today's technology in the hand of every JOE SHMOE, the day of MOM & POP Montage Wonders, and making any really money in transfers, photo montages, wedding videos etc, are all but over. :thumbsup:
I never went that direction with my studio and for good reason! My business is directed towards the corporate, commercial, and live events. I spent 6 years working in LA California and saw where the real money is and where the industry is going.
With Walmart, Walgreens, and every corner super mart offering duplication, transfers, etc, the days of the "MOM & POP" fly by night montage, transfer business is over. Just look at YouTube.
Sure, you may get a few here and there that don't know how, or don't want to bother with it, but those days are over! And I'm glad! :happy:
Now you have to play in the BIG TIME or get off the porch.
It's kind of nice, since most of the MOM AND POP MONTAGE WONDERS can't come close to producing any kind of real production in the higher end market, it weeds the wanna bees out of the game. :violent5:
Personally, I cringed every time I saw another person claiming to have 20 years experience offering to scan your photos and put them to music or shoot your kids birthday party.
Good bye and Good Riddance! :kali:
Good Bye And Good Riddance!
With today's technology in the hand of every JOE SHMOE, the day of MOM & POP Montage Wonders, and making any really money in transfers, photo montages, wedding videos etc, are all but over. :thumbsup:
I never went that direction with my studio and for good reason! My business is directed towards the corporate, commercial, and live events. I spent 6 years working in LA California and saw where the real money is and where the industry is going.
With Walmart, Walgreens, and every corner super mart offering duplication, transfers, etc, the days of the "MOM & POP" fly by night montage, transfer business is over. Just look at YouTube.
Sure, you may get a few here and there that don't know how, or don't want to bother with it, but those days are over! And I'm glad! :happy:
Now you have to play in the BIG TIME or get off the porch.
It's kind of nice, since most of the MOM AND POP MONTAGE WONDERS can't come close to producing any kind of real production in the higher end market, it weeds the wanna bees out of the game. :violent5:
Personally, I cringed every time I saw another person claiming to have 20 years experience offering to scan your photos and put them to music or shoot your kids birthday party.
Good bye and Good Riddance! :kali: