Are you interested in setting up your own production company, but don’t know how to get started? Creating a production company takes more than just having a cool name and a great idea. It takes research, organization, and dedication. To help set you on the right path, we’ve created this guide to show you what’s required. Read on for a complete guide on how to open your own production company.
Research & Planning
It’s essential to spend time researching the production industry and understanding the inner workings of the business. Learn the basics of industry management, production processes, and legal compliance. Make the time to understand the details of how films, plays, and other productions come together so you can create a workable business plan.
Completely assess the market to ensure there’s both enough demand for your services and the potential to make money. Without a need for your production services and the potential to grow your company, creating a production company isn’t worth the time or effort. Do your research early and conduct an in-depth analysis.
Once you’ve researched and analyzed the industry, create a production company business plan that will guide you in the right direction. Make sure your plan includes an executive summary, financial projections, and long-term strategy. With a robust business plan in hand, you’ll be better prepared to move forward.
Secure Financing & Insurance
To get started, you’ll need to secure financing for the operations of your production company. Start by assessing the costs for operational expenses and other overhead costs. Talk to lenders and ask friends and family for help if necessary to cover startup costs. If you don’t have the upfront capital to cover all the startup costs, consider a loan or look for investors who may want to help finance the business.
You’ll also need to purchase production insurance to protect your company and its projects from potential financial risks and liabilities. Consider purchasing different types of insurance, including public liability insurance, third-party property damage liability, errors and omissions insurance, and employee injury insurance. Not having the proper insurance could put your business and production projects in jeopardy.
Form Your Business
Before you can open the doors to your production company, you need to decide what type of business you’ll be running. A company can take on different structures, such as a Limited Company or a Partnership. You can also be a freelance director or producer and operate as a sole trader, which is a simpler and more affordable option.
Whichever type of business you choose will determine the taxation, bank accounts, and other financial aspects of your business. Spend the time to research the different types of business structures and discuss your options with an accountant or business lawyer.
You’ll also need to register the company with the company registry in your state and formally register your business name with the local authorities.
Hire the Right Staff & Equipments
Depending on the size and scope of your production plans, either hire a small team or piece together freelance professionals with the right skills at the right time. Make sure the people you hire bring not only the required skills but also a strong work ethic, punctuality, and the desire to help your business succeed.
When it comes to equipment, try to purchase as much as you can, but also be sure to rent the production equipment you need. Companies often need a wide range of equipment for filming, capturing, and editing audio and visuals, but it’s not feasible to purchase everything.
Find Clients & Partners
The success of a production company depends on a combination of the right staff and partners. Find the right people with compatible skills to work with you, and tap into their ideas and talents to expand the production possibilities of your business. Avoid reaching out to any and all companies as it’s important to focus and build relationships with select partners.
Once you’ve identified the right partners, build relationships with the right clients. Create relationships with the right media outlets, music labels, and other production companies to best showcase your services and build your client base. Start by offering free services and learning industry-specific tools to help you better understand the needs of each production job.
Marketing & Distribution
Once you’ve developed a portfolio of your best projects, it’s essential to spread the word and get the projects heard. Develop a marketing strategy that will help you build an understanding of your production services within the industry. Create social media profiles, produce print materials and tv ads, and use digital marketing to grow your reach and exposure. Partnered with public relations efforts, you can build a solid reputation for your production company.
Marketing efforts should also include distribution methods to make sure people can watch your products. Leverage available resources, such as streaming services and niche platforms, so your projects can reach a larger audience. If you can get your projects on TV or in major theatres, you can have a greater impact and make more money.
Grow & Expand
To succeed in the long term, your production company needs to constantly grow and develop. Make sure you always stay up to date with industry technology and production knowledge so you always have the tools to create innovative and engaging projects. Don’t be afraid to take risks, invest in new resources, and expand your production capabilities. As the company expands, so does your potential for success.
Develop Broader Expertise
It’s beneficial to look beyond the traditional production bounds and develop expertise in other areas. Branch out into shorter-form video production to meet the demands of content-hungry companies, such as digital ads and product demos. Become the “Go-To” production company for odd jobs and skills sets.
Invest in industry software, such as video editing software, special effects software, and motion graphics software, to create projects that stand out from the competition. With the right mix of technology and creativity, you can become the go-to production company.
Performance Audits
You’ll also need to evaluate the performance of your projects regularly. It’s not enough to see a project through to the end. Take time to reflect on the process, the budget, and the scope of the deliverables. You can use the performance evaluation results to improve future projects and enhance the efficiency of your production process.
Analyze what works, what doesn’t, and where you can make improvements. Similarly, evaluate how successful the project was with the target audience and how it impacts the public image of your production company.
Create a Sustainable Business Model
Nurture, maintain, and expand your business. Your production company must remain profitable and sustainable. Allocate resources to ensure your company can outlast the competition and offer services you can stand by. Analyze the market continuously, focus on the core goals of your business, build relationships with clients, and develop processes to make your production work more efficient.
Develop a pricing system that accurately reflects your value and doesn’t create additional financial stress. Similarly, create successful projects with an expert strategy that allow you to thrive and remain profitable. After all, sustainability is the basis of any successful business, including your production company.
