How To Start A Video Production Company? 5 Money-Saving Business Tips
Are you passionate about video production and interested in discovering how to start your own video production company?
Then I have some advice to help you set up a sole proprietorship facilitating all the pre-production and post-production logistics from creative brief to final delivery.
Instead of focusing on how to set up a limited liability company with a business plan, company name, social media, and bank account, I wanted to share five money-saving business tips for starting a video production company that will help you succeed in the long run!
Table of contents:
Tip 1. Specialize your video production company
When you encounter a problem in life, you probably want to find the best possible expert to help you solve it. Guess what? It works the same for filmmaking!
Suppose you can specialize your video production services in a particular niche market. In that case, it’s easier for clients to find you and label you as the best possible expert to help them solve their problems—bringing their story ideas visually to life!
Don’t become a jack of all trades.
When I started my video production company, I focused my video production services on making one particular kind of content for DJs in a specific music genre, Big Room House.
Because I specialized in only making this type of content for these artists, I became a problem solver in that niche market, making it easier for other DJs in that genre to choose me to work with.
Years later, I left that industry because I wasn’t enjoying it anymore. I wanted to create other types of content, but I made a huge mistake by not focussing on finding a new niche market. I more or less became a handyman, a jack of all trades, instead of a specialized problem solver.
It became much harder for me to get my hands on the projects I wanted to do because potential clients couldn’t assess whether I would be the perfect problem solver for them, and I almost ended up bankrupt.
Find your video production Company niche.
If you want to save yourself a lot of headaches (and money), my advice is to specialize in something specific, like a genre, a (technical) skill, or a particular type of video content.
I know first-hand that finding and choosing a niche market to dedicate yourself to can be challenging because how do you pick one if you like to do everything, right?!
But by not making a choice, you’re making it very hard for people to decide whether or not your video production company is the perfect problem solver for them. So you have to ask yourself if you want to be good at three things or great at one?
To find your niche, try to do anything and everything, in the beginning, developing your skillset and portfolio, and discover what type of content you enjoy creating. Then try to focus on a niche market to specialize in.
The more specific you can label your services, the easier it will be for clients to decide to work with you and the higher prices you’ll be able to charge without raising questions.
Tip 2. Don’t invest in gear
We live in a time in which the craft of filmmaking seems to get lost in the noise of product commercials, tutorials, unboxing videos, and product reviews.
All we seem to care about is the tools. How that lens, this piece of software, or that camera is better than this one.
Film gear is the wrong investment.
Especially those new to the business fall into the trap of being hypnotized by all the fancy filmmaking tools. I've made this mistake of buying lots of unnecessary gear myself multiple times in the past and looking back at it now. It just wasn't worth it.
I thought I could make a project look good if I owned the most expensive filmmaking gear, the fastest computer, and the latest software package. But buying the best kitchen tools in the world doesn't turn you into a Michelin-star chef.
Although it's a comfortable idea to have a high-end camera at your disposal at all times, the reality is that you don't use it as much as you like. It will cost you a lot of money for insurance, maintenance, and depreciation.
Besides that, technological developments occur at such an insane rate that the stuff you buy today will be outdated within the next 12-36 months!
Use rental companies for film gear.
Nowadays, many camera rental companies offer the latest and greatest filmmaking tools for rent. My suggestion is to get your tools from those companies.
The upside of building a business relationship with those rental businesses is that it will allow you to access the latest market tools at nice discounts.
Only if getting your stuff from rental companies is very hard or exceptionally costly, I'd suggest investing in particular tools. The best thing to go for is a nice set of lenses because those usually stand the test of time and fit almost all (future) cameras.
Regarding cameras, I'd suggest carefully looking at the jobs you do or want to be doing and making a choice based on that.
RED usually offers software updates for their cameras to make them future-proof and upgrade their specs. The downside of RED cameras is that they are pretty expensive to acquire, and the files coming out of these cameras are huge, so you'll also need to invest in a proper hard drive system.
Other than that, investing in a full-option laptop is a great idea so you can work (and market yourself) everywhere on the planet.
tip 3. Diversify your income streams
Starting your own video production company means building an hour-selling factory with inconsistent income.
Your agenda might be filled with projects this month. Still, if something unexpected happens next month (like a Coronavirus pandemic, for example), your hour-selling factory can be out of business while bills still have to be paid.
To survive these nightmare scenarios, I suggest diversifying your income better to withstand the ups and downs of this business model. This means creating multiple revenue streams within the same company, so you’re no longer dependent on one.
build different income streams
That doesn’t mean focusing on acquiring more skills because that will still make you dependent on selling a time-based service. It means building income streams for your video production company, allowing you to make money while doing something else. Passive income!
Although this might not sound like a money-saving business tip, if you can diversify your income streams, you will eventually be able to cherry-pick the projects you want and save yourself a lot of potential financial headaches.
There are many ways to diversify your income streams, so to help you, I’d like to refer to one of my previous blog posts, 'How To Create & Sell Digital Products,' where I explain how I started diversifying my income stream.
tip 4. Have a content marketing strategy
With filmmaking tools being so easily accessible to everyone, the barrier to beginning a video production company has never been lower.
The downside of this development is that you'll have to deal with many more competitors when getting new jobs.
Suppose you want to beat that competition to get new work. In that case, I believe you must become better at marketing yourself and your video production business services to target and reach your audience and get new clients.
This might sound like a very complex thing to do, but it's very simple. You have to get started and be consistent with it.
Build a portfolio website
If you don't have a website yet to showcase your work, get one as soon as possible. My advice is to save yourself the hassle of hiring a web designer to do this for you.
It costs a lot of money, and if something isn't working or you want to change something, going back and forth takes time (and money). I have been there and done that.
My suggestion is to use a platform like Squarespace or Wix. These online platforms make building a website for your company super easy and accessible to everyone of every age. Depending on your subscription plan, they will cost you around €200 per year.
Use a Website Template
Using such a platform will allow you to control the design and content at all times. My website, the one on which you're reading this blog article right now, is built using a Squarespace 7.1 template, and it took me less than a day to create!
Don't focus too much on the idea that it has to look perfect and completely different than everything else. In my experience, when clients enter your website, they generally don't care about funky web designs.
They want to know (fast) if you are the right problem solver for them. The easier and faster you make this assessment for them, the better.
Utilize your website
In marketing your video production company, building a website to display your work is not enough. It's just the first step.
Next, you’ll need people to visit your website, but hoping people will find your website via flashy social media posts and Instagram stories is unrealistic. There is just too much competition out there doing the same thing and playing the social media game.
I believe you also don't have to schedule dozens of cold calls, send lots of emails, and go to endless amounts of meetings and network events.
There is another (cheaper) way to stay on top of mind and find new clients by building an online presence using your website—content marketing.
Share your work through content marketing
By constantly sharing your creative journey, knowledge, and discoveries via blogs or videos filled with potential value, you can position yourself as an expert in your niche and make potential future clients and collaborators come to your video production company instead of the other way around.
I know this might sound a little bit vague, perhaps even unrealistic! So to help you better understand how digital marketing works, I highly recommend reading the book 'Show Your Work!: 10 Ways to Share Your Creativity and Get Discovered' by Austin Kleon, the legend who also wrote, 'Steal Like an Artist: 10 Things Nobody Told You About Being Creative.'
Reading both these books was an absolute eye-opener for me, and perhaps it will be an eye-opener for you as well!
tip 5. Value your time
One of the most valuable lessons I learned recently is that you can always acquire more work, money, and stuff, but you can never get more time. You can only live a moment once; after that, it’s gone forever.
Once I understood and felt this concept, I suddenly started making more thoughtful decisions about whether or not something would be worth investing my time in.
Why is this a money-saving business tip, you might ask? When you run a video production company, especially a sole proprietorship, your whole business model is based on selling a time-based service.
A moment can only be sold once to one client at a time. It’s not like you write a book or design a piece of furniture and sell it an infinite amount of times to endless amounts of people.
Throughout your career, many people will ask you to do work for free or for a very minimal paycheck. Before you say yes and jump on board their projects, determine your desired outcome, so you’re not wasting your valuable time.
Of course, building a sole proprietorship from scratch will always involve an investment in the form of time, relationship building, and gaining work experience. But suppose something requires enormous time investment without a learning curve, job guarantee, or financial fulfillment.
In that case, I’d suggest passing the opportunity and investing your time into marketing yourself online and diversifying your income stream.
Final Thoughts On Starting a Video Production Company
Starting a video production company is a tough job. You might go in with the expectation of filming new projects all the time, but the reality is that you’ll spend most of your time handling the business side instead of the creative side.
What will consume most of your time is paperwork, logistics, finding new clients, and other mundane stuff. This is why diversifying your income streams is a vital thing to do!
If you want to make it easier for yourself to rise above the level of competition when it comes to getting new work, my advice is to specialize and market the shit out of your video production company. I believe too many filmmakers rely too much on word-of-mouth advertising.
This is dangerous because what if something happens to the people you depend on to reach out to you? What if they move to another company, another kind of business, another country, or even worse, pass away?!
Instead, share your creative journey with the world on your website to show you’re the expert in your niche and make people come to you. To do that, I believe you should consistently build on your online presence by continually providing value to others.
I strongly believe you can get what you want by giving other people what they need, so always approach it with the other person in the back of your mind.
While sharing your journey, don’t forget to capture lots of behind-the-scenes material to give potential clients a better understanding of how your video production company works and the scale of the productions you’ve worked on.
I believe that when you share your work and your niche market expertise, people will be far more likely to pay whatever price you put on the table.
Frequently Asked Questions About How to Start a Video Production Company (FAQs)
What do I need to start a video production company?
Business Plan: Start with a clear business plan. Outline your services, target audience, budget, and long-term goals.
Legal Structure: Decide whether you'll operate as a sole proprietorship, partnership, or limited liability company (LLC). Each has different tax and liability implications.
Business Name: Choose a unique company name that reflects your brand and check for trademark availability.
Register Your Business: Register your business with the state and obtain the necessary licenses and permits.
Bank Account: To start a video production company, you must open a business bank account to manage finances professionally.
What equipment is essential to begin with?
Camera and Lenses: Invest in a high-quality camera and various lenses suitable for shoots.
Editing Software: Choose reliable video editing software for post-production work.
Audio Gear: Ensure you have quality microphones and audio recording equipment.
Lighting Kit: Good lighting is crucial for professional-looking videos.
How do I find clients for my video production business?
Website and Social Media: To find clients, create a website, and open an account on all the matching social media platforms, like YouTube and Instagram, to build an online presence.
Network: Attend industry events, join filmmaking forums, and connect with potential clients and collaborators.
Online Ads and SEO: Use online ads and optimize your website for search engines (SEO) to increase online search visibility.
Showcase Work: Develop a portfolio of your work, including various projects like music videos, short films, and local commercials.
What should I charge for my video production services?
Market Research: Research what others in your area and niche are charging.
Value Your Time: Consider your skill level, project type, and production costs to set a fair hourly or day rate.
Project Complexity: Adjust your video production rates based on the complexity and length of the project.
How can I grow my video production company?
Quality Work: Consistently deliver high-quality videos that meet or exceed client expectations.
Expand Services: As your business grows, consider offering additional services like aerial shots or animation.
Hire Employees: When financially feasible, hire skilled employees to handle more significant or more projects.
Invest in Marketing: Invest in marketing to attract more clients and build your brand.
What are the challenges I might face starting a video production company?
Competition: The video production industry is competitive, with many companies vying for the same clients.
Economic Fluctuations: Demand for video production can vary depending on economic conditions.
Technological Changes: Keeping up with rapid technological advances in cameras and editing software can be costly.
Do you have any tips for maintaining a successful video production business?
Stay Creative: Always look for new ideas and creative ways to tell stories through video.
Keep Learning: Industry standards and technologies are constantly evolving, so continual learning is critical.
Client Relationships: Build strong, long-lasting relationships with clients and maintain professionalism in all interactions.
