movie production company business plan

Film and Video Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a film and video production company ? If YES, here is a complete sample film and video production business plan template & feasibility study you can use for FREE .

If you have ever come across a movie buff, chances are that you will notice the way at which they are able to analyze a movie for expertise or mediocrity. The truth is that these folks can tell when a movie has been well produced. This is one of the reasons why those who are at the helms of affair in the movie production business try their best to churn out quality stuff.

Starting a film and video production company is one of the best things that may happen to you. This is because of the promising nature of the trade. As a matter of fact millionaires are being made every time in the movie production world. Good news still remains that there are newbies every now and then.

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A Sample Film and Video Production Business Plan Template

1. industry overview.

We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21 st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc. et al. These are companies that truly define the trends in the industry.

Basically, film and video production industry is an industry that is responsible for producing and distributing motion pictures and videos. This industry does not include third-party providers such as distributors and disc manufacturers, as well as products, such as television shows and made-for-television movies, aimed specifically toward television et al.

Despite the fact that film and video production business can be expensive to run, the business is indeed a thriving business that has loads of players making huge profits from the industry. One thing is certain, if a film and video production company can successfully produce a major hit movie or musical video; it won’t be too long before video recording contracts come calling from all over the united states and beyond.

Players in the Film and Video Production industry struggled with mounting film production costs and of course the decline in theater/cinema attendance.

It is now common in recent times to find the average movie producers increasingly investing in high – end special effects hence they choose to shift their focus toward generating high ticket sales as against increasing the number of dramas and comedies, which usually generate comparatively lower revenue.

The industry is exploring now maximizing new distribution channels to continue to increase revenue generation so as to break even after spending huge sum of money to produce a movie.

Any entrepreneur who intends to start a film and video production company must be ready to pull enough cash to be able to acquire expensive film and video production gears, for location shooting equipment and professional movie editing software amongst many other expenses associated with movie production.

In other to cut cost especially when starting out, movie producers often rent shooting equipment for a fraction of its cost, which has helped limit the massive capital expenditures that would otherwise be necessary to produce major films.

For instance, in 2015 alone, for every dollar spent on labor, movie producers incur an estimated $0.22 in capital expenditures. In the last five years, capital intensity has remained fairly constant.

The Film and Video Production industry still depend on experts(highly skilled workers and artists) in all stages of the production process, and highly talented and hardworking employees are required for planning, shooting, editing and distributing films.

The Film and Video Production industry is indeed witnessing a steady growth over the years- especially in countries such as the United States, Nigeria, india and China et al. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.

Statistics has it that the Film and Video Production industry in the United States of America, is worth $34bn, with an estimated growth rate of 0.7 percent. There are about 6,527 registered and licensed film and video production companies in the United States and they are responsible for employing about 63,228 people.

One good thing about starting a film and video production business is that even if you decided to start it in the United States of America, your market would not be restricted to business opportunities in the U.S.; the world will be your target market.

Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your film and video production brand on the internet and you will be amazed at the rate people will be calling you from all parts of the world.

2. Executive Summary

Film production is one art that requires a ton of skills. This is so that nothing short of the best is produced. Moonlight™ Film and Video Production Company is a one stop and standard film and video production company that is fully equipped with the latest technology in the film and video production industry.

Our film and video production studio will be located in the heart of Inglewood, Los Angeles – California, U.S and we are positioned to work for a wide range of client ranging from individual clients to corporate organizations, national clients to international clients and players in the Hollywood industry et al.

Moonlight™ Film and Video Production Company will engage in all aspect of business services synonymous to standard organization operating in the film and video production industry.

Our business goal is to work towards becoming one of the leading film and video production brand in the whole of Los Angeles and in the nearest future compete with the leaders in the industry not only in the United States but also in the global stage.

We are not ignorant of the fact that building a standard and world class film and video production company from the scratch requires huge capital base- essentially for the purchase of world – class and latest film and video production equipment; which is why we have perfect plans for steady flow of cash from our business partners with interest in our line of business.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry.

We will ensure that all our employees are selected from a pool of talented and highly creative people with eyes for good movies in and around Los Angeles – California (with bias from Hollywood) and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Moonlight™ Film and Video Production Company our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely and of course producing movies and videos that can compete with the best in the world. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Moonlight™ Film and Video Production Company is owned majorly by Macqueen Reeves and other partners. Macqueen Reeves is a certified and licensed film producer, he graduated from New York Film Academy and he has well over 15 years hand on experience in the film and video production industry working for leading film and video producing companies in Hollywood prior to starting his own film and video production company.

He will build the business alongside other experienced partners who have successfully carved a niche for themselves in the industry.

3. Our Products and Services

We do not want to leave any stone unturned when it comes to producing the best products and services. So, Moonlight™ Film and Video Production Company is going to offer a variety of services within the scope of the film and video production industry in the United States of America.

Our intention of starting our film and video production business in Inglewood – Los Angele is to make profits from the film and video industry and we will do all that is permitted by the law in the US to achieve our aim and business goals. Our business offering are listed below;

Action and adventure films
Comedy films
Drama films
Thriller/suspense films
Musical Videos
Documentaries
Other films (Commercials and Advertisement et al)
Creating a timeline of production for film and video and ensuring that timelines are met
Seeking financing for film and video productions
Producing film and video programming
Publicizing film and video productions
Distributing film and video (if the company is also involved in all of the above)
Film and Video Production Merchandize (Sale of Film and Video Production Equipment)
Film and Video Production Consultancy and Advisory Services

4. Our Mission and Vision Statement

Our vision is to build a standard and world – class film and video production business that can favorably compete with leaders in the industry.
Our mission is to build a world class and well equipped film and video production company that will produce standard movies that can be generally accepted in all parts of the world; we want to build a film and video production brand that can work for clients not only in the United States of America and Canada, but in all parts of the world.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Moonlight™ Film and Video Production Company will build a solid business structure that can support the growth of our film and video production business.

We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading film and video production brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Moonlight™ Film and Video Production Company;

Chief Executive Officer

Entertainment Lawyer/Legal Secretary

Studio Manager

Film Producer

Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Responsible for drawing up contracts and other legal documents for the company
Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
Responsible for managing every activities that goes on in the studio
Responsible for managing the company’s video editing department
Handle any other responsibility as assigned by the Chief Executive Officer
Responsible for developing concept and producing movies from start to finish
Responsible for choosing the right locations to shoot a movie
Works with the accountant and other stakeholders in the company to draw – up a budget for any movie project
Responsible for handle any picture and sound related job for the company; helps achieve certain specific sounds or feelings to portray through that matches with the movie (especially for soundtracks).
Responsible for handling all aspect of video shooting on locations
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of film shooting and studio equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Designs job descriptions with KPI to drive performance management for clients
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Facilitates and coordinates strategic sessions.
Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
Oversees the smooth running of the daily office activities.
Once the movie is ready, then the marketing team will go out to market and promote the album
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients, cinema operators and movie distributors
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Client Service Executive

Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Receives Visitors/clients on behalf of the organization
Receives parcels/documents for the company
Handles enquiries via e-mail and phone calls for the organization
Distribute mails in the organization
Handles any other duties as assigned my the line manager

6. SWOT Analysis

Moonlight™ Film and Video Production Company engaged the services of a core professional in the area of film and video production consulting and business structuring to assist the organization in building a standard and world – class film and video production company that can favorably compete with other leading film and video production brands in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a comprehensive SWOT analysis for Moonlight™ Film and Video Production Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Moonlight™ Film and Video Production Company;

Our core strength lies in the power of our team and the latest film and video production equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

We are well positioned in the heart of Inglewood, Los Angeles and we know we will attract loads of clients from the first day we open our film and video production company for business.

As a new film and video production company based in Los Angeles – the headquarter of film production in the world, it might take some time for our organization to break into the market and attract some well – established artist and bigger corporations and investors; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion our business the way we would want to.

Opportunities:

The opportunities in the film and video production industry is massive especially in a place like Los Angeles – California where we have Hollywood, and we are ready to take advantage of any opportunity that comes our way.

We like other brands in the industry, have our own fair share of threats. Hence, technology and the internet which of course is a major tool for the advancement and gains achieved in the film and video production industry can also poses a threat to the industry.

The truth is that with the advancement of technology, it is now easier for individuals to produce home videos and musical videos without the help of professional film and video production companies. So also, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new film and video production company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

Market Trends

Online video is one major trend in the film and video production industry. Recent statistics from Comscore show that on an average day in 2011, over 100 million Americans viewed online video content. This represents growth of 43 percent over the previous year.

Well over 43.5 billion videos were streamed in December 2011 alone; a 44 percent increase over the previous year. This growth shows no signs of dwindling, as people increase the absolute number of videos they watch, in addition to viewing longer form content on leading video sites such as Netflix and Hulu.

Entrepreneurs that are venturing into the film and video production industry are coming in with creativity and good business skills. The fact that it is highly competitive in the industry does not in a way stop some film and video production companies from declaring profits year in year out.

Another known trend in the film and video production industry is that most film and video production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.

8. Our Target Market

When it comes to film and video production business, there are no exemptions to who you can market your services products to especially finished movies. Your movies can be market to adults, children, teenagers, corporate organization, government and everyone who can afford to purchase a movie et al.

Over and above, our target market as a film and video production company cuts across people of different class and people from all walks of life and corporate organizations. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our products and services.

We have conducted our market research and survey and we will ensure that our film and video production company attracts the kind of artists and clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;

Advertising Agencies
Corporate Organizations (Branding and Advertising Agencies et al)
Teenagers, Adults and Children
TV stations

Our Competitive Advantage

We are mindful of the fact that there are stiffer competition in the film and video production industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Moonlight™ Film and Video Production Company might be a new entrant into the film and video production industry in the United States of America, but our competitive advantage lies in the power of our team and the latest film and video production equipment that we have.

We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups film and video production companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Moonlight™ Film and Video Production Company is established with the aim of maximizing profits in the film and video production industry and we are going to go all the way to ensure that we do all it takes to attract our target market.

Moonlight™ Film and Video Production Company will generate income by offering the following services and products;

10. Sales Forecast

One thing is certain when it comes to movies and documentaries; they never dies and the demand for good movies and documentaries will continue to grow. This goes to show that any film and video production company that is known to always produce good movies will continue to attract talented artists, corporate organizations and clients and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles California and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Los Angeles – California to other cities in the U.S. and even the global market.

We have been able to critically examine the film and video production market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.

Below is the sales projection for Moonlight™ Film and Video Production Company, it is based on the location of our business and other factors as it relates to film and video production start – ups in the United States;

First Year-: $1M
Second Year-: $1.75M
Third Year-: $2.5M

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Our sales and marketing team will be recruited based on their vast experience in the film and video production industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent movies and videos speaks for us in the market place; we want to build a standard and well equipped film and video production company that will leverage on word of mouth advertisement from satisfied clients/artists.

Our business goal is to build Moonlight™ Film and Video Production Company business to become one of the leading choice in the whole of Los Angeles – California which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Moonlight™ Film and Video Production Company is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in the film and video industry (movie distributors and cinema operators) in Los Angeles and other parts of the U.S.
Advertise our business in relevant entertainment magazines, newspapers, TV stations, and radio station.
List our business on yellow pages ads (local directories)
Attend relevant international and local film festivals, expos, seminars, and concerts et al
Create different packages for different category of clients in order to work with their budgets and still produce top notch videos or movies for them
Leverage on the internet to promote our business
Engage in direct marketing approach
Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We are aware that there isn’t any business that despises new clients. This the reason why we have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the film and video production industry by storm which is why we have made provisions for effective publicity and advertisement of our recording studio company. Below are the platforms we intend to leverage on to promote and advertise Moonlight™ Film and Video Production Company;

Place adverts on both print and electronic media platforms
Sponsor relevant TV shows and radio programs
Maximize our official website to promote our business
Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (music online forums) to promote our business.
Offer Pro Bono services as part of our community social responsibility
Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
Brand all our official cars/buses and ensure that our trademark label is boldly printed in all our movies and videos (DVDs) et al

12. Our Pricing Strategy

At Moonlight™ Film and Video Production Company we will keep our fees and prices of videos a little below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce movies or short videos especially for advert purposes.

Payment Options

At Moonlight™ Film and Video Production Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

Payment by via bank transfer
Payment via online bank transfer
Payment via check
Payment via bank draft
Payment via mobile money
Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of setting up film and video production business can be quite expensive especially if you are all out to start a standard film and video production company. Aside from the money required to purchase the latest film recording and production equipment, you would also need a huge cash base to be able to attract and pay well established film actors to act in your movies.

Essentially, this is the area we are looking towards spending our start – up capital on;

The Total Fee for incorporating the Business in Los Angeles, California – $750.
The budget for Liability insurance, permits and license – $2,500
The Amount needed to acquire a suitable Office facility with enough space for standard movie production studio in a business district 6 months (Re – Construction of the facility inclusive) – $200,000.
The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
The cost for equipping the movie production studio with the required video gears – $150,000
The Cost of Launching our official Website – $600
Budget for paying at least 5 employees for 3 months and utility bills – $100,000
Budget for paying actors and taking care of logistics in movie locations – $500,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Miscellaneous – $20,000

Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America. Here are some of the key film and video production equipment and gear that we would need to set up our film and video production company;

Standard Video Cameras
Camera lights/Three-Point Lighting Kit
Shotgun Mic with boom pole accessories
Audio (XLR) Cables
Wireless Microphone
Lenses: Wide Angle, Clear “Protective” Lens, Polarizer, Zoom Lens, Macros, etc.
Light Reflector
DSLR Shoulder Mount Rig
Video Editing Software and Video Editing Computer (MacBook Pro Laptop / Apple MacBook Pro Laptop)
External Hard Drive
Digital video workstation

Generating Funding/Startup Capital for Moonlight™ Film and Video Production Company

Moonlight™ Film and Video Production Company is going to start as a partnership business that will be owned and managed by Macqueen Reeves and his business partners. They are the financial of the business, but may likely welcome other partners later, which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

Generate part of the start – up capital from personal savings
Source for soft loans from family members and friends
Apply for loan from my Bank

N.B: We have been able to generate about $500,000 (Personal savings plus funds from business partners) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Moonlight™ Film and Video Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to ensure that every movie that we produce is a hit back to back and it appeals to the needs of the society we intend selling the movies

Moonlight™ Film and Video Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check:>Completed
Business Incorporation: Completed
Renting of Office Facility: Completed
Setting Up Of The Recording Studio: In Progress
Intellectual Property Protection and Trademark: Completed
Opening of Corporate Bank Accounts various banks in the United States: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of All form of Insurance for the Business: Completed
Conducting Feasibility Studies: Completed
Generating part of the start – up capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with key players in the industry: In Progress

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.

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 →

Thank you for a really useful article with great resources. There is a typo to catch though – it's Gary Vaynerchuk, not Vanderchuck. Thanks again.

Very inspiring I appreciate the knowledge looking forward to

inserting it into my career

Thanks for catching that! It's been fixed.

Note to everyone. For future reference, if you simply say "Gary V". most people will know who you are talking about.

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