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Video Production Business Plan Sample

SEPT.01, 2013

Video Production Business Plan Sample

Introduction

With the evolution of technology, the competition has been more acute than ever before in any field. The video production business has maintained an extremely outstanding growth for so many years. If you are starting a video production company, you should create a complete and detailed  video production business plan . Movie production world makes millionaires every now and then. If you are all set to take the next step, you need to plan a professional business planning .

Frequently asked questions of business video production

When drafting  video production studio business plan , you need to consider the following questions –

  • What is your target market?
  • Which technology is involved? What types of video equipment you are going to use?
  • Do you have well-qualified videographers?
  • What would be the cost of recording and processing equipment?
  • How you are going to distribute your videos?
  • What marketing channels you are going to use?
  • How you are going to charge for your services?

Plan summary for the video production company

If you are thinking about the overall summary of your videography business plan, we recommend you to work from your priorities. An executive summary is your pitch as it explains why you want to start your video production business. You need to make it catchy so it can reflect what you want to execute in your business. It is wise to know your niche market and the type of output, which is expected.

Market analysis

When doing marketing analysis for your  video editing business plan , you need to analyze your niche, competitors, and capabilities of your business. It is a very vital segment in this business plan. If you are starting up, you need to consider your strengths and weaknesses. Instead of personal strengths and weaknesses, consider the bigger picture. Highlight how you can improve, what you can get the most of, and what may be the threat to your business growth.

The market analysis is having four major things involved such as-

  • Your strengths in handling the business
  • The weaknesses you are having
  • The opportunities for your business
  • The effects of thread on your business

Management video production

Video Production Business Plan Sample

In this section of the  video production marketing strategy , you need to decide what information about the management and staff you want to add. How you are going to run your daily operations to solidify both your finances and marketing work? These are the known and important parts of the business plan. In addition, you can explain if you are going to fix the hours limit or you want to work with account managers to keep the history of your expenses.

Marketing plan

While creating the  video production company business plan pdf , you need to define your plan as to how you are going to promote your video production business. The materials of marketing you produce are the most important part of a successful video production business.

If you have your own website, that is a huge plus to display the marketing materials over there. In addition, promoting your business through network marketing is the best option for business and personal growth. For this, you need to have a good network where you can describe and show the videos.

Finance plan

Some businesses start with early bird process, where clients can expect the best services at the best prices. It is often a valid option to start out.

The financial plan for your video production business must have the following highlights-

  • You projection towards the incoming fund through all the videos.
  • Your target audience and the frequency of money based on the videos.
  • The information of your repayment if you have any dues.
  • How you are making the transaction or payments.

How to order writing business plan video production?

OGS Capital is your one-stop destination for  business plan template for   video   production company  and can help you find different investors, including banks, business for angel investors etc. Complete an online form and our experts will get back to you.

Download Video Production Business Plan Sample in PDF

Professional writers OGS capital specialized also on theme such as wedding photography business plan , film business plan , photography company business plan , pet photography business plan , art gallery business plan , record label business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Production Company Business Plan Template

Written by Dave Lavinsky

Production Company Business Plan

Production Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their production companies.

If you’re unfamiliar with creating a production company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a production company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your production company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a production company or grow your existing production company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your production company to improve your chances of success. Your production company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Production Companies

With regards to funding, the main sources of funding for a production company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for production companies.

Finish Your Business Plan Today!

How to write a business plan for a production company.

If you want to start a production company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your production company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of production company you are running and the status. For example, are you a startup, do you have a production company that you would like to grow, or are you operating a chain of production companies?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the production industry.
  • Discuss the type of production company you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of production company you are operating.

For example, your production company might specialize in one of the following types of production companies:

  • Feature Film Production Company : this type of production company handles all of the necessities that go with producing a major film – hiring on-screen and off-screen talent, writers, musicians, location scouts, a team for pre-production, post-production, legal, etc.
  • Commercial Production Company: this type of production company can produce stock footage, short corporate videos, training videos, and creative projects such as music videos and short films
  • Post Production Company: this type of production company handles video editing, special effects, color correction, sound mixing, and editing to eventually produce the final video.
  • Niche Production Company: this type of production company focuses on one specific niche that it has perfected. They often combine the best of animation, commercial, and post-production companies.

In addition to explaining the type of production company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of clients served, the number of films with positive reviews, reaching X number of clients served, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the production industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the production industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your production company business plan:

  • How big is the production industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your production company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your production company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, companies, filmmakers, studios.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of production company you operate. Clearly, small businesses would respond to different marketing promotions than filmmakers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Production Company Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other production companies.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes social media platforms, web developers, apps and even college or university students. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of clients do they serve?
  • What type of production company are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide concierge services or customized packages for your clients?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a production company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f production company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide video editing, music editing, pre-production, or post-production services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your production company. Document where your company is situated and mention how the site will impact your success. For example, is your production company located in New York or Los Angeles, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your production company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Be part of filmmaker associations and networks
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your production company , including client communication and interaction, planning and producing production services, billing clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your production company to a new city.  

Management Team

To demonstrate your production company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing production companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a production company or successfully running a small filmmaking company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 films or videos per day, and/or offer production packages ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your production company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a production company:

  • Cost of equipment and production studio supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio location lease or a list of production services you plan to offer.  

Writing a business plan for your production company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the production industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful production company.  

Production Company Business Plan FAQs

What is the easiest way to complete my production company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your production company business plan.

How Do You Start a Production Company Business?

Starting a production company business is easy with these 14 steps:

  • Choose the Name for Your Production Company Business
  • Create Your Production Company Business Plan
  • Choose the Legal Structure for Your Production Company Business
  • Secure Startup Funding for Your Production Company Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Production Company Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Production Company Business
  • Buy or Lease the Right Production Company Business Equipment
  • Develop Your Production Company Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Production Company Business
  • Open for Business

Don’t you wish there was a faster, easier way to finish your Production Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to hire someone to write a business plan for you from Growthink’s team.

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Production Company Business Plan Template

Written by Dave Lavinsky

Production Company Business Plan

You’ve come to the right place to create your Production Company business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their production companies.

Below is a template to help you create each section of your Production Company business plan.

Executive Summary

Business overview.

ABQ Reels Video Production is a startup production company located in Albuquerque, New Mexico. The company is founded by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.

ABQ Reels Video Production will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels Video will be the go-to production studio in Albuquerque for its tailored approach and client-first focus. The company will be the ultimate choice for customer service while ensuring the highest quality standards for production in the area.

Product Offering

The following are the services that ABQ Reels Video Production will provide:

  • Content Development
  • Sourcing & Hiring Film Crew
  • Planning & Logistics
  • Post-Production Services

Customer Focus

ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects, commercials, and social media. No matter the customer, ABQ Reels Video Production will deliver the best communication, service, and customized production tailored to fit each project’s needs.

Management Team

ABQ Reels Video Production will be owned and operated by Mark Johnson. Mark is a graduate of New Mexico University with a degree in Film Production. He has over 25 years of experience working in video production, and over ten years as a production manager. Mark will be the company’s Chief Executive Officer and Production Manager. He will oversee the production process, production equipment, and production staff’s activities.

Mark has recruited a business management expert, Emily Martinez, to be the company’s Chief Operating Officer and help oversee the production business operations. Emily will handle the day-to-day operations, including budgeting, client relationships, and logistics.

Mark and Emily have recruited an experienced marketing director, Steve Smith, to become a member of the ABQ Reels Video Production management team. Steve is a graduate of the University of California with a bachelor’s degree in marketing. Mark and Emily rely on Steve’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

ABQ Reels Video Production will be able to achieve success by offering the following competitive advantages:

  • Skilled team of production experts and project management professionals who will oversee each project from start to finish and ensure the customers’ needs are met.
  • ABQ Reels Video Production is able to provide production services for a wide range of purposes using the latest production technology.
  • The company is able to leverage the expertise of its leadership team to provide customers with the best possible production services from knowledgeable industry veterans.

Financial Highlights

ABQ Reels Video Production is seeking $800,000 in debt financing to launch its production business. The funding will be dedicated towards securing the production facility and purchasing production equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

  • Facility build-out: $340,000
  • Production equipment, supplies, and materials: $280,000
  • Three months of overhead expenses (payroll, utilities): $160,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for ABQ Reels Video Production.

Company Overview

Who is abq reels video production.

ABQ Reels Video Production is a newly established production company in Albuquerque, New Mexico. The company will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels will be the go-to production studio in Albuquerque for its tailored approach and client-first focus.

The company will be the ultimate choice for customer service while providing the highest quality standards for production in the area. ABQ Reels Video Production will be able to guarantee the highest quality standards for all of its productions thanks to the latest and most innovative production equipment and oversight from industry veterans. The company’s team of highly qualified professionals experienced in production and project management will oversee each project from start to finish.

ABQ Reels Video Production History

ABQ Reels Video Production is owned and operated by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.

Since incorporation, ABQ Reels Video Production has achieved the following milestones:

  • Registered ABQ Reels Video Production, LLC to transact business in the state of New Mexico
  • Has identified the ideal facility for lease to set up the business operations
  • Reached out to numerous contacts to include former colleagues, employees, and production assistants to start putting a skilled core team together
  • Began recruiting a staff of accountants, production assistants, and sales personnel to work at ABQ Reels Video Production

ABQ Reels Video Production Services

Industry analysis.

The production industry in the U.S. is a $26B market with approximately 6.3K businesses and over 46K employees nationwide. The outlook for the production market is positive with demand expected to remain steady over the next several years.

The production industry can be categorized by type of production. Some of the most common types of production companies are film production, TV production, commercial production, and post-production. Production companies perform a wide range of services including scripting, casting, hiring, planning, and logistics. Some production companies handle large-scale projects like major motion pictures, while others specialize in small-scale projects like commercials.

Some of the most significant demand drivers are the growing popularity of streaming content, consumer preferences for viewing on smartphones, and social media influence. All of these factors have contributed to increased demand for content, which leads to increased demand for production services.

Customer Analysis

Demographic profile of target market.

ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects such as video for commercials and social media.

The precise demographics for Albuquerque, New Mexico are:

Customer Segmentation

ABQ Reels Video will primarily target the following customer profiles:

  • Small Businesses in Albuquerque in need of commercial production services
  • Mid-Sized Businesses in Albuquerque in need of commercial production services
  • Individuals and groups of people in Albuquerque who need video production services for small personal or professional projects

Competitive Analysis

Direct and indirect competitors.

ABQ Reels Video Production will face competition from other companies with similar business profiles. A description of each competitor company is below.

VIEWR 1st Video Production

VIEWR 1st Video Production is one of the largest commercial production companies in Albuquerque, New Mexico. The company provides a variety of production services including content development, logistics, and film crew recruitment. VIEWR 1st Video Production specializes in creating commercials for local businesses to use in their advertising campaigns. VIEWR 1st Video Production aims to deliver high quality production through the latest production equipment and experienced crew. VIEWR 1st Video Production’s team of production professionals are well-known in the area for their outstanding commercial work.

Albuquerque’s Best Productions

Albuquerque’s Best Productions is a small production company established in 2005 that caters to local businesses and residents in Albuquerque, New Mexico and surrounding areas. Albuquerque’s Best Productions provides pre-to-post-production services for projects of various sizes and purposes. The company also provides tours of the production facility to local residents, businesses, and schools for a nominal fee. The owners of Albuquerque’s Best Production are former production assistants of some of the biggest production companies in the nation so they understand the production process from start to finish.

SPESHAL EFFEX

SPESHAL EFFEX is a trusted Albuquerque, New Mexico-based production company that provides superior production services to clients in Albuquerque and the surrounding areas. Established in 2018, the company is able to provide a wide variety of production services using its state-of-the-art production equipment. SPESHAL EFFEX serves local business owners, students, and individuals on small-to-large scale video projects. The company prides itself on being the number one choice for innovative special effects used in all of its videos.

Competitive Advantage

ABQ Reels Video Production will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

ABQ Reels Video Production will offer the unique value proposition to its clientele:

  • The company is able to leverage the expertise of its leadership team to provide customers with the best possible production process from knowledgeable industry veterans and project management professionals.

Promotions Strategy

The promotions strategy for ABQ Reels Video Production is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure ABQ Reels Video Production maintains an active social media presence with regular updates and fun content to get customers excited about production.

Professional Associations and Networking

ABQ Reels Video Production will become a member of professional associations such as the American Production Company Association, Albuquerque Video Production Society, and the New Mexico Video Production Association. The leadership team will focus their networking efforts on expanding the company’s vendor and client network.

Print Advertising

ABQ Reels Video Production will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local businesses who are in the target market.

Website/SEO Marketing

ABQ Reels Video Production will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that ABQ Reels Video is able to provide. The website will also list information on the company’s events and client success stories.

The marketing director will also manage ABQ Reels Video’s website presence with SEO marketing tactics so that when someone types in a search engine “Albuquerque production company” or “video production near me”, ABQ Reels Video Production will be listed at the top of the search results.

The pricing of ABQ Reels Video Production will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s production services.

Operations Plan

The following will be the operations plan for ABQ Reels Video Production.

Operation Functions:

  • Mark Johnson will be the CEO and Production Manager of the company. He will oversee the production staff, production process, and the production equipment. Mark has spent the past year recruiting the following staff:
  • Emily Martinez – Chief Operating Officer who will manage the budgeting, vendor and customer relationships, and day-to-day logistics.
  • John Miller – Accountant/Bookkeeper will provide all accounting, tax payments, and monthly financial reporting.
  • Steve Smith – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

ABQ Reels Video Production will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease on the facility

12/15/2022 – Finalize personnel and staff employment contracts for the ABQ Reels Video Production management team

1/1/2023 – Begin build-out of the facility, purchase equipment, and set up for production

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2032 – Finalize contracts for initial production assistants, sales personnel, and office staff

3/15/2023 – ABQ Reels Video Production officially opens for business and starts taking on projects

Financial Plan

Key revenue & costs.

The revenue drivers for ABQ Reels Video Production are the fees charged to customers in exchange for the company’s production services. When it comes to pricing, the studio will monitor production costs, average prices charged by competitors, and market demand to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a production company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average number of minutes produced per month: 12,000
  • Average fees per month: $36,000
  • Overhead costs per year: $840,000

Financial Projections

Income statement, balance sheet, cash flow statement, production company business plan faqs, what is a production company business plan.

A production company business plan is a plan to start and/or grow your production company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your production company business plan using our Production Company Business Plan Template here .

What are the Main Types of Production Companies?

There are a number of different kinds of music companies , some examples include: Feature Film Production, Commercial Production, Post Production, and Niche Production Company.

How Do You Get Funding for Your Production Company Business Plan?

Production companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a film production company  or a film production company business plan.

What are the Steps To Start a Production Company?

Starting a production company  can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Video Production Business Plan - The first step in starting a business is to create a detailed video production company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your production company . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your production company  is in compliance with local laws.

3. Register Your Production Company   - Once you have chosen a legal structure, the next step is to register your production company  with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your production company , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Production Company Equipment & Supplies - In order to start your production company , you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your production company . This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

How to Start a Production Company A Complete 12-Step Guide - Featured

How to Start a Production Company: A Complete 12-Step Guide

S tarting a production company can be incredibly daunting. There are so many business aspects that appear mundane and confusing to the typical creative starting a production company. But the truth is that laying down a proper foundation is essential for any new production company to grow and prosper. In this article, we outline twelve steps on how to start a production company in the modern age. Let’s dive in. 

How to start a production company 

1. research the market.

Getting started right away and shooting anything and everything possible might sound like a great idea when starting a production company. But before you shoot a single shot, it is important to do your market research. This is important for companies producing either independent films or commercial advertisements. 

When producing an independent film, research doesn't mean you must write a film according to what is popular. But rather understand and determine how the film you want to make can be positioned in the world of indie films, streaming, and top film festivals .

On the topic of the latter, researching film festivals can be the deciding factor that gets your film into film festivals. Here are a few tips on how to choose the right film festival. 

Starting a Production Company Through Film Festivals

If you are aiming to produce commercial work, research is just as, if not more important. Research the market in your specific area and determine how to position your company to fulfill the market needs of your area. 

Research also may involve reaching out and learning from others. Here are the founders of a small production company Dose of Society. They reached out to Gary Vaynerchuk, a well-known and successful entrepreneur, to ask him how to scale a small media company. 

How to start a production company  •  Meeting With Dose of Society

While the advice Gary Vaynerchuk gives them is valuable in and of itself, it is important for you to conduct your own research in your area. It is also important to research competing companies and take note of the services they are offering. Understanding what you’re up against will help you determine how to position and market your company.

Starting a film production company

2. determine your niche.

When starting a production company, you may find that a specific niche excites you the most. For indie film companies, this may be a certain genre such as horror or science-fiction. In commercial production, companies this may be a focus on weddings, restaurants, start-ups, or even gyms. 

Starting a film production company with niches

As the video states, it is important to follow your instincts when determining your niche rather than what others tell you is a great niche to pursue. When first learning how to start a production company, take a look at existing companies and understand what markets are saturated in your area. 

How to start a film production company with no money

3. name your company.

Naming a company can be incredibly fun, but often difficult. When naming your production company, definitely include your personality and have fun with it, but keep in mind a few guidelines. 

It is important to come up with a name that is memorable and easily searchable. It’s easy for company names to get lost in the minutiae of the internet. Utilizing a city name in your company name is a great way to help potential clients find your company more easily. Here is a great Ted talk that discusses how to come up with a great brand name.

How to name your production company  •  Brand Names

It is also important to make sure that your name is original and legally avoids copyright problems. Enter your possible company names into the National Business Register to check if your name is taken. 

How do you start a production company?

4. create a business plan.

One of the most important steps when creating a production company is creating a production company business plan . Without a business plan, starting a company may be easy, but growing it in a sustainable way will be incredibly difficult. 

Putting your business plan on paper will help you and your team gain a clear direction on the company with actionable steps. Here is some first hand advice on how to think about growing a production company.

How to start a production company and grow it

Perhaps most importantly, a business plan can be presented to potential investors, advisors, team members or clients to prove to them that there is a plan for the future of the company. When people are going to invest their money or time into a company, they will want to know that there is a plan behind the idea. 

5. Assemble a team and equipment

While it is always an option to start a company alone as a sole proprietor (we’ll get to that in the next section), working with friends is not only more fun, but it can increase your production value immensely. 

Being a one man or woman show can spread you thin and decrease the level of production on your projects. There will inevitably be projects that come up where you will need to find and hire a great film crew . A proper set will entail a few key positions. What positions are absolutely necessary? Here’s a video to give you a better idea. 

How Many Crew Members Do You Need?  •  Starting a film production company

This team will either be composed of freelancers, employees, or business partners. To determine which you will employ, refer to your business plan and finances to see what best suits your company.

Once you have your crew, using StudioBinder’s film crew list management software will help you stay organized and efficient when managing your crew.

In addition to a team, you will need equipment. When starting a production company, it is common to be on a very tight budget. Production lighting kits , mirrorless cameras , and camera lenses can get pricey. Here is a video that breaks down some essential equipment needs that won't completely break the bank.

How to Start a Production Company With Under $10,000: What Should You Buy?

Keeping your team and production organized is the difference between amauteuer productions and professional productions. Production softwares like StudioBinder’s production management software will help take your company to the next level. 

Related Posts

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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.

How To Start A Production Company - LLC vs S-Corp vs C-corp

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. 

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A guide to creating your business plan

A key part of starting a production company is creating a business plan. And creating a business plan for your new production company can be daunting. Luckily, we’ve covered the fundamentals of how to create a production company business plan in our next article and even included a free template to lay out your business plan. 

Up Next: Creating a business plan →

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How to write a business plan for a video production company?

video production company business plan

Putting together a business plan for a video production company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing video production company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a video production company?

  • What information is needed to create a business plan for a video production company?
  • How do I build a financial forecast for a video production company?

The written part of a video production company business plan

  • What tool should I use to write my video production company business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a video production company business plan is so crucial.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your video production company is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your video production company, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your video production company's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your video production company business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your video production company's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your video production company.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your video production company and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your video production company's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your video production company, let's explore what information is required to create a compelling plan.

Information needed to create a business plan for a video production company

Drafting a video production company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a video production company

Carrying out market research before writing a business plan for a video production company is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may find that there is a growing demand for video production services from businesses that are looking to produce promotional content for their online channels. Additionally, you could discover that there is a potential market for producing educational videos, as more people may be turning to online learning platforms.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your video production company.

Developing the marketing plan for a video production company

Before delving into your video production company business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a video production company

As you embark on starting or expanding your video production company, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A video production company might incur staffing costs such as hiring a camera operator, sound technician, lighting technician, and editor. They might also incur equipment costs such as renting a camera, lighting, microphones, and other necessary production equipment.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your video production company's financial forecast?

The objective of the financial forecast of your video production company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a video production company are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your video production company forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a video production company business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established video production company will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your video production company

The projected balance sheet of your video production company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a video production company business plan example

Analysing your video production company projected balance sheet provides an understanding of your video production company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your video production company's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a video production company is used to show how much cash the business is generating or consuming.

cash flow forecast in a video production company business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your video production company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the video production company is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a video production company.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a video production company business plan

This table helps size the investment required to set up the video production company, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your video production company business plan, let's have a look at the written part of the plan.

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a video production company business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your video production company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your video production company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your video production company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your video production company, you may want to highlight the local access to a variety of resources that could benefit your business. You could point out the potential to tap into a large pool of creative talent that may be available in the local area. Additionally, you may want to emphasize the potential for easy access to a wide variety of filming locations, as well as potential tax incentives that could be available. All of these elements could be attractive to a third-party financier.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your video production company business plan should include a detailed description of what your company sells to its customers. 

For example, your video production company might offer customers video production services such as filming, editing, and animation; video marketing services such as creating and promoting videos for social media platforms; and video consulting services such as helping clients to develop a video strategy. These products and services can help customers to create content that is engaging and tailored to meet their needs, while helping them to reach new audiences and grow their business.

The reader will want to understand what makes your video production company unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the video production company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your video production company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your video production company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include small businesses. These customers may be looking for an affordable way to create promotional videos to market their products or services. They may also be seeking assistance in making short videos to post on their social media channels.

In the competition subsection, introduce your main competitors and explain what sets your video production company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your video production company.

5. The strategy section

When writing the strategy section of a business plan for your video production company, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your video production company could face a variety of risks. For example, there might be a risk of not meeting deadlines due to unanticipated events, such as equipment malfunction or illness. Additionally, there could be the risk of not obtaining the necessary permissions or rights to use copyrighted material. Taking the time to understand these risks and plan for them may help to mitigate potential losses.

6. The operations section

The operations of your video production company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your video production company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as expensive camera equipment and editing software that could be of great value to the company. Additionally, the company might have intellectual property such as scripts that could be used to produce original content or existing footage and audio that could be used to create compelling videos.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a video production company business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my video production company's business plan?

There are two main ways of creating your video production company business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your video production company's business plan

Using online business planning software is the most efficient and modern way to write a video production company business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your video production company's business plan

Outsourcing your video production company business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your video production company business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your video production company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your video production company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your video production company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
  • A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
  • A business plan has 2 main parts: a financial forecast outlining the funding requirements of your video production company and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your video production company business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

  • How to write a business plan to secure a bank loan?
  • Key steps to write a business plan?
  • Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a video production company? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Video Television Production Business Plan

Start your own video television production business plan

Evergreen TV Productions

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

EvergreenTV Productions, Inc. is a multi-faceted company, with the potential to branch into new venues as the company grows. There are currently three phases to development, beginning with our home division. By developing this division to include three stores in the Tampa/St. Petersburg area, we can generate enough revenue to assist in the growth of two other divisions; tour and travel, and the business to business division. However, we will need additional funding to accomplish this plan.

The Home Division produces digital video scrapbooks by digitizing customers’ photos, setting them to music, and using selected digital effects to create the video memory. Our operations manual is a business system designed to produce the maximum number of videos per week while maintaining a rigid standard for quality. Using this system, and following this video production business plan, we will generate the revenue needed to allow us flexibility in accepting other projects more commonly associated with a production company, leading into the next division.

The Tour and Travel Division provides specialized production on a wide range of hand-picked projects, depending upon the client’s needs. This division creates videos of local interest for play in doctors offices’ waiting rooms, videos to promote area businesses, and tour/travel videos for tour companies. We will develop this division into a self-sufficient branch within the first year.

The Business to Business (B2B) Division markets the news stories of college and university communications students, and provides a resume posting service for said students. Those stories are sold to small market tv stations nationwide. This division is the heart of EvergreenTV Productions, and the reason for incorporation. After seven months of development, our website is complete. We are ready to revolutionize television news programming. Selecting only the best, we gather an impressive selection of “timeless” news stories produced by college and university students. Market research shows that nearly every day, small market tv stations need “filler” news, either local, regional or national, to complete their newscasts. Many subscribe to costly services, with little choice for story selection. EvergreenTV Productions will provide them with quality news stories, “filler news” which these stations can use for any time, any day, any cast. This division of EvergreenTV Productions is meeting two needs. First, those of students anxious to get professional experience and an introduction into the tv news industry. By promoting their news stories and publishing their resumes on our website, we’re helping them get that first foot in the door. Secondly, the needs of small market tv stations which cannot afford to budget tens of thousands of dollars for news programming.

Short Term:

  • Open two stores in the Tampa/St. Petersburg area by the beginning of year two. Each store will follow a business system designed to operate at maximum efficiency while maintaining the highest standards of quality, as per a franchise.
  • Produce an hour-long video of points of interest with the Tampa/St. Petersburg area to sell to doctor’s offices in the area by the end of month six. Revenue generated by tape sales will be used to support travel and expenses to meet goal three.
  • Generate an inventory of 15 stories for the business to business division by the end of month six, and 50 stories by the end of month nine.
  • Obtain 30 sales to small market tv stations by the end of year one.
  • B2B Division sales increasing to XX by the third year.
  • Build B2B news stories inventory to a minimum of 300 stories by the third year.
  • Open two home division stores per year in various markets throughout state. i.e., Naples, Miami, Orlando, Jacksonville, Pensacola. Each store following our business system to maintain consistency and product control.
  • Maintain a profit, to reinvest into business and further expansion.

Keys to Success

Home Division:

  • Product quality. Begins with a complete customer’s understanding of the process. Customers should be comfortable turning over their treasured photos for production, and should be completely satisfied with the end product.
  • Implementation of business system. Every employee should be fully trained and able to assist other employees in the goals and objectives as defined within the business system. This ensures that the first key to success is achieved.
  • Marketing. Initial market saturation within key customer demographics is essential, followed by an extensive referral program, as outlined in the business system guidelines. Presentations to select demographics, such as retirement villas and professional photographers is vital. Building alliances and co-promotions programs with like businesses (such as wedding photographers, disc jockeys, travel agencies and photo processing centers) is key to further growth.

Tour and Travel Division:

  • Product quality/customer satisfaction. All productions must meet the complete satisfaction of the client, regardless of genre. Employees must be trained to anticipate client’s needs and company’s ability to meet these needs. No project is too small to ignore the importance of quality and customer satisfaction.
  • Development of referral program. This division will not actively seek projects, but will respond to the needs of referral clients. A well-defined web of referrals will contribute to the consistency of client’s expectations and this division’s output.

Business to Business Division:

  • Product quality. Extensive review of each story submitted. Guidelines sent to communications professors to encourage the development of these stories.
  • Marketing. Consistent, repetitious and personal contacting of colleges, universities, technical schools, as well as tv stations in the bottom 115 Nielsen markets. Fresh news releases notifying students and stations of upcoming stories. Faxes, newsletter mail-ins, and a constantly updated website promoting the students and product.
  • Management. On-time product delivery. Budgets under control. Legal and accounting advice concerning new development or budgeting, such as QuickBooks instruction and copyright/trademark requirements.

“In the factory Revlon manufactures cosmetics, but in the store Revlon sells hope.” Charles Revson, founder of Revlon.

While EvergreenTV Productions, Inc. operates as a production company, it sells personal memories, opportunities and trust.

The home division creates video scrapbooks set to music, but sells memories and quality service. Customers must trust that we cherish their photos and will produce every video as if for our own families. Our employees must feel equal to the standards expected of them, and feel free to contribute new ideas to improve upon our business model. Employees are also our internal customers, and should be treated with the same respect given to customers who walk through the door.

The tour and travel division maintains an open mind to new video projects, so the client understands that his goal is our objective. While we will suggest alternatives and bring our experience to the table, we hold the client’s goal as the primary target. If we cannot achieve our client’s goal, we will present that information in our initial encounter and suggest other possible production means, rather than altering the project to our comfort level.

The business to business division of EvergreenTV Productions, Inc. understands the frustrations and needs of small market tv news, and the desire of broadcast students to become part of the tv news environment. Using skills developed in tv newsrooms, EvergreenTV Productions provides a service and a product which match the quality and expectations of tv news directors. It makes professional experience accessible to hundreds of broadcast students every year. It unites students with stations, according to industry quality standards. While keeping these standards high, it makes a profit and generates cash. It provides a personal service and guidance system to students. It provides a professional service and an affordable programming opportunity to stations. And EvergreenTV Productions constantly searches for innovative news programming ideas to take this company to the next level, while loyally serving its clients in every possible capacity.

Video television production business plan, executive summary chart image

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

EvergreenTV Productions is a multi-faceted production company operating on three basic levels.

The Home Division of EvergreenTV Productions is centered around one product. Using the most advanced, all-digital editing equipment, our company turns standard photos into video “scrapbooks” of various length and style, all set to selected music backgrounds. Customers are given a free consultation to review the process, help in selecting needed music, and given an explanation of each of the four packages of videos from which they may choose. Each package is a detailed rate plan, with varying costs. By using this free consultation, customers are assured a unique and personalized video.

The Tour and Travel Division handles various projects which may present themselves to our production company. This division is not primarily a revenue generator, but is vital to the growth of the company. Projects will be hand picked based upon a referral system. By minimizing the number of projects, we control quality and reputation as a production company which specializes, rather than an all-encompassing production facility which forsakes quality for quantity of projects. This division is responsible every quarter for producing a new hour long video of areas of interest around Tampa Bay.

The Business to Business Division (B2B) is the heart and soul of EvergreenTV Productions, the center of the vision for which the company began. It is a marketing service for college and university students of broadcasting, and a news programming service for small market tv stations. News directors are encouraged to contact the students for job openings, and students are given an account history of which stations purchased their story. These stories are marketed to the bottom 115 (Nielsen market) tv stations nationwide.

EvergreenTV Productions, Inc. started in Tampa, Florida in October 2000. It is a privately owned, Florida corporation, Subchapter S.

Company Ownership

EvergreenTV Productions is a privately-held Subchapter S corporation owned in majority by its founder and president, Louanne Walters. There is one other director, Bobby G. Walters, Louanne’s father, who is also vice-president. Louanne owns 70%, with Bobby owning 30%. Shares are available for additional ownership.

Company Locations and Facilities

All equipment and office management space is held within one room, approximately 10×10 feet at Louanne Walters’ home.

We are currently looking for an initial storefront, and have priced several in the North Tampa and Carrollwood areas. Needed space is 500-750 sq. ft. In these areas, price per square foot runs $1-$1.50, or approximately $500-$1,125 per month for rent. Many of these locations include utilities.

Start-up Summary

Expenses and funding for the business start-up are shown below.

Video television production business plan, company summary chart image

Products and Services

As stated in the Company Summary section, Evergreen TV Productions is a company of three divisions, selling both products and services according to each division.

Product and Service Description

Services include:

  • Marketing college and university students’ news stories to small market tv stations nationwide.
  • Posting students’ resumes for a certain period (three months) on its website.
  • Assigning each student an account from which he/she can contact stations which purchased his/her tape for potential job opportunities.
  • Assigning each station an account from which the news director may contact students as potential future reporters.

Products include:

  • Video scrapbooks, produced from photos digitized and set to music.
  • Tour and travel videos of local, business or other interest for use in area businesses, as advertising of area businesses, or to promote tour agencies.
  • All types of “evergreen” or “timeless” news stories, such as Health, Travel, Business, Leisure, Sports, Politics, Feature Personalities, etc., which may be of interest to stations and their viewers.

Competitive Comparison

We stand apart from our competition in price and value.

Home Division: Currently, production companies are hesitant to offer video scrapbooks due to the amount of work necessary for a minimal return on revenue. They would much rather produce corporate productions with a high fee. Locally, a few companies will produce these scrapbooks, but they charge enormous fees. The reason for this is that they do not have a business system in place to allow them to produce these scrapbooks on a timely schedule with minimal cost. From an informal phone survey we gathered rates for a 10 minute video from $500 to $2,000. Additionally, this phone survey showed no true committment to the production elements of music and digital effects. Again, this is due to having no business system in place to provide these essential elements. It can be compared to a hamburger stand trying to become McDonald’s with no actual system in place to keep quality consistent.

Tour and Travel Division: We offer high value and quality to our customers, and treat every project as if it were the only project. Production companies in general have a reputation for sloppy and careless producing, for overbooking projects, and for inconsistent and exorbitant charges. Our referral acceptance program ensure we will not overbook, we will have a higher degree of responsibility with each customer who is referred, and we cannot charge one customer amount X, and another customer amount Y, as they will probably know each other. The referral program sets us apart, and reassures otherwise wary customers.

B2B Division: CONUS sells yearly subscriptions of regional news to tv stations nationwide for $20,000/year. Dr. Dean Edell sells yearly subscriptions of health news only, for nearly $30,000/year. MedStar sells yearly subscriptions of health news only, for $24,000/year. Mr. Food, Mrs. Fixit, TravelNet and many others all rank in the $20,000 and above category, and all offer only one topic, either health, food, travel, or how-to’s, but not something from each.

At our online website, EvergreenTV Productions offers a variety of topics to chose from, and stations can pick their own five stories each week to match their news or specific story trends, at a lower cost. They can customize their filler news, instead of throwing in whatever is available, making their newscasts flow smoothly, and eventually helping them generate viewers and thus sales, and all at a much more affordable cost.

Sales Literature

EvergreenTV Productions will rely heavily on presentations to retirement villas, business clubs, and other social outlets for advertising the Home Division. The B2B Division will rely upon one on one sales calls to colleges/universities and tv stations, and upon the Internet for e-mails, faxes and advertising of products and services.

Fulfillment

All end product supplies can be purchased locally from Office Depot, Sam’s Club, or Staples, or from a production company on the Internet at minimal cost. End product supplies include tape labels, and VHS/Beta/DVC video tape.

All photos being turned into video are provided by our clients and returned with the finished video product.

For the B2B Division, we do not buy our stories, but trade our marketing and resume services to students for their stories. A legally drawn-up contract is held between EvergreenTV Productions and each student, once his/her story is accepted. By agreeing, the student gives us the story for any commercial use, and he/she agrees to use that story only in job-searching. We then sell the story for profit and expenses (such as video tapes for dubbing purposes).

We also own over $12,000 worth of video and editing equipment, and can do our own stories, at no further cost to the company.

We use both Windows and Macintosh technology in our company. Windows and Office products are used mainly for all databases, word processing, and accounting needs. Macintosh products are used primarily for video editing, and loading video onto our website. We also have all the necessary components for a digital video production center, including cameras, mini-disc recorders, microphones, and lights. All other items can be rented per project at a low cost. Eventually, we would like to include DVD-R drives on our computers, to allow us to copy to DVD, rather than simply VHS tape (Home Division).

In addition to standard computers, scanner-copier-printer centers, we also use electronic faxing via the Internet, cell phone, DSL Internet subscriber line and several video tape recorders of various formats, including Beta SP, SVHS, DVC, and 3/4″. We are currently in communication with a media streaming Internet company regarding posting these news stories on the Internet to be downloaded directly to the tv stations who purchase the stories. This would eliminate the need for hard tape, and would give the stations instant access to stories they could download to their specific tape format.

Future Products and Services

Within the next five years, we will add storefronts statewide, all following consistent guidelines in our business system.

We would like to franchise this store nationwide.

Within the next three to five years, we will add production of our own brand of travel news to our product line.

Market Analysis Summary how to do a market analysis for your business plan.">

Home Division: There are no production companies in the area which currently focus on video scrapbooks. Several smaller companies “can” and “will” produce this for a high cost to the customer. With the advertising by both Apple and Sony focused on home digital video production, the awareness of this type of production is growing within the community, but as yet, no company has stepped up to the plate to offer this product. Consumers are becoming more educated about what can be done, but they do not know how to do it themselves.

For several months, EvergreenTV Productions has promoted this concept via word of mouth to small businesses, consumers on the street, and educated professionals. All show a keen interest in buying the product.

Tour and Travel Division : Many production facilities exist in the Tampa Bay Area; and all are capable of producing professional projects. As this is a referral division only, we do not plan to compete regularly for business. Instead, we will build a web of quality prospects by maintaining high productions standards, and accepting only those clients who come highly recommended. This is not our main focus, but is a tool to generate business and reputation.

B2B Division: EvergreenTV Productions focuses on the bottom 115 (Nielsen) tv markets. These are the markets whose station budgets don’t easily allow an expense of $20,000+ per year for programming services. We will offer the affordable alternative.

EvergreenTV Productions conducted a mail-in survey of 113 stations in the bottom 65 markets. The majority of these do subscribe to CONUS, Dr. Dean Edell, MedStar, or Medical Breakthrough. Of the 10 responses received, four stations did not subscribe to any news provider, but did indicate an interest in “filler news” at a reasonable cost. The conclusion is that many stations need stories, but cannot stretch their budgets to accommodate the high cost of programming. At this time, no service exists like EvergreenTV Productions programming alternative. Numbers for projected growth are not possible without history.

Market Segmentation

Three loosely defined market segments are identified. The “Home Division” category  is by far the largest potential segment and represents the consumer most likely to be our client. 

Video television production business plan, market analysis summary chart image

Target Market Segment Strategy

Home Division: Strategy for the home division is two-fold. First, we must find the appropriate means to communicate our product to potential customers. Because nearly everyone today has the ability to take photos and has a wide selection of photos at home, we must first narrow down our customer base by appealing to the emotions people attach to their photos. Older persons with larger families are more inclined to want to share their family histories. Newlyweds want their family and friends to share in their newfound happiness. By emphasizing these traits (nostalgia and euphoria) we can begin to gain a following for our product. Second, we must find a suitable location for our storefront, which enables us to find customers who share these traits. Malls and movie theaters appeal to “togetherness,” shopping together for gifts, weekend outings, brunch/lunch/dinner dates. The right location will give us access to our primary customers, those who will help us launch the product in the area by word of mouth.

Tour and Travel Division: This division’s strategy relies entirely on our referral program. Doctors’ offices and travel agencies give us a wider demographic schematic, as patients and families of patients are confined to a waiting room during a visit. Instead of watching afternoon televised programming, doctors will be able to provide their clients with informative, educational and entertaining programming as compared to many daytime talk shows.

B2B Division: Because EvergreenTV Productions utilizes the stories of university students, it is important to recognize the average age of a station’s reporters. A previous survey conducted by our company did confirm our experience, in that most small market tv stations hire only young “cub” reporters, as experienced reporters tend to move onward to larger markets and bigger stations. The quality of our product will match the quality of the station’s news. Therefore it is essential to target the bottom markets. This is also important to recognize from the service end of our business, as news directors will be interested in hiring reporters from our pool of news stories.

Market Growth

Home Division: We will be better able to track market growth in this division following the first two quarters of sales. At this time, with no active competition, we expect our growth rate to double and triple weekly. As Tampa Bay is a large retirement community, these numbers could be increasing for several quarters. We then expect to see a slight down curve as the product finds its niche within the community, with a more consistent level of sales.

B2B Division: Market growth can only be gauged by comparing the numbers of programming companies now available to those present a decade before. Ten years ago, Dr. Dean Edell was a radio host in San Francisco, now he’s available in dozens of tv markets nationwide. While the number of markets is not diminishing, the size of each market is changing. Depending upon population readjustment, the markets themselves adjust every year. One station may be in Nielsen market 110 this year, market 98 next year, and market 113 the following year due to population decline in year two and growth in year three.

Market Needs

Home Division: With the advent of digital editing capabilities on home computer systems, more consumers are aware of the potential of creating video scrapbooks, but most are not familiar enough with the technology to accomplish a simple video. Apple and Sony are selling large numbers of these computers despite a recent turndown in the computer industry. Digital still cameras are a must have, with consumers expanding their vocabularies to include “Memory Stick,” “Pixels,” and “Jpegs.” Yet, in the Tampa Bay area, no production companies are actively marketing video scrapbooks. We can use the above product interest, and the continued success of photo processing centers, to create a gauge for interest in this product. However, as with any relatively new product, we will not know the market’s true needs until several quarters of sales.

B2B Division: A void currently exists in the area of news programming. Larger stations are able to budget tens of thousands of dollars per year to support their needs. Smaller stations often rely on extending the weather and sports segments, or sitting on credits at the end of cast to “eat up extra time.” This reduces the newscasts’ value, and thus reduces the price of selling advertising as commercials, which is where tv stations make money.

Other small markets may subscribe to one or two programming services, at the expense of hiring quality personnel. These services limit the news directors and producers, because they have to run whatever story comes down on the satellite link that day. It may have nothing to do with other stories in a cast, or interest to the local viewing audience.

EvergreenTV Productions allows the stations to pick their own stories and run them when needed. In addition, by ordering weekly, they can choose from a constantly upgraded catalogue and pick stories which relate to news they are already running or have run recently. In other words, on a slow news day, CONUS may offer a story from a station in another state about a family lawsuit which has no relevance to that station’s viewers. EvergreenTV Productions, however, may offer a story about “Buying a puppy for your five year old.” It is timeless, and applies to a greater percentage of the viewing audience than the distant family’s lawsuit.

Within the service branch of this division, there is a greater range of competition, but few meet student’s needs. Many news talent agencies and resume services exist. However, none of them offer posting of resumes, marketing of resume tapes, and especially an opportunity to earn professional experience while the student is still in college, at no cost to the student. By positioning themselves with EvergreenTV Productions, students can hone in on various stations who have purchased their stories. They can link directly to those stations for future jobs, rather than send out a multitude of resume tapes in a shotgun style to get a foot in the door. And, they will not have to pay our company 10% of their first salary!

Market Trends

Home Division: The advent of home computers capable of digital editing can certainly be considered a market trend, and one that is highly influential to our home division. As more consumers know of the technology, more interest is created in our product. While large corporations spend millions in advertising to promote these computers, we can take advantage of this advertising second-hand. The interest is created by the large corporations, and we use like advertising and terminology to increase interest in our particular product. A second major trend is with photo processing centers, such as those at Walgreens, offering pictures on CD-ROMS. These centers are already taking pictures to the next level, with the purpose of sharing these memories with family and friends. The logical next step is to put these pictures together in a creative and professional video scrapbook, then copy them to VHS tape or DVD.

B2B Division: One major trend in the television news industry is staffing cut-backs. Newsrooms are using fewer reporters and photographers and replacing them with bought programming. Instead of paying $18,000/year for a reporter and $16,000/year for a photographer, smaller markets are buying news programming services at $20,000/year and saving on salary and health care expenses, while increasing the number of stories running per day. On average, a reporter will turn out one or two stories per day, while CONUS offers the ability to run two or three stories per day.

Another trend focuses on freelancing opportunities for reporters. Many are now working on their own, producing stories bought by several different companies. As tv begins to reflect the magazine industry in freelancing opportunities, more and more reporters will make a living working for themselves. In a long-term analysis, EvergreenTV Productions will be able to utilize these freelancers to do specific stories which fit the mission of our company.

A third trend is greater reliance on the Internet for programming. With the advent of TIVO, viewers can choose what they want to watch when they want to watch it. An even further long-term analysis could lend EvergreenTV Productions the opportunity to provide news that viewers can access specifically without going through their local tv stations. In the short term, local news stations may soon be able to download news stories directly to their control centers, without needing a tape for playback. By initially locating on the Internet, EvergreenTV Productions is putting itself in the position to take advantage of the increasing opportunities of Internet business, while at the present time offering easy access to a catalog of stories for order.

Service Business Analysis

Home Division: We are primarily a production company within the retail industry. Some industries are similar, but as this is new technology, it is a unique industry. At the current time, we know of only a few other production companies which consistently turn out video scrapbooks. The photography industry is similar in creating still pictures for retail.

  • Production companies: Most are individually owned and rarely produce small projects such as video scrapbooks. We do not know of any production companies designed solely for this type of product, but do know of several small corporations who have similar guidelines. The downside to these companies is that they are limited in timely production ability. They cannot accept 10 orders for video scrapbooks simultaneously, as they are set up to produce one scrapbook every two to three days, rather than two to three hours.
  • Photography companies: Like-minded companies which produce wedding, family, vacation, etc., still photos for families to treasure. They do not produce video scrapbooks from these photos.

Tour and Travel Division: We are limiting our production output in this division to a referral basis only. In general, the production company industry is very large, with companies specializing in corporate training videos, tour videos, advertising, etc. They rarely limit their productions to referral only, which means most often they will specialize in one area. To the customer, this means outsourcing to several production companies to meet his needs. A corporate president may have to hire two production companies to produce a training video and a travel video.

B2B Division: We are both a marketing service and news provider. Therefore, half of our business deals within the marketing industry, promoting students, while the other half deals within the news industry, selling news programming to news stations.

  • Industry magazines: For a nominal fee, students seeking employment can post a want ad, specifying the type of job they are looking for. These magazines have good responses from tv stations advertising jobs, but have a lower success rate for students seeking jobs.
  • Internet websites: For a nominal fee, students may post their resume and information on an industry targeted website such as www.tvjobs.com. Thousands of students and currently employed reporters compete for the same positions, again with lower success rates.
  • Network-based programming: Affiliates belong to network news services which provide daily programming on hourly feeds. These stories are limited in region and topic, extremely time-sensitive, and restricted to the affiliation only. NBC affiliates belong to NBC Newschannel. ABC affiliates belong to NewsOne, etc.
  • Subscription programming: For an annual rate, any affiliate may subscribe to these programming services. Their downside is in limiting the stories they offer to one specific topic such as healthcare, travel, or politics, rather than offering a wide variety of topics from which to choose. In addition, stations do not have a choice in which stories to run each day. Either stations can take one story daily from a satellite feed, or stations are sent a week of stories on tape.

Business Participants

Home Division: Most production companies have a full plate with a wide assortment of projects. They are benefiting from the growing need for corporate advertising/projects, and prices on production equipment are continuing to fall.

B2B Division:

Student Services:

  • There are hundreds of national talent agents within the tv industry. A select few work with esteemed firms and take on only proven, exceptional talent. Hundreds of others are available to college students for a fee of 10-13% of their salaries. This is where agents make money, searching for a job for the students, gaining an interview, then reaping the rewards. Fewer reporters are looking for agents due to the fee and the increasing abilities of the Internet. Like travel agents, talent agents are finding their once lucrative positions threatened by the Internet.
  • There are dozens of job search services available, more in the past few years due to the insurgence of the Internet. Most require an upfront fee of $10-15 per month for resume posting service, and the privilege of searching for jobs on their website from those stations which have subscribed to them. They will continue to do well as long as reporters are seeking positions.

Station Services:

  • While there are many production companies, few offer news to tv stations. Most programming services are based in larger markets where their product has taken hold. They offer topic specific news for tv stations nationally, at a high cost. Most generate stories by one well-known personality and offer only one story possibility per day. They make the majority of their revenue from mid-to-large markets. They have a strong position in the industry, and because they are topic specific, do not threaten each other. Internet news on demand, where viewers can watch their favorite station from their home computers, is the biggest threat.
  • Freelance reporters infrequently sell their stories to stations.

Distributing a Service

Home Division: Customers are accustomed to going into retail locations to make purchases or place orders. Having a storefront will provide them with this opportunity. Initially, we will host presentations to explain the product at various outlets such as retirement villas and apartment clubhouses.

B2B Division: TV Stations buy directly from the programming source. A sales representative may call or visit a station for a programming product, or the station may purchase directly via the Internet.

Initially, it will be vital for us to visit one-on-one with small market stations to obtain a base clientele. Those stations across the country will be targeted via telephone and direct mailing promotional kits. Those stations which responded to our initial marketing survey are prime first clients–those who have already defined their needs according to our questionnaire.

Competition and Buying Patterns

Home Division: As with any retail line, customers feel more comfortable and believe they are truly getting their money’s worth when they are given one-on-one attention. It is this attention we will give them in our 30-minute free consultations. Our customers will be more inclined to refer our business and product to friends and family if they believe we do not see them as simply a sale, but as people with needs being met. At the same time, it is essential we see the photos the customer is bringing in, and have the customer present to ask questions and verify the photo placement within the video. This initial attention to detail will also provide our customers with the knowledge that we will produce exactly the video they have in mind.

B2B Division: TV stations are prone to purchase news stories based on the bottom line. If one programming service becomes too expensive, the station will spin off to another programming service for a few thousand dollars less. Small market tv stations do not have this option, as most services are too expensive for their budgets.

EvergreenTV Productions will offer quality news stories at a very competitive price–in fact, half the cost of most other programming services–to gain access to those smaller markets. In addition, having a variety of news topics makes us a hot choice. Stations do not have to spend thousands for only one brand of news, i.e., health stories. They can choose from a wide variety, health, politics, financial, innovative, unusual, personalities, etc.

Main Competitors

Home Division (Video Scrapbook Production Companies):

Family Tree Videos: Strengths: A franchise production company geared toward genealogy, but includes producing video scrapbooks. Good-looking productions revolving around family interviews, documentation, and photos. Weaknesses: The formula is too complex to generate quality products in quantity. Many smaller production companies learn this method first, then give up due to lost time and not enough revenue. Independent Companies: Strengths: Nationwide, dozens of independently owned production companies produce video scrapbooks. Most are your neighbors, businesses you want to trust. Weaknesses: Quality is inconsistent and depends entirely upon the owner’s ability. If you’re not a close friend or family member, you may not get the product you really want or thought you ordered. Due to time constraints and the need for revenue, many of these smaller companies will put video scrapbooks on the back burner for bigger projects, such as weddings.

B2B Division (Programming Services):

Dr. Dean Edell: Strengths: Well known after years of radio and tv broadcasting. Big service, using satellite feeds to get stories to stations. National image, high volume. Weaknesses: Very expensive. At the top of the scale at $24,000+ per year. Limited to one topic, health news. MedStar: Strengths: Competitive pricing, less expensive than Dr. Dean. Utilizes chain of universities for national syndication. Weaknesses: Still too high a cost for smaller markets. Limited to one topic, health news. TravelNet: Strengths: National syndication, high volume. Has satellite feeds to stations. Weaknesses: Generic writing for travel pieces. Limited to one topic, travel news. Too high a cost for smaller markets. Mrs. Fix It: Strengths: Appealing change of gender, national image, excellent writing and presentation. Weaknesses: Too high a cost for smaller markets, limited to one topic, do-it-yourself home/yard/car improvements.

Many other services fall within this category, too many to mention. Some are purely regional and do not appeal nationally. Most are of high cost to small market stations. None that we’ve found offers a variety of news topics.

Strategy and Implementation Summary

  • Create a “gotta have it” campaign. Our marketing efforts need to focus on a) introducing our specific brand of video scrapbooks and b) telling our customers why they and their friends all need one.
  • Emphasize service and quality. Especially as this is a fairly new product to be launched into the market, customers need to know that we will cherish their memories and create a quality video.
  • Emphasize variety and cost savings. We must differentiate ourselves from the large programming services by detailing the variety of news stories and affordable pricing.
  • Build a relationship with schools and stations. Build long-term relationships with professors, deans and news directors to continue service and sales annually.
  • Focus on key schools and markets. We need to focus on building a client base of schools who know and believe in our student oriented objectives, and who will help promote those objectives yearly. We also need to build loyalty and consistent quality with target small market tv stations/news directors.

Competitive Edge

Home Division: Our competitive edge in producing video scrapbooks is in our business system, which allows us a) to produce large numbers of videos while retaining quality, thus giving more customers a grade A product with a short turn-around time, b) to maintain consistency at every location, so customers can be assured they will get the same quality at one store that their friends/family received at another, and c) to train all employees using consistent customer service guidelines from initial consultation through any complaints/issues.

B2B Division: For TV stations, our competitive edge is having a variety of news topics to offer, and at a much more affordable cost to small market tv stations than larger programming services can offer.

For students, our competitive edge is offering a FREE resume service, FREE marketing service for that first job out of school, and a DIRECT connection to news directors in markets known to hire graduating broadcasting students.

Sales Strategy

  • We need to sell the memories and emotions of these videos, not the product. While we produce videos, we create and tap into a lifetime of emotions cherished by our customers. Our advertising and marketing need to reflect this concept.
  • We need to understand exactly what our service is, so our customers will also understand. Our customers must feel confident that we value their memories and emotions as much as our own, and will treasure them individually. An order for a video is not a product order, but a piece of family gold we are holding in safekeeping.
  • We need to sell both the company and the product. As this is a new venture into an antiquated system, generating sales will require an enthusiastic approach in order to renovate the tv news programming concept. In-person sales are essential in the primary stages of generating sales. A reputation for service excellence, news variety and affordable pricing will continue the momentum of sales in the future.
  • We have to sell our service and support to schools nationwide. Gaining the support of deans and professors is a vital element to generating inventory on a yearly basis. By developing a loyal clientele of professors, we ensure continued inventory growth annually.

Sales Forecast

Yearly sales forecasts are shown below and the initial year’s monthly forecast is shown in the appendix.

Video television production business plan, strategy and implementation summary chart image

Strategic Alliances

Home Division: Strategic alliances with photographers, photo processing centers and travel agents will be key to generating sales in the first few quarters. We plan to initiate a co-marketing campaign, by possibly adding on 30-second commercials at the end of each video, promoting a photographer or travel agency. These will be tasteful and placed at the end of the tape, but will also co-promote a like business. In the future, we could sell these spots to like businesses to generate revenue.

Additionally, our alliances with retirement villas will be instrumental from start-up. While these will not involve co-promotions, it will be necessary to build a strong relationship so the villa officials welcome us to their facilities.

B2B Division: We heavily depend upon building a strong alliance with schools to create a substantial inventory to generate sales. The greater the size of inventory, the greater the variety we have to offer stations. We need to concentrate on making as many contacts with schools as possible. If we cannot offer students a marketing position, i.e., a substantial time frame in which we market their stories and post their resumes, we will not have their interest and it would follow, their stories to add to our inventory.

After the first year, the inventory will grow at a consistent rate. However, the first year’s inventory size could well determine our company’s sales success.

Marketing Strategy

Home/Travel Divisions:

  • Build relationships with primary target customers (Market Segmentation section) and like businesses, such as photography shops, photography processing centers, and travel agencies.
  • Emphasize service and quality while building a referral basis.
  • Emphasize variety and affordability.
  • Emphasize service while building relationships.
  • Focus on schools with tv stations and broadcast communications programs.
  • Focus on small market tv stations, bottom 115 Nielsen markets.

Positioning Statement

Home Division: Initially, for people celebrating an event or recognizing a lifetime of memories who would like to share photos of those memories in a video scrapbook with friends and family, our videos provide a special and unique gift opportunity. Unlike standard production companies which produce video scrapbooks in a random and time-consuming fashion, our videos meet consistently professional standards in quality in a timely manner. (See Competitive Comparison section.)

B2B Division: For students about to graduate and seek their first job within the tv news industry, EvergreenTV Productions offers an incredible marketing and resume posting service. Unlike www.tvjobs.com and others, it offers these services for free, and for a longer period of time (i.e., three months as opposed to one month).

For small market tv stations which need news stories daily to fill their newscasts, EvergreenTV Productions offers an affordable programming service. Unlike larger programming services such as Dr. Dean Edell and TravelNet, it offers a variety of programming at half the cost.

Pricing Strategy

Home Division: Our business system has helped define our pricing strategy. If our video scrapbooks are too time-consuming, the customer will be charged an exorbitant amount. If our video scrapbooks are even middle to low quality, we cannot charge the customer low enough. By making the productions both time-efficient and consistent in high quality, we can maximize our pricing to acceptable market levels. Our strategy is also based upon the fact that we are introducing video scrapbooks on a large scale into the market, with no previous history for this product. As our video style becomes more popular, we will be able to adjust the pricing accordingly. We are offering four package styles from which our customers may choose. By charting the most popular package, we will better determine the right price for our product.

B2B Division: Our pricing strategy is key to our offering. If we charge too much, or even 3/4 the price of larger programming services, we are undercutting our potential orders. The market of small market stations cannot bear the higher prices offered by larger programming services.

Likewise, by offering a free resume and marketing service to students, we are ensuring continued interest in our service in exchange for news stories. We need to be positioned to offer payment for these stories a few years down the road. As the popularity of EvergreenTV Productions grows, so will the number of programming services offering similar services.

Promotion Strategy

Home Division: Initially, we will depend upon presentations and business relationships to reach new customers.

  • Retirement villas “social nights:” We have been invited to attend certain nights set aside at retirement villas for residents and family members in which we will present Photo Memories thru discussion and a brief video presentation.
  • Photographers, photo processing centers, and travel agencies: We will form business referral relationships with like businesses to promote the product.

B2B Division: We depend on direct contact with communications deans and professors as our main way to reach students. That contact will be made to specific schools.

  • Promotional Kits. We are sending colleges, universities and technical schools with tv stations on campus promotional kits which will include our objectives and student guidelines for various topics.
  • Campus Visits and Phone Calls. We are contacting the professors and deans directly, either through campus visits or phone calls, to gain the support needed from deans and professors, who in turn are encouraging their students to submit news stories to us.

Distribution Strategy

Home Division: Our primary distribution will be through our storefront, which will also be the order center, consultation location, and production office. To make it easier for our customers at retirement villas, we offer to accept orders at and deliver to these locations.

B2B Division: Our distribution will focus mainly around our website, taking orders and processing them through direct mailings. In the initial period, we will be distributing tapes during person-to-person presentations.

We are prepared to mail on order, via the USPS. Stations may order for regular three-day delivery, up to overnight shipments, depending upon their needs.

Part of the business’s success will be based on planned tasks and timely completion of those steps. The table below lists steps, timeline and estimated budgets.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

EvergreenTV Productions is owned and operated by its founders, Louanne Walters and Bobby Gene Walters. It is a small company with immediate plans for hiring one or two employees per store. Each employee’s responsibilities will be outlined in our business system “Operations Manual.”

As we grow into the Tour and Travel and B2B Divisions, we will evaluate which positions need to be filled first. Long term growth includes plans for an Operations Manager, who will report to the President and handle all accounting and marketing responsibilities. Three managers will answer to the Ops Mgr, one per division. Each manager will be primarily responsible for accounting and marketing within his/her division, and will handle all hiring/training needs.

We currently receive a great deal of advice from outside sources, such as our accountant and attorney; however, we follow the advice which meets our goals and needs.

Organizational Structure

As a start-up, our divisions and departments are inter-related and handled for the most part by Louanne Walters. With time and revenue, we will expand to accommodate several departments: sales & marketing, service and administration, product development, and finance. Each division manager will fill these departments according to specific needs and the company’s business system operations manual.

The following chart outlines the anticipated organizational set-up for the first three to five years of EvergreenTV Productions, Inc.

Management Team

Louanne Walters, president: 33 years old, extensive experience in the radio and tv news industries. Formerly a tv news producer, reporter and anchor. Degree in broadcast communications, seven years with three NBC affiliates (KPOM, Ft. Smith, Arkansas – KRIS, Corpus Christ, Texas – KWQC, Davenport, Iowa) and one year as video programmer with Royal Caribbean International. Extensive public relations background as anchor and cruise director with Royal Caribbean International. Strong writing skills, strong story development and news sense. Attending courses at Small Business Development Center USF. Louanne also has strong sales skills, and is formerly a Toyota new car product specialist, and Voice Stream territory representative.

Bobby G. Walters, vice-president: 61 years old, extensive management background during 33 years with USAF. Degree in business and management. Twelve years as manager with local Wal-Mart stores.

Management Team Gaps

We believe we have strong leadership for developing the concept behind EvergreenTV Productions. At present, our weakest area is in accounting. We are currently taking an accounting course produced by “Great Courses on Tape,” focusing on finance and accounting. Additionally, we have hired Jim Wessman, CPA to advise and aid us in the development of EvergreenTV Productions. Jim is a qualified management counselor, and QuickBooks advisor.

We also need to hire division managers with a well-rounded management background, including human resources, accounting, benchmarking and goal-setting abilities.

Following the opening of stores for the Home Division, we will need to hire an operations manager, with an MBA and at least five years experience with a start-up organization.

Personnel Plan

Details of store staffing is presented in the Personnel Table, below and in the appendix.

We assume hiring employees on hourly pay the first year, and adding a few salaried management positions with benefits the second year. Our management salaries (marketing manager, president, operations manager) as shown below include taxable benefits. Payroll taxes for all employees are shown in the Profit and Loss.

Financial Plan investor-ready personnel plan .">

The most important element in the financial plan is the critical need for additional capital to assist in business operations through the remaining start-up process, and to maintain a positive cash balance for the first fiscal quarters. We do not anticipate any changes to our financial plan through accounts receivables or inventory, as our company operates upon the “payment upon receipt” principal for all goods, and our inventory cycle does not meet the standard criteria.

Moving from a home office to a storefront with employees, introduces greater liabilities. During the past seven month start-up process, we have largely committed to EvergreenTV Productions through personal savings, cashed stocks, personal credit lines and personal long-term loan options.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

We assume access to equity capital and financing sufficient to follow and maintain our financial plan as shown in the tables. We anticipate our financing to hold higher long-term interest than our current loan against stock. We assume that as our company grows, we will be able to utilize a larger credit line, decreasing our expenses in cash. Likewise, our short-term credit line will be available with a lower short-term interest rate, making more cash available.

We assume opening and promoting three stores within the Tampa Bay area before reaching saturation. Likewise, we assume relatively quick initial growth within the Home Division, following our plan of two stores open within the first year, and 10 stores statewide within five years.

We assume many tv markets are, or will become, Internet proficient. We assume most colleges and universities are, or will become, Internet proficient. We assume slow initial growth within the B2B Division. However, the majority of our long-term payments are for one time, or long-term purchases which will not need to be replaced in the first five years.

Key Financial Indicators

The benchmark chart shows the nature of our company. We estimate consistent turns on inventory, as our inventory is available for resale on a constant basis. In our Home Division, we do not keep inventory, but customers bring their photos to us. In our B2B Division, our inventory consists of news stories we will keep on hand for multiple sales. Several stations may purchase the same story, we simply make a copy of that story. Our blank tape inventory will be replenished monthly to avoid keeping a large inventory of tapes.

Our Gross Margin increases with increased sales, but as we have a very low direct cost of sales, this number will only increase fractionally compared to sales.

Sales and Operating Expenses are our closest measurements in this forecast. While sales increase dramatically, operating expenses increase with new stores, additional employees and taxes. However, by maximizing the number of employees within each store, we are also maximizing our location and limiting further expenses that additional storefronts would incur. We are also able to save drastically on advertising expenses, which would naturally increase with each new location.

Video television production business plan, financial plan chart image

Break-even Analysis

We assume running costs which include rent, utilities, office expenses, and an average of travel, advertising and miscellaneous costs. Miscellaneous costs are equal to quarterly costs such as business cards, brochures, bulk tape supplies and occasional equipment rental. Payroll increases every other month as we add new employees.

Video television production business plan, financial plan chart image

Projected Profit and Loss

Profit and Loss projects look very good, with the usual start-up loss limited to the first two months. The monthly projections for the first year are included in the appendix.

Video television production business plan, financial plan chart image

Projected Cash Flow

Cash flow projections are good, as shown in the annual table below, and the monthly table in the appendix. There are only two months of negative cash flow the foreseen the first year, and the all important cash balance shows steady increases.

Video television production business plan, financial plan chart image

Projected Balance Sheet

The balance sheet below and in the appendix show steady increase in net worth over the life of the plan.

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7812, Motion Picture and Video Production, are shown for comparison.

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Filmmaking Lifestyle

Film Production Company Business Plan: The Complete Guide

video production company business plan pdf

The process of film production is a long and arduous one. It starts with the writing stage, where screenplays are written by a writer or multiple writers.

The screenplay typically has at least three acts that have to be edited for pacing and story development purposes. Once the script is finished, it’s time for pre-production!

There’s a lot of misconception about what film production really entails. This article will clear up some of the misconceptions and give you an idea of what it is like on set, as well as how to break into the industry.

FILM PRODUCTION COMPANY BUSINESS PLAN

What is a film production company business plan.

A film production company business plan is a document that can help you to get investors and loans from banks, but it’s also useful for you to see if your idea is viable. It helps you determine if it’s worth investing money, time, and effort.

Film production company business plans are documents that should be created before starting the business.

They will help you gain investors so you can start your film production company and make money out of your films.

A business plan should have all the necessary information about your film company , including the mission statement, executive summary, market analysis, funding request, financial projections, and management team.

Starting a film production company is an exciting venture that blends creative storytelling with the thrill of entrepreneurship.

Crafting a solid business plan is our roadmap to success, ensuring we navigate the complex landscape of the film industry with confidence.

We’ll jump into the essentials of a film production company business plan, from financial projections to marketing strategies.

Stick with us to learn how to lay the groundwork for a thriving production company that’s ready to take on Hollywood.

Executive Summary

When embarking on the exhilarating journey of starting a film production company, the executive summary stands as a pivotal introduction to the business plan.

It provides a snapshot of the company’s vision and objectives, ensuring that potential investors or partners grasp the core of what we’re building.

In our executive summary, we’ll outline the major points that distinguish our company, such as our unique storytelling capabilities and innovative distribution strategies.

We hone in on our competitive advantage – a blend of seasoned industry professionals and fresh talent that pushes the envelope of what’s possible in film.

We’ll also touch upon our foundational goals:

  • Captivate a diverse audience with groundbreaking narratives,
  • Create a slate of projects that showcase profitability and creative ingenuity,
  • Establish a brand synonymous with quality entertainment.

Financial plans are succinctly summarized to demonstrate the strategic allocation of resources and the anticipated financial trajectory.

Here, investors will find confidence in our capability to manage budgets effectively and produce high-return projects.

Marketing strategies are briefly yet powerfully presented, showcasing how we plan to penetrate the market and gain substantial traction.

We outline our approach to leveraging social media , partnerships, and film festivals to amplify our presence and stake our claim in a crowded industry.

Each element of our executive summary is designed to pique interest and invite deeper exploration into our full business plan.

Through it, we lay the foundation for a dialogue with stakeholders that could translate into lasting support for our creative endeavours.

Company Overview

In the heart of our business plan lies the comprehensive Company Overview section, a detailed portrait of who we are and what we stand for.

As seasoned filmmakers at Filmmaking Lifestyle, we take pride in our ability to tell gripping stories through the lens of our cameras.

We offer a range of filmmaking services, but here’s a snapshot of our core offerings:

  • Narrative Film Production – Our signature offering includes developing and producing feature films that resonate with audiences globally.
  • Commercial Video Production – We craft compelling marketing videos that help brands tell their stories and engage with their target demographic.
  • Innovative Content Creation – With the digital space evolving rapidly, we stay ahead of trends producing content that stands out in crowded platforms.

Our mission goes beyond the visual aesthetics; it’s about weaving narratives that leave a lasting impact.

Each project is an opportunity for us to push the envelope in creative storytelling.

At the core of our operation, we strive to achieve a convergence of artistic vision and commercial viability.

Anchored by a team of dedicated professionals, we bring diverse perspectives and skills to every production.

This synergy creates a fertile ground for innovative filmmaking.

Our work ethic revolves around a relentless pursuit of excellence and a commitment to staying on top of the latest industry advancements.

Focused on scaling our film production capabilities, we’re actively exploring emerging technologies and distribution channels to enhance our impact in the industry.

We’re all about staying ahead of the curve, making sure our films are not just seen, but remembered and revered.

With a portfolio that spans various genres and styles, our flexibility allows us to tailor our approach to each unique project.

Collaboration is key – by joining forces with talented writers, directors, and producers, we amplify our ability to craft unforgettable cinematic experiences.

Investing in our growth, we’ve equipped ourselves with state-of-the-art equipment and editing suites, ensuring professionalism and efficiency in our production workflow.

Convergence of art and technology is critical in our approach and is reflected in every piece of content we produce.

eventually, our Company Overview is not just an introduction to who we are; it’s an open invitation to jump deeper into the possibilities and potent potential of partnering with Filmmaking Lifestyle.

We’re here to bring visions to life and curate a portfolio of work that speaks volumes of our passion for filmmaking.

Vision And Mission

video production company business plan pdf

Matt Crawford

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video production company business plan pdf

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Matt .. would you have template of the Biz Plan .. and are you Fine with sharing the same? – AMAAN

Here’s an idea for a template: https://toskaproductions.com/wp-content/uploads/2013/06/TEA-Business-Plan.pdf

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Sample Film & Video Production Business Plan

Film / video production company business plan pdf sample.

A film company is basically in three types: development, production, and distribution. Generally, films cannot be produced without any sort of partnership between any two or more of these various types of film companies.

How far you will go in the film industry will largely be dependent upon your personal abilities, experience in the industry, networking relationships, and a host of other things.

In this article, I would love to share with you a number of steps you must have to take in starting your film company.

  • Research on the Industry

This is the very first step you will have to take in starting your film company. First and foremost, you must carry out a very detailed research on the film industry and decide upon which area you will want to put your talents into use to best see results.

Research on the local film companies in your area, and see what they are doing, and how they are doing it. Pay special attention to the things they are doing well and the things they not doing well. This will help you see areas in the industry where you can take real advantage of.

It will be very helpful if you have some sort of experience in the film industry. If you do not have some level of experience, ensure you get a few years experience in the area you would love to focus on. The bottom line is; you should do everything within your means to learn everything you can about the film industry. This will afford you lots of success in starting your film company.

  • Register your Business

Now, you must get set to go register your film company. Select a good business name and head to the local authorities responsible for business registration in your country, state or area. Make sure to be creative with your business name because this will be your brand name and what you will be identified with.

Most film companies operate as a Limited Liability Company (LLC); you may also want to adopt this business type.

Ensure you have an attorney to help you with all the legal startup processes and subsequent legal processes in the course of managing your film company.

  • Source for Financing

Managing a film company will require finance. You must be able to determine the source of securing finance for your film company. Most filmmakers secure funds for their film company through advances from credit card cash; others secure finance from family, friends, and associates.

If you will be thinking in the line of securing finance from prospective investors, and the bank; then you must be prepared to write a very good business plan for your film company, partnered with good experience in the industry.

  • Hire a Team and Contractors

In running your film company, you will need to set up a team, and hire contractors. Each film production is an entire business on its own, after which, the contractors move on to other works. You will spend your resources organising a team of staffs, producers and contractors to handle each film production.

Usually, film companies do not have permanent offices; office spaces are rented for the period of time the production will go on.

You will require setting up secretariat staffs and office assistants to facilitate the proper operation of your film company. Most film companies require the services of the following 4 key employees: head of development, head of production, head of post-production, and head of film sales and distribution.

  • Set up an Office and get Equipment

In operating your film company, you will not necessarily require a permanent office space for doing your production.

All you need is a temporary office for every single film production. Most of your time will be spent on networking; meeting with stars, producers, directors, investors; and seeking for new projects.

You will also have to secure good and functioning equipment for your film production. You may not necessarily need more than a phone, a computer, and some other equipment when it comes to running your film company.

  • Write a good Business Plan for your Film Company

Nothing will guarantee you more success in running your film making company other than a solidly written film business plan. There are several film company types: development, production, and distribution are all the various types you could focus on.

Once you have decided upon the business type, and the film company type you would want to operate in the film industry, make sure you put everything down in a good movie production business plan.

In your business plan, make sure you detail the source of financing your film company, and also make sure you have a distribution plan detailed in your movie making business plan.

  • Promote your brand

A big part of the success of your film company will result from networking and promoting your brand. There is never a thing as talking too much about your film company and your projects. Keep spreading the word out there. Get it out to as much people as you can.

Develop a website for your film company and encourage people to visit it. Go public on radio, television, newspapers, entertainment magazines, and social media. Have a handy business card and make sure to give it out always, whenever and wherever you meet people. Attend seminars and events and seize the opportunity to talk to producers, directors, and star actors about your film company.

FILM / VIDEO PRODUCTION BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a video and movie production company.

BUSINESS NAME:  Sun Light Film and Video Production Company.

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

  • Market Analysis

Sales and Marketing Strategy

  • Financial Plan

Sales Forecast

Sun Light Film and Video Production Company is a Film and Video Production company that has fully been registered and licensed to operate in New York, United States of America. We have made sure to provide the necessary equipment and facility so as to make our Film and Video Production Company a standard business that will be able to compete with the top businesses in the industry in the whole of the United States of America.

Launching this business would require huge capital from the owner and investors. So far, the owner, Ademola Williams, has been able to raise a major part of the startup capital. The other part will be generated from his business partners and investors, and also from the owner’s bank.

As regards our products and services offering, we will not leave any stone unturned. Sun Light Film and Video Production Company will be built to be very competitive in the industry.

We will nurture our business so as to be able to fully compete with the top Film and Video Production companies in the whole of the United States of America. The following are the products and services we will be offering to our customers:

  • Comedy films
  • Action Films
  • Adventure Films
  • Drama Films
  • Musical Videos
  • Suspense / Thrillers Films
  • Commercials and Advertisement
  • Documentaries
  • Production of Film and Video Programming
  • Sales of Films and Videos Production Equipment

Our vision is very simple, and we will do our best to achieve it. Our vision in the Film and Production industry is to become the number one Film and Video Production Company in all of New York, and to be rated as among the top 10 Film and Video Production Companies in the whole of the United States of America.

Our mission in the Film and Video Production industry is to build and nurture a brand that will not only be known for being standard, but will also be known for delivering very quality and standard movies which all consumers will be able to appreciate not only in the United States of America but also around various parts of the world.

To a great extent, how successful a business would be largely depends on the business structure of the business and also on the quality possessed by the individuals occupying the various roles in the organization.

Sun Light Film and Video Production Company will be a business that will be occupied by very qualified, honest, and competent individuals.

The following are the various roles which will be occupied by the individuals who fulfil our criteria:

  • Chief Executive Officer (CEO and owner)
  • Studio Manager
  • Legal Secretary
  • Film Producer
  • Admin and HR Manager
  • Recording Engineer
  • Sales and Marketing Manager
  • Front Desk Officers
  • Cashier / Accountant

Market Analysis Market Trends

One interesting trend in the Film and Video industry is the viewing of online videos. Statistics has it that hundreds of millions of Americans view online video contents on average daily. This figure is increasing for each day annually, and going forward, this trend will only continue.

Target Market

Having done our research thoroughly, we have come up with the following as the groups making up our target market:

  • Households and families
  • Advertising Agencies
  • Corporate Organizations
  • TV Stations and Radio stations
  • Children, Adolescents and adults

We well know what we want in the industry, and we will do well to accomplish our goal in the industry. In the light of this, we will make sure to recruit our sales and marketing team based on qualification and experience.

Also, we have been able to consult sales and marketing experts, and with their help, we have been able to come up with the following sales and marketing strategies on how to go about promoting our business:

  • First, we will begin by making sure we give out our business introductory letters, as well as print and share our fliers so as to be able to create the awareness about Sun Light Film and Video Production Company.
  • Also, we will make sure to place adverts of our Film and Video Production business on relevant magazines, newspapers, radio and TV stations, et al.
  • We will endeavour to place adverts as well on social media sites such Instagram, Facebook, and Twitter.
  • We will treat our employees and customers nicely and encourage them to spread the word out about our business.
  • We will engage in direct marketing to promote our business.
  • We will make sure to devise employee and customer loyalty package.

Financial Plan Source of Startup Capital

It will cost us a total of $1,000,000 to fully launch our Film and Video Production Company in New York. This amount covers all of our initial expenses including cost of equipment and salary of employees for the first three months.

So far, Ademola Williams have been able to raise $600,000 from his investment and the sales of some of his assets. $200,000 will be contributed by his business partners and investors, while the other part will be sourced from the bank.

First Fiscal Year $1,000,000 Second Fiscal Year $1,750,000 Third Fiscal Year $2,000,000

Above is the sales projection for Sun Light Film and Video Production Company, which has been obtained from available statistical data in the industry. This sales forecast will help us with a concrete guide upon which our annual sales revenue will be checked against.

Above is a very simple and easy-to-use Film and Video Production business plan sample bearing the business name ‘Sun Light Film and Video Production Company’. The business will be owned and run by Ademola Williams, alongside his business partners and investors.

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  • Business Templates
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FREE 8+ Production Company Business Plan Samples in MS Word | Google Docs | Apple Pages | PDF

production company business plan featured

A production company is in charge of planning and filming a particular production or media program. Production firms, in a nutshell, create, promote, and distribute films, digital commercials, and television shows. A production firm, unlike many other businesses, does not run on a continuous income stream; instead, it operates on continuous investments . The profits they make from the productions they do are their only source of income. As a result, if you want your production firm to be successful and profitable in the long run, you’ll need a sound plan. You’ve come to the right place! In this article, we provide you with free and ready-to-use samples of Production Company Business Plan in PDF and DOC formats that you could use for your firm. Keep on reading to find out more!

Production Company Business Plan

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A business plan for a production company can be used to raise financing, create a roadmap, or change direction and figure out the next stages. One of the goals of any business plan is to convince investors or a bank why they should invest in the company. It implies you’ll need this production company business plan to show that you’ll generate money. A business plan is used to assist in the management of an organization by establishing goals, how they will be accomplished, and when they will be achieved. Investors, partners, workers, and management will use your company plan as a benchmark against which to measure development.

A detailed study of asset and capital needs is required when writing a production professional production firm business plan. A Production Company Business Template may help you create the structure you’ll need to guarantee you have a well-written, well-researched strategy on hand. To do so, you can choose one of our excellent templates listed above. If you want to write it yourself, follow these steps below to guide you:

This is the first and most important step in establishing a film company . First and foremost, you must conduct extensive study on the film business and determine which field you will use your abilities to get the best outcomes. Look into the local film firms in your region to discover what they’re up to and how they’re doing things. Pay close attention to what they’re doing well and what they’re not doing well. This will assist you in identifying areas of the industry where you may get a competitive advantage.

A mission statement explains why your company exists. It’s not just about what you do or what you sell; it’s about why you do it. Inspiring and emotive mission statements are essential. They should be rallying cries around which your company’s heart and soul revolve. Less is more in every aspect of your strategy. Your mission statement epitomizes this sentiment. Consider what inspires you, what events and circumstances led to the establishment of your company, the problems you tackle, the larger societal concerns you care about, and so on.

Managing a film firm will necessitate financial resources. You must be able to identify a potential source of funding for your film firm. The majority of filmmakers obtain funding for their film company through credit card cash advances; some obtain funding from family, friends, and partners. If you wish to raise funds from potential investors or a bank, you’ll need to produce a solid business plan for your production company.

Your marketing strategy or plan can be the difference between selling so much that your firm expands rapidly or obtaining no business at all. This portion of your business plan may also be used to emphasize your strengths and what sets you apart from the competitors. Make sure to illustrate what you’ve previously done, what you want to accomplish with your current resources, and what you hope to achieve as a consequence of your efforts.

A production company, house, studio, or team is a corporation that offers the physical foundation for works in the domains of performing arts, new media art, cinema, television, radio, comics, interactive arts, video games, websites, music, and video.

A studio makes films for the general audience, whereas production companies assist other businesses in creating the material they want. Studios, on the whole, are substantially larger and frequently adopt a corporate economic model.

Producers plan and organize different parts of film production, such as selecting the script, organizing writing, directing, and editing, and securing finance, whether they are hired by a production firm or working independently.

Overall, a solid business plan not only assists your production company in focusing on the particular procedures required to see their company ideas through to completion, but it also assists them in achieving short and long-term goals. To help you get started, download our easily customizable and comprehensive Production Company Business Plan samples today!

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    Conclusion. Above is a very simple and easy-to-use Film and Video Production business plan sample bearing the business name 'Sun Light Film and Video Production Company'. The business will be owned and run by Ademola Williams, alongside his business partners and investors. Download PDF. Required fields are marked.

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