Video Production

What Is a Video Production Company
A video production company is responsible for the whole production process of a video. From helping to create the initial script to presenting the final result of the video. A video production company is responsible for creation of content such as music videos, explainer videos, commercials, documentaries, feature films, TV shows, and much more. Video production companies go about this in two ways. Projects where they develop the content themselves using their own production team, or projects where they are hired to physically produce content.


The Video Production Business

With the advances in technology, making films has become a mainstream thing. Social media requires companies and brands to show themselves on a regular basis, to stay ahead of their competition. This is where video production companies come into play. Some video production companies make a solid revenue by having a single client or two. Producing commercials, testimonials and films made for the brands social media profiles. You can get paid by a day-rate, hourly rate or flat fee, depending on the project.

In this post, I’ll try to give an understanding of the requirements to start a video production company. Also, I’ll try to help you initiate a strategy to actually become successful within this industry. Here are the elements I will be covering and the steps you need to take to create your personal video production company:

• Create a business plan
• Form a Business Entity
• Get Your EIN and Register for Taxes
• Open a Bank Account
• Get Insurance
• Obtain necessary permits and licenses
• Pick a niche
• Build a network
• Create a website

Choose Your Niche

Determine your company's production niche. What type of video content do you plan to specialize in? Finding your niche is essential for finding your target audience. This is not to say that you have to stay in that niche forever, but in the beginning, you need to find the things you like to do, and focus on producing results and experience. When your business grows, you can always choose to extend to other topics. Finding a specific niche is beneficial for many reasons. When potential clients are looking for a video production company they know what type of video they want. So, if a company needs a testimonial videographer, then they will be searching for that exact type of service.

It's important to narrow your company's brand identity to guide you when choosing projects to produce. If you want to build a successful video production business, you need to narrow your company's brand identity. You have to think in terms of supply and demand. What type of videos   do the people need the most? Which types of videos are they asking for the most? Here is a list of videos that are commonly requested by brands and businesses:

• Product videos
• Customer testimonial
• Marketing videos
• Event videos
• wedding videos
• film and TV production
• TV commercials
• Internet commercials

Learn These Legal Terms

When you get into video production, you will be selling rights to content. Do yourself a great favour and get to know some of the basic terms within the industry. Here are some of them:

• Royalty free
• Copyright free
• Commercial use
• Editorial use
• Creative use
• Retail use
• Exclusive rights
• Non-exclusive rights

In this industry, you also want your contracts and agreements in place. Get a freelance lawyer to help you write a standard set of legal agreements that you use in your productions. If you include identifiable people in your productions, make sure you prepare and have a written agreement between you and the models before selling the production. Otherwise, you can get into big legal problems. Spare yourself the headache, and always have your agreements in place.

Write A Clear Business Plan

Every successful business needs a long-term business plan. The business of videos production is no exception. Before you can reach your long-term goals, you’ll need to outline a clear strategy and identify every significant step to get to your goals. This is what we will call your business plan.

A solid business plan is key to a well functioning production company. Start small and gradually build your business entity to a larger one. Draft a mission statement. Think about where you want to be after your first year. What business opportunities do you see yourself pursuing in three years? Writing a business plan is the best thing you can do for yourself before starting any business. During the process of writing your business plan, you should make sure that you cover every aspect of your goals and ambitions. Here are some of the key elements that should be included in your business plan:

• Executive summary
• Company overview
• Marketing plan
• Startup costs
• Demand for your services
• Financial projections
• Management structure
• Start-up costs
• Mission statement

Form a Business Entity

So before you can start taking in projects, you will need to form a business entity. A business entity refers to how a business is legally organized to operate. This step is important because it establishes your business as legitimate. It may also help to limit your personal liability if your company is ever sued. Whether you are planning a part-time or full-time business model, you don’t want to skip this step. Go to your Secretary of State’s website and file for a company. The four most common structures are sole proprietorship, partnership, limited liability company, and corporation. Select a catchy name that conveys your brand and clearly states what you do. Bear in mind that the structure of your company impacts everything from your earrings to your taxes and your personal liability. The following is a checklist of what you need to do to establish your business:

• Business address
• Registered agent
• Business purpose
• Members/managers or directors/officers names and addresses

Choosing the right name for your production company is important. When registering a business name, I recommend you check for it’s availability in the following places:

• Social media platforms
• Web domain availability
• The state business records
• Online trademark records

Choosing a name can be fun, but it can also be a lot of work. You’ll need to find something that reflects your business plan, while it needs to be unique and not infringe on any other business or brands name. Pick a name that’s unique, embodies your company's identity and is recognisable.

Get Your EIN and Register for Taxes

All LLCs and corporations will need to request a federal EIN (employer identification number) from the IRS. Whether you file corporate income taxes, have employees, or file certain franchise taxes, an EIN is required. The EIN is also a common requirement for opening a business bank account. An EIN is a unique, nine-digit number that identifies your business for tax purposes. It’s your business’s social security number.

Open a Bank Account

A business bank account keeps your business finances separate from your personal finances. Keeping separate finances is essential for maintaining liability protection. As I already mentioned, to open an account you will typically need to bring to the bank a copy of your company articles and the EIN. Using dedicated business banking is essential for personal asset protection. When your personal and business accounts are mixed, your personal assets are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Get Insurance

Your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of an unforeseen event takes place. All video production companies need insurance. These insurance costs can vary depending on where the business is located and the number of employees. The best thing to do is to request quotes from multiple providers and comparing those quotes. The most common insurances are as follows:

• General liability insurance 
• Errors & omissions insurance
• Professional liability insurance
• Commercial property insurance
• Worker’s compensation insurance 

Necessary Permits and Licenses

Make sure you get and meet the necessary state and local business licensing requirements. Failure to acquire necessary permits and licenses can result in hefty fines. In really cases not having the necessary permits or licenses can even cause your production company to be shut down. Each state has their state permits and licenses. Make sure you look into your state requirements. You cannot operate operate a film production company without. Do your own research into licensing requirements in your state or whichever state you are planning to do a production in.

Make Videos for Family and Friends

A really good way to get your video production business kick started, is by offering your services to family and friends. Start by offering your services at a highly discounted price. You can even make some videos for free in order to build a website portfolio that leads to paid work. Spread the word about your business on social media accounts such as Facebook, Instagram and Pinterest. Share your work so people can see your great production skills. Experiment with different projects. Practise makes perfect. Keep working on your skills and make money in the process.