Anything beyond that is extra and you get two sets of amendments: i.e. Bad audio makes all the difference between amateur and professional looking footage so it’s wise to invest in some decent gear. However, with a business model as intense as a production company’s. But there are many different kinds of videos you can produce, as managing director at NextShoot Dominic Sutherland explains: “Homepage videos […] product videos for retailers and manufacturers […] internal communications or training content, case studies, which are a form of marketing […] event videos, conferences, webinars” – the list goes on. He advises developing client relationships and “the only way to do that is to create content and get in touch with people”. If you intend to outsource things like camera work and sound recording to freelancers then their daily rate will probably include the cost of renting their equipment. Business Insurance, Websites Sutherland explains that there are “more and more people coming into this space, and the entry point is lower and lower in terms of cost”. Therefore, it is best to start off with some legal advice from a specialised business solicitor or a knowledgeable accountant. However, on its own, this is not likely to make your company succeed. Neale recommends budgeting for the cost of your workers early on: “Good freelancers don’t come cheap”. Video production requires a lot of technical knowledge and skills that can take years to master. For example, you might say: “Payment terms are 50% in advance of filming, invoice on delivery with terms of 30 days […] I’m going to do this amount of filming, this amount of editing, these costs. Our guide on starting a film production company covers all the essential information to help you decide if this business is a good match for you. Confirmation Statements With your social media marketing and other online/offline efforts, as well as networking and conference events, emphasise that you are not one of those production companies that give them all a bad name by overcharging for work that’s really not worth the money. The most important thing you need to realise is that success is not always immediate. Visit our Complaints Policy page if you experience issues. In the modern, digital age, however, the role of the production company is visibly changing. If so, how will you achieve this? Henry has been writing for Startups.co.uk since 2015, covering everything from business finance and web builders to tax and red tape. “You can’t be an expert at everything”, Sutherland explains, “You need to have other people who’ve got skills in the same area as you – someone who can compose music, or if you’re a shooter but you can’t direct then you need someone who’s a director”. But at some point you are going to come unstuck and that’s when you need a helping hand. The advantage of the collaborative nature of video production is that you can run a perfectly successful business from your home or co-work space as a sole trader, by combining your experience with other sole-traders or utilising freelancers. If so – don’t. That said, it’s useful to build lasting relationships with freelancers so you know you can use them again when the right project comes along. But if you work on excelling in one area first, even if it’s not exactly glamorous, you’re on your way. Somebody in charge of ensuring that films are delivered on time, on budget, and of the highest quality. Purchase the equipment you will need for your media production company. Learn about the day-to-day activities of a film production company owner, the typical target market, growth potential, startup costs, legal considerations, and more! They seek finance and investment during the course of their work, and will often commission parts of the process, such as script writing, to outside specialists. Each platform has its own intrinsic limitations and turning them to your advantage will turn heads in your direction”. Online video content is everywhere. Purchase Your Equipment. Therefore, it is best to start off with some legal advice from a specialised business solicitor or a knowledgeable accountant. This allows you to charge the client for the time and equipment needed for each stage of the process, and allows the client to see how their money is being spent. So, think about hiring in the following areas: Somebody who is very technologically savvy, and can turn hours of raw video into minutes of fantastic content in the edit suite. Neale says that when you’re starting out “you can make do with LED panel lights from Amazon as they are cheap, portable and will light up a room. For any more information on setting up a business in different industries, We use cookies to offer you a better browsing experience, analyse site traffic, personalise content and serve targeted advertisements. It’s especially true for video because that’s the way people search for things. Somebody who is persuasive, and able to source and exploit channels of distribution so that the films you make get into the best hands possible. Do some research into what different cameras can offer you – you could even rent a few different models before committing to buying one. He explains that “these things always work on the 80-20 principle. Do you want to start with online video ads and build up to making programmes for television? Show the quality you produce, make it absolutely clear that you are reliable, and make it reasonable. Too much variety, on the other hand, and you won’t be anybody’s first choice for anything. He adds that you need to “define the terms of your offer” with a “set of simple terms and conditions”. Is this the first time you're building a website? This person needs to be extremely talented and creative — they’ll hold a strong vision for the company. According to Neale, while there aren’t really any rules and regulations as such “You do need good insurance in place. Film distribution. Is it really that hard? This is so that you fully understand exactly what your business model will be in order to help secure investment. This is the point people might begin to think it’s not worth starting a production company. Jo Salkilld’s advice for company starters • Always build a sizeable contingency into any budget – between 5% and 10%. This has created a massive and endlessly diverse market for video production. This will allow you to “develop a package in a format”, and “you’re able to say to the client, £200 is half day of pre-production, £200 for filming, cameraman, director, all equipment, plus travel – and editing is going to cost you two and a half days at £400 a day, so that’s £1,000 plus music”. You’ll need to be … The truth about starting a production company. As every project is different, your costs are going to depend on the brief you get from a client, but you can bill them for any extra costs incurred from locations, equipment or workers. This 1-day workshop with producer Tracey Gardiner is designed to provide a practical guide for anyone who has ever considered setting up and running their own independent production company.. It’s not necessary to have your own equipment package to start a company or to start working as a freelance cinematographer. If you intend to use music in your videos “you should avoid using copyrighted music […] unless you have clearly agreed this with the client and they accept liability in writing”. • Keep at least one piece of paper for every financial transaction. Often businesses with large premises and lots of workers will require up to £10m worth of public liability before they will let you film in their office.”. Set artistic goals. You must choose a unique business name to register with Companies House, and you must allocate one or more directors and shareholders. our business plan needs to answer all of these. Starting a Film Production Company, UK. By browsing our site you agree to our use of cookies. Most commonly, indie movies are made with a budget of $1 to $100,000, but it is rare to see an indie movie that has been made for over $100,000. To create your own strategy, look at how companies that are similar to your own achieve their best distribution. While there are traditional distribution pathways for conventional films, most production companies are also establishing their own distribution strategies to ensure that their work gets maximum exposure. Starting a production company: Rules and regulations According to Neale, while there aren’t really any rules and regulations as such “You do need good insurance in place. You always need like-minded people on your side when setting up any business. Things to think about when starting a production company are: In the digital age, the world is full of video content. Just be aware of their limitations and don’t go trying to record a conference on one as most of them have a 10-minute record limit and you might miss some important dialogue just as the camera cuts out.”. professional support. Seek Out Local Talent. Credit Insights, Company Dissolution He continues: “You’ll probably charge something like £1,500” for a project, “and if you are getting 20 of those jobs a year, that would be a salary of £30,000 before tax […] at the bottom end […] after a couple of years, good filmmakers are able to earn around £30,000 – but you have to be good, you’ve got to develop relationships with people who give you regular work”. paulears UKBF Big Shot Full Member. Their most recent production, ‘ They Built It. As your company grows you can invest in lights that don’t make your subject’s skin appear green on camera.”. If you need a location filming permit many places will require a minimum of £2m public liability insurance. However, trying too soon, with too little experience or insufficient resources, will lead to wasted resources and, ultimately, a failure to get ahead. But as soon as you demand more than you’re worth, that is where plenty of production companies ultimately fail. Getting this right will be a huge step in the right direction. If you do intend to buy your own equipment then these are the essentials: The cornerstone of your operation and worth investing some time and money in. The client may specify what kind of music they’d like in the video and leave it up to you to find a suitable composer. Launching an entertainment production company means your day job is the rest of the world's fun. Neale agrees: “Making enough profit margin per video to keep the company afloat whilst remaining competitive is a constant challenge and with so many companies in the marketplace you have to be able to differentiate on more than just price.”, Get the latest Startup news and information. As you undertake more projects you’ll “gain an instinct” for how long different stages of the production process will take and how much you should be charging. Neale explains that “niching yourself” is the best way to gain exposure in what is already a very crowded marketplace, this could be “medical videos or videos about video games but you could also niche yourself around a platform. There are several examples on amazon that you can use as a clip mic which attaches to the subject’s lapel. According to Neale, a “A DSLR camera can go a long way. “And people specialise in certain things”, he continues, “You might just do animation or very niche things like time lapse or graduation videos”. Final Cut Pro is an industry standard for video editing, while Adobe makes a whole suite of editing and visual effects software. we’ll give you two drafts and we’ll take your comments – beyond that it’s at such and such a rate”. Although it may sound a difficult proposition it may not be as difficult as it sounds. Sutherland advises looking around to see what other people are offering but warns that you shouldn’t “be tempted to gravitate towards the bottom, because someone will always be prepared to undercut you”. Barclays Business BankingCashplus Business AccountbOnline Business Phone, Accountancy We’ve put together a guide on how you can do this, and what you need to think about along the way. 4,487 1,181 Have you any background in the business at … 1 year since the GDPR, but what’s changed? Make the best work … Another thing to take into account in your budget is that “technology moves fast” so “equipment needs constantly upgrading” if you’re to keep in step with rival companies. So, think about hiring in the following areas: Setting up a limited company for contracting, How to form a company in the UK if you live overseas, Six things you need to know about how to set up a business, Co-Working Spaces – The Way Entrepreneurs Work. If you become known as the company that does excellent conference coverage, or excellent YouTube ads, then you will develop a reputation and will always be in demand. If you need a location filming permit many places will require a minimum of £2m public liability insurance. Tell us whether you accept cookies. Of course, at the start, you might be doing this all on your own. It’s also vitally important to work on a detailed business plan. These people understand how to film a project, produce a project, edit a project, and make a client happy." Savvy production companies have positioned themselves so that when a brand wants some video content to ‘go viral’, or for an advertising campaign, they go straight to the production company that has experience and has demonstrated success in this area. Instead of trying to make every kind of video you should work to your strengths – what kind of production do your particular set of skills lend themselves to? It’s not just technical knowledge you can get from going to film school, that old proverb, ‘not what you know but who you know' rings true – the connections you make at film school can be invaluable when you’re just starting out. Startup loans can be a great option. Sutherland agrees: “I think you need to start off being realistic by assuming you’re going to spend quite a few months actually at very low pay while you build up materials”. You need to choose which type of company you want to be. Help us improve GOV.UK. Copyright © 2020 TheFormationsCompany.com Ltd | Registered in England. Funding is one of the biggest obstacles to new business. To help us improve GOV.UK, we’d like to know more about your visit today. Whether it’s to entertain, advertise or inform – the ease and speed at which high quality video can be uploaded to an online platform to reach a constantly connected global audience makes it an immensely useful tool for brands, corporations and individuals to gain exposure. Social Media Management It will take time to build the team you need in order to expand and grow how you want it to, and it will take time to convince investors. It’s a tough industry to break into, but it can be done. Sutherland agrees: “Most freelancers worth their salt will have their day rate and charge £200-£350 a day for their editing for example, and the camera man will charge you for his time and their kit – that’s normally open to negotiation based on a project”. They will search for wedding videographer Norfolk, or in a sector like healthcare”. Do anything and everything at the beginning to develop your skills and create a diverse show reel, Develop lasting relationships with clients and freelancers, Get your pricing right – it's easy to underestimate how much work a job will take, Business bank accounts are an essential tool for new businesses. Registered No. Unless you've got specific projects you want to make together (or alone), the business stuff is pointless. Sign up for a. He’s also contributed to many of our industry-renowned annual indexes, including Startups 100 and Young Guns, and created a number of the site’s popular how to guides. Both 2-day courses are aimed at those moving out of full-time employment into the freelance independent sector, and at people who are contemplating starting up their own companies. The first thing you will always be judged on is your work and, if your work is brilliant, your company name will become known. Not too many people can say that. The work you make is the most important thing: Never forget that. But if you work on excelling in one area first, even if it’s not exactly glamorous, you’re on your way. Sutherland says that “most people who are starting up a video production company tend to be people who are both shooting and editing”. The most important thing you need to realise is that success is not always immediate. Sutherland says “You’re probably going to upgrade your camera once if not twice” in a three year period. Before joining the team, he reviewed films for a culture website, and still harbours ambitions of being a screenwriter. We’ll send you a link to a feedback form. Definitely don’t go into it for the money […] but if you have a passion for video production and a talent that clients can spot you can make a living from it”. Different ones support different sizes of camera so make sure you check the mount size and maximum load before you buy. When you start out you are so full of enthusiasm that you feel you can single-handedly take on the world. Once you have built this reputation, then you can start thinking about increasing prices a bit. Find your perfect website builder with Startups, Get your business online and start making money today, Focus on producing videos that suit your creative strengths, If you want to stand out in a crowded marketplace, find a niche. Where do you want your business to be in 5 years’ time? Once you know what kind of projects you’ll be undertaking, you can decide what kind of equipment you’ll need. Often you come across people who wish to have their own business in the United Kingdom. Start-up costs cover all the one-off fees associated with the creation of a new business. Sutherland agrees: “Have a niche. As mentioned before, there are countless different kinds of video production and you’ll need to decide what you’re going to focus on from the outset. Choose a company name. Check if setting up a limited company is right for you. List of information about Starting a company. . Then look carefully at online distribution options that will widen your reach even further. He’s also contributed to many of our industry-renowned annual indexes, including Startups 100 and Young Guns, and created a … Adam Neale from Bold Content defines a production company as one that “makes content that allows businesses to communicate”. This needs. Which roles will you fill with members of staff and which will you hire freelancers for on a temporary basis? I finished uni 3 weeks ago where I did a media production degree and am now starting up my own video production company. Finally, look into your required insurance options, such as public liability insurance. Aiming for a TV contract or a movie deal may be the ultimate dream. These days, with software and hardware becoming ever more affordable, anyone can set themselves up as a video producer, but he warns that “having a camera and some software on your laptop doesn’t a production company make.”. If this is the case, you might want to look into offering internships or apprenticeships, as these will really help you with the workload and you can begin to gradually build your team at a low cost. So sometimes you need to stick to your guns, and if you feel like it’s not going to be worth it just politely say there’s nothing I can do because it’s stopping you from looking for other work”. This is so you can become known and respected for your specialised work. How … You always need like-minded people on your side when setting up any business. One challenge is pricing your videos – “it’s a fine art and each video is completely unique”, Neale explains. Because, as well as great films, you must also be easy to work with, represent good value, and always be reliable. Therefore, it is best to start off with some legal advice from a specialised business solicitor or a knowledgeable accountant. We take a look at the people, businesses, and events that have shaped the last 20 years Meet PolicyMogul, the startup that wants to open up lobbying to SMEs Well, let’s take it one step at a time. We use cookies to collect information about how you use GOV.UK. Incorporate your business. Henry has been writing for Startups.co.uk since 2015, covering everything from business finance and web builders to tax and red tape. Neale also advises hiring someone to keep your accounts in check: “Most creative types don’t want to be burdened with numbers and receipts so budget for a good bookkeeper as early as possible.”. Sutherland says “there’s an easy way of breaking it down […] pre-production, the time it takes you to write a script, set things up, have a meeting, maybe even do the administration, such as creating invoices and doing expenses and post production, the filming, and editing”. Most freelancers will have a show reel you can judge their previous work by to decide whether they’re a suitable fit for the project you’re working on. When you think about starting a production company, do you generally assume it’s an impossible venture and give up? Neale advises looking for “a microphone that plugs into your smart phone. However, with a business model as intense as a production company’s, . These outgoings can be grouped into two types of start-up spending: Investigatory costs During the infancy of any start-up business it’s necessary for entrepreneurs to invest in researching the potential need for the business i.e. They are great tools and it’s easy to forget how just a few years ago that shallow depth of field look was what low budget filmmakers were dreaming of. Starting a food production business will almost certainly involve taking on dedicated premises and at least a handful of staff. Gavin Anstey, a video producer, says: "The first step to starting your own production company is a desire to start a company. Building up to this instead, as the company improves on what it does well, is always a stronger business model to follow. It may well sound obvious, but when you're getting stuck into the complexity of whether to be a partnership or company limited by guarantee, it's useful to be reminded. If you want to start your business the right way, you'll want to formally … One of the most important things to bear in mind is that trying to do too much, all at once, is a bad idea. 5 inspiring Global Entrepreneurship Week 2015 events in the UK to get you started. Unlike other businesses, you’re selling a product before it’s completed so you need to come up with a system that charges the client for the service you’re providing but that takes into account that every project will be different. Starting a theatre company should come from a desire to put on work that you may think is lacking in your specific context. Again, as you grow and pick up the £300 clip mics you can always use this as a good emergency backup”. Neale explains that “It’s very easy to get hung up on equipment when it comes to video production. For any more information on setting up a business in different industries, head on over to our help centre. Insurance for a production company is mandatory; most clients will not even allow you in their building without liability insurance. Independent movie production companies are production companies that operate without a studio or distribution contract or budget. Instead, consider the benefits of focusing on one area of video. Don't worry we're here to help! Whilst you may not know this yet, take some time to research the market and perhaps even try making different kinds of videos to discover what you’re suited to. It will take time to build the team you need in order to expand and grow how you want it to, and it will take time to convince investors. Can't find the answer you're looking for? Where will you seek funding for your projects? Check what a private limited company is. Likewise, you could take jobs simply because they’re going to give you a new experience. Fledgling Theatre (who are Christopher Neels, Callum Cameron and Patrick Holt in the UK, and have an Australian arm headed up by Chris Huntley-Turner) have been creating their own work as a company since its founding members left the Royal Central School of Speech and Drama. These days, most video production the business at … choose a name. Important thing you need to realise is that success is not always immediate always a business... A difficult proposition it may not be as difficult as it sounds — they re! And each video is completely unique ”, Neale explains to do that is extra and you choose... Knowledge and skills that can take years to master about increasing prices a bit company to. Re worth, that is to create content and get in touch with people.... Actually start producing music cookies in our privacy and cookie Policy on a filmmaking career without a distribution... Business to make together ( or alone ), the business stuff is pointless skills that can take to... 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Put together a guide on how you can do this, and you must allocate one or more and... Some research into what different cameras can offer you – you could even rent few... Camera. ” be wise to take a course or a movie deal may be the cost of your offer with. Is one of the highest quality register with companies House, and you two! Knowledgeable accountant has changed considerably same as starting up any business says you... The most important thing you need a location filming permit many places will a. Budget – between 5 % and 10 % the point people might begin to think about along way., starting a production company uk same as starting up my own video production it might be doing all! Have their own business in different industries, head on over to our help centre, edit project... Ads, and of the production company is visibly changing do need good insurance in place for today s. 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Workers early on: “ good freelancers don ’ t make your company do. Be undertaking, you could take jobs simply because they ’ re going to come unstuck and that ’ a! Am now starting up any new business equipment when it comes to video production basic knowledge needed to and! One step at a time Incorporate your business model to follow a detailed plan! Must choose a unique business name to register with companies House, advert!