Do you want to start a film production company? If so, read this article and learn the various aspects related to starting a business in film production.
The global film industry is supposed to grow in the coming years. The global box office revenue, as per industry experts, is forecast to touch nearly 9.1 billion U.S. dollars in 2024. The U.S. is the third-largest film market in the world behind China and India.
If you are passionate about film making and have some previous experience in the trade, launching a film production company will surely come to your mind today or tomorrow. However, it is without saying a great deal of planning and dedication is required to start a profitable film production company. Here, we list down the steps associated with starting a film production business.
Film Production Company Business Plan Guide
Here are the 10 important steps to follow to start a profitable film production company:
1. Do Some Market Research
Before starting a film production company, it is important to do some market research. There are two aspects to consider. One is the viewer and the people or institutions funding you. You have to carefully define your segment of viewers for whom you will creating your films. You also need to talk to the financial partners and convince them about your strategy of reaching the target audience with your product.
2. Decide on Type of Film Production Company
Another key aspect is to decide on the types of films you are going to make. There are many options you can explore like making full commercial films, documentary films, productions for television, etc. Decide on the category of productions you are going to produce. It can be a comedy, horror movies, action movies, love stories, etc.
You can venture into the film production business as per your resources and expertise. You can start your own from home with limited resources. Platforms like YouTube give just the perfect platform for beginners. The other popular ways are a project-based film production unit and a full-fledged film production company.
3. Create a Business Plan
Like any other business, a business plan is the most important document for a film production company. Your business plan is supposed to be the blueprint of how you want to start and run your film production company. Write down the mission and vision statement detailing the goals and objectives.
Clearly outline how you are planning to make money out of producing films and arrange funds for starting the business. It is advised to take help from professionals in writing the plan. You can also take help from business plan software online.
4. Name Your Film Production Company
It is very important to a relevant business name for your film producing company. This business name is going to be your brand name. For example, Walt Disney is a reputed brand that people relate with their film entertainment productions. Check our guide on the steps you need to follow while naming your business.
5. Register your Business
It is always advised to convert your business into a legal entity. Every country and state allows different company formation structures for business owners.
For example, if you are from the United States, forming an LLC will give you relief in case your company is in financial disputes. Check with the local appropriate authorities about the licenses and permits required to run a film production company.
6. Arrange Finance
If you are looking for funding, it is critical to have a well-planned document for presentation to potential investors. Creating a detailed business plan is the key to impress financers.
Angel investors, Government financing, crowdfunding are some of the alternate ways of getting money for your business. You can also talk to companies and seek brand sponsorship from them.
7. Hire Manpower
Broadly, you need to hire four kinds of professionals for your film production company. You need scriptwriters, production specialists, post-production experts, and sales and film marketing personnel. Create a job description for each work and recruit the best you can get.
For every film production company, personnel like development executives primarily responsible for initial groundwork with new scripts and screenplays. In addition, a production advisor, post-production advisor, and head of sales and distribution are extremely must for a production company.
You can hire these people from recruitment agencies, post job adverts in local newspapers, or posting job advertisements online.
8. Procure Equipment
You have to carefully invest in procuring proper equipment for film production. Equipment like a video camera and camera support like tripods, sound equipment, lights and reflectors, editing software, etc.
9. Create a Film Distribution Strategy
If you are into the movie business, the most important aspect is the film distribution strategy. It is observed that most make good movies but unable to distribute their product properly.
If you are serious about making a profitable film production business, creating a well-planned distribution strategy is most critical. If you can afford it, hire professionals in this field who can reach distributors effectively with your product.
10. Promote Your Film Production Company
Post regularly and get as many likes and followers as possible. Another important can be YouTube. Create a channel and attract subscribers.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.