Our mission is to become the leading freelance and video production company in state, utilizing the latest technology to shift market share from competitors to Michael’s Video Service.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Stationery etc. | $200 |
Brochures | $300 |
Consultants | $1,000 |
Insurance | $1,200 |
Rent | $600 |
Expensed equipment | $10,000 |
Other | $1,200 |
Total Start-up Expenses | $15,000 |
Start-up Assets | |
Cash Required | $60,000 |
Start-up Inventory | $2,000 |
Other Current Assets | $0 |
Long-term Assets | $240,000 |
Total Assets | $302,000 |
Total Requirements | $317,000 |
Michael’s Video Service is in business to cover events and special occasions on a freelance basis. What we will be providing is an alternative solution for video companies or out of town television stations. Instead of them sending a crew or taking time out of their busy schedules, they can hire us to do the filming for them. This gives them the opportunity to focus on their core competencies.
We will attend any and every event that we will have to cover for our customer. Using our experience, we will find a strategic location from which we will film. Once the filming is complete, we will then deliver the tape to the customer.
Michael’s Video Service will contract video services to its target markets. Services are not only limited to the Denton, we are able to travel around the country. Our main goal is to contract our services to anyone who may need an event video taped.
The operation begins with the customer contacting Michael’s Video Service with the intent of using our services. All the details of the event are gathered and all the relevant information pertaining the specific requirements, as well as the delivery of the tape. Thereafter, we attend the event and proceed to do the filming. Once the filming is completed, the next step is to deliver the tape to the customer.
Analog is the old technology and digital is the new. Analog communication systems involve the amplitude modulation of a radio signal. In other words, they transmit and receive information through a continuous flow of electromagnetic signals. An inherent weakness of the technology is that analog signals weaken over distances and require additional equipment to boost them as they travel.
Digital cameras are the future of television broadcasting as well as the future of consumer camcorders. The FCC has mandated that all television stations must transmit a digital signal to the homes of its viewers by 2002.
In keeping up with the trends in the industry, we plan to purchase the latest digital equipment on the market. We plan to use the following equipment:
We plan to initially market our products and services as an alternative solution for television networks and video companies. These markets were selected because of their size, trends in technology, our experience with video production, our industry contacts, and an overall belief that they are most appropriate to initially target.
We aim to rapidly develop alliances with the major high schools to enable us to gain credibility as the best video production company. Our market strategy will be to advertise and capitalize on the products and services that our competitors do not have.
We expect to compete as a freelance video production company in the broadcasting industry. Companies in the industry are involved in the creation and delivery of various types of programming to consumers. Much of that programming is recorded on film, tape, or disk, so that it can be seen or heard repeatedly by both new audiences and those that are familiar with it. Many of the events that are broadcast live are likely to be recorded, with some or all of such events to be rebroadcast at future times.
Within this national market, Michael’s Video Service will initially focus on supplying its services to the high school market market. We intend to be the only freelance video company in the city and state to offer our services to companies of any size. Our goal is to be on the freelance list for all the major television networks for news and sports coverage in the southeast region of the United States.
Our customer is defined as any individual or organization that has need for one of the services we provide. Our target customers are as follows.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
TV stations | 5% | 600 | 630 | 662 | 695 | 730 | 5.03% |
Video production companies | 10% | 150 | 165 | 182 | 200 | 220 | 10.05% |
Movie directors and producers | 10% | 500 | 550 | 605 | 666 | 733 | 10.04% |
High schools | 5% | 160 | 168 | 176 | 185 | 194 | 4.94% |
Future brides and grooms | 20% | 900 | 1,080 | 1,296 | 1,555 | 1,866 | 20.00% |
Families | 15% | 260 | 299 | 344 | 396 | 455 | 15.02% |
Total | 13.05% | 2,570 | 2,892 | 3,265 | 3,697 | 4,198 | 13.05% |
Customers are expected to use our services based on traditional factors:
The major companies that compete in the market are:
All of our competitors specialize in one aspect of video production. We are a diversified company and we believe that there will be no down period for us. We are not seasonal based, our services are offered throughout the year. With our diversity, we will be able to attract the larger organizations that like to entrust one company to handle all of their affairs.
Michael’s Video Service will benefit from several significant barriers to entry which include:
The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael’s Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
By using Michael’s Video Service to cover various events for them, companies will be able to save time. They can then use this time saved to focus on their core competencies and the things that they do best. We are in business to provide a service that is second to none. As such, we guarantee that our customers will receive first class service and a final product that is well worth the money invested. To that end, we guarantee a full refund in the event that a customer is not satisfied. At Michael’s Video Service, we take pride in our work and it is our aim to be the best at what we do. We will conduct our business in a professional manner from our methods and character to our standards and ethics.
The following table and chart show our planned sales.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Video services | $149,000 | $175,000 | $191,000 |
Other | $0 | $0 | $0 |
Total Sales | $149,000 | $175,000 | $191,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Video services | $4,800 | $5,700 | $6,600 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $4,800 | $5,700 | $6,600 |
Sales, Distribution, and Marketing Channels
In marketing our products and services, we will rely on a combination of the following channels:
Alliances with video companies that have industry credibility, presence, and distribution are key to our strategy. In monitoring our services and market position, we will rely on feedback from customers with whom we have relationships. This will be done through direct sales. The message associated with our products and services is high quality for less money. Our promotional plan is diverse and will include a range of marketing communications.
We plan to set our pricing based on market value. Our actual price will be based on whether our services are required on a daily or an hourly basis. It is anticipated that we will charge $300 per hour and $1,000 per day. For out of town travel, additional charges will be added for expenses.
The company’s management philosophy will be based on responsibility and mutual respect. Michael Video Services will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees. Additionally, the environment will encourage employees to have fun by allowing creative independence and providing challenges that are realistic and rewarding.
Michael’s Video Service’s management team is highly experienced and qualified. The management team is lead by Mr. Michael Morisson.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Michael Morisson | $30,000 | $32,000 | $34,000 |
Other | $18,000 | $30,000 | $32,000 |
Total People | 2 | 3 | 3 |
Total Payroll | $48,000 | $62,000 | $66,000 |
We are requesting a loan of $300,000. The funds will be used to purchase video equipment and to cover initial operating expenses.
Payback Strategy
Our repayment for this loan will come from cash in excess of profits, paid monthly. The increase in profits generated by business from television stations will provide funds to repay the loan in 10 years.
The table below highlights some assumptions that are key to the success of the company.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
For our Break-even Analysis, we assume running costs of approximately $9,000 per month, which includes gas, phone, and an estimation of other running costs. Variable costs mostly include video tapes. The chart and table below show our break-even point.
Take $65 off a Premium Annual membership with code SUMMER . Join Now
Posted on: Sep 12, 2024
By Steffanie Bradley
Creating a film budget is one of the most important steps in any production, whether it’s a short film, feature-length project, or television series. A well-planned budget ensures that a production runs smoothly, and helps you avoid costly mistakes that could postpone production. If you’re new to budgeting for a film, here’s 8 steps to help you plan it out.
To start, you need to have a clear understanding of your production’s scope. Ask yourself questions like: Is it a short film, feature-length, TV series, or a web series? Will you be shooting in a single location or multiple locations? Will there be travel costs? How many pages is your script/how long is your shoot projected to be? Will there be travel involved? Do you need night crew?
The genre of the film also plays a huge role—an action film with stunts and special effects will have different requirements than an indie drama set in a single room. The clearer you are on the project’s scope, the easier it will be to forecast costs accurately. To take it a step further, knowing your distribution goals (e.g., festival circuit, streaming platforms, or theatrical release) can help you adjust and allocate your budget.
The next step is a detailed script breakdown. This involves going through the script scene by scene to identify everything you’ll need, such as:
– Locations – Actors – Props – Costumes – Special effects – Stunts – Vehicles or animals
By breaking down the script, you can start to estimate how much each component will cost and what resources need to be needed for each part of production. This serves as a blueprint for your budget, so you don’t overlook critical elements.
Film budgets are typically divided into two categories: above-the-line and below-the-line costs.
Above-the-line costs include expenses related to key creative personnel such as the director, producers, screenwriters, and principal actors. These are often the most expensive parts of a budget, especially for larger productions with big-name talent. If you’re working on an indie project, you might be able to save here by working with up-and-coming or local talent.
Below-the-line costs include all the technical and production costs, such as the crew (camera operators, sound technicians, makeup artists, etc.), equipment rentals, locations, transportation, set decoration, trailers, and post-production work. This section of the budget also includes editing, sound design, color correction, and visual effects.
Unexpected expenses are a reality in film production. Weather delays, equipment malfunctions, and sudden casting changes can all impact your budget. To avoid going over budget, it’s wise to set aside a contingency fund, typically around 5-10% of your total budget. This gives you a financial cushion to cover any unforeseen issues that may arise during production.
Post-production is a critical stage of any film and requires careful budgeting. This phase includes editing, sound design, color grading, visual effects, and music scoring or licensing. Many first-time filmmakers underestimate post-production costs, but they can add up quickly, especially if your project requires heavy visual effects or extensive editing.
If you plan on submitting your film to festivals, don’t forget to set aside a portion of your budget for festival submission fees. Similarly, if you’re planning on marketing or distributing the film independently, you’ll need a separate budget for promotional activities.
Legal fees and insurance are often overlooked by novice filmmakers, but they are essential to protect both your project and your team. Production insurance covers liabilities in case of accidents on set, while legal fees may include obtaining rights for music or archival footage, securing contracts with actors and crew, and dealing with any intellectual property issues.
Without proper insurance or legal oversight, you could face significant financial and legal consequences that might shut down your production entirely.
To make your budgeting process more efficient, consider using budgeting software specifically for film production, such as Movie Magic Budgeting or StudioBinder . These tools provide industry-standard templates that help you organize and track your expenses in real time. If you’re running on a tight budget, there are free production budgeting templates available online, which can serve as a great starting point for small-scale productions.
Once your budget is in place, review and update it regularly. As you move through pre-production, shooting, and post-production, some costs will fluctuate. By consistently tracking expenses and comparing them to your initial budget, you can spot issues early and make adjustments to keep the project financially on track.
Planning a film budget is a meticulous process, but it’s the foundation of a successful production. By taking the time to break down your script, allocate resources wisely, and prepare for the unexpected, you can keep your project on schedule and within budget—ensuring that your vision makes it to the screen smoothly.
You May Also Like:
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
IMAGES
VIDEO
COMMENTS
Film Production Company Business Plan: The Complete Guide. Matt Crawford 4. 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.
We provide a free business plan template below and will walk you through it. Step by step. Production Company Business Plan. The Executive Summary. Perform a Video Company Self Assessment. How to Get Started. Financing a Video Production Company. Marketing Plan. Day to Day Operations.
A business plan has 2 main parts: a financial forecast outlining the funding requirements of your film 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.
Establish a realistic budget and timeline for your project. Attract potential investors and secure funding. Create a marketing and distribution strategy that maximizes your film's reach and revenue. Assemble a talented and experienced management team. Manage the risks and challenges associated with the film industry.
7) Short film proposal. Concisely convey your short film's narrative, style, and impact to capture the interest of festivals and financiers. Make yours with AI. Open in new window. Market focus: Targets film enthusiasts, festivals, and digital platforms looking for innovative, concise storytelling.
This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan. Executive summary. Market Validation. Objectives. Short-Term (1 -3 Years) Long Term (3-5 years) Mission statement. Unique Selling Proposition.
The film industry is a dynamic and ever-evolving field that encompasses various aspects of entertainment, storytelling, and visual media. Before diving into the intricacies of creating a business plan for your film production company, it is essential to have a solid understanding of the industry and how your business fits into it.
Documentary Business Plan Template - this new template is completely redone to focus only on documentary films. Recent successes, emerging documentary trends, streaming and studio deals, distribution patterns, audience statistics, revenue generated for sample films and much more. When did Docs become profitable and start selling for $5M or $10M ...
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.
User-Friendly: Movie Plan Pro is designed to be intuitive and easy to use, ensuring that filmmakers can finish the plan fast. Comprehensive: It covers every aspect of a professional film business plan. Proven Success: Backed by Tom's track record of securing film financing, users can access tried-and-tested tactics.
When we designed our business plan for a production company, we ensured it was properly organized. The document consists of 5 sections (Opportunity, Project, Market Research, Strategy and Finances). 1. Market Opportunity. The first section is named "Market Opportunity".
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.
Compared to other business plans, a production company's plan must address specific industry challenges such as intellectual property rights, project financing, and the unpredictability of audience reception. ... The film and video production industry is a dynamic and evolving sector with significant economic impact.
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) - $2,500. Miscellaneous - $20,000. Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America.
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.
Build-out and Startup costs: $150,000. Video production equipment: $180,000. Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even. Top line projections over the next five years are as follows: Year 1.
In developing your film production business plan, you might have determined that you need to raise funding to launch your production company. If so, the main sources of funding for a film production business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors.
A Confidentiality Agreement. The first major item to include in your film production business plan is a confidentiality agreement. This is going to include a notation which essentially reveals that what is contained in the plan is confidential and protected. You need this to make your investors and others involved in your business happy to know ...
It can: Clarify your purpose, define your process and articulate your film's potential. Inspire donors, supporters or high-value collaborators to join the project. Communicate your film's purpose to your cast and crew, to make sure you're all working towards a common goal.
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.
4.1.5 Strategic Alliances. The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael's Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
Plan for Contingencies. Unexpected expenses are a reality in film production. Weather delays, equipment malfunctions, and sudden casting changes can all impact your budget. To avoid going over budget, it's wise to set aside a contingency fund, typically around 5-10% of your total budget.