The film industry has grown exponentially over the last decade. From independent filmmakers to major studios, everyone wants their voice heard through cinema. While some companies specialize in producing feature-length movies, others focus on creating short films, music videos, web series, documentaries, etc. A lot of aspiring filmmakers are willing to start their film production company.
There are several ways to start a film production company. Some choose to create their own studio, while others prefer to partner with established brands. Either way, starting a film production company requires a significant amount of capital. In this article, we have shared an easy tutorial on how to start a film production company.
On this page, you’ll learn about the following:
- What is A Film Production Business
- How to Start a Film Production Company
- What Do You Need to Start a Film Production Company
- Cost to Start a Film Production Company
What is A Film Production Business
A film production business (also known as a film production company) is an organization that produces motion pictures and television programs. It involves many different roles, including producers, directors, writers, actors, crew members, sound engineers, editors, art directors, set designers, costume designers, make-up artists, choreographers, and more. The goal of a film production company is to produce high-quality content for audiences around the world.
Starting a film production company can be quite difficult. There are legal requirements to follow, along with financial obligations. However, if you have a passion for filmmaking and want to work within this exciting industry, then starting your own film production company may be just what you need. If you’re interested in starting a film production company, here are some tips:
1. Choose Your Industry Carefully
Before you start any new venture, it’s important to know exactly what you want to do. You don’t want to get into something that doesn’t fit your skill set or interests. For example, if you love acting but aren’t very good at writing, then you should probably avoid becoming a screenwriter.
2. Research Your Market
Once you’ve chosen your industry, it’s time to research your market. What types of projects does your audience like? How much money will they spend on entertainment? Where would they go to watch these shows? These questions will help you decide how best to approach your project.
3. Find Funding
Now that you know who your target audience is, where they hang out online, and what type of projects they enjoy, it’s now time to find funding. This might mean finding investors, crowdfunding, or even selling products related to your idea.
4. Create a Plan
Now that you have all the information you need, it’s finally time to put everything together. Make sure you have a clear vision of what you want to accomplish. If you’re not sure, ask yourself why you want to become a filmmaker. Is it because you love movies? Do you want to share your ideas with the world? Or maybe you simply want to make a living doing what you love. Whatever your reason, make sure it aligns with your goals before moving forward.
5. Get Started!
Finally, once you’ve got a plan in place, it’s ready to roll. Now you just need to execute. Don’t worry about making mistakes; instead, learn from them. Remember, there’s no such thing as failure when you’re trying to achieve your dreams.
How to Start a Film Production Company
Starting a film production company is a big decision, but it doesn’t have to be overwhelming. Here’s a step-by-step guide to getting started.
Step 1: Decide What Kind of Business You Want to Run
Before you jump headfirst into starting a film production company, make sure you understand exactly what kind of business you want to run. There are several different kinds of businesses out there, including:
- Feature Films
- TV Series/Shows
- Music Videos
- Short Films
- Web Series
Step 2: Research Potential Markets
The next step to starting a film production company is understanding your potential markets. Now that you have decided which type of production company you will start, you have to research in detail the market. What industries are similar to yours? Are there any trends happening right now? Once you know more about your market, you can determine whether it makes sense to pursue your dream.
Step 3: Choose a Location
You’ll need somewhere to shoot your movies, and that location needs to be legal. Check local laws regarding filming and ensure that you’re allowed to operate a business in the area. If you want to go abroad or out of town, you need to be aware of the legality of shooting in that place.
Step 4: Get Legally Incorporated
The next step is to incorporate your company legally. Choose the business structure you want to set up. If you are planning for a limited liability company, then read our guide on how to start an LLC. Having an LLC is a better option than other types of business. The reason is LLCs have a handful of advantages for any start-up. States like California, Texas, and Florida have different tax structures. For example, having an LLC in Texas or a California LLC would cost you an annual Franchise Tax and Sales Tax. For a Florida LLC, there is only Sales Tax and no Franchise Tax to be paid by the LLCs.
On the contrary, if you run a Wyoming LLC or Montana LLC for your film production business, you neither have to pay any Sales Tax or Franchise Tax. So, choose carefully what type of business structure will save your money and time.
Step 5: Apply For Tax Credits
Depending on the state you reside in, you may be eligible for tax credits. Talk to your accountant or attorney to find out if you qualify. Different states have different tax credit rules. Your attorney will let you know about it. You can also check the state tax revenue official website to know more about it.
Step 6: Create a Budget
Once you’ve decided on your budget, set aside money for equipment rentals, crew salaries, insurance, taxes, and other costs related to running your business.
Step 7: Write a Business Plan
Writing a business plan gives you a chance to outline all aspects of your business, including its mission statement, goals, products and services, target audience, competition, and finances.
Step 8: Raise Money
Raising capital is an important part of starting a film production company. Depending on how much money you need, you might consider crowdfunding options like Kickstarter or Indiegogo.
Step 9: Find Investors
Finding investors who believe in your product is crucial to the success of your business. Ask friends, family members, and colleagues for referrals.
Step 10: Get Started!
Now that you’ve taken these steps, it’s time to get started. If you follow this guide, you should be able to start a film production company within six months.
What Do You Need to Start a Film Production Company
There are a few things you need before you start a film production company. These are the types of equipment you need once you plan to set up your film production company.
1. A Camera (or two)
A camera is the first thing you need to start any film production company. There are many different types of cameras out there, including DSLRs, camcorders, point-and-shoot cameras, and even smartphones! If you’re looking to get started right away, then a smartphone would probably work best for you since they have built-in video recording capabilities. However, if you want to make high-quality films, then you’ll definitely want to invest in a good camera.
2. Lighting Equipment
Lighting equipment is what makes a movie look professional. Whether you use natural sunlight or artificial lighting, you’ll need some sort of lighting setup. In terms of budget, you should expect to spend anywhere between $100-$1000 on lighting equipment.
3. Sound Equipment
Sound equipment is just as important as lighting equipment. Without proper sound equipment, your audience won’t hear anything you say. Even if you don’t plan on making movies, having decent audio equipment is still useful.
Software is software. No matter how much money you put into your film production company, you’ll never be able to produce a successful film without software. The software includes editing programs, graphic design tools, animation software, etc.
Posters and banners are great marketing materials for your business. Make sure you choose a size that fits well on your wall or window.
6. Business Cards
Business cards are a great way to promote yourself and your business. Make sure to pick a card that stands out and is eye-catching.
Having a website is extremely helpful for promoting your business. Not only does it allow people to find out about your services, but it also helps them learn more about your brand.
Cost to Start a Film Production Company
The following list shows some of the costs involved in starting a film production company. These figures do not include any equipment purchases, they only show what it would cost to start a film production company.
- Office space – $10,000 (This includes rent, utilities, phone bills, and internet service)
- Equipment – $20,000 (This includes cameras, lights, audio gear, computers, etc.)
- Insurance – $500 per month ($15,000/year)
- Postage & Paperwork – $100-$200 per week ($2400/year)
- Legal Fees – $300 per year ($9000 total)
- Marketing Materials – $1000 per year ($36,000 total)
- Travel Expenses – $2000 per year ($72,000 total)
Approximately the cost of starting your film production company is $110,000. Now, depending on the business structure and the type of production house you want to set up, the cost can be changed.
Ongoing Expenses to Maintain a Film Production Company
Any film production company requires a set of expenses that one has to carry either annually or monthly basis. Following are some of the costs that you need to pay to run the company.
Insurance is something that should always be taken care of. There are many different types of insurance policies out there that cover everything from property damage to employees’ medical bills. If you have any type of equipment or vehicles involved in your business, make sure they are covered under your policy. You may want to consider purchasing additional liability coverage if you plan on having people working on set.
2. Renting Equipment
If you are planning on using rented equipment, make sure to purchase rental insurance. Rental insurance covers the cost of replacing equipment if anything goes wrong while it’s being used. Make sure to keep track of how much money you spend renting equipment so that you know what to budget for each month.
3. Staff Costs
Staff costs are probably the biggest expense of running a film production company. When hiring staff members, make sure to pay them properly. Paying someone less than minimum wage is illegal. Also, make sure to provide them with proper accommodations and benefits.
Utilities are necessary for operating a film production company. Electricity, water, gas, internet, and phone service are just some of the things that need to be paid for regularly. Keep track of these monthly expenses so that you don’t go over budget.
Supplies are another big expense for a film production company. Make sure to buy enough supplies to last throughout the duration of filming. Buying extra supplies could save you money down the road.
6. Travel Expenses
Travel expenses are unavoidable when running a film production company, especially if you’re traveling to locations outside of your home state. Make sure to factor travel expenses into your budget so that you don’t end up spending more than expected.
Taxes are inevitable when running a film production business. Depending on where you live, taxes can range anywhere from 10% to 30%. Make sure to account for taxes before making any major purchases.
Make Revenue From Your Film Production Company
Now that you have set up your film production company, it is time to make some money from it. Here are some of the ways you can make revenue through your company.
1. Selling Movies
Selling movies is one of the most popular ways to make revenue from a film production company. This involves selling DVDs, BluRays, digital downloads, streaming services, and other forms of media. It’s important to find a distributor who will work well with your company.
2. Licensing Music
Licensing music is also an option for making money off of film production. The process of licensing music requires contacting several companies to see which ones would be interested in licensing their music for use in your movie.
Merchandise is another way to make money off of a film company. Merchandise includes clothing, toys, posters, and other items related to the film industry. Merchandise can help promote your company and generate interest in your upcoming projects.
Branding is another way to make revenue from your film production company. Brands include logos, uniforms, t-shirts, and other branding materials. Branded merchandise helps to spread awareness about your company.
Advertising is yet another way to make money from a film production company. Advertising includes television ads, billboards, print advertisements, and other methods of promotion. Advertising helps to increase brand recognition, drive traffic, and increase sales.
The first thing you need to know about making movies is that you don’t need any fancy equipment. A digital camera is all you really need for filming, although some cameras offer better quality video than others. If you want to film something like a wedding, then you’ll probably need a tripod, which holds the camera steady while you’re shooting.
If you want to create professional-looking videos for your business, then you’ll need some video editing software. The best free option is Adobe Premiere Pro CC which has all the features you’d expect from a pro version. Other options include Windows Movie Maker, Final Cut Express, iMovie, and others.
Making movies is easy! All you need is some equipment, a camera, and a computer. The best way to start is to find someone who has already made a movie and ask them for advice. If you don’t know anyone who has done it before, then you should try YouTube tutorials. There are plenty of great free resources available on YouTube.
Writing a script is easy when you know what you want to say. The first step is to brainstorm ideas for your storyline. Then, create a list of all the characters involved in the story. Next, think about how each character would react to certain events. Finally, write down all the dialogue between the characters.
Starting a film production company is not a matter of joke. However, if you have proper knowledge and plan, you can start it with minimum equipment. In this article, we have shared all the important points for starting a film production company. Share your feedback on this article in the comment section below.