Building a successful media production company begins with careful planning. Most new production companies start with a tight budget that requires making each decision count. Balancing excitement with cautious planning in the early stages is crucial.
Key Steps to Success in Media Production
Building a successful media production company, like Altered State Productions, involves strategic investment and planning. It’s easy to stay on track for budget and growth with a solid strategy.
Initial Investments and Equipment Prioritization
For film production companies, it’s essential to distinguish between necessary equipment and luxuries. Initial investments, typically ranging from $3,000 to $5,000, should focus on acquiring the basics: a reliable camera, a versatile lens, tripods, and fundamental lighting. Consider quality over quantity, which directly translates to better viewer experience and narrative effectiveness.
Gradual Expansion of Equipment
As a company grows, so should its toolkit. A mature media production company might possess equipment worth around $35,000, including high-end cameras (like the Sony A7siii, BlackMagic, Canon Mark DS), a Mavic Air Drone, various lenses, advanced stabilizers, sound equipment, and sophisticated lighting setups.
Software Investments
In video production services, software is necessary for enhancing content quality and audience engagement. Start with basic software subscriptions such as Adobe Premiere Pro and Photoshop, costing around $50 to $100 per month. As the company expands, investments in software can increase up to $16,000 monthly, including advanced tools like Cinema 4D, Pro Tools, Final Cut Pro, and Blender.
Budgeting for Production
The post-production phase also has considerable costs. Initially, a modest monthly budget of $2,000 to $3,000 can cover travel, location fees, props, and basic talent. As you take on larger or more intricate projects, expect these costs to increase accordingly. This budget may grow to an average of $8,000 monthly, allowing for more distant locations, premium props, and experienced talent.
Marketing Strategies
For budding production companies, relying on word-of-mouth is common. Allocating funds toward targeted digital marketing campaigns, such as a budget of $2,000, can mark a significant shift in business development. Consider how much work you’re prepared to take on initially. It may make sense to start slow and develop an organic reputation. Or, your company may do well with the increased work that comes with strategic marketing.
Team Building and Investment
For new production companies, outsourcing tasks to freelancers is a practical approach. However, investing in a dedicated team is optimal as the company grows. Building a reliable team means less time transitioning between projects, saving time and money. An annual commitment of around $250,000 toward salaries can reflect the value placed on expertise and dedication.
Measuring Success and Revenue Growth
Transforming initial investments into revenue is a key indicator of success. Turning an investment of $1,500 into $7,000 demonstrates effective management and growth strategies. If managed correctly, a successful video production company can generate significant revenue.