The Business of the Video Production Company

Alan Naumann
January 2007

A 5-point plan to get your video production company off the ground and flying high.

Upon entering a business, you will often see a framed dollar bill on the wall with the caption "first dollar earned." I don't have a dollar bill hanging on my wall, but I do have a carved duck that reminds me of my very first paid video job in 1988.

I was soon approached by a neighbor who heard that I had started a video production company. He had an old 8mm movie of his wedding, and wondered if I could transfer it to VHS tape. Knowing that I could borrow a projector, I took the job, confident that it would be easy money. He then asked if I could add music and an audiotape of the ceremony. I said "sure " no problem." He also asked if parts of it could be done in slow motion since the movie went so quickly. To make a long story short, I soon learned that I was in "over my head" and I also learned a lot about video production as I corrected mistake after mistake.

By the time I was able to do everything he requested, I had invested a lot of money and many hours into a project that I originally thought would just take minutes. When it came time to give our neighbor the final product, which he and his wife loved, I realized that I really didn't know how to charge him for the work. If I charged what I originally quoted, it wouldn't come close to covering my time and expense. If I charged him for all the time and money put into the project, I knew it would be unfair to him.

I explained my involvement and, knowing he was an excellent wood carver, I asked him if he would give me one of his carvings in place of payment. Without hesitation, he reached over and handed me his newest carving " a duck. It now sits on our coffee table, and every time I look at it I am reminded not only of the lessons learned on my very first job, but also the many lessons I continue to learn in my home-based video production company; and lessons I would like to share with you.

First of all, to have a successful video production company, realize that you have much to learn. You may be a professional and even earn your living through video production, but you will always be a student. I read recently that, often, medical doctors don't make good pilots, because they sometimes come from a perspective where they think they should know everything " and that attitude can be fatal in flying a plane.

Even if you have earned a B.A., a Master's or even a Ph.D. in video production, remember that you will earn the rest of the alphabet through the school of "experience" " which includes failures as well as successes. After completing a project, ask "What new skill or lesson have I learned?" Continue to be a student of the technical aspects of video production, as well as the practical lessons learned through working with people. As a student, you will grow, not only in your video skills, but also in your people skills. In many ways, your people skills will help your video production company succeed more than your technical abilities. The lesson of the carved duck reminds me that we need to be honest with our clients and communicate truthfully.

To be equipped for a lifetime of learning, begin acquiring resources that will help you grow in your technical abilities. You will need to sharpen your video skills as well as your computer skills; it is impossible to have a successful video production company without knowing your way around a computer. But be encouraged. You don't have to go back to school to gain this knowledge. There are many excellent publications, such as Videomaker, that will keep you on the cutting edge. Begin building a library of resource books and training DVDs that can sharpen your skills in audio, lighting, editing, and the many other subjects that you will be required to master. It is helpful to belong to a local videographers' association, or to a user group for a particular editing system or software program. In most cases, you will find friendly people who are more than willing to share their knowledge and experience and be a practical resource for you. By being an active participant in a group, you will not only give and receive encouragement, but will make lasting friendships. Never be afraid to invest in others. Remember, the more you give, the more you get; professionally as well as personally.

Second, to do a professional job requires the right equipment. But this doesn't mean you have to own the equipment. Find out what resources you have for renting or borrowing what you need. By knowing your resources and the cost involved, you can add that amount to a proposal when dealing with a client. You should, however, own or lease the equipment you use on a regular basis. Use good business sense when deciding which piece of equipment you really need. Just because it is new and everyone has it doesn't mean you need to own it. Master the equipment you have and maximize what it can do. Take time to study the manufacturer's manual, as well as supplemental instructional material on the use of your equipment. When a piece of equipment has outlived its usefulness, get rid of it, either by selling it at a reasonable price, or by donating it to an organization that will give you a receipt that can be used for tax purposes. (See December 2006 Videomaker's "Recycle that Cam" for ideas.) When it comes time to replace equipment, or to add new equipment, ask "Will this enable me to do a better and faster job for my clients, and will it allow me to make more money?" Learn to make equipment decisions with your "head" and not just with your "heart."

• Digg This!
• del.icio.us
• Technorati
• StumbleUpon
• Reddit