The Business of the Video Production Company (page 2)

3. Video Production Company Focus

Third, define the focus of your video production company. In many ways, you will always be looked at as a generalist and be expected to be competent in many areas of video production. But, in addition to "being all things to all men," you need to be able to say "this one thing I do." As you develop a reputation for one specific area, you will become "branded." That simply means that when people have a need for your skills, your name will be the first they think of because it has been "branded" in their minds that you are an expert in that one area. If you are new to the business of video, it is a good idea to take any job that comes your way. This will allow you to develop new skills, give you a lot of experience, and provide an opportunity to find out what you are good at and what you really enjoy. But there will come a time when you want to be more proactive in developing your video production company, and that will mean defining the parameters of what you want to do. You also need to constantly evaluate what you are doing so that you don't get into a rut. Every couple of years it is a good idea to look back and evaluate what you are doing and ask yourself if you are still having fun or if your work has become routine. Make changes to recapture the excitement that you should have in working with video. I call this "reinventing" yourself and the direction you want your video production company to go. This will allow you to continue to experience the joy and fulfillment that will keep you motivated and your business successful.

As you narrow the focus of your video production company, you will be regarded as an "expert" in that particular area and often sought out for advice. That will simply add to your reputation and deepen the "branding" that will guarantee success for your video production company. By saying "no" to the things you don't want to do, and even referring jobs to other videographers, you will develop loyalty and respect among your peers. You will also be able to manage your workload and even be able to take time off for yourself and your family. By focusing on the things you enjoy, you won't think of your occupation as "work," and you won't easily get burned out. Instead, you will be amazed that you have the privilege of doing what you love - and actually being paid for it!

4. Employ Yourself

Fourth, honestly treat your video production company as a business and not just a glorified hobby. It will always be a "hobby" in the sense that you really love what you do, but it is also a business. If you neglect the business aspect, such as record keeping, you may soon discover that you will no longer have your "hobby" to enjoy. This means that you need to make decisions that will allow you to be efficient and, more importantly, to help make your video production company more profitable. Then you can buy the "toys"... just for fun!

When you think about setting up your video production company, think also about the business name. If you use your own name, it will be difficult to sell the business in the future. Create an "assumed" name for your business " and one that communicates what you do. In our area, we have a business called Kitchen Re-modelers* (name changed to protect privacy). I talked to the owner after I had just completed an extensive addition to our house. He asked me why I hadn't contacted him for a bid, and I explained that I thought he only did kitchens. Much to my surprise I found out that he did all sorts of remodeling and construction projects, including building new houses!

Make sure your video production company name communicates accurately the intent of your business, and then make sure that the name you want is legally available. You can check with the Secretary of State to see if the name isn't registered. If it is available, take time to register with the State and be properly registered as a business for tax purposes.

5. Hang Your Shingle

Another decision that you need to make involves the location of your video production company. If it is a business that requires "walk-in" customers, then you will need a store-front location with good visibility. If this is the case, you need to determine how long it will take to build up the business to a place of being profitable. During that interim time, you still need to pay bills, so a small business loan would be a good choice if other funds were not available. However, to get that loan, you will need a solid business plan and documentation to show that you will be able to earn a living through this business. I encourage you to become friends with your local banker. They are there not only to give out money, but they are a good source of advice, and can even help you connect with business leaders who are willing to give practical help for your business. If you have the kind of emphasis in your business that doesn't require "walk-in" traffic, then you might succeed working out of your home. This poses a whole new set of challenges. One challenge is to find a place in your house that will allow you to isolate yourself from family activities, so that you can concentrate on the business of video. You may even consider putting an addition on the house or converting your garage to a place for your video production company, to give you the space needed for your work. Ideally, when working out of your home, you should have a separate entrance for your business, so that the customers who do to come to see you won't disrupt your household and it gives a more professional impression. Whether you work out of a store-front, or out of your home, be sure to present a warm, business atmosphere that is tidy and clear of clutter. You shouldn't have to clear a chair before customers can sit. Most of all, you want a work area that will allow you to be efficient and productive - and that is good for business.

Alan Naumann makes his living producing memorial and commemorative videos and has learned to keep his business thriving and growing in an ever-changing industry.

Sidebar:

Setting up business is more than hanging your shingle and waiting for the phone to ring. Videomaker and our author offer you more tips to getting your ducks a row on our Web site. Just go to www.videomaker.com/article/12962