Videomaker – Learn video production and editing, camera reviews › Forums › General › Video and Film Discussion › Seeking advice on starting a video production business › It’s great to have dreams,
It’s great to have dreams, and I certainly wouldn’t discourage anyone from dreaming, but making dreams in the business world come true only happens when the hard realities of financing and running a business are thoroughly understood before the business ever opens. Although this article — http://www.videoccasions-nw.com/cost_analysis.html — was written and published nearly fifteen years ago, the information is still as valid now as it was when written. An interesting article here — https://www.fool.com/careers/2017/05/03/what-percentage-of-businesses-fail-in-their-first.aspx — discusses the rate of failure and the reason why many businesses fail to survive beyond the first few years.
Where I live on the west coast nearly two dozen production companies have failed in the past twenty years. Most were established by excellent videographers and editors; most failed because of poor business practices and, in the past several years, because of the growing trend for clients that once outsourced video services to rely now on in-house “production” by staff using inexpensive consumer cameras, iPads and iPhones and low-end editing software. This is the reality which a startup video company faces today. Having the financial and personal resources to stay in for the long haul and having a solid business plan which includes advertising and marketing strategies is absolutely essential for success.