You’ve come to the right place to create your Production Company business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their production companies.
Below is a template to help you create each section of your Production Company business plan.
ABQ Reels Video Production is a startup production company located in Albuquerque, New Mexico. The company is founded by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.
ABQ Reels Video Production will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels Video will be the go-to production studio in Albuquerque for its tailored approach and client-first focus. The company will be the ultimate choice for customer service while ensuring the highest quality standards for production in the area.
The following are the services that ABQ Reels Video Production will provide:
ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects, commercials, and social media. No matter the customer, ABQ Reels Video Production will deliver the best communication, service, and customized production tailored to fit each project’s needs.
ABQ Reels Video Production will be owned and operated by Mark Johnson. Mark is a graduate of New Mexico University with a degree in Film Production. He has over 25 years of experience working in video production, and over ten years as a production manager. Mark will be the company’s Chief Executive Officer and Production Manager. He will oversee the production process, production equipment, and production staff’s activities.
Mark has recruited a business management expert, Emily Martinez, to be the company’s Chief Operating Officer and help oversee the production business operations. Emily will handle the day-to-day operations, including budgeting, client relationships, and logistics.
Mark and Emily have recruited an experienced marketing director, Steve Smith, to become a member of the ABQ Reels Video Production management team. Steve is a graduate of the University of California with a bachelor’s degree in marketing. Mark and Emily rely on Steve’s expertise to execute the company’s marketing plan and advertising strategies.
ABQ Reels Video Production will be able to achieve success by offering the following competitive advantages:
ABQ Reels Video Production is seeking $800,000 in debt financing to launch its production business. The funding will be dedicated towards securing the production facility and purchasing production equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:
The following graph below outlines the pro forma financial projections for ABQ Reels Video Production.
ABQ Reels Video Production is a newly established production company in Albuquerque, New Mexico. The company will provide a full suite of production services for small scale video projects in the Albuquerque area. ABQ Reels will be the go-to production studio in Albuquerque for its tailored approach and client-first focus.
The company will be the ultimate choice for customer service while providing the highest quality standards for production in the area. ABQ Reels Video Production will be able to guarantee the highest quality standards for all of its productions thanks to the latest and most innovative production equipment and oversight from industry veterans. The company’s team of highly qualified professionals experienced in production and project management will oversee each project from start to finish.
ABQ Reels Video Production is owned and operated by Mark Johnson, an entertainment industry veteran who has over 25 years of experience working in video production. Now that Mark has experienced managing a production business, he is ready to start his own company, ABQ Reels Video Production. Mark is confident that his video production skills, combined with his understanding of business management, will enable him to run a profitable production company of his own. Mark is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of video production – sales and marketing, client relationship management, budgeting, financial reporting, and project management.
Since incorporation, ABQ Reels Video Production has achieved the following milestones:
The following are the services that ABQ Reels Video Production will provide:
The production industry in the U.S. is a $26B market with approximately 6.3K businesses and over 46K employees nationwide. The outlook for the production market is positive with demand expected to remain steady over the next several years.
The production industry can be categorized by type of production. Some of the most common types of production companies are film production, TV production, commercial production, and post-production. Production companies perform a wide range of services including scripting, casting, hiring, planning, and logistics. Some production companies handle large-scale projects like major motion pictures, while others specialize in small-scale projects like commercials.
Some of the most significant demand drivers are the growing popularity of streaming content, consumer preferences for viewing on smartphones, and social media influence. All of these factors have contributed to increased demand for content, which leads to increased demand for production services.
ABQ Reels Video Production will target businesses and individuals in Albuquerque that are looking for video production services for small-scale projects such as video for commercials and social media.
The precise demographics for Albuquerque, New Mexico are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
ABQ Reels Video will primarily target the following customer profiles:
ABQ Reels Video Production will face competition from other companies with similar business profiles. A description of each competitor company is below.
VIEWR 1st Video Production
VIEWR 1st Video Production is one of the largest commercial production companies in Albuquerque, New Mexico. The company provides a variety of production services including content development, logistics, and film crew recruitment. VIEWR 1st Video Production specializes in creating commercials for local businesses to use in their advertising campaigns. VIEWR 1st Video Production aims to deliver high quality production through the latest production equipment and experienced crew. VIEWR 1st Video Production’s team of production professionals are well-known in the area for their outstanding commercial work.
Albuquerque’s Best Productions
Albuquerque’s Best Productions is a small production company established in 2005 that caters to local businesses and residents in Albuquerque, New Mexico and surrounding areas. Albuquerque’s Best Productions provides pre-to-post-production services for projects of various sizes and purposes. The company also provides tours of the production facility to local residents, businesses, and schools for a nominal fee. The owners of Albuquerque’s Best Production are former production assistants of some of the biggest production companies in the nation so they understand the production process from start to finish.
SPESHAL EFFEX
SPESHAL EFFEX is a trusted Albuquerque, New Mexico-based production company that provides superior production services to clients in Albuquerque and the surrounding areas. Established in 2018, the company is able to provide a wide variety of production services using its state-of-the-art production equipment. SPESHAL EFFEX serves local business owners, students, and individuals on small-to-large scale video projects. The company prides itself on being the number one choice for innovative special effects used in all of its videos.
ABQ Reels Video Production will be able to offer the following advantages over their competition:
ABQ Reels Video Production will offer the unique value proposition to its clientele:
The promotions strategy for ABQ Reels Video Production is as follows:
Social Media Marketing
The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure ABQ Reels Video Production maintains an active social media presence with regular updates and fun content to get customers excited about production.
Professional Associations and Networking
ABQ Reels Video Production will become a member of professional associations such as the American Production Company Association, Albuquerque Video Production Society, and the New Mexico Video Production Association. The leadership team will focus their networking efforts on expanding the company’s vendor and client network.
Print Advertising
ABQ Reels Video Production will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local businesses who are in the target market.
Website/SEO Marketing
ABQ Reels Video Production will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that ABQ Reels Video is able to provide. The website will also list information on the company’s events and client success stories.
The marketing director will also manage ABQ Reels Video’s website presence with SEO marketing tactics so that when someone types in a search engine “Albuquerque production company” or “video production near me”, ABQ Reels Video Production will be listed at the top of the search results.
The pricing of ABQ Reels Video Production will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s production services.
The following will be the operations plan for ABQ Reels Video Production.
ABQ Reels Video Production will have the following milestones complete in the next six months.
12/1/2022 – Finalize lease on the facility
12/15/2022 – Finalize personnel and staff employment contracts for the ABQ Reels Video Production management team
1/1/2023 – Begin build-out of the facility, purchase equipment, and set up for production
1/15/2023 – Begin networking at industry events and implement the marketing plan
2/15/2032 – Finalize contracts for initial production assistants, sales personnel, and office staff
3/15/2023 – ABQ Reels Video Production officially opens for business and starts taking on projects
ABQ Reels Video Production will be owned and operated by Mark Johnson. Mark is a graduate of New Mexico University with a degree in Film Production. He has over 25 years of experience working in video production, and over ten years as a production manager. Mark will be the company’s Chief Executive Officer and Production Manager. He will oversee the production process, production equipment, and production staff’s activities.
Mark has recruited a business management expert, Emily Martinez, to be the company’s Chief Operating Officer and help oversee the production business operations. Emily will handle the day-to-day operations, including budgeting, client relationships, and logistics.
Mark and Emily have recruited an experienced marketing director, Steve Smith, to become a member of the ABQ Reels Video Production management team. Steve is a graduate of the University of California with a bachelor’s degree in marketing. Mark and Emily rely on Steve’s expertise to execute the company’s marketing plan and advertising strategies.
The revenue drivers for ABQ Reels Video Production are the fees charged to customers in exchange for the company’s production services. When it comes to pricing, the studio will monitor production costs, average prices charged by competitors, and market demand to ensure its prices will generate a healthy profit margin.
The cost drivers will be the overhead costs required in order to staff a production company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.
ABQ Reels Video Production is seeking $800,000 in debt financing to launch its production business. The funding will be dedicated towards securing the production facility and purchasing production equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 |
| Expenses & Costs | |||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| LIABILITIES & EQUITY | |||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 |
| Share Capital | $0 | $0 | $0 | $0 | $0 |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
A production company business plan is a plan to start and/or grow your production company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
There are a number of different kinds of music companies , some examples include: Feature Film Production, Commercial Production, Post Production, and Niche Production Company.
Production companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a film production company or a film production company business plan.
Starting a production company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Video Production Business Plan - The first step in starting a business is to create a detailed video production company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your production company . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your production company is in compliance with local laws.
3. Register Your Production Company - Once you have chosen a legal structure, the next step is to register your production company with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your production company , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Production Company Equipment & Supplies - In order to start your production company , you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your production company . This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.