Our mission is to become the leading freelance and video production company in state, utilizing the latest technology to shift market share from competitors to Michael’s Video Service.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Stationery etc. | $200 |
Brochures | $300 |
Consultants | $1,000 |
Insurance | $1,200 |
Rent | $600 |
Expensed equipment | $10,000 |
Other | $1,200 |
Total Start-up Expenses | $15,000 |
Start-up Assets | |
Cash Required | $60,000 |
Start-up Inventory | $2,000 |
Other Current Assets | $0 |
Long-term Assets | $240,000 |
Total Assets | $302,000 |
Total Requirements | $317,000 |
Michael’s Video Service is in business to cover events and special occasions on a freelance basis. What we will be providing is an alternative solution for video companies or out of town television stations. Instead of them sending a crew or taking time out of their busy schedules, they can hire us to do the filming for them. This gives them the opportunity to focus on their core competencies.
We will attend any and every event that we will have to cover for our customer. Using our experience, we will find a strategic location from which we will film. Once the filming is complete, we will then deliver the tape to the customer.
Michael’s Video Service will contract video services to its target markets. Services are not only limited to the Denton, we are able to travel around the country. Our main goal is to contract our services to anyone who may need an event video taped.
The operation begins with the customer contacting Michael’s Video Service with the intent of using our services. All the details of the event are gathered and all the relevant information pertaining the specific requirements, as well as the delivery of the tape. Thereafter, we attend the event and proceed to do the filming. Once the filming is completed, the next step is to deliver the tape to the customer.
Analog is the old technology and digital is the new. Analog communication systems involve the amplitude modulation of a radio signal. In other words, they transmit and receive information through a continuous flow of electromagnetic signals. An inherent weakness of the technology is that analog signals weaken over distances and require additional equipment to boost them as they travel.
Digital cameras are the future of television broadcasting as well as the future of consumer camcorders. The FCC has mandated that all television stations must transmit a digital signal to the homes of its viewers by 2002.
In keeping up with the trends in the industry, we plan to purchase the latest digital equipment on the market. We plan to use the following equipment:
We plan to initially market our products and services as an alternative solution for television networks and video companies. These markets were selected because of their size, trends in technology, our experience with video production, our industry contacts, and an overall belief that they are most appropriate to initially target.
We aim to rapidly develop alliances with the major high schools to enable us to gain credibility as the best video production company. Our market strategy will be to advertise and capitalize on the products and services that our competitors do not have.
We expect to compete as a freelance video production company in the broadcasting industry. Companies in the industry are involved in the creation and delivery of various types of programming to consumers. Much of that programming is recorded on film, tape, or disk, so that it can be seen or heard repeatedly by both new audiences and those that are familiar with it. Many of the events that are broadcast live are likely to be recorded, with some or all of such events to be rebroadcast at future times.
Within this national market, Michael’s Video Service will initially focus on supplying its services to the high school market market. We intend to be the only freelance video company in the city and state to offer our services to companies of any size. Our goal is to be on the freelance list for all the major television networks for news and sports coverage in the southeast region of the United States.
Our customer is defined as any individual or organization that has need for one of the services we provide. Our target customers are as follows.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
TV stations | 5% | 600 | 630 | 662 | 695 | 730 | 5.03% |
Video production companies | 10% | 150 | 165 | 182 | 200 | 220 | 10.05% |
Movie directors and producers | 10% | 500 | 550 | 605 | 666 | 733 | 10.04% |
High schools | 5% | 160 | 168 | 176 | 185 | 194 | 4.94% |
Future brides and grooms | 20% | 900 | 1,080 | 1,296 | 1,555 | 1,866 | 20.00% |
Families | 15% | 260 | 299 | 344 | 396 | 455 | 15.02% |
Total | 13.05% | 2,570 | 2,892 | 3,265 | 3,697 | 4,198 | 13.05% |
Customers are expected to use our services based on traditional factors:
The major companies that compete in the market are:
All of our competitors specialize in one aspect of video production. We are a diversified company and we believe that there will be no down period for us. We are not seasonal based, our services are offered throughout the year. With our diversity, we will be able to attract the larger organizations that like to entrust one company to handle all of their affairs.
Michael’s Video Service will benefit from several significant barriers to entry which include:
The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael’s Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
By using Michael’s Video Service to cover various events for them, companies will be able to save time. They can then use this time saved to focus on their core competencies and the things that they do best. We are in business to provide a service that is second to none. As such, we guarantee that our customers will receive first class service and a final product that is well worth the money invested. To that end, we guarantee a full refund in the event that a customer is not satisfied. At Michael’s Video Service, we take pride in our work and it is our aim to be the best at what we do. We will conduct our business in a professional manner from our methods and character to our standards and ethics.
The following table and chart show our planned sales.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Video services | $149,000 | $175,000 | $191,000 |
Other | $0 | $0 | $0 |
Total Sales | $149,000 | $175,000 | $191,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Video services | $4,800 | $5,700 | $6,600 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $4,800 | $5,700 | $6,600 |
Sales, Distribution, and Marketing Channels
In marketing our products and services, we will rely on a combination of the following channels:
Alliances with video companies that have industry credibility, presence, and distribution are key to our strategy. In monitoring our services and market position, we will rely on feedback from customers with whom we have relationships. This will be done through direct sales. The message associated with our products and services is high quality for less money. Our promotional plan is diverse and will include a range of marketing communications.
We plan to set our pricing based on market value. Our actual price will be based on whether our services are required on a daily or an hourly basis. It is anticipated that we will charge $300 per hour and $1,000 per day. For out of town travel, additional charges will be added for expenses.
The company’s management philosophy will be based on responsibility and mutual respect. Michael Video Services will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees. Additionally, the environment will encourage employees to have fun by allowing creative independence and providing challenges that are realistic and rewarding.
Michael’s Video Service’s management team is highly experienced and qualified. The management team is lead by Mr. Michael Morisson.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Michael Morisson | $30,000 | $32,000 | $34,000 |
Other | $18,000 | $30,000 | $32,000 |
Total People | 2 | 3 | 3 |
Total Payroll | $48,000 | $62,000 | $66,000 |
We are requesting a loan of $300,000. The funds will be used to purchase video equipment and to cover initial operating expenses.
Payback Strategy
Our repayment for this loan will come from cash in excess of profits, paid monthly. The increase in profits generated by business from television stations will provide funds to repay the loan in 10 years.
The table below highlights some assumptions that are key to the success of the company.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
For our Break-even Analysis, we assume running costs of approximately $9,000 per month, which includes gas, phone, and an estimation of other running costs. Variable costs mostly include video tapes. The chart and table below show our break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $9,351 |
Assumptions: | |
Average Percent Variable Cost | 3% |
Estimated Monthly Fixed Cost | $9,050 |
The table below provides the projected income statements for Michael’s Video Service. The company is basing its revenue projections on anticipated sales of services, initially to the television networks and video companies, then to other markets such as high school events and weddings.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $149,000 | $175,000 | $191,000 |
Direct Cost of Sales | $4,800 | $5,700 | $6,600 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $4,800 | $5,700 | $6,600 |
Gross Margin | $144,200 | $169,300 | $184,400 |
Gross Margin % | 96.78% | 96.74% | 96.54% |
Expenses | |||
Payroll | $48,000 | $62,000 | $66,000 |
Sales and Marketing and Other Expenses | $18,600 | $21,400 | $24,600 |
Depreciation | $24,000 | $24,000 | $24,000 |
Gas | $4,800 | $5,700 | $6,600 |
Utilities & phone | $2,400 | $3,000 | $3,600 |
Rent | $3,600 | $3,600 | $3,600 |
Payroll Taxes | $7,200 | $9,300 | $9,900 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $108,600 | $129,000 | $138,300 |
Profit Before Interest and Taxes | $35,600 | $40,300 | $46,100 |
EBITDA | $59,600 | $64,300 | $70,100 |
Interest Expense | $30,000 | $28,984 | $26,844 |
Taxes Incurred | $1,065 | $2,829 | $4,894 |
Net Profit | $4,535 | $8,487 | $14,362 |
Net Profit/Sales | 3.04% | 4.85% | 7.52% |
The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated. We face all the risks associated with being a start-up company. We feel that we can overcome these with our experience in the industry and by quickly establishing desired relationships. The economy in south Ohio is based on the oil and gas industry, which is very unstable. Having seen the oil bust in the 1980’s and its effects on the economy, we have diversified our efforts and will be going after markets that will not be affected by fluctuations in the oil and gas industry.
The following chart and table present the cash flow assumptions for the company.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $37,250 | $43,750 | $47,750 |
Cash from Receivables | $90,375 | $127,520 | $140,955 |
Subtotal Cash from Operations | $127,625 | $171,270 | $188,705 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $127,625 | $171,270 | $188,705 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $48,000 | $62,000 | $66,000 |
Bill Payments | $64,802 | $80,965 | $86,360 |
Subtotal Spent on Operations | $112,802 | $142,965 | $152,360 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $20,330 | $22,458 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $112,802 | $163,295 | $174,818 |
Net Cash Flow | $14,823 | $7,975 | $13,887 |
Cash Balance | $74,823 | $82,798 | $96,685 |
Projected balance sheets are provided below.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $74,823 | $82,798 | $96,685 |
Accounts Receivable | $21,375 | $25,105 | $27,400 |
Inventory | $1,200 | $1,425 | $1,650 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $97,398 | $109,328 | $125,736 |
Long-term Assets | |||
Long-term Assets | $240,000 | $240,000 | $240,000 |
Accumulated Depreciation | $24,000 | $48,000 | $72,000 |
Total Long-term Assets | $216,000 | $192,000 | $168,000 |
Total Assets | $313,398 | $301,328 | $293,736 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $6,863 | $6,636 | $7,139 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $6,863 | $6,636 | $7,139 |
Long-term Liabilities | $300,000 | $279,670 | $257,212 |
Total Liabilities | $306,863 | $286,306 | $264,351 |
Paid-in Capital | $17,000 | $17,000 | $17,000 |
Retained Earnings | ($15,000) | ($10,465) | ($1,978) |
Earnings | $4,535 | $8,487 | $14,362 |
Total Capital | $6,535 | $15,022 | $29,384 |
Total Liabilities and Capital | $313,398 | $301,328 | $293,736 |
Net Worth | $6,535 | $15,022 | $29,384 |
The following table presents important business ratios from the motion picture production industry, as determined by the Standard Industry Classification (SIC) Index code 7812, Motion Picture and Video Production.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 17.45% | 9.14% | 0.00% |
Percent of Total Assets | ||||
Accounts Receivable | 6.82% | 8.33% | 9.33% | 0.00% |
Inventory | 0.38% | 0.47% | 0.56% | 0.00% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 100.00% |
Total Current Assets | 31.08% | 36.28% | 42.81% | 100.00% |
Long-term Assets | 68.92% | 63.72% | 57.19% | 0.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 2.19% | 2.20% | 2.43% | 0.00% |
Long-term Liabilities | 95.72% | 92.81% | 87.57% | 0.00% |
Total Liabilities | 97.91% | 95.01% | 90.00% | 0.00% |
Net Worth | 2.09% | 4.99% | 10.00% | 100.00% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 96.78% | 96.74% | 96.54% | 0.00% |
Selling, General & Administrative Expenses | 93.96% | 91.89% | 88.98% | 0.00% |
Advertising Expenses | 4.03% | 4.00% | 4.19% | 0.00% |
Profit Before Interest and Taxes | 23.89% | 23.03% | 24.14% | 0.00% |
Main Ratios | ||||
Current | 14.19 | 16.48 | 17.61 | 0.00 |
Quick | 14.02 | 16.26 | 17.38 | 0.00 |
Total Debt to Total Assets | 97.91% | 95.01% | 90.00% | 0.00% |
Pre-tax Return on Net Worth | 85.69% | 75.33% | 65.53% | 0.00% |
Pre-tax Return on Assets | 1.79% | 3.76% | 6.56% | 0.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 3.04% | 4.85% | 7.52% | n.a |
Return on Equity | 69.40% | 56.50% | 48.88% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 5.23 | 5.23 | 5.23 | n.a |
Collection Days | 57 | 65 | 67 | n.a |
Inventory Turnover | 4.50 | 4.34 | 4.29 | n.a |
Accounts Payable Turnover | 10.44 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 31 | 29 | n.a |
Total Asset Turnover | 0.48 | 0.58 | 0.65 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 46.96 | 19.06 | 9.00 | n.a |
Current Liab. to Liab. | 0.02 | 0.02 | 0.03 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $90,535 | $102,692 | $118,596 | n.a |
Interest Coverage | 1.19 | 1.39 | 1.72 | n.a |
Additional Ratios | ||||
Assets to Sales | 2.10 | 1.72 | 1.54 | n.a |
Current Debt/Total Assets | 2% | 2% | 2% | n.a |
Acid Test | 10.90 | 12.48 | 13.54 | n.a |
Sales/Net Worth | 22.80 | 11.65 | 6.50 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Video services | 0% | $5,000 | $7,000 | $12,000 | $13,000 | $13,000 | $13,000 | $14,000 | $14,000 | $14,000 | $15,000 | $15,000 | $14,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $5,000 | $7,000 | $12,000 | $13,000 | $13,000 | $13,000 | $14,000 | $14,000 | $14,000 | $15,000 | $15,000 | $14,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Video services | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Michael Morisson | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Other | 0% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $5,000 | $7,000 | $12,000 | $13,000 | $13,000 | $13,000 | $14,000 | $14,000 | $14,000 | $15,000 | $15,000 | $14,000 | |
Direct Cost of Sales | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Gross Margin | $4,600 | $6,600 | $11,600 | $12,600 | $12,600 | $12,600 | $13,600 | $13,600 | $13,600 | $14,600 | $14,600 | $13,600 | |
Gross Margin % | 92.00% | 94.29% | 96.67% | 96.92% | 96.92% | 96.92% | 97.14% | 97.14% | 97.14% | 97.33% | 97.33% | 97.14% | |
Expenses | |||||||||||||
Payroll | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
Sales and Marketing and Other Expenses | $1,300 | $1,300 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
Depreciation | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Gas | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Utilities & phone | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Rent | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Payroll Taxes | 15% | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $8,800 | $8,800 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | $9,100 | |
Profit Before Interest and Taxes | ($4,200) | ($2,200) | $2,500 | $3,500 | $3,500 | $3,500 | $4,500 | $4,500 | $4,500 | $5,500 | $5,500 | $4,500 | |
EBITDA | ($2,200) | ($200) | $4,500 | $5,500 | $5,500 | $5,500 | $6,500 | $6,500 | $6,500 | $7,500 | $7,500 | $6,500 | |
Interest Expense | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Taxes Incurred | ($2,010) | ($1,175) | $0 | $250 | $250 | $250 | $500 | $500 | $500 | $750 | $750 | $500 | |
Net Profit | ($4,690) | ($3,525) | $0 | $750 | $750 | $750 | $1,500 | $1,500 | $1,500 | $2,250 | $2,250 | $1,500 | |
Net Profit/Sales | -93.80% | -50.36% | 0.00% | 5.77% | 5.77% | 5.77% | 10.71% | 10.71% | 10.71% | 15.00% | 15.00% | 10.71% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $1,250 | $1,750 | $3,000 | $3,250 | $3,250 | $3,250 | $3,500 | $3,500 | $3,500 | $3,750 | $3,750 | $3,500 | |
Cash from Receivables | $0 | $125 | $3,800 | $5,375 | $9,025 | $9,750 | $9,750 | $9,775 | $10,500 | $10,500 | $10,525 | $11,250 | |
Subtotal Cash from Operations | $1,250 | $1,875 | $6,800 | $8,625 | $12,275 | $13,000 | $13,250 | $13,275 | $14,000 | $14,250 | $14,275 | $14,750 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $1,250 | $1,875 | $6,800 | $8,625 | $12,275 | $13,000 | $13,250 | $13,275 | $14,000 | $14,250 | $14,275 | $14,750 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
Bill Payments | $110 | $3,318 | $4,174 | $5,642 | $6,817 | $5,850 | $5,892 | $7,067 | $6,133 | $7,075 | $6,350 | $6,375 | |
Subtotal Spent on Operations | $4,110 | $7,318 | $8,174 | $9,642 | $10,817 | $9,850 | $9,892 | $11,067 | $10,133 | $11,075 | $10,350 | $10,375 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,110 | $7,318 | $8,174 | $9,642 | $10,817 | $9,850 | $9,892 | $11,067 | $10,133 | $11,075 | $10,350 | $10,375 | |
Net Cash Flow | ($2,860) | ($5,443) | ($1,374) | ($1,017) | $1,458 | $3,150 | $3,358 | $2,208 | $3,867 | $3,175 | $3,925 | $4,375 | |
Cash Balance | $57,140 | $51,698 | $50,323 | $49,307 | $50,765 | $53,915 | $57,273 | $59,482 | $63,348 | $66,523 | $70,448 | $74,823 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $60,000 | $57,140 | $51,698 | $50,323 | $49,307 | $50,765 | $53,915 | $57,273 | $59,482 | $63,348 | $66,523 | $70,448 | $74,823 |
Accounts Receivable | $0 | $3,750 | $8,875 | $14,075 | $18,450 | $19,175 | $19,175 | $19,925 | $20,650 | $20,650 | $21,400 | $22,125 | $21,375 |
Inventory | $2,000 | $1,600 | $1,200 | $800 | $1,400 | $1,000 | $600 | $1,200 | $800 | $1,400 | $1,000 | $600 | $1,200 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $62,000 | $62,490 | $61,773 | $65,198 | $69,157 | $70,940 | $73,690 | $78,398 | $80,932 | $85,398 | $88,923 | $93,173 | $97,398 |
Long-term Assets | |||||||||||||
Long-term Assets | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 |
Accumulated Depreciation | $0 | $2,000 | $4,000 | $6,000 | $8,000 | $10,000 | $12,000 | $14,000 | $16,000 | $18,000 | $20,000 | $22,000 | $24,000 |
Total Long-term Assets | $240,000 | $238,000 | $236,000 | $234,000 | $232,000 | $230,000 | $228,000 | $226,000 | $224,000 | $222,000 | $220,000 | $218,000 | $216,000 |
Total Assets | $302,000 | $300,490 | $297,773 | $299,198 | $301,157 | $300,940 | $301,690 | $304,398 | $304,932 | $307,398 | $308,923 | $311,173 | $313,398 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $3,180 | $3,988 | $5,413 | $6,622 | $5,655 | $5,655 | $6,863 | $5,897 | $6,863 | $6,138 | $6,138 | $6,863 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $3,180 | $3,988 | $5,413 | $6,622 | $5,655 | $5,655 | $6,863 | $5,897 | $6,863 | $6,138 | $6,138 | $6,863 |
Long-term Liabilities | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 |
Total Liabilities | $300,000 | $303,180 | $303,988 | $305,413 | $306,622 | $305,655 | $305,655 | $306,863 | $305,897 | $306,863 | $306,138 | $306,138 | $306,863 |
Paid-in Capital | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 |
Retained Earnings | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) |
Earnings | $0 | ($4,690) | ($8,215) | ($8,215) | ($7,465) | ($6,715) | ($5,965) | ($4,465) | ($2,965) | ($1,465) | $785 | $3,035 | $4,535 |
Total Capital | $2,000 | ($2,690) | ($6,215) | ($6,215) | ($5,465) | ($4,715) | ($3,965) | ($2,465) | ($965) | $535 | $2,785 | $5,035 | $6,535 |
Total Liabilities and Capital | $302,000 | $300,490 | $297,773 | $299,198 | $301,157 | $300,940 | $301,690 | $304,398 | $304,932 | $307,398 | $308,923 | $311,173 | $313,398 |
Net Worth | $2,000 | ($2,690) | ($6,215) | ($6,215) | ($5,465) | ($4,715) | ($3,965) | ($2,465) | ($965) | $535 | $2,785 | $5,035 | $6,535 |
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As the creation of products and services has become more extensive and varied, the manufacturing industry has become more competitive. There are many things to keep an eye on such as material requirements planning, supply chain management and inventory control. Operations continue to become more complex, meaning manufacturing companies require more thorough production planning.
A production plan is the best way to guarantee you deliver high-quality products or services as efficiently as possible.
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Production planning is the process of deciding how a product or service will be manufactured before the manufacturing process begins. In other words, it’s how you plan to manage your supply chain, raw materials, employees and the physical space where the manufacturing process occurs.
Production planning is important for manufacturers as it affects other important aspects of their business such as:
ProjectManager is project management software that helps manufacturers cover every aspect of production planning. Plan with Gantt charts, execute with kanban boards and manage resources along the way. No other software offers sophisticated project and resource management features in one intuitive package. Get started today for free.
If a manufacturing operation wishes to expand, that evolution demands careful production planning and scheduling. Someone must take on the responsibility of managing resources and deciding how they’ll be allocated. This process is a big part of capacity planning —how much can be made in a certain period, with the available resources?
Without production planning, it’s easy to use too much of a resource for one product and not leave enough for another, or fail to schedule your resources properly, which results in delays that affect your overall production management process. It’s just as easy to let resources go to waste. These issues indicate a lack of efficiency in your production planning process.
Production planning is the best way to ensure resources are used appropriately, products and services are high-quality and nothing goes over budget . In most organizations, a production manager manages the production planning process.
A production planner is a team leader who oversees the production planning process, which defines how an organization will approach major areas of production management such as production scheduling, resource capacity planning, production control and production budgeting to manufacture products.
To better understand what a production planner does and the importance of this role in any manufacturing organization, let’s dive into each step of the production planning process.
The production planning process consists of an organization’s actions to make a production strategy that allows it to manufacture products most efficiently and profitably. Here are 10 key steps you should follow when planning your production process.
The first step of the production planning process is to forecast the customer demand for your product for a future period like a year or a quarter. To do so, manufacturers rely on quantitative and qualitative techniques such as Delphi method, historical analogy method, moving average method and the analysis of business data and sales forecasts.
This process is known as demand planning , which helps manufacturers be better prepared to meet the demand for their products and manufacture the right quantity so they can minimize production and operational costs.
The term production capacity refers to the maximum quantity of product a manufacturing company can produce based on its available production resources such as raw materials, labor, equipment and machinery.
Once you better understand the customer demand for your product, you’ll need to gauge the total quantity of product that needs to be manufactured and then evaluate if your production capacity is sufficient.
Now think about the steps of the production process itself. Outline the production tasks that must be executed to transform raw materials, parts and components into a final product and the physical route that those elements will follow to move across the shop floor. This will allow you to pick a production floor layout that minimizes the time and effort required from your employees.
The next challenge in the production planning process is determining the exact number of units to manufacture to keep up with customer demand and maintain your desired stock levels.
This requires a production budget , a document used to calculate the number of units that should be produced by a company to meet the customer demand for a period such as a month, quarter or even a year.
Creating a production budget involves assessing the current product inventory, the production capacity, sales forecasts and the ending inventory that should remain at the end of the period. Once you analyze these variables and use the production budgeting formula, you’ll know the required production level for a given time.
Choose a costing method for your production process such as activity-based costing, process costing, job costing or simply standard costing. Each has its pros and cons depending on your organization’s particular characteristics.
Now it’s time to make a production schedule that allows your organization to create a stock inventory, deliver products to distribution channels, fulfill customer orders and meet the obligations of any manufacturing contracts the organization has in place for the production timeline you’re planning for.
Next, it’s important to establish standard operating procedures and key performance indicators and use a variety of production control tools to create a system that allows you to track the production process to ensure your products meet quality standards and are manufactured on time and under budget.
After you’ve decided what KPIs will be used to monitor the efficiency of your production process, you’ll need to determine what types of reports will be used to communicate these metrics with stakeholders and the frequency in which they’ll be produced.
The documentation from each of these production planning stages, such as the production budget and production schedule are gathered in a larger document called the production plan.
A production plan is a document that describes how production processes will be executed, and it’s the outcome of the production planning process. It describes the human resources, raw materials and equipment needed and the production schedule that will be followed.
The person responsible for production planning must also be very familiar with the operation’s inner workings, project resources and the products/services they produce. This usually entails collaborating with people on the floor, in the field or in different departments to create products and deliver services.
The best way to illustrate this process is through an example. When you set out to create a production plan, make sure to follow these steps to make it as robust as possible.
Making a sales forecast greatly helps you decide which product planning method is best for your operation given your production capacity. You’ll need to use diverse sales forecasting techniques to better understand what will be the future demand for your product. From here, you can estimate which resources are required and how they’ll be used in the manufacturing process to begin the production capacity planning process.
Accessing inventory is about more than simply taking stock: you should make an inventory management plan for your production inventory and work-in-progress inventory so that you don’t experience shortages that might halt production or let things go to waste. For this step, focus on the inventory control and inventory management techniques you can use to handle inventory in the most efficient way possible.
Most manufacturers use the production budgeting formula below to make a production budget that indicates the ideal production volume based on a starting inventory, sales forecasts, production capacity and expected ending inventory levels.
Required Production = Sales Forecast Expected Units + Desired Ending Inventory – Beginning Inventory
A successful production plan requires you to be familiar with the resource planning details of the manufacturing process, which is why you’ll need to make a resource plan that outlines what resources such as labor, raw materials, equipment and any other capital assets are available for production and when they’re scheduled to be utilized.
Once you’ve determined what the required level of production is and the resources that will be needed, you’ll need to estimate the cost of production . It’s important to ensure the production process will be profitable before creating a production schedule.
As stated above, a production schedule is key to making sure your manufacturing team delivers products on time, but also guides efforts in other areas such as supply chain management and logistics management.
A production control plan should describe all the metrics, procedures, guidelines and tools that will be utilized to monitor how the results compare to the production schedule and resource management projections. This is something that should continually take place and be documented during the production process.
Every operation is unique, and the same production plan isn’t right for everyone. To get the most from project planning, you decide which method is best for your manufacturing process. Here’s a quick intro to the different types of production planning.
The job method is often used when manufacturing a single product, for which a unique production plan is created. This production planning method is generally used in smaller-scale productions, but it can also be applied to larger manufacturing facilities. The job method is especially advantageous when a production order requires specific customizations.
Batch production consists of manufacturing goods in groups, instead of being produced individually or through continuous production . This method is useful when manufacturing products on a large scale.
The flow method is a demand-based manufacturing model that minimizes the production lead time by speeding up the production line. The manufacturing process starts based on work orders, and once it starts, it doesn’t stop until all finished goods are produced. This is called continuous production and it’s achieved by using machinery and little intervention to minimize waiting time.
The process method is more or less what most people picture when they think about production—an assembly line . With the process method, there will generally be different types of machinery that complete separate tasks to put together the finished goods.
The mass production method primarily focuses on creating a continuous flow of identical products. It’s similar to the flow method, but at a much bigger scale, which cuts production costs. When uniformity is just as critical as efficiency, use “standardized processes” to guarantee all products look the same.
No matter what product or service is being manufactured, there are many tried-and-true best practices to increase your operational efficiency . When creating a production plan, keep these two in mind.
When you don’t properly estimate the demand for your product or service, it’s impossible to create a detailed production plan. Demand planning is never static. Consider buying trends from previous years, changes in demographics, changes in resource availability and many other factors. These demand planning forecasts are the foundation of skillful production planning.
Capacity planning means knowing the maximum capacity your operation can manage—the absolute most of a product or service it can offer during a period of time. This is the only way to anticipate how much of each resource you need to create X amount of products.
When you don’t know the production capacity, your production planning is like taking a shot in the dark.
Stay vigilant of common missteps as you go through the production planning process. Here are three mistakes often made during production planning. Luckily, they can be prevented.
This means having risk management strategies in place if things go awry. The goal is to never have to employ them, of course, but it’s better to have them and not need them. Production planning is incomplete if it doesn’t anticipate risks, issues and changes. When you plan for them, you’re ready to problem-solve if and when they happen.
You should work with intelligent production planning tools, but that doesn’t mean you should only rely on enterprise resource planning software for production planning and not oversee resources and manufacturing operations in person. When production planning is only done from behind a screen, the result won’t be as informed as it could be. The best production planning is active and collaborative.
To get the most from your equipment, you need to take care of it. This means tracking usage and keeping up with regular maintenance. This looks different depending on the industry and product or service, but the principle is the same: continually take care of your equipment before it becomes a problem that slows down production.
As the nature of manufacturing goods and services changes, you need modern tools to plan production and make schedules. ProjectManager is award-winning project management software that offers all the tools you need for excellent production planning and scheduling. With it, you can plan projects, create schedules, manage resources and track changes with one tool.
Manage your product manufacturing across a timeline with our Gantt chart view. With it, you can view your resources to help you track your cost of production to ensure you’re never overspending. You can then link any dependent tasks to avoid bottlenecks in your manufacturing.
To keep your production plan on track, you need a high-level view to pinpoint setbacks before or as they occur. Our real-time dashboard collects data and converts it into colorful graphs and charts that give you at-a-glance analytics.
Any operation will have stakeholders who want to be kept in the loop. ProjectManager’s project status reports make it easy to share key data points. They can be generated in a single click, making it simple to generate them before important meetings.
The production planning process involves many different activities such as estimating the quantity of goods to be produced, the resources needed, the production schedule and much more. That’s why we’ve created dozens of blogs, guides and templates on production management topics. Here are some of them.
Manage every detail of your operation with ProjectManager’s powerful online project management tools. Our suite of tools is trusted by tens of thousands of teams, from NASA to Volvo, to aid them in the planning, scheduling, tracking and reporting on the progress and performance of their production plans. Our software lets you get out from behind your desk and make adjustments on the go. Try it for yourself for free for 30 days!
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A production company is in charge of planning and filming a particular production or media program. Production firms, in a nutshell, create, promote, and distribute films, digital commercials, and television shows. A production firm, unlike many other businesses, does not run on a continuous income stream; instead, it operates on continuous investments . The profits they make from the productions they do are their only source of income. As a result, if you want your production firm to be successful and profitable in the long run, you’ll need a sound plan. You’ve come to the right place! In this article, we provide you with free and ready-to-use samples of Production Company Business Plan in PDF and DOC formats that you could use for your firm. Keep on reading to find out more!
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A business plan for a production company can be used to raise financing, create a roadmap, or change direction and figure out the next stages. One of the goals of any business plan is to convince investors or a bank why they should invest in the company. It implies you’ll need this production company business plan to show that you’ll generate money. A business plan is used to assist in the management of an organization by establishing goals, how they will be accomplished, and when they will be achieved. Investors, partners, workers, and management will use your company plan as a benchmark against which to measure development.
A detailed study of asset and capital needs is required when writing a production professional production firm business plan. A Production Company Business Template may help you create the structure you’ll need to guarantee you have a well-written, well-researched strategy on hand. To do so, you can choose one of our excellent templates listed above. If you want to write it yourself, follow these steps below to guide you:
This is the first and most important step in establishing a film company . First and foremost, you must conduct extensive study on the film business and determine which field you will use your abilities to get the best outcomes. Look into the local film firms in your region to discover what they’re up to and how they’re doing things. Pay close attention to what they’re doing well and what they’re not doing well. This will assist you in identifying areas of the industry where you may get a competitive advantage.
A mission statement explains why your company exists. It’s not just about what you do or what you sell; it’s about why you do it. Inspiring and emotive mission statements are essential. They should be rallying cries around which your company’s heart and soul revolve. Less is more in every aspect of your strategy. Your mission statement epitomizes this sentiment. Consider what inspires you, what events and circumstances led to the establishment of your company, the problems you tackle, the larger societal concerns you care about, and so on.
Managing a film firm will necessitate financial resources. You must be able to identify a potential source of funding for your film firm. The majority of filmmakers obtain funding for their film company through credit card cash advances; some obtain funding from family, friends, and partners. If you wish to raise funds from potential investors or a bank, you’ll need to produce a solid business plan for your production company.
Your marketing strategy or plan can be the difference between selling so much that your firm expands rapidly or obtaining no business at all. This portion of your business plan may also be used to emphasize your strengths and what sets you apart from the competitors. Make sure to illustrate what you’ve previously done, what you want to accomplish with your current resources, and what you hope to achieve as a consequence of your efforts.
A production company, house, studio, or team is a corporation that offers the physical foundation for works in the domains of performing arts, new media art, cinema, television, radio, comics, interactive arts, video games, websites, music, and video.
A studio makes films for the general audience, whereas production companies assist other businesses in creating the material they want. Studios, on the whole, are substantially larger and frequently adopt a corporate economic model.
Producers plan and organize different parts of film production, such as selecting the script, organizing writing, directing, and editing, and securing finance, whether they are hired by a production firm or working independently.
Overall, a solid business plan not only assists your production company in focusing on the particular procedures required to see their company ideas through to completion, but it also assists them in achieving short and long-term goals. To help you get started, download our easily customizable and comprehensive Production Company Business Plan samples today!
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By: Author Tony Martins Ajaero
Home » Business Plans » Media Sector
Are you about starting a film and video production company ? If YES, here is a complete sample film and video production business plan template & feasibility study you can use for FREE .
If you have ever come across a movie buff, chances are that you will notice the way at which they are able to analyze a movie for expertise or mediocrity. The truth is that these folks can tell when a movie has been well produced. This is one of the reasons why those who are at the helms of affair in the movie production business try their best to churn out quality stuff.
Starting a film and video production company is one of the best things that may happen to you. This is because of the promising nature of the trade. As a matter of fact millionaires are being made every time in the movie production world. Good news still remains that there are newbies every now and then.
1. industry overview.
We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21 st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc. et al. These are companies that truly define the trends in the industry.
Basically, film and video production industry is an industry that is responsible for producing and distributing motion pictures and videos. This industry does not include third-party providers such as distributors and disc manufacturers, as well as products, such as television shows and made-for-television movies, aimed specifically toward television et al.
Despite the fact that film and video production business can be expensive to run, the business is indeed a thriving business that has loads of players making huge profits from the industry. One thing is certain, if a film and video production company can successfully produce a major hit movie or musical video; it won’t be too long before video recording contracts come calling from all over the united states and beyond.
Players in the Film and Video Production industry struggled with mounting film production costs and of course the decline in theater/cinema attendance.
It is now common in recent times to find the average movie producers increasingly investing in high – end special effects hence they choose to shift their focus toward generating high ticket sales as against increasing the number of dramas and comedies, which usually generate comparatively lower revenue.
The industry is exploring now maximizing new distribution channels to continue to increase revenue generation so as to break even after spending huge sum of money to produce a movie.
Any entrepreneur who intends to start a film and video production company must be ready to pull enough cash to be able to acquire expensive film and video production gears, for location shooting equipment and professional movie editing software amongst many other expenses associated with movie production.
In other to cut cost especially when starting out, movie producers often rent shooting equipment for a fraction of its cost, which has helped limit the massive capital expenditures that would otherwise be necessary to produce major films.
For instance, in 2015 alone, for every dollar spent on labor, movie producers incur an estimated $0.22 in capital expenditures. In the last five years, capital intensity has remained fairly constant.
The Film and Video Production industry still depend on experts(highly skilled workers and artists) in all stages of the production process, and highly talented and hardworking employees are required for planning, shooting, editing and distributing films.
The Film and Video Production industry is indeed witnessing a steady growth over the years- especially in countries such as the United States, Nigeria, india and China et al. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.
Statistics has it that the Film and Video Production industry in the United States of America, is worth $34bn, with an estimated growth rate of 0.7 percent. There are about 6,527 registered and licensed film and video production companies in the United States and they are responsible for employing about 63,228 people.
One good thing about starting a film and video production business is that even if you decided to start it in the United States of America, your market would not be restricted to business opportunities in the U.S.; the world will be your target market.
Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your film and video production brand on the internet and you will be amazed at the rate people will be calling you from all parts of the world.
Film production is one art that requires a ton of skills. This is so that nothing short of the best is produced. Moonlight™ Film and Video Production Company is a one stop and standard film and video production company that is fully equipped with the latest technology in the film and video production industry.
Our film and video production studio will be located in the heart of Inglewood, Los Angeles – California, U.S and we are positioned to work for a wide range of client ranging from individual clients to corporate organizations, national clients to international clients and players in the Hollywood industry et al.
Moonlight™ Film and Video Production Company will engage in all aspect of business services synonymous to standard organization operating in the film and video production industry.
Our business goal is to work towards becoming one of the leading film and video production brand in the whole of Los Angeles and in the nearest future compete with the leaders in the industry not only in the United States but also in the global stage.
We are not ignorant of the fact that building a standard and world class film and video production company from the scratch requires huge capital base- essentially for the purchase of world – class and latest film and video production equipment; which is why we have perfect plans for steady flow of cash from our business partners with interest in our line of business.
We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry.
We will ensure that all our employees are selected from a pool of talented and highly creative people with eyes for good movies in and around Los Angeles – California (with bias from Hollywood) and also from any part of the United States.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.
At Moonlight™ Film and Video Production Company our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely and of course producing movies and videos that can compete with the best in the world. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Moonlight™ Film and Video Production Company is owned majorly by Macqueen Reeves and other partners. Macqueen Reeves is a certified and licensed film producer, he graduated from New York Film Academy and he has well over 15 years hand on experience in the film and video production industry working for leading film and video producing companies in Hollywood prior to starting his own film and video production company.
He will build the business alongside other experienced partners who have successfully carved a niche for themselves in the industry.
We do not want to leave any stone unturned when it comes to producing the best products and services. So, Moonlight™ Film and Video Production Company is going to offer a variety of services within the scope of the film and video production industry in the United States of America.
Our intention of starting our film and video production business in Inglewood – Los Angele is to make profits from the film and video industry and we will do all that is permitted by the law in the US to achieve our aim and business goals. Our business offering are listed below;
Our Business Structure
The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Moonlight™ Film and Video Production Company will build a solid business structure that can support the growth of our film and video production business.
We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading film and video production brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.
We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Moonlight™ Film and Video Production Company;
Entertainment Lawyer/Legal Secretary
Studio Manager
Film Producer
Recording Engineer
Admin and HR Manager
Marketing and Sales Executive
Front Desk Officer
Chief Executive Office:
Client Service Executive
Moonlight™ Film and Video Production Company engaged the services of a core professional in the area of film and video production consulting and business structuring to assist the organization in building a standard and world – class film and video production company that can favorably compete with other leading film and video production brands in the United States of America.
Part of what the business consultant did was to work with the management of the company in conducting a comprehensive SWOT analysis for Moonlight™ Film and Video Production Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Moonlight™ Film and Video Production Company;
Our core strength lies in the power of our team and the latest film and video production equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.
We are well positioned in the heart of Inglewood, Los Angeles and we know we will attract loads of clients from the first day we open our film and video production company for business.
As a new film and video production company based in Los Angeles – the headquarter of film production in the world, it might take some time for our organization to break into the market and attract some well – established artist and bigger corporations and investors; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion our business the way we would want to.
The opportunities in the film and video production industry is massive especially in a place like Los Angeles – California where we have Hollywood, and we are ready to take advantage of any opportunity that comes our way.
We like other brands in the industry, have our own fair share of threats. Hence, technology and the internet which of course is a major tool for the advancement and gains achieved in the film and video production industry can also poses a threat to the industry.
The truth is that with the advancement of technology, it is now easier for individuals to produce home videos and musical videos without the help of professional film and video production companies. So also, just like any other business, one of the major threats that we are likely going to face is economic downturn.
It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new film and video production company in same location where our target market exist and who may want to adopt same Business model like us.
Online video is one major trend in the film and video production industry. Recent statistics from Comscore show that on an average day in 2011, over 100 million Americans viewed online video content. This represents growth of 43 percent over the previous year.
Well over 43.5 billion videos were streamed in December 2011 alone; a 44 percent increase over the previous year. This growth shows no signs of dwindling, as people increase the absolute number of videos they watch, in addition to viewing longer form content on leading video sites such as Netflix and Hulu.
Entrepreneurs that are venturing into the film and video production industry are coming in with creativity and good business skills. The fact that it is highly competitive in the industry does not in a way stop some film and video production companies from declaring profits year in year out.
Another known trend in the film and video production industry is that most film and video production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.
When it comes to film and video production business, there are no exemptions to who you can market your services products to especially finished movies. Your movies can be market to adults, children, teenagers, corporate organization, government and everyone who can afford to purchase a movie et al.
Over and above, our target market as a film and video production company cuts across people of different class and people from all walks of life and corporate organizations. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our products and services.
We have conducted our market research and survey and we will ensure that our film and video production company attracts the kind of artists and clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;
Our Competitive Advantage
We are mindful of the fact that there are stiffer competition in the film and video production industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.
Moonlight™ Film and Video Production Company might be a new entrant into the film and video production industry in the United States of America, but our competitive advantage lies in the power of our team and the latest film and video production equipment that we have.
We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups film and video production companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
Moonlight™ Film and Video Production Company is established with the aim of maximizing profits in the film and video production industry and we are going to go all the way to ensure that we do all it takes to attract our target market.
Moonlight™ Film and Video Production Company will generate income by offering the following services and products;
One thing is certain when it comes to movies and documentaries; they never dies and the demand for good movies and documentaries will continue to grow. This goes to show that any film and video production company that is known to always produce good movies will continue to attract talented artists, corporate organizations and clients and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Los Angeles California and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Los Angeles – California to other cities in the U.S. and even the global market.
We have been able to critically examine the film and video production market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.
Below is the sales projection for Moonlight™ Film and Video Production Company, it is based on the location of our business and other factors as it relates to film and video production start – ups in the United States;
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
Our sales and marketing team will be recruited based on their vast experience in the film and video production industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.
We will also ensure that our excellent movies and videos speaks for us in the market place; we want to build a standard and well equipped film and video production company that will leverage on word of mouth advertisement from satisfied clients/artists.
Our business goal is to build Moonlight™ Film and Video Production Company business to become one of the leading choice in the whole of Los Angeles – California which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.
Moonlight™ Film and Video Production Company is set to make use of the following marketing and sales strategies to attract clients;
We are aware that there isn’t any business that despises new clients. This the reason why we have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to take the film and video production industry by storm which is why we have made provisions for effective publicity and advertisement of our recording studio company. Below are the platforms we intend to leverage on to promote and advertise Moonlight™ Film and Video Production Company;
At Moonlight™ Film and Video Production Company we will keep our fees and prices of videos a little below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce movies or short videos especially for advert purposes.
At Moonlight™ Film and Video Production Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.
The cost of setting up film and video production business can be quite expensive especially if you are all out to start a standard film and video production company. Aside from the money required to purchase the latest film recording and production equipment, you would also need a huge cash base to be able to attract and pay well established film actors to act in your movies.
Essentially, this is the area we are looking towards spending our start – up capital on;
Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America. Here are some of the key film and video production equipment and gear that we would need to set up our film and video production company;
Generating Funding/Startup Capital for Moonlight™ Film and Video Production Company
Moonlight™ Film and Video Production Company is going to start as a partnership business that will be owned and managed by Macqueen Reeves and his business partners. They are the financial of the business, but may likely welcome other partners later, which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
N.B: We have been able to generate about $500,000 (Personal savings plus funds from business partners) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Moonlight™ Film and Video Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to ensure that every movie that we produce is a hit back to back and it appeals to the needs of the society we intend selling the movies
Moonlight™ Film and Video Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
People face failure. Not all entrepreneurs are capable of thriving to survive in this industry. Indeed, businesses fail. And that is the truth about it. But do you remember how all the plans that didn’t push through? If you do, then now is the time to correct mistakes from the past. Don’t take planning as anything. Whether in food, film, or media production, organizing your activities helps in achieving your goals. Take your time to prepare a production plan . Be guided in executing the right activity to achieve your goals. Create a structure and release the doubt. Increase your potential and start planning for the production today.
1. daily production plan template.
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Small businesses are always tangled with several challenges while starting a business. You can expect that there will be projects, events, and daily activities. A production plan is a detailed document that outlines the structure of the company’s operations. In the plan, there is a structure, schedule, goal, activities, and the definition of resources in between. It is one step closer to success at a time. So, whenever your path is uncertain, a production plan will help in opening the right direction. This is why entrepreneurs must consider rewriting their planning techniques. If you are having issues with the layout, the proper organization saves the day.
According to an article published by Forbes, 80% out of 100 small business owners guarantee success in the first year of business operation. It manifests an above-average rate of success. However, behind this curtain are failing attempts for smaller businesses to stand out. Generally, the business industry is at a 50% stake in reaching accomplishment and failure. Surprisingly, many companies today face a battle without enough capital. Sometimes, competition is thick and no weapon to defend. These are just among the factors that affect the whole organization. But, don’t thrive for the worst. You need a little encouragement to compete. Here, you must adjust your business activities, schedule, and operations.
Generally, you need to plan. So, before you start getting back to your daily grind, let us learn more about writing down your production plan. Follow below.
If you are a manufacturing firm, it is not always easy to look into the company’s needs. There will always be lapses. And that is one thing that you should avoid. But you can do this through planning. You need your plans outlined to track the inputs of the production. That is why we help you go through it. You should understand every step by following the list below.
First things first, you need to stretch it out. To effectively plan for the future of the business, you need an estimate of the sales through market demand. How many products should you produce to meet the target demand? When should these products be released? Another way to secure this process is through current and historical information. On top of the line, there will be orders in the coming weeks. So, you need to think ahead. In general, take advantage of internal and external resources.
Here, you need to verify the tools and resources necessary to produce your products and services. Take for example, when you have a bakery business, you need to know the machines that are required to produce bread and cakes. You can start this by listing the food on the menu. Then, create a flowchart. Once these are all secured, you can already identify the resources that should be available for the business to operate. You can improve the process by having the right materials.
Aside from the equipment, you need to count how many employees you will need to operate. Of course, it is not enough to operate without the labor workers that control and monitor the production. To do this accurately, separate each team into a department. But base them according to the availability of position and equipment. Your staff should be enough to deliver and produce without delays. But aside from that, you need to weigh in your production budget. Or else, it can lead to a big commotion.
An action plan without constant monitoring is just a waste of time. Neglecting this will eventually lead to pitfalls. So, you need to measure the risk factors. This is where you compare and contrast the production process. Record a report as this helps you determine a recurring problem. Don’t let issues happen in a blink of an eye. Monitor and control while you can.
For the last step, make the adjustments you intend to make with your plan. What are the challenges? Does the plan need tweaking? Production planning can be a little tricky when done wrong. Now that you have monitored and measured the risk percentage, pen down all the actions necessary. Change them according to your evaluation. Here, you should achieve a comprehensive management plan . Weigh the budget, schedule, and activities too.
Production planning is a process that is taken during manufacturing. It details all the necessary procedures for the company to operate. It includes hiring staff, checking the resources, evaluating the results. Through this process, the production will run smoothly.
Production consists of various components. These are essentials to execute the manufacturing process. This includes planning, producing, scheduling, evaluating, and following ups—all of these work hand in hand for the company to deliver quality products with no delay.
The general objective of production planning is to secure the workflow process of a manufacturing company. As the demand goes up, it is important to ensure that all the products released are of quality.
Are you struggling to meet your daily quota? Remember, one-day unproductive results in several risks in the business. This profoundly affects your reputation, and of course, the sales. But you can change honest mistakes. While you look at the list of tips in creating a production plan, you can resume your manufacturing business and align all the plans with your objectives. Understandably, running a business is daunting and frustrating. But you will never know your potential unless you try. So, start today. Highlight your potential by outlining all the plans necessary.
Text prompt
Create a study plan for final exams in high school
Develop a project timeline for a middle school science fair.
So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.
Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.
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According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.
“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”
Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.
The four main types of business plans are:
Internal business plans, strategic business plans, one-page business plans.
Let's break down each one:
If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.
Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.
Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.
Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.
As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .
Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.
Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).
A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.
Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:
Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?
The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.
Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.
A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.
For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.
How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.
What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.
Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”
A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.
“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”
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Production Company Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their production companies. If you're unfamiliar with creating a production company business plan, you may think creating one will be a time-consuming and frustrating process.
This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan. Executive summary. Market Validation. Objectives. Short-Term (1 -3 Years) Long Term (3-5 years) Mission statement. Unique Selling Proposition.
A production plan serves as a roadmap that outlines the steps, resources, and strategies required to manufacture products or deliver services efficiently. By carefully crafting a production plan within a business plan, entrepreneurs can ensure optimal utilisation of resources, timely delivery, cost efficiency, and customer satisfaction.
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.
Film Production Company Business Plan: The Complete Guide. Matt Crawford 4. The process of film production is a long and arduous one. It starts with the writing stage, where screenplays are written by a writer or multiple writers. The screenplay typically has at least three acts that have to be edited for pacing and story development purposes.
We provide a free business plan template below and will walk you through it. Step by step. Production Company Business Plan. The Executive Summary. Perform a Video Company Self Assessment. How to Get Started. Financing a Video Production Company. Marketing Plan. Day to Day Operations.
When we designed our business plan for a production company, we ensured it was properly organized. The document consists of 5 sections (Opportunity, Project, Market Research, Strategy and Finances). 1. Market Opportunity. The first section is named "Market Opportunity".
Titus Mold Manufacturing, Inc. is located in Molder, Missouri. Our company designs and manufactures prototypes and molds for use in casting metals or forming other materials, such as plastics, glass or rubber. Our business operates within the manufacturing industry and is classified under NAICS code 333511 - industrial mold manufacturing.
The following business plan template gives you the key elements to include in a winning business plan for any type of production company. It can be used to create a film production company business plan, or business plans for music production, a video production company and/or a media company.
Here are the five types of production planning, with an example of each: 1. Flow. The flow method involves smoothing the connections between manufacturing stages and steps to prevent bottlenecks or delays. Flow manufacturing often involves thorough standardization and intensive quality control.
This template is designed to cover all bases of production planning: Goals and objectives: Define specific, measurable targets to guide your production efforts. Scheduling: Detail every phase of production to ensure timely completion and optimal resource utilization. Resource management: Allocate your workforce, machinery, and materials wisely ...
Using a production schedule template improves your business's efficiency and organization while contributing to the overall success of the production process. Some of the key advantages of using a production planning template include: More efficient resource allocation: A good production plan will help you allocate resources efficiently ...
The company will also hold pop-up stalls at consumer exhibitions. Production companies charge $3,000 to $50,000 depending upon the production project. The average fee is $26,500. The distribution cost is around $1,000 for each screen. The average distribution income is estimated at $50,000.
If you are planning to start a new manufacturing, fabrication, or production business, the first thing you will need is a business plan.Use our business plan example created using upmetrics business plan software to start writing your business plan in no time.. Before you start writing your business plan for your new manufacturing business, spend as much time as you can reading through some ...
A free example of business plan for a production company. Here, we will provide a concise and illustrative example of a business plan for a specific project. This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is ...
Free business plan template. A fill-in-the-blank template designed for business owners. Download Now. Sample Plans. ... If you're planning to start a manufacturing, fabrication, or production business you'll need a business plan to do it. To help you get started, check out our library of sample plans to be sure you're covering everything ...
1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
4.1.5 Strategic Alliances. The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael's Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
Here are 10 key steps you should follow when planning your production process. 1. Use Production Forecasting Methods for Estimating Customer Demand. The first step of the production planning process is to forecast the customer demand for your product for a future period like a year or a quarter.
How to Make a Production Company Business Plan. A detailed study of asset and capital needs is required when writing a production professional production firm business plan. A Production Company Business Template may help you create the structure you'll need to guarantee you have a well-written, well-researched strategy on hand.
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) - $2,500. Miscellaneous - $20,000. Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America.
A production plan is a detailed document that outlines the structure of the company's operations. In the plan, there is a structure, schedule, goal, activities, and the definition of resources in between. It is one step closer to success at a time. So, whenever your path is uncertain, a production plan will help in opening the right direction.
This production plan outlines how a crew will produce 50 salad cups per day from Monday to Thursday for sale in a school. The salad must be refrigerated overnight to stay chilled. Production takes 45-60 minutes and involves mixing condensed milk, gulaman powder, sugar, and fruits in bowls before transferring to cups and refrigerating. The only equipment needed is a refrigerator to keep the ...
2. Keep all the sections to the point. It's great that after reading the executive summary, your readers are moving ahead to the whole plan. Though there's no defined length of a business plan—remember to keep all the sections focused. On average the plan should be 15-30 pages long.
Here's a business plan example of a competitor analysis for a new plumbing company planning to launch in the Epsom area of Surrey. Step 4: Complete a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. This is a very important part of your business plan, because it helps you drill down into your idea.
A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money). A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage ...