Studio Business, Good or Bad?

L

LVS Studios

First off I am a recent high-school graduate who got interested in film by my position in Student Body. I filmed the sports of each season, edited, added effects, and then premiered them at the pep-rally held every three months. During this time I also filmed short films of my own, and produced local artists' music as well. Each time I worked a new event more people joined my "studio" now I have about 35 followers and more join everyday. Right now I have a chance to turn all of this into a business with potential investors knocking on my door. My question to you is, Does this seem like a smart business decision? or just me trying to fulfill my fantasy of owning my own entertainment studio?

Any advice would be graciously appreciated,

Tanner Grant
 
From a stickly business perspective, the only way to know if this works is to perform a feasibility study, a market analysis, and create a business plan with projected financials (cash flows) (based on the feasibility study and market analysis) for 1 year, 5 years, and 10 years. Take a college course in small business management.

There is a big difference between being a filmmaker and being a production studio owner.
 
Do you have investors knocking on your door? If you do this
is a smart business decision. If you do not you need to follow
gpforet's advice or it's just a fantasy. Is there a need in your
area for an entertainment studio? Are there investors in your
area looking to invest in an entertainment studio? Is there
profit to be made for the investors?

If there is, it will be a smart business decision to meet this
need in your area.

When you say "followers" what do you mean? People with
money? People willing to pay you for your work?
 
Have you actually sold anything? Have people come asking for you to do specific projects for pay?

The stuff you made at school was fun and cool. But projects that can be SOLD require clearances from EVERYBODY in the film.

Try to get some of these under your belt before making business decisions . . . the answer may become clearer.

Good luck.
 
Followers that join? Join what? Sounds like Twitter or FB. I hope that's not what you mean, 35 followers has nothing to do with starting a business. What do you mean by studio? Building a production facility?
 
Are you ready to handle all of the business responsibilities? As a business owner I can tell you that there's a lot of hard work that has nothing to do with your career. You need a business space with all of the usual utilities (communications [phone, internet], electric, water), a bathroom and maybe a kitchenette. (BTW, you have to comply with local zoning.) You need to keep records to satisfy your investors, your creditors, and the city, state & IRS; this means that you yourself takes care of the books or you hire someone. You have to pay your employees; you personally write the checks or pay for a payroll service (you also have to comply with federal employer/employee regulations). You have to purchase, maintain and insure production equipment, post production equipment and general office equipment. You have to maintain a website and do your marketing/advertising. You also need an attorney and an accountant on retainer.

All of this requires regular income. Can you 100% guarantee that you can meet all of your financial obligations every single week? Are you willing to spend the hours every day running your business? This may sound discouraging - and it's supposed to - but taking care of the business part of running a business takes a serious time away from what you really want to do. That's what makes being a production company - or audio post facility - so different from other businesses.

So, if you want some idea of what you are getting yourself into, write out a detailed business plan.

http://www.bplans.com/video_production_business_plan/executive_summary_fc.php
 
Was about to post this but alcove just posted what I was about to say.

Business is expensive to get into, and very expensive and burdensome to sustain. Plan carefully, and study business. It's a very significant part of getting your films made, and making your projects profitable.
 
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