Video content consumption has been on a rise since the pandemic. Be it a short-form or long-form video, a good videographer is crucial for effective storytelling. Given the rise in individuals and companies using video content to tell their stories, a videography business can help these clients produce their videos for the maximum impact.
If so, you could consider capitalising on this passion by starting your own videography business, however before starting a videography there are a number of unique considerations that you should take into account when establishing a business within this area.
We break them down for you in this article, so read along.
What is Videography Business
A videography business or a business videographer can be different from an individual videographer. It is a registered company which houses a team of specialists who contribute to the entire process of conceptualising, shooting, editing and producing a video project. It has a team of scriptwriters, directors, cameramen, editors, motion designers, etc.
However, a freelance videographer can also set up their own videography business where they individually manage all aspects of conceptualisation to production of a video. Customers can be brands that are looking for videographers for their business such as to shoot their advertisement campaign or individuals who might need help with shooting and producing their wedding video.
Starting a Videography Business: The Pre-Steps
Before you start your own videography business, there are certain steps you must follow to ensure long term success:
Gain Skills and Knowledge
Before starting your videography business, it is necessary to understand the skills required for the profession. You must have the technical expertise to edit and produce videos, as well as be able to properly operate video equipment.
If you do not possess all the skills required for video production, you can also hire help to help with different steps of video production. For instance, if you are skilled at editing but require help with handling video equipment, you can hire talent with more experience handling video equipment.
Alternatively, you can also build all skills required to run a videography business. There are a number of ways to build these skills. A few of these educational channels include tertiary classes, as well as online tutorials at places such as Skillshare and Google Learning. The core basics that you need to learn about include production, business management and video editing.
Devise Your Offerings
Once you have identified your skills and set up a team to fill any skill-gaps, you can decide your niche. It is necessary to identify the type of videography services that you want to provide. This might mean specialising in events such as weddings and parties, or focusing on commercial work such as corporate training materials and video advertisements.
In choosing your specialty, it is important to research your local competition. This is essential because it is necessary to understand other companies operating in your vicinity so that you differentiate your services from them to maximise your client base.
If there are already many wedding videographers in your area, you might want to explore other specialities, or experiment with different styles of shooting to differentiate your work. Finding a niche can help your business grow and thrive in a competitive environment.
Organise Your Finances and Prices
A crucial part of being a business owner is being good with your money. If you are not as confident with this, consider hiring a financial services lawyer or accountant to assist with taxes, financial planning, compliance with regulatory advice and strategic advice for your financials.
By understanding the upfront costs for your videography business and creating a simple budget, you are able to plan accordingly, save money over time and spend appropriately. Also, when setting prices, be sure that they reflect your skills and experience in the social media marketing industry.
Outlining a budget or creating profit estimates every few months can also help you plan your funding. You can acquire funding from personal savings, loans or investors based on your need.
Calculate Your Costs
When calculating your costs, be sure to budget accordingly and consider your business expenses which might include:
- Videography software;
- Videography equipment;
- Taxes;
- Legal and Accounting fees; and
- Employee and office expenses.
Calculating your costs can help you price your product in a fair manner as well as create a long-term plan to keep your costs low.
Estimate Your Revenue
By understanding how much you expect to make monthly, quarterly and annually, you will be able to organise your spending appropriately and estimate your revenue based on your financial goals.
Calculate Your Profit Margin
Profit margins are the percentage of money left from sales after business expenses have been deducted. By calculating these margins, you will be able to see if you are charging enough to pay off your expenses as your business expands.
Create a Business Plan
Having a business plan that is clear is essential for success. Business plans will give your business direction from the outset and keep you on track through the introductory stages of your operations. Importantly, this document will give you something to show prospective investors, advisors and even clients from the earliest stages of your business.
- Competitor analysis: Your business plan should contain research on your main competitors, the products they offer as well as their strengths and weaknesses. This will help you build your products and services in a way that they stand out in a competitive market.
- Target audience: Your business plan should also contain research on your target audience. What are the preferences of your target audience? Do they like consuming long-form or short-form video? These questions can help you market to your target audience effectively.
- Business goals: A good business plan outlines measurable business goals. You can track your progress against these set goals as you grow your company.
- Funding: Your business plan should have an estimate of costs and your plan to fund them. Your funding could come from personal savings, loans or through investors.
Find out how to write your own business plan here.
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Choose the best business structure
The success of your business can also be dependent on the structure you choose for your business. Some business structures can provide risk-protection and tax-benefits whereas some might create higher tax-liability than other structures.
- Sole trader: This can be a low-cost option for an individual running the business. A sole-trader and their company are considered the same entity and hence they are responsible for the company’s debts and obligations.
- Partnership: A partnership is controlled by two or more people who also share the debts and obligations of the company.
- Company: A company has a complex structure and can legally sue and be sued. In other words, it is a legal entity in itself. Companies are incorporated under the Corporations Act 2001 (Cth) and are governed by the Australian Securities and Investments Commission (ASIC).
- Trust: A less common business structure is a Trust. A trustee can either be a company or an individual and the trustee has full control and legal responsibility for the trust and its incorporation.
You can decide your business structure based on some of the following factors:
- Ownership: If you want to co-own the company with another partner, you can register as a partnership. Here, the obligations of the company will be divided out between the partners.
- Taxation: In Australia a company has a lower tax rate than the highest tax bracket for individuals. Therefore, registering as a company can have lower tax obligations. However, companies might have higher regulatory costs.
You can read more about the different business types before deciding your business structure.
You can read more about the different business types before deciding your business structure.
Register Your Business
Although establishing your videography business can be intimidating, a simple checklist can ease this process. Licences and certifications will vary depending on the country and area you live in. In Australia, you should prioritise the following:
- Registering your business
- Open a business bank account to separate your funds
- Seek legal assistance to create legal contracts to use with your clients
All businesses in Australia need to be registered by applying for an Australian Business Number (ABN) using your business name. For further information, please see the Australian Business License and Information Service to learn about the laws you need to follow based on the specifics of your business.
Choose The Right Employees
Your company will also require part-time or full-time employees to conduct different phases of a video production. You need to determine if you want to hire casual, part-time or full time employees for your business.
- Part-time employees: Part-time employees generally work for less than 38 hours a week. They can still receive some employment benefits, such as sick-leaves or annual leaves, on a pro-rata basis.
- Full-time employees: Full-time employees work consistently for fixed pay, subject to change on employer discretion. Generally full-time employees receive a wide variety of employment benefits such as sick leaves, health insurance, etc.
- Independent Contractors: Independent contractors are freelancers or individuals who offer their services for a fixed period of time to a company for a fixed price.
Here is a webinar on how to hire the right employees for your business.
https://www.youtube.com/watch?v=kYV6NYJETBI&ab_channel=Lawpath
Marketing Your Business
Once you have completed all of the previous steps, it is necessary to build your business’ brand. Marketing your business to potential customers can
- Digital Marketing: Digital marketing is necessary for a videography business, and it is probable that prospective clients will find your business through search engines. In doing so, you must create a brand that will appeal to your business’s target audience when promoting your services. Further, it is necessary to have a simple and easily-accessible spot to share your company’s offerings, capabilities and contact information.
- Social Media: You should also consider creating your own social media accounts to showcase your products and services, build an online following and start reaching out to potential clients. From here, you can begin operating your business and providing services to your clients. Social media applications such as Instagram and TikTok allow users to showcase short-form video content to other users. This can help you create an online portfolio. You can then boost your posts so that people exploring Instagram can come across your work.
- TV Advertisement: You can advertise your videography business using television media as well.
- Offline Advertisement: Print advertisements in local papers and magazines can reach a diverse audience.
- Networking: Finally, it is important that you reach out to current and former colleagues, network at events and put yourself out there. The human touch of networking will play an important role in attracting clients.
Videography Business and the Law
Based on your area, you will need to apply for videography licences and permits. For instance, if you are in Sydney, you need approval to film on public land. Once you have decided if you would like to film on public or private land, you will need to determine your application category based on the size of your crew. This is divided from low to high-impact with the high-impact category having more than 50 crew members. You can discuss your project with a film liaison officer and file the relevant application. These are some of the permits and licenses you might require:
- Commercial Activity Permit: If you are filming in a national park, conservation park or state forest, you will need to apply for a commercial activity permit.
- Copyright: You will also need to determine and apply copyright to your films and productions. If your video uses somebody’s copyright material, you will also need to apply for a copyright clearance before using the material.
- Employment contract: You will typically hire models for your video or photo project. Your employment contract will lay down the terms and details of the project.
- Model Release Forms: An adult or child model release form will ensure you do not have to pay royalties to the models in your photoshoot. These release forms will generally be accompanied by a model consent form or a parental consent form (in the case where the subject is a minor).
FAQs
Do I need a permit for my wedding video production business?
A wedding videography business might require a permit based on where the video is being shot. For instance, if you are shooting the video in a national park or conservation area, such as the Parks Victoria estate, you will need to file for permits.
How Lawpath can help
A videography business can be a profitable venture, especially at this time when video content consumption is on a rise. Setting up and running a videography business might require regular legal services, such as applying for copyright clearances, applying for filming permits, creating employment contracts for your employees etc.
Lawpath provides on-demand legal consultations and a wide repository of legal documents to help you start your videography business seamlessly.
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