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Production Plan in Business Plan: A Comprehensive Guide to Success

February 26, 2024

In any business venture, a solid production plan is crucial for success. 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. In this article, we will delve into the intricacies of creating an effective production plan in a business plan , exploring its key components, strategies, and the importance of aligning it with overall business objectives .

Key Takeaways on Production Plans in Business Planning

• A production plan : a detailed outline that guides efficient product manufacturing or service delivery.
• Importance of a production plan : provides a roadmap for operations, optimises resource utilisation, and aligns with customer demand.
• Key components : demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance.
• Strategies : lean manufacturing, JIT inventory, automation and technology integration, supplier relationship management, and continuous improvement.
• Benefits of a well-executed production plan : improved efficiency, reduced costs, enhanced product quality, and increased profitability.

What is a Production Plan?

A production Seamless Searches plan is a detailed outline that specifies the processes, resources, timelines, and strategies required to convert raw materials into finished goods or deliver services. It serves as a blueprint for the entire production cycle, guiding decision-making and resource allocation. The production plan considers factors such as demand forecasting, capacity planning, inventory management, and quality assurance to ensure efficient operations and optimal customer satisfaction.

Why is a Production Plan Important in a Business Plan?

The inclusion of a production plan in a business plan is vital for several reasons. First and foremost, it provides a clear roadmap for business operations, helping entrepreneurs and managers make informed decisions related to production processes. A well-developed production plan ensures that resources are utilised efficiently, minimising wastage and optimising productivity.

Additionally, a production plan allows businesses to align their production capabilities with customer demand. By forecasting market trends and analysing customer needs, businesses can develop a production plan that caters to current and future demands, thus avoiding overstocking or understocking situations.

Furthermore, a production plan helps businesses enhance their competitive advantage. By implementing strategies such as lean manufacturing and automation, companies can streamline their production processes, reduce costs, improve product quality, and ultimately outperform competitors.

Key Components of a Production Plan

To create an effective production plan, it is crucial to consider several key components. These components work together to ensure efficient operations and successful fulfilment of customer demands. Let's explore each component in detail.

Demand Forecasting

Demand forecasting is a critical aspect of production planning. By analysing historical data, market trends, and customer behaviour, businesses can predict future demand for their products or services. Accurate demand forecasting allows companies to optimise inventory levels, plan production capacity, and ensure timely delivery to customers.

One approach to demand forecasting is quantitative analysis, which involves analysing historical sales data to identify patterns and make predictions. Another approach is qualitative analysis, which incorporates market research, customer surveys, and expert opinions to gauge demand fluctuations. By combining both methods, businesses can develop a robust demand forecast, minimising the risk of underproduction or overproduction. Utilising a free notion template for demand forecasting can further streamline this process, allowing businesses to organise and analyse both quantitative and qualitative data efficiently in one centralised location.

Capacity Planning

Capacity planning involves determining the optimal production capacity required to meet projected demand. This includes assessing the production capabilities of existing resources, such as machinery, equipment, and labour, and identifying any gaps that need to be addressed. By conducting a thorough capacity analysis, businesses can ensure that their production capacity aligns with customer demand, avoiding bottlenecks or excess capacity.

An effective capacity plan takes into account factors such as production cycle times, labour availability, equipment maintenance, and production lead times. It helps businesses allocate resources efficiently, minimise production delays, and maintain a consistent level of output to meet customer expectations.

Inventory Management

Efficient inventory management is crucial for a successful production plan. It involves balancing the cost of holding inventory with the risk of stockouts. By maintaining optimal inventory levels, businesses can reduce carrying costs while ensuring that sufficient stock is available to fulfil customer orders.

Inventory management techniques, such as the Economic Order Quantity (EOQ) model and Just-in-Time (JIT) inventory system, help businesses strike the right balance between inventory investment and customer demand. These methods consider factors such as order frequency, lead time, and carrying costs to optimise inventory levels and minimise the risk of excess or insufficient stock.

Resource Allocation

Resource allocation plays a pivotal role in a production plan. It involves assigning available resources, such as labour, materials, and equipment, to specific production tasks or projects. Effective resource allocation ensures that resources are utilised optimally, avoiding underutilisation or overutilisation.

To allocate resources efficiently, businesses must consider factors such as skill requirements, resource availability, project timelines, and cost constraints. By conducting a thorough resource analysis and implementing resource allocation strategies, businesses can streamline production processes, minimise bottlenecks, and maximise productivity.

Quality Assurance

Maintaining high-quality standards is essential for any production plan. Quality assurance involves implementing measures to monitor and control the quality of products or services throughout the production process. By adhering to quality standards and conducting regular inspections, businesses can minimise defects, ensure customer satisfaction, and build a positive brand reputation.

Quality assurance techniques, such as Total Quality Management (TQM) and Six Sigma , help businesses identify and rectify any quality-related issues. These methodologies involve continuous monitoring, process improvement, and employee training to enhance product quality and overall operational efficiency.

In addition to the core components of a production plan, it's also important for businesses to consider the broader aspects of their business strategy, including marketing and advertising. Understanding the costs and returns of different marketing approaches is crucial for comprehensive business planning. For instance, direct response advertising costs can vary significantly, but they offer the advantage of measurable responses from potential customers. This type of advertising can be a valuable strategy for businesses looking to directly engage with their target audience and track the effectiveness of their marketing efforts.

Strategies for Developing an Effective Production Plan

Developing an effective production plan requires implementing various strategies and best practices. By incorporating these strategies into the production planning process, businesses can optimise operations and drive success. Let's explore some key strategies in detail.

Lean Manufacturing

Lean manufacturing is a systematic Seamless Searches approach aimed at eliminating waste and improving efficiency in production processes. It emphasises the concept of continuous improvement and focuses on creating value for the customer while minimising non-value-added activities.

By adopting lean manufacturing principles, such as just-in-time production, standardised work processes, and visual management, businesses can streamline operations, reduce lead times, and eliminate unnecessary costs. Lean manufacturing not only improves productivity but also enhances product quality and customer satisfaction.

Just-in-Time (JIT) Inventory

Just-in-Time (JIT) inventory is a strategy that aims to minimise inventory levels by receiving goods or materials just when they are needed for production. This strategy eliminates the need for excess inventory storage, reducing carrying costs and the risk of obsolete inventory.

By implementing a JIT inventory system, businesses can optimise cash flow, reduce storage space requirements, and improve overall supply chain efficiency. However, it requires robust coordination with suppliers, accurate demand forecasting, and efficient logistics management to ensure timely delivery of materials.

Automation and Technology Integration

Automation and technology integration play a crucial role in modern production planning. By leveraging technology, businesses can streamline processes, enhance productivity, and reduce human error. Automation can be implemented in various aspects of production, including material handling, assembly, testing, and quality control.

Continuous Improvement

Continuous improvement is a fundamental principle of effective production planning. It involves regularly evaluating production processes, identifying areas for improvement, and implementing changes to enhance efficiency and quality.

By fostering a culture of continuous improvement, businesses can drive innovation, optimise resource utilisation, and stay ahead of competitors. Techniques such as Kaizen, Six Sigma, and value stream mapping can help businesses identify inefficiencies, eliminate waste, and streamline production workflows.

Frequently Asked Questions (FAQs)

What is the role of a production plan in business planning.

A1: A production plan plays a crucial role in business planning by providing a roadmap for efficient production processes. It helps align production capabilities with customer demand, optimise resource utilisation, and ensure timely delivery of products or services.

How does a production plan affect overall business profitability?

A2: A well-developed production plan can significantly impact business profitability. By optimising production processes, reducing costs, and enhancing product quality, businesses can improve their profit margins and gain a competitive edge in the market.

What are the common challenges faced in production planning?

A3: Production planning can present various challenges, such as inaccurate demand forecasting, capacity constraints, supply chain disruptions, and quality control issues. Overcoming these challenges requires robust planning, effective communication, and the implementation of appropriate strategies and technologies.

What is the difference between short-term and long-term production planning?

A4: Short-term production planning focuses on immediate production requirements, such as daily or weekly schedules. Long-term production planning, on the other hand, involves strategic decisions related to capacity expansion, technology investments, and market expansion, spanning months or even years.

How can a production plan be adjusted to accommodate changes in demand?

A5: To accommodate changes in demand, businesses can adopt flexible production strategies such as agile manufacturing or dynamic scheduling. These approaches allow for quick adjustments to production levels, resource allocation, and inventory management based on fluctuating customer demand.

In conclusion, a well-crafted production plan is essential for business success. By incorporating a production plan into a comprehensive business plan, entrepreneurs can optimise resource utilisation, meet customer demands, enhance product quality, and drive profitability. Through effective demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance, businesses can streamline production processes and gain a competitive edge in the market.

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Production Company Business Plan

Things to Consider Before Writing a Production Company Business Plan

Choose a niche.

Video production is used in many aspects from making films, TV, and web series, to direct advertisements, music video advertisements, and so on. Video production is also either done entirely by your company including to’ve processed, or you might be hired by other businesses or agencies to produce videos, but you aren’t a part of the creative process.

It is essential to choose a niche before getting started because different strategies work for different niches. Also, picking one niche before getting started helps you focus on the area and develop a thorough understanding and expertise in it.

Develop a creative process

All of us know that there’ll be days when you have important deadlines, but you won’t be able to think of anything new or good. On such days, you’ll need a process that helps you get decent ideas in an autopilot sort of way. A creative process can help you actively look for ideas instead of waiting for ideas to come to you.

Build a good team

Having a team that understands and supports your vision is essential in any creative profession. Your team should be an amalgamation of individuals with different and complementary perspectives. It helps you develop new and unique ideas as well as move forward with them creatively.

Organize your finances

It is necessary to do your research and find out what would be the financial requirements of starting your production company, how much you can manage on your own, how much funds you’ll need, and what are the sources for acquiring the same.

Chalking out Your Business Plan

If you are planning to start a new production company business, the first thing you will need is a production company business plan. Use our sample production company business plan 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 production company business, spend as much time as you can reading through some samples of entertainment & media business plans .

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample production company business plan for you to get a good idea about how a perfect production company business plan should look like and what details you will need to include in your stunning business plan.

Production Company Business Plan Outline

This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan.

• Market Validation
• Short-Term (1 -3 Years)
• Long Term (3-5 years)
• Mission statement
• Unique Selling Proposition
• Black Screen Productions – 3-Year Financial Highlights
• Company Ownership/Legal Entity
• Interior Operating Facilities
• Hours of Operation
• Startup summary
• Media Production
• Media Distribution
• Market segmentation
• Market Trends
• Target market
• Competitive Advantage
• SWOT analysis
• Target Market Strategy
• Market Size
• Positioning Statement
• Online Marketing Channels
• Offline Marketing Channels
• Pricing strategy
• Organization chart
• Management Team
• Hiring plan
• BLACK SCREEN PRODUCTIONS
• Important Assumptions
• Break-even analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this Production Company business plan template into your business plan and modify the required information and download your production company business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Fill-in-the-blanks and automatic financials make it easy.

Download a sample production company business plan

Need help writing your business plan from scratch? Here you go;  download our free production company business plan pdf  to start.

It’s a modern business plan template specifically designed for your production company business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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What Is Production Planning & Why Is It Important?

Business success often hinges on making the products that customers want in a timely and cost-effective way. Production planning helps companies achieve those goals. It maps out all the processes, resources and steps involved in production, from forecasting demand to determining the raw materials, labor and equipment needed. Production planning helps companies build realistic production schedules, ensure production processes run smoothly and efficiently, and adjust operations when problems occur.

What Is a Production Plan?

A production plan describes in detail how a company’s products and services will be manufactured. It spells out the production targets, required resources, processes and overall schedule. The plan also maps all of the operational steps involved and their dependencies. The goal is to design the most efficient way to make and deliver the company’s products at the desired level of quality. A well-designed production plan can help companies increase output and save money by developing a smoother workflow and reducing waste.

What Is Production Planning?

Production planning involves developing a comprehensive strategy for making the company’s products and services. Initially adopted by large manufacturers, production planning has since become more popular among small and midsize businesses in multiple industries — largely because technology has made it easier to plan and track production processes with less effort. Production planning covers many different aspects of production, from forecasting demand to determining the raw materials, workforce, equipment and steps needed to make the company’s products.

Production Planning vs. Production Scheduling

While production planning provides an overview of what the company plans to do, production scheduling creates a more detailed view of exactly how the company will do it. The production schedule describes when each step in the production plan will occur, as well as the workers, machinery and other specific resources assigned to the job. Production scheduling can be extremely complex, especially when there are many interdependent production steps and the company is making multiple products simultaneously. Production scheduling software (opens in new tab) can help businesses create complex schedules, monitor progress in real time and quickly make adjustments when necessary.

Key Takeaways

• Production planning describes in detail how a company’s products and services will be manufactured.
• A production plan defines the production targets, required resources and overall schedule, together with all the steps involved in production and their dependencies.
• A well-designed production plan helps companies deliver products on time, reduce costs and respond to problems.
• Technology has made it easier for small and midsize companies in multiple industries to use production planning to optimize operations.

Product Planning Explained

Production planning is a broad discipline that involves much more than a focus on manufacturing process efficiency. It is intertwined with nearly every other aspect of the business, including finance, sales, inventory and human resources. Production planning activities include demand forecasting to determine the right mix of products to meet customer needs, as well as selecting the optimal approach to building those products. Production planning also assesses the resources needed to meet production goals and lays out in detail all the operations in the production process. Production plans must include the flexibility to make operational adjustments when problems occur — such as machine breakdowns, staffing shortages and supply-chain problems.

Why Is Production Planning Important?

A well-constructed production plan can help to boost revenue, profit and customer satisfaction, while a poorly designed plan can cause production problems and perhaps even sink the company. Specific benefits of production planning include:

• Knowledge. A production plan provides a framework for understanding the resources and production steps required to meet customer needs. It also helps companies understand the potential problems that may occur during production and how to mitigate them.
• Efficiency. Detailed production planning reduces bottlenecks and helps minimize costs. It also helps ensure the high quality of a product, and it keeps expenses on budget.
• Customer satisfaction. Production planning helps ensure that the company can make and deliver products to customers on time, leading to higher customer satisfaction and a greater likelihood of repeat business.

Types of Production Planning

The design of a product plan depends on the production method that the company uses, as well as other factors, such as product type, equipment capabilities and order size. Here are three of the main types of production planning:

Batch production planning.

Refers to manufacturing identical items in groups rather than one at a time or in a continuous process. For some businesses, batch production can greatly increase efficiency. A bakery creating items for sale the next day might first make a batch of chocolate chip cookies, then move on to oatmeal raisin cookies followed by loaves of semolina bread. A clothing manufacturer making goods for the summer might first set up its cutting and sewing machines to make 500 navy-blue T-shirts, then switch to red fabric and thread to make 400 tank tops. A good production plan for batch processing should look out for potential bottlenecks or delays when switching between batches.

Job- or project-based planning.

Used by many small- and medium-sized businesses, job production planning focuses on the creation of a single item by one person or team. Job-based planning is typically used where the specificity of each client’s requirements means it is difficult to make products in bulk. Many construction businesses use this method. Makers of custom jewelry and dresses are other examples of businesses that may use job production planning.

Flow production planning.

In flow production, also known as continuous production, standardized items are continuously mass-produced on an assembly line. Large manufacturers use this method to create a constant stream of finished goods. During production, each item should move seamlessly from one step along the assembly line to the next. Flow production is most effective at reducing costs and delays when there’s steady demand for the company’s products. Manufacturers can then readily determine their needs for equipment, materials and labor at each stage along the assembly line to help streamline production and avoid delays. The automotive industry and makers of canned foods and drinks are among the companies that use this method.

5 Steps to Make a Production Plan

Production planning is a robust undertaking that starts with forecasting and includes process design and monitoring. Here are five typical production planning steps:

Forecast product demand.

Estimate how much of each product you’ll need to produce over a designated period. Historical data can help with forecasting, but you’ll also need to pay attention to other factors that can affect demand, such as market trends and the economic situation for your customer base. Demand planning software can help companies make more informed decisions about the right amount of product needed to meet demand.

Map out production steps and options.

This step determines the processes, steps and resources needed to produce the required output. At this stage, the company may also examine different options for achieving its production goals, such as outsourcing some stages. The production mapping identifies which steps are interdependent and which can be performed simultaneously. Let’s say the job is to produce 1,000 children’s bicycles. Manufacturing the bicycle frames consists of a series of steps that must happen in sequence — cutting metal tubes, welding and painting — while other activities like assembling wheels can occur in parallel. Do you have all the right equipment? What happens if a machine breaks down? Are your suppliers able to meet your demand?

Choose a plan and schedule production.

Select a production plan after comparing the cost, time required and risks for each option. Sharing the selected plan with all necessary stakeholders typically helps assure a smoother production process since all the stakeholders are aware of what’s needed. Create a detailed production schedule that lays out in detail how the company will execute the plan, including the resources and timing for each step.

Monitor and control.

Once production has begun, you’ll need to track performance and continually compare it against the targets described in the production plan. Careful monitoring helps the company to detect any issues as soon as they pop up, so they can be quickly addressed.

Adjust accordingly.

It’s almost inevitable that production will be affected by events that you can’t plan for or predict. Those events can include changes to client specifications, supply chain lags, equipment failures and worker illness. You may also see ways to improve the production plan after seeing it in action for a while. So it’s vital to keep production plans flexible enough to allow for adjustment when needed. Football coaches often make adjustments to their game strategy at halftime — and the same holds true for production planning.

3 Common Product Planning Mistakes

Being aware of potential pitfalls ahead of time can help companies avoid or mitigate problems once production has started. Here are three of the most common production planning mistakes.

Not anticipating hiccups along the way.

In any complex production process, plans can go awry. Production planning should therefore include risk management strategies, including backup plans companies can rely on in the event of problems. Failing to do so can result in serious problems. For example, if a machine breaks on the line and you didn’t budget for repairs and workforce overtime, the issue may strain the company’s financial resources.

Keeping your distance.

Though production management software can provide real-time visibility into a company’s production status, it’s a good idea to supplement that information with in-person visits to the production line. Those visits can provide valuable insights into how production works in practice — insights that you might not gain if you’re stuck behind a desk.

Failing to maintain equipment.

There’s a tradition in football that the quarterback buys presents for his offensive linemen at the end of each season. Why? Because they protect him and enable him to do his job. Your manufacturing equipment is your company’s offensive line, so don’t neglect it. Tracking usage and paying for regular preventive maintenance helps ensure that your machines can keep your business functioning.

Production Planning KPIs

Key performance indicators (KPIs) are important metrics that help companies track the health of their production processes. By monitoring KPIs and comparing them to target values defined in production plans, businesses can determine whether production is on track and pinpoint problems that need to be addressed. Typical production KPIs include:

This key efficiency metric tracks the percentage of time that production is not occurring during scheduled operating hours. Causes include machine breakdowns, tool adjustments and accidents. Some downtime may be necessary for functions such as machine maintenance, but generally, the less downtime the better.

Setup time.

Also referred to as changeover time, this is the amount of time it takes to switch between jobs. Setup time impacts overall productivity because production is halted during these periods. Production schedules should consider how much time and effort it takes to reconfigure production for each job, including changes to the equipment, raw materials and workforce. Designing production schedules to minimize changeover time can increase efficiency.

Production rate.

In a manufacturing environment, this is typically measured as the number of units produced during a specific period. Comparing the actual production rate for each process with the planned rate can help businesses identify strengths and weaknesses and begin to address problems.

Overall equipment effectiveness (OEE).

This is a measure of overall manufacturing productivity that accounts for quality, performance and availability. The formula for OEE is:

OEE = Quality x performance x availability

Quality is typically measured as the percentage of parts that meet quality standards. Performance is how fast a process is running compared to its maximum speed, which is expressed as a percentage. Availability is the percentage of uptime during a company’s scheduled operating hours. Increasing OEE can be achieved by lowering downtime, reducing waste and maintaining a high production rate.

Rejection rate.

This is the number or percentage of products that failed to pass quality checks. Depending on the nature of the product and the problem, it may be possible to salvage some rejected items by reworking them, while others may need to be scrapped.

On-time orders.

Production delays can be costly both in terms of money and reputation. Generating products on schedule means you’re less likely to need costly expedited shipping or other emergency measures to meet deadlines. And delivering orders on time helps keep customers happy, which means they’re more likely to keep doing business with your company.

Production Planning Tools

Businesses rely on a variety of tools to build production plans and track progress, ranging from visualization tools to sophisticated software that automates many of the steps involved. Typical tools include:

Gantt charts.

A Gantt chart is a detailed visual timeline of all the tasks scheduled for a particular job. More than 100 years since its invention by mechanical engineer Henry Laurence Gantt, this chart remains integral to manufacturing and many other industries. Production planning involves coordinating and scheduling many tasks , and the Gantt chart visually represents when each task will take place and how long it will last. Manually creating and updating Gantt charts to reflect complex, ever-changing production schedules can be a time-consuming and error-prone job, however.

Spreadsheets.

Small companies sometimes start out by tracking simple production plans using spreadsheets. However, for most companies, the inherent complexity of production planning quickly outstrips the capabilities of spreadsheet software.

Production planning software.

Production planning involves a wide range of activities, including forecasting, managing the supply chain, tracking inventory and scheduling jobs. Those activities require information from across the company and beyond. Production planning information is integral to business operations and is used by other groups within the company, including finance. That’s a key reason many companies use enterprise resource planning (ERP) application suites that include production planning software and provide a single solution for managing the entire business.

Manage and Optimize Production With NetSuite

NetSuite cloud-based production management software helps companies maximize manufacturing productivity and minimize cost. NetSuite provides real-time visibility into each aspect of the production process, from inventory tracking and monitoring the production floor to fulfilling orders. Production scheduling capabilities let businesses create and update complex real-time production schedules with minimal effort. Because NetSuite production management software is part of an integrated suite of ERP applications , businesses can share production progress with the entire organization and link production processes to financial reports, inventory management and order management.

Production planning is an important function that can boost profitability and customer satisfaction as well as efficiency. It helps companies match output to demand, optimize production processes and determine how to overcome production problems.

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Production Planning FAQs

What are the 5 steps in production planning.

Here are five typical steps in the production planning process:

• Forecast the short- and long-term demand for your product.
• Map out the various options and processes for manufacturing these goods
• Choose the option that checks as many boxes as possible, and develop a production schedule.
• Monitor production against the plan.
• Adjust the plan where needed. In other words, if it’s broken, fix it.

What are the 3 activities of production planning?

Production planning activities can be divided into three main areas: Develop a production process and strategy; gather the resources needed, from raw materials to machinery and personnel; and select and train the necessary people.

What are the types of production planning?

Three of the main types of production planning are batch planning, job planning and flow or continuous planning . The choice depends on your resources as well as the nature of the product. Batch planning makes the same item in bulk before moving on to another item. Job planning, also called project-based planning, focuses more on custom design and single-item production. Flow production involves a steady stream of mass-produced items moving along the line.

What is the role of production planning?

Production planning is critical to ensure the production process runs smoothly and efficiently and delivers products on time. Planning allows a business to make certain that all necessary preparation is completed before starting production.

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Film Production Company Business Plan: The Complete Guide

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. Once the script is finished, it’s time for pre-production!

There’s a lot of misconception about what film production really entails. This article will clear up some of the misconceptions and give you an idea of what it is like on set, as well as how to break into the industry.

FILM PRODUCTION COMPANY BUSINESS PLAN

What is a film production company business plan.

A film production company business plan is a document that can help you to get investors and loans from banks, but it’s also useful for you to see if your idea is viable. It helps you determine if it’s worth investing money, time, and effort.

Film production company business plans are documents that should be created before starting the business.

They will help you gain investors so you can start your film production company and make money out of your films.

A business plan should have all the necessary information about your film company , including the mission statement, executive summary, market analysis, funding request, financial projections, and management team.

Starting a film production company is an exciting venture that blends creative storytelling with the thrill of entrepreneurship.

Crafting a solid business plan is our roadmap to success, ensuring we navigate the complex landscape of the film industry with confidence.

We’ll jump into the essentials of a film production company business plan, from financial projections to marketing strategies.

Stick with us to learn how to lay the groundwork for a thriving production company that’s ready to take on Hollywood.

Executive Summary

When embarking on the exhilarating journey of starting a film production company, the executive summary stands as a pivotal introduction to the business plan.

It provides a snapshot of the company’s vision and objectives, ensuring that potential investors or partners grasp the core of what we’re building.

In our executive summary, we’ll outline the major points that distinguish our company, such as our unique storytelling capabilities and innovative distribution strategies.

We hone in on our competitive advantage – a blend of seasoned industry professionals and fresh talent that pushes the envelope of what’s possible in film.

We’ll also touch upon our foundational goals:

• Captivate a diverse audience with groundbreaking narratives,
• Create a slate of projects that showcase profitability and creative ingenuity,
• Establish a brand synonymous with quality entertainment.

Financial plans are succinctly summarized to demonstrate the strategic allocation of resources and the anticipated financial trajectory.

Here, investors will find confidence in our capability to manage budgets effectively and produce high-return projects.

Marketing strategies are briefly yet powerfully presented, showcasing how we plan to penetrate the market and gain substantial traction.

We outline our approach to leveraging social media , partnerships, and film festivals to amplify our presence and stake our claim in a crowded industry.

Each element of our executive summary is designed to pique interest and invite deeper exploration into our full business plan.

Through it, we lay the foundation for a dialogue with stakeholders that could translate into lasting support for our creative endeavours.

Company Overview

In the heart of our business plan lies the comprehensive Company Overview section, a detailed portrait of who we are and what we stand for.

As seasoned filmmakers at Filmmaking Lifestyle, we take pride in our ability to tell gripping stories through the lens of our cameras.

We offer a range of filmmaking services, but here’s a snapshot of our core offerings:

• Narrative Film Production – Our signature offering includes developing and producing feature films that resonate with audiences globally.
• Commercial Video Production – We craft compelling marketing videos that help brands tell their stories and engage with their target demographic.
• Innovative Content Creation – With the digital space evolving rapidly, we stay ahead of trends producing content that stands out in crowded platforms.

Our mission goes beyond the visual aesthetics; it’s about weaving narratives that leave a lasting impact.

Each project is an opportunity for us to push the envelope in creative storytelling.

At the core of our operation, we strive to achieve a convergence of artistic vision and commercial viability.

Anchored by a team of dedicated professionals, we bring diverse perspectives and skills to every production.

This synergy creates a fertile ground for innovative filmmaking.

Our work ethic revolves around a relentless pursuit of excellence and a commitment to staying on top of the latest industry advancements.

Focused on scaling our film production capabilities, we’re actively exploring emerging technologies and distribution channels to enhance our impact in the industry.

We’re all about staying ahead of the curve, making sure our films are not just seen, but remembered and revered.

With a portfolio that spans various genres and styles, our flexibility allows us to tailor our approach to each unique project.

Collaboration is key – by joining forces with talented writers, directors, and producers, we amplify our ability to craft unforgettable cinematic experiences.

Investing in our growth, we’ve equipped ourselves with state-of-the-art equipment and editing suites, ensuring professionalism and efficiency in our production workflow.

Convergence of art and technology is critical in our approach and is reflected in every piece of content we produce.

eventually, our Company Overview is not just an introduction to who we are; it’s an open invitation to jump deeper into the possibilities and potent potential of partnering with Filmmaking Lifestyle.

We’re here to bring visions to life and curate a portfolio of work that speaks volumes of our passion for filmmaking.

Vision And Mission

Matt Crawford

Related posts, small business accounting: 7 steps to flawless video production company accounting, best finance books in 2024: 50 top books to grow your wealth, magic moments & making the most of every day, best creative brief template for video creatives & agencies, productivity and getting things done, 5 best vod (video on demand) platforms and how to distribute in 2024.

Iam having a movie by the name from the streets to the world

Best of luck, Kelvin!

Matt .. would you have template of the Biz Plan .. and are you Fine with sharing the same? – AMAAN

Here’s an idea for a template: https://toskaproductions.com/wp-content/uploads/2013/06/TEA-Business-Plan.pdf

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Business Plan Template for Video Production

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you an entrepreneur or a video production company in the media and entertainment industry? If so, you know that having a solid business plan is crucial for success. With ClickUp's Business Plan Template for Video Production, you can outline your strategies, set objectives, and forecast your financial projections—all in one place!

This template is specifically designed to help you secure funding, attract investors, and guide the overall direction of your video production business. With ClickUp, you can:

• Plan and organize your marketing strategies, production processes, and distribution channels
• Track and manage your financials, including revenue streams, expenses, and profitability
• Collaborate with team members and stakeholders to ensure everyone is aligned towards your business goals

Don't let the complexities of the video production industry hold you back. Use ClickUp's Business Plan Template for Video Production to take your business to new heights. Get started today and make your vision a reality!

Business Plan Template for Video Production Benefits

A business plan template for video production can offer a range of benefits for entrepreneurs and video production companies in the media and entertainment industry. Some of these benefits include:

• Providing a clear roadmap for your video production business, outlining strategies and objectives
• Guiding decision-making and helping you stay focused on your goals
• Assisting in securing funding and attracting potential investors by showcasing your vision and financial projections
• Ensuring a comprehensive understanding of the market, competition, and target audience
• Facilitating effective project management and resource allocation for successful video production
• Helping you stay organized and accountable for the growth and success of your video production business.

Main Elements of Video Production Business Plan Template

When it comes to creating a comprehensive business plan for your video production company, ClickUp has you covered with its Business Plan Template for Video Production. Here are the key elements of this template:

• Custom Statuses: Keep track of your progress with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your business plan is accounted for and easily managed.
• Custom Fields: Utilize important custom fields like Reference, Approved, and Section to organize and categorize information within your business plan, making it easier to navigate and update as needed.
• Custom Views: Access five different views including Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain different perspectives on your video production business plan, ensuring a clear understanding of objectives, timelines, and progress.
• Collaboration: Collaborate seamlessly with your team on the business plan, assigning tasks, setting due dates, and monitoring progress using ClickUp's task management features.
• Documentation: Centralize all relevant documents, contracts, and financial projections within the template using ClickUp's Docs feature, ensuring that all essential information is easily accessible in one place.

With ClickUp's Business Plan Template for Video Production, you'll have the tools you need to create a well-structured and organized business plan that sets your video production company up for success.

How To Use Business Plan Template for Video Production

If you're in the video production industry and need to create a business plan, the Business Plan Template in ClickUp can help you get started. Follow these steps to effectively use the template:

1. Define your vision and goals

Start by determining your vision for your video production business. What do you want to achieve? What services do you want to offer? Set clear and measurable goals that align with your vision.

Use the Goals feature in ClickUp to create and track your business goals for your video production company.

2. Conduct market research

Before diving into your business plan, it's crucial to understand the market and your target audience. Research your competitors, industry trends, and customer preferences to gain insights that will guide your business decisions.

Use the Docs feature in ClickUp to compile your market research findings and create a comprehensive analysis.

3. Develop your marketing and sales strategy

A strong marketing and sales strategy is essential for the success of your video production business. Determine how you will reach and attract clients, and outline your pricing structure and sales tactics. Identify your unique selling proposition (USP) and highlight your competitive advantage.

Utilize the Board view in ClickUp to create a visual representation of your marketing and sales strategy, including different stages of client acquisition and conversion.

4. Outline your financial projections

Financial projections play a crucial role in your business plan, as they demonstrate the viability and profitability of your video production company. Estimate your revenue streams, production costs, overhead expenses, and expected profits. Consider factors such as equipment, personnel, and marketing costs.

Use the Table view in ClickUp to create a financial projection spreadsheet, including revenue forecasts, expense breakdowns, and cash flow analysis.

By following these steps and using the Business Plan Template in ClickUp, you can create a comprehensive and effective business plan for your video production company. Remember to regularly review and update your plan as your business evolves and new opportunities arise.

Get Started with ClickUp’s Business Plan Template for Video Production

Entrepreneurs or video production companies in the media and entertainment industry can use the Business Plan Template for Video Production in ClickUp to create a comprehensive plan that outlines their strategies, objectives, and financial projections.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful video production business:

• Use the Topics View to brainstorm and organize different sections of your business plan
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your business plan's timeline and milestones
• The Business Plan View will provide a comprehensive overview of your entire plan, including strategies, objectives, and financial projections
• The Getting Started Guide View will serve as a step-by-step guide to help you navigate through the template and complete each section
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize your business plan
• Update statuses and custom fields as you work through each section to keep team members informed of progress
• Monitor and analyze your business plan to ensure it aligns with your goals and attracts investors.
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How to Start a Production Company: A Complete 12-Step Guide

S tarting a production company can be incredibly daunting. There are so many business aspects that appear mundane and confusing to the typical creative starting a production company. But the truth is that laying down a proper foundation is essential for any new production company to grow and prosper. In this article, we outline twelve steps on how to start a production company in the modern age. Let’s dive in. 

How to start a production company 

1. research the market.

Getting started right away and shooting anything and everything possible might sound like a great idea when starting a production company. But before you shoot a single shot, it is important to do your market research. This is important for companies producing either independent films or commercial advertisements. 

When producing an independent film, research doesn't mean you must write a film according to what is popular. But rather understand and determine how the film you want to make can be positioned in the world of indie films, streaming, and top film festivals .

On the topic of the latter, researching film festivals can be the deciding factor that gets your film into film festivals. Here are a few tips on how to choose the right film festival. 

Starting a Production Company Through Film Festivals

If you are aiming to produce commercial work, research is just as, if not more important. Research the market in your specific area and determine how to position your company to fulfill the market needs of your area. 

Research also may involve reaching out and learning from others. Here are the founders of a small production company Dose of Society. They reached out to Gary Vaynerchuk, a well-known and successful entrepreneur, to ask him how to scale a small media company. 

How to start a production company  •  Meeting With Dose of Society

While the advice Gary Vaynerchuk gives them is valuable in and of itself, it is important for you to conduct your own research in your area. It is also important to research competing companies and take note of the services they are offering. Understanding what you’re up against will help you determine how to position and market your company.

Starting a film production company

2. determine your niche.

When starting a production company, you may find that a specific niche excites you the most. For indie film companies, this may be a certain genre such as horror or science-fiction. In commercial production, companies this may be a focus on weddings, restaurants, start-ups, or even gyms. 

Starting a film production company with niches

As the video states, it is important to follow your instincts when determining your niche rather than what others tell you is a great niche to pursue. When first learning how to start a production company, take a look at existing companies and understand what markets are saturated in your area. 

How to start a film production company with no money

3. name your company.

Naming a company can be incredibly fun, but often difficult. When naming your production company, definitely include your personality and have fun with it, but keep in mind a few guidelines. 

It is important to come up with a name that is memorable and easily searchable. It’s easy for company names to get lost in the minutiae of the internet. Utilizing a city name in your company name is a great way to help potential clients find your company more easily. Here is a great Ted talk that discusses how to come up with a great brand name.

How to name your production company  •  Brand Names

It is also important to make sure that your name is original and legally avoids copyright problems. Enter your possible company names into the National Business Register to check if your name is taken. 

How do you start a production company?

4. create a business plan.

One of the most important steps when creating a production company is creating a production company business plan . Without a business plan, starting a company may be easy, but growing it in a sustainable way will be incredibly difficult. 

Putting your business plan on paper will help you and your team gain a clear direction on the company with actionable steps. Here is some first hand advice on how to think about growing a production company.

How to start a production company and grow it

Perhaps most importantly, a business plan can be presented to potential investors, advisors, team members or clients to prove to them that there is a plan for the future of the company. When people are going to invest their money or time into a company, they will want to know that there is a plan behind the idea. 

5. Assemble a team and equipment

While it is always an option to start a company alone as a sole proprietor (we’ll get to that in the next section), working with friends is not only more fun, but it can increase your production value immensely. 

Being a one man or woman show can spread you thin and decrease the level of production on your projects. There will inevitably be projects that come up where you will need to find and hire a great film crew . A proper set will entail a few key positions. What positions are absolutely necessary? Here’s a video to give you a better idea. 

How Many Crew Members Do You Need?  •  Starting a film production company

This team will either be composed of freelancers, employees, or business partners. To determine which you will employ, refer to your business plan and finances to see what best suits your company.

Once you have your crew, using StudioBinder’s film crew list management software will help you stay organized and efficient when managing your crew.

In addition to a team, you will need equipment. When starting a production company, it is common to be on a very tight budget. Production lighting kits , mirrorless cameras , and camera lenses can get pricey. Here is a video that breaks down some essential equipment needs that won't completely break the bank.

How to Start a Production Company With Under $10,000: What Should You Buy?

Keeping your team and production organized is the difference between amauteuer productions and professional productions. Production softwares like StudioBinder’s production management software will help take your company to the next level. 

Related Posts

• A Complete Buying Guide to Camera Lenses →
• The Best Mirrorless Cameras for Filmmaking →
• Plan your productions with scheduling software →

Register a film production company

6. determine your type of company.

Types of businesses to register a film production company

To recap, here are your options as stated here by the U.S. Small Business Association where you can find more information:

1. Sole Proprietorship:

A sole proprietorship is easy to form and gives you complete control of your business. 

Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Still wondering what a sole proprietorship is? Check out the video below for more information.

What Is A Sole Proprietorship?  •  QuickBooks US

Sole proprietorships can be a good choice for low-risk businesses and owners who want to test their business idea before forming a more formal business.

2. Partnership:

Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).

Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability.

Limited liability partnerships are similar to limited partnerships, but give limited liability to every owner.

Partnerships can be a good choice for businesses with multiple owners, professional groups (like attorneys), and groups who want to test their business idea before forming a more formal business.

3. LLC (Limited Liability Company)

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures.

LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits. LLCs can also have a limited life in many states. 

These can be a good choice for medium- or higher-risk businesses, owners with significant personal assets they want to be protected, and owners who want to pay a lower tax rate than they would with a corporation.

LLC vs S-corp vs C-corp

4. c corp (corporation).

A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable.

Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.

These can be a good choice for medium- or higher-risk businesses, businesses that need to raise money, and businesses that plan to "go public" or eventually be sold.

5. S Corp (Corporation)

An S corporation, sometimes called an S corp, is a special type of corporation that's designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners' personal income without ever being subject to corporate tax rates.

S corps also have an independent life, just like C corps. If a shareholder leaves the company or sells his or her shares, the S corp can continue doing business relatively undisturbed.

These can be a good choice for a business that would otherwise be a C corp, but meet the criteria to file as an S corp.

How do I start a production company?

7. consult a lawyer or legal advisor.

Creating a production company legally can be complex. Consulting a legal advisor or lawyer will help ensure that you are taking the necessary steps in starting your company. Many people jump into starting a production company without laying the foundations. 

Here is a video with first hand experience explaining why this is such an important step for anyone starting a production company. 

5 Tips from Starting my own production company from scratch

There are many small business lawyers and entertainment lawyers who specialize in production services that can give great legal advice throughout the process. This step will help you avoid any costly problems in the future.

How to start your production company’s bookkeeping 

8. set up your bookkeeping.

Entertainment payroll, production insurance , and other expenses can get complicated and unorganized very fast. Consulting a CPA and setting up your bookkeeping right away will also help you avoid costly problems in the future as well as any legal ramifications for overlooked processes. This step will pay off when it's time to file your taxes, apply for a loan, or pay your employees.

How to start a production company website

9. establish an online presence.

Whether your production company produces independent films or commercial work, having an online presence is incredibly important. A website will enable you to showcase your work and allow clients or audiences to find you. 

In this day and age, it is a great idea to develop a social media presence as well. Instagram, Facebook, and YouTube are all places where trailers, commercials, and other video work can live and be discovered by clients or potential Hollywood players. 

How to create a production company portfolio

10. produce proof of concept projects.

Once you create a website and online presence, you will need to produce work that lives there. This gallery of work will obviously grow as you take on more client work, but initially you may have to shoot some proof of concept ideas that will help clients get a better idea of what your production company is capable of creating. 

StudioBinder's web series,  Making It , followed the entire proof of concept process from the script to the first day of shooting. Here's the first episode on how it all began.

Making It Ep. 1  • Watch Entire Series

When shooting independent films, sometimes creating a short film as a proof of concept for a feature film is a great way to get eyes on your project and potentially funding. 

11. Build a client network

Once the foundations of your company have been established, the next most important step is getting new clients. This is where you will actually see a return on your investment. Here are some fundamental tips for finding new clients for your production company. 

How to start your production company client network

The keys to building a client network is networking and delivering consistent, high quality work. Your initial clients will be your best allies in getting new clients, so maintaining a good relationship is essential.  

How to start a production company plan

12. plan for the future.

Planning for the future of your production company can be difficult in an industry that shifts and changes so often. In this day and age, technology progresses and changes at the blink of an eye. Keeping your focus on how the market is changing, what’s trending in the industry, and what new tech is emerging will help you steer your company like a ship in the right direction. 

Starting a production company is no easy feat by any means, but if you are passionate, persistent, and willing to put in the work it is absolutely achievable. Hopefully these tips bring you one step closer to executing your plan of starting your own production company. Remember there are endless resources online that will help you get started. 

• The Best Video Lighting Kits for Filmmakers →
• How to Master Lighting with 3-Point Lighting →
• Redefined Production Calendar for Easier Shoots →

A guide to creating your business plan

A key part of starting a production company is creating a business plan. And creating a business plan for your new production company can be daunting. Luckily, we’ve covered the fundamentals of how to create a production company business plan in our next article and even included a free template to lay out your business plan. 

Up Next: Creating a business plan →

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How to write a business plan for your production company.

Starting a production company is a great way to create and distribute content to a wide range of audiences.

It also allows for creative control over the production process, allowing for the production of unique and innovative content.

Don't start without having built a business plan though.

A business plan is essential for any new project, as it provides a roadmap to success and helps to identify potential risks. It also helps to ensure that resources are allocated appropriately and that the project is completed on time and within budget.

In short, a good business plan will help ensure the profitability of your production company .

What are the necessary elements for a business plan for a production company? How should it be organized? Which metrics should be part of the financial analysis? What's the fastest way to outline a comprehensive business plan?

Rest assured, the article you're reading will provide answers to all these questions.

One last thing: you can avoid starting your business plan from scratch.

Feel free to download our business plan for a production company and adapt it to your project.

Developing a business plan for a production company

Do you need to develop a business plan for your production company.

Yes, you need to develop a business plan for your production company.

Formulating a comprehensive business plan will allow to:

• learn about the production company market
• stay abreast of the industry's newest developments
• find key factors for success in a production company
• understand clients' project goals and creative vision to produce high-quality and captivating visual content
• come up with a unique value proposition for your production company
• study the competitive landscape
• find relevant competitive advantages for your media production firm
• find a business model that will lead to a positive bottom line
• define a bulletproof strategy to make the business grow
• evaluate risks associated with operating a production company, including production delays, equipment breakdowns, and legal compliance

Our team has created a business plan for a production company that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a production company?

Your business plan incorporates multiple metrics and valuable data. It should be arranged in a way that makes it simple to read and comprehend.

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".

In this section, you will find a comprehensive analysis of the production industry, including market trends, production methods, distribution channels, and emerging technologies, providing insights for entrepreneurs and professionals in establishing and managing successful production companies.

The data here is always kept current; we update it biannually.

2. Project Presentation

The second part is called "Project" and this is where you talk about your production company. In this section, you can outline the types of productions you specialize in (e.g., film, television, commercials), your portfolio of projects, production capabilities, creative team, and the unique value proposition that ensures high-quality productions tailored to client needs.

Also include a short description about yourself at the end of this section.

Discuss your experience in production, your range of production services, and how you plan to provide creative and professional production solutions to clients. Highlight your portfolio of successful projects, your talented team of professionals, and your dedication to delivering high-quality productions that captivate audiences and bring visions to life through your production company.

We put together language in our business plan. Adjust it to suit your idea as needed.

3. Market Research

The third part is the "Market Research" section.

This section describes the target audience for your production company.

It includes a comprehensive analysis of competitors in the production industry and emphasizes your company's unique production services and competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

In the "Strategy" section, you will find a detailed growth plan for your production company, outlining all the necessary steps and initiatives to ensure its high profitability.

Furthermore, there is a marketing strategy for a production company, a way to manage risks, and a completed Business Model Canvas included in this section.

5. Finances

Ultimately, the "Finances" section serves as a platform to present the financial aspects of your project.

How to elaborate an Executive Summary for a production company?

The Executive Summary gives a summarized glimpse into the business plan of your production company.

Don't go beyond 2 pages; concentrate on the crucial information.

This document is meant to make the reader curious to know more about your business plan.

In the Executive Summary of your production company, address the following queries: what services does your production company offer? who is your target market? who are your competitors in the industry? how do you differentiate from them? what is your budget?

How to do the market analysis for a production company?

Conducting a market study for your production company enables you to grasp external factors like customer demands for specific media content, competition within the entertainment industry, and emerging trends in production techniques.

By conducting an extensive market analysis, a production company can understand client production needs, offer professional production services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased project contracts, and a prominent position in the production industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a production company :

• fresh and updated data and statistics about production companies, including production industry revenue, film and TV production trends, and distribution methods
• a compilation of potential customer segments for a production company
• the competitor analysis
• the competitive advantages for a production company

The key points of the business plan for a production company

What's the business model of a production company, business model of a production company.

A production company's business model revolves around creating and producing various forms of media content such as films, television shows, commercials, or digital content. Revenue is generated through content production contracts, licensing deals, or advertising partnerships.

The business model focuses on identifying market demands, developing compelling content concepts, securing funding or investments, assembling talented production teams, managing production logistics, and distributing or monetizing content through various platforms.

Success depends on industry connections, delivering high-quality content, effective marketing and distribution strategies, fostering creative collaborations, and staying adaptable to evolving media consumption trends and technologies.

Business model ≠ Business plan

It's important to understand the distinction between "business plan" and "business model."

A business model defines how a company creates, delivers, and monetizes its offerings.

In a business plan, you make use of the Business Model Canvas as an easy-to-understand tool to depict how your business operates.

Rest assured, we provide a Business Model Canvas in our business plan for a production company .

How do you identify the market segments of a production company?

Market segmentation for your production company involves dividing your potential clients into different groups based on their media production needs, industries, and preferences.

These categories may include factors such as film production, commercial production, music video production, or clients seeking specific production services (e.g., scriptwriting, cinematography, editing).

By segmenting your market, you can offer specialized production services and solutions that cater to each segment's specific requirements. For example, you might provide film production services for independent filmmakers or production companies, offer commercial production services for businesses and advertising agencies looking to create compelling commercials or promotional videos, specialize in music video production and provide creative and visually stunning music videos for musicians and record labels, or focus on specific production services such as scriptwriting, cinematography, or editing.

Market segmentation allows you to effectively target your marketing efforts, communicate your expertise in media production, and deliver high-quality and captivating production experiences that meet the unique needs and preferences of each client segment.

In the business plan for a production company , you will find a detailed market segmentation that gives you insights into your potential customers.

How to conduct a competitor analysis for a production company?

Without surprise, you won't be the only production company in your market. There will be other companies offering film, video, or media production services to clients.

It is vital to study your competitors' strengths and weaknesses in detail when constructing your business plan.

Identify their weaknesses (such as inadequate production equipment, inconsistent project delivery, or poor client communication).

Why should you pay attention to these points? Because these weaknesses can impact the efficiency and effectiveness of production companies. By addressing these aspects, you can offer professional and reliable production services, provide state-of-the-art equipment and technology, and deliver excellent project management and client communication, positioning your production company as a trusted and preferred partner for creating high-quality and impactful audiovisual content.

It's what we call competitive advantages—invest in them to make your business unique.

Here are some examples of competitive advantages for an audiovisual production agency: creative and innovative content creation, professional equipment and editing, timely delivery.

How to draft a SWOT analysis for an audiovisual production agency?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of starting a production company, allowing for informed decisions to be made.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a production company

The strengths for a production company

The "S" in SWOT denotes Strengths, which are the project's areas or aspects that provide a competitive advantage.

For a production company, strengths could include having experienced personnel, access to cutting-edge technology, strong financial resources, and a robust portfolio of past projects.

The weaknesses for a production company

When we mention the "W," we're referring to Weaknesses, which are the weak areas or aspects of the project that need to be improved.

For a production company, potential weaknesses include inadequate capital, lack of resources, insufficient marketing, and inadequate planning.

The opportunities for a production company

The "O" in SWOT symbolizes Opportunities, highlighting the potential advantages or positive factors that can benefit the project.

In the case of a production company, potential opportunities include creating web content, filming commercials, producing television shows, and creating music videos.

The threats for a production company

The "T" in SWOT symbolizes Threats, indicating the potential risks or unfavorable conditions that the project needs to mitigate.

How to outline a marketing strategy for an audiovisual production agency?

A marketing strategy is a vital component of a business plan as it specifies how a business will draw in customers and generate income.

Developing an effective marketing plan will help your production company gain visibility and appeal to clients seeking high-quality video and media production services.

Clients won't choose your audiovisual production agency without proper promotion; highlighting your creative capabilities and successful projects is necessary.

Have you considered marketing techniques to attract clients to your production company? Consider showcasing your portfolio of past projects, attending industry events or film festivals, and utilizing social media platforms to engage with potential clients and collaborators.

No need to worry if you're clueless about marketing and communication – it's not a big deal.

How to build a solid financial plan for an audiovisual production agency?

A successful business plan requires comprehensive financial data in order to accurately forecast future performance.

As part of your business plan, it will be necessary to forecast the revenue for your production company.

The presence of a relevant and credible revenue forecast is crucial to give your business plan a strong appeal to banks or investors.

Our financial plan for a production company is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your production company. Don't forget any expense (we have listed them all in our financial plan !).

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your production company will be profitable or not.

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How To Write the Operations Plan Section of the Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Stage of Development Section

Production process section, the bottom line, frequently asked questions (faqs).

The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.

You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.

Key Takeaways

• The operations plan section should include general operational details that help investors understand the physical details of your vision.
• Details in the operations plan include information about any physical plants, equipment, assets, and more.
• The operations plan can also serve as a checklist for startups; it includes a list of everything that must be done to start turning a profit.

In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.

Keeping focused on the bottom line will help you organize this part of the business plan.

Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.

You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.

When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:

Production Workflow

A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and disposed.

Industry Association Memberships

Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry. 

Supply Chains

An explanation of who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down.

Quality Control

An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.

While you can think of the stage of the development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.

When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.

Do an outline of your business's day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.

The Physical Plant

Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.

The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.

Make a list of your assets , such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.

Special Requirements

If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.

State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.

Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.

Explain how you'll keep  track of inventory .

Feasibility

Describe any product testing, price testing, or prototype testing that you've done on your product or service.

Give details of product cost estimates.

Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystalize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.

What is an operations plan?

An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.

What is the main difference between the operations plan and the financial plan?

The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.

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How to write a business plan for a video production company?

Putting together a business plan for a video production company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing video production company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a video production company?

• What information is needed to create a business plan for a video production company?
• How do I build a financial forecast for a video production company?

The written part of a video production company business plan

• What tool should I use to write my video production company business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a video production company business plan is so crucial.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your video production company is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your video production company, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your video production company's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your video production company business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your video production company's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your video production company.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your video production company and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your video production company's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your video production company, let's explore what information is required to create a compelling plan.

Information needed to create a business plan for a video production company

Drafting a video production company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a video production company

Carrying out market research before writing a business plan for a video production company is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may find that there is a growing demand for video production services from businesses that are looking to produce promotional content for their online channels. Additionally, you could discover that there is a potential market for producing educational videos, as more people may be turning to online learning platforms.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your video production company.

Developing the marketing plan for a video production company

Before delving into your video production company business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a video production company

As you embark on starting or expanding your video production company, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A video production company might incur staffing costs such as hiring a camera operator, sound technician, lighting technician, and editor. They might also incur equipment costs such as renting a camera, lighting, microphones, and other necessary production equipment.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your video production company's financial forecast?

The objective of the financial forecast of your video production company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a video production company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your video production company forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established video production company will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your video production company

The projected balance sheet of your video production company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your video production company projected balance sheet provides an understanding of your video production company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your video production company's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a video production company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your video production company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the video production company is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a video production company.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the video production company, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your video production company business plan, let's have a look at the written part of the plan.

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a video production company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your video production company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your video production company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your video production company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your video production company, you may want to highlight the local access to a variety of resources that could benefit your business. You could point out the potential to tap into a large pool of creative talent that may be available in the local area. Additionally, you may want to emphasize the potential for easy access to a wide variety of filming locations, as well as potential tax incentives that could be available. All of these elements could be attractive to a third-party financier.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your video production company business plan should include a detailed description of what your company sells to its customers. 

For example, your video production company might offer customers video production services such as filming, editing, and animation; video marketing services such as creating and promoting videos for social media platforms; and video consulting services such as helping clients to develop a video strategy. These products and services can help customers to create content that is engaging and tailored to meet their needs, while helping them to reach new audiences and grow their business.

The reader will want to understand what makes your video production company unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the video production company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your video production company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your video production company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include small businesses. These customers may be looking for an affordable way to create promotional videos to market their products or services. They may also be seeking assistance in making short videos to post on their social media channels.

In the competition subsection, introduce your main competitors and explain what sets your video production company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your video production company.

5. The strategy section

When writing the strategy section of a business plan for your video production company, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your video production company could face a variety of risks. For example, there might be a risk of not meeting deadlines due to unanticipated events, such as equipment malfunction or illness. Additionally, there could be the risk of not obtaining the necessary permissions or rights to use copyrighted material. Taking the time to understand these risks and plan for them may help to mitigate potential losses.

6. The operations section

The operations of your video production company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your video production company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as expensive camera equipment and editing software that could be of great value to the company. Additionally, the company might have intellectual property such as scripts that could be used to produce original content or existing footage and audio that could be used to create compelling videos.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a video production company business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my video production company's business plan?

There are two main ways of creating your video production company business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your video production company's business plan

Using online business planning software is the most efficient and modern way to write a video production company business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your video production company's business plan

Outsourcing your video production company business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your video production company business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your video production company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your video production company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your video production company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your video production company and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your video production company business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a video production company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Production Planning in Manufacturing: Best Practices for Production Plans

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, and this means manufacturing companies require more thorough production planning.

A production plan is the best way to guarantee you deliver high-quality products/services as efficiently as possible.

What Is Production Planning?

Production planning is the process of deciding how a product or service will be manufactured before the manufacturing process begins. In other words, it is how you plan to manage your supply chain, raw materials, employees and the physical space where the manufacturing process takes place.

Production planning is very important for manufacturers as it affects other important aspects of their business such as:

• Supply chain management
• Production scheduling
• Material requirements planning
• Production lead time
• Capacity planning

ProjectManager is a project management software that helps manufacturers cover every aspect of production planning. Plan with Gantt charts, execute with kanban boards and manage your resources along the way. No other software offers sophisticated project and resource management features in one intuitive package. Get started today for free.

Why Is Production Planning Important?

If a manufacturing operation wishes to expand, that evolution demands careful production planning and production scheduling. Someone must take on the responsibility of managing resources and deciding how they will be allocated. This process is a big part of capacity planning —how much can be made in a certain period of time, with the available resources?

Without production planning, it is 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 .

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Types of Production Planning

Every operation is unique, and the same production plan isn’t right for everyone. In order to get the most from project planning, you need to 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 Method

Batch production consists in manufacturing goods in groups, instead of being produced individually or through continuous production . This method is useful when manufacturing products on a large scale.

Flow Method

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.

Process Method

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 completing separate tasks to put together the finished goods.

Related: 10 Free Manufacturing Templates for Excel

Mass Production Method

The mass production method is primarily focused 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, you need to use “standardized processes” to guarantee all products look exactly the same.

What Is a Production Plan?

A production plan is a document that describes how production processes will be executed, and it’s the final outcome of the production planning process. It describes the human resources, raw materials and equipment that will be 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.

• Production Schedule Template

This free production schedule template helps you keep track of the status of your production orders, starting and ending production inventories, due dates and more.

How to Make a Production Plan

When you set out to create a production plan, make sure to follow these steps to make it as robust as possible.

1. Estimate/Forecast Product Demand

Understanding product demand planning is the best way to decide which product planning method is the best choice for your operation. You’ll need to use diverse sales forecasting techniques to better understand what will be the future demand for your product. From here, you’ll be able to estimate which resources are required and how they’ll be used in the manufacturing process.

2. Access Inventory

Accessing inventory is about more than simply taking stock: you should make an inventory management plan so that you don’t experience shortages 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.

3. Create a Production Budget

A production budget is a document that’s used to calculate the number of units that should be produced by a company to meet the customer demand for a period of time such as a month, quarter or even a year.

Creating a production budget involves doing an assessment of the current product inventory, the production capacity, sales forecasts and the ending inventory that should remain at the end of the time period. Once you analyze these variables and use the production budgeting formula, you’ll know what’s the required level of production for a given time period.

4. Resource Planning

A successful production plan requires you to be familiar with the resource planning details of the manufacturing process. Note the minimum number of people and raw material requirements necessary to create a product or execute a service. You need to also consider what machines and systems are essential for executing your production plan.

Related: Free Resource Plan Template for Excel

5. Estimate Production Costs

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 make sure the production process will be profitable before creating a production schedule.

6. Create a Production Schedule

Now it’s time to create a production schedule based on the sales forecasts, production capacity and production budget that you’ve outlined. Making 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.

7. Production control

As production takes place, 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. Production control is especially important for the fifth step in the production planning process.

8. Adjust the Plan to Make Production More Efficient in the Future

The final step of production planning is to reflect on the information you gained in step four and strategize what can be done to make the production plan run more smoothly in the future. Production planning is about manufacturing a product or service, yes, but it should also be a learning experience for creating even better production plans for next time.

Common Production Planning Mistakes

You must 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.

Not Expecting the Unexpected

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 not complete 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.

Getting Stuck Behind the Desk

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 end result will not be as informed as it could be. The best production planning is active and collaborative.

Neglecting Equipment

In order 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 will slow down production.

Production Planning Best Practices

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.

Make Accurate Forecasts

When you don’t properly estimate the demand for your product or service, it is impossible to create a detailed production plan. Demand planning is never static. You need to 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.

Know Your Capacity

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 will need in order 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.

Use ProjectManager for Production Planning and Scheduling

As the nature of manufacturing goods and services changes, you need modern tools to plan production and make schedules. ProjectManager is an 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.

Plan with Gantt Charts

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 make sure you’re never overspending. You can then link any dependent tasks to avoid bottlenecks in your manufacturing.

Get a Birds-Eye-View

To keep your production plan on track, you need to have a high-level view so that you can pinpoint setbacks before or as they occur. Our real-time dashboard collects your data and converts it into colorful graphs and charts that give you at-a-glance analytics.

Easily Measure and Report Your Progress

Any operation will have stakeholders, and they 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.

Related Production Planning Content

The production planning process involves many different activities such as estimating the quantity of goods to be produced, the resources that will be needed, the production schedule and much more. That’s why we’ve created dozens of blogs, guides and templates on production-related topics. Here are some of them.

• Production vs. Manufacturing
• How to Make a Production Flow Chart for Manufacturing
• Best Production Scheduling Software Rankings
• How to Create a Master Production Schedule (MPS)

Manage every detail of your operation with ProjectManager’s powerful cloud-based 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 makes 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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Video Television Production Business Plan

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Evergreen TV Productions

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

EvergreenTV Productions, Inc. is a multi-faceted company, with the potential to branch into new venues as the company grows. There are currently three phases to development, beginning with our home division. By developing this division to include three stores in the Tampa/St. Petersburg area, we can generate enough revenue to assist in the growth of two other divisions; tour and travel, and the business to business division. However, we will need additional funding to accomplish this plan.

The Home Division produces digital video scrapbooks by digitizing customers’ photos, setting them to music, and using selected digital effects to create the video memory. Our operations manual is a business system designed to produce the maximum number of videos per week while maintaining a rigid standard for quality. Using this system, and following this video production business plan, we will generate the revenue needed to allow us flexibility in accepting other projects more commonly associated with a production company, leading into the next division.

The Tour and Travel Division provides specialized production on a wide range of hand-picked projects, depending upon the client’s needs. This division creates videos of local interest for play in doctors offices’ waiting rooms, videos to promote area businesses, and tour/travel videos for tour companies. We will develop this division into a self-sufficient branch within the first year.

The Business to Business (B2B) Division markets the news stories of college and university communications students, and provides a resume posting service for said students. Those stories are sold to small market tv stations nationwide. This division is the heart of EvergreenTV Productions, and the reason for incorporation. After seven months of development, our website is complete. We are ready to revolutionize television news programming. Selecting only the best, we gather an impressive selection of “timeless” news stories produced by college and university students. Market research shows that nearly every day, small market tv stations need “filler” news, either local, regional or national, to complete their newscasts. Many subscribe to costly services, with little choice for story selection. EvergreenTV Productions will provide them with quality news stories, “filler news” which these stations can use for any time, any day, any cast. This division of EvergreenTV Productions is meeting two needs. First, those of students anxious to get professional experience and an introduction into the tv news industry. By promoting their news stories and publishing their resumes on our website, we’re helping them get that first foot in the door. Secondly, the needs of small market tv stations which cannot afford to budget tens of thousands of dollars for news programming.

Short Term:

• Open two stores in the Tampa/St. Petersburg area by the beginning of year two. Each store will follow a business system designed to operate at maximum efficiency while maintaining the highest standards of quality, as per a franchise.
• Produce an hour-long video of points of interest with the Tampa/St. Petersburg area to sell to doctor’s offices in the area by the end of month six. Revenue generated by tape sales will be used to support travel and expenses to meet goal three.
• Generate an inventory of 15 stories for the business to business division by the end of month six, and 50 stories by the end of month nine.
• Obtain 30 sales to small market tv stations by the end of year one.
• B2B Division sales increasing to XX by the third year.
• Build B2B news stories inventory to a minimum of 300 stories by the third year.
• Open two home division stores per year in various markets throughout state. i.e., Naples, Miami, Orlando, Jacksonville, Pensacola. Each store following our business system to maintain consistency and product control.
• Maintain a profit, to reinvest into business and further expansion.

Keys to Success

Home Division:

• Product quality. Begins with a complete customer’s understanding of the process. Customers should be comfortable turning over their treasured photos for production, and should be completely satisfied with the end product.
• Implementation of business system. Every employee should be fully trained and able to assist other employees in the goals and objectives as defined within the business system. This ensures that the first key to success is achieved.
• Marketing. Initial market saturation within key customer demographics is essential, followed by an extensive referral program, as outlined in the business system guidelines. Presentations to select demographics, such as retirement villas and professional photographers is vital. Building alliances and co-promotions programs with like businesses (such as wedding photographers, disc jockeys, travel agencies and photo processing centers) is key to further growth.

Tour and Travel Division:

• Product quality/customer satisfaction. All productions must meet the complete satisfaction of the client, regardless of genre. Employees must be trained to anticipate client’s needs and company’s ability to meet these needs. No project is too small to ignore the importance of quality and customer satisfaction.
• Development of referral program. This division will not actively seek projects, but will respond to the needs of referral clients. A well-defined web of referrals will contribute to the consistency of client’s expectations and this division’s output.

Business to Business Division:

• Product quality. Extensive review of each story submitted. Guidelines sent to communications professors to encourage the development of these stories.
• Marketing. Consistent, repetitious and personal contacting of colleges, universities, technical schools, as well as tv stations in the bottom 115 Nielsen markets. Fresh news releases notifying students and stations of upcoming stories. Faxes, newsletter mail-ins, and a constantly updated website promoting the students and product.
• Management. On-time product delivery. Budgets under control. Legal and accounting advice concerning new development or budgeting, such as QuickBooks instruction and copyright/trademark requirements.

“In the factory Revlon manufactures cosmetics, but in the store Revlon sells hope.” Charles Revson, founder of Revlon.

While EvergreenTV Productions, Inc. operates as a production company, it sells personal memories, opportunities and trust.

The home division creates video scrapbooks set to music, but sells memories and quality service. Customers must trust that we cherish their photos and will produce every video as if for our own families. Our employees must feel equal to the standards expected of them, and feel free to contribute new ideas to improve upon our business model. Employees are also our internal customers, and should be treated with the same respect given to customers who walk through the door.

The tour and travel division maintains an open mind to new video projects, so the client understands that his goal is our objective. While we will suggest alternatives and bring our experience to the table, we hold the client’s goal as the primary target. If we cannot achieve our client’s goal, we will present that information in our initial encounter and suggest other possible production means, rather than altering the project to our comfort level.

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Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

EvergreenTV Productions is a multi-faceted production company operating on three basic levels.

The Home Division of EvergreenTV Productions is centered around one product. Using the most advanced, all-digital editing equipment, our company turns standard photos into video “scrapbooks” of various length and style, all set to selected music backgrounds. Customers are given a free consultation to review the process, help in selecting needed music, and given an explanation of each of the four packages of videos from which they may choose. Each package is a detailed rate plan, with varying costs. By using this free consultation, customers are assured a unique and personalized video.

The Tour and Travel Division handles various projects which may present themselves to our production company. This division is not primarily a revenue generator, but is vital to the growth of the company. Projects will be hand picked based upon a referral system. By minimizing the number of projects, we control quality and reputation as a production company which specializes, rather than an all-encompassing production facility which forsakes quality for quantity of projects. This division is responsible every quarter for producing a new hour long video of areas of interest around Tampa Bay.

The Business to Business Division (B2B) is the heart and soul of EvergreenTV Productions, the center of the vision for which the company began. It is a marketing service for college and university students of broadcasting, and a news programming service for small market tv stations. News directors are encouraged to contact the students for job openings, and students are given an account history of which stations purchased their story. These stories are marketed to the bottom 115 (Nielsen market) tv stations nationwide.

EvergreenTV Productions, Inc. started in Tampa, Florida in October 2000. It is a privately owned, Florida corporation, Subchapter S.

Company Ownership

EvergreenTV Productions is a privately-held Subchapter S corporation owned in majority by its founder and president, Louanne Walters. There is one other director, Bobby G. Walters, Louanne’s father, who is also vice-president. Louanne owns 70%, with Bobby owning 30%. Shares are available for additional ownership.

Company Locations and Facilities

All equipment and office management space is held within one room, approximately 10×10 feet at Louanne Walters’ home.

We are currently looking for an initial storefront, and have priced several in the North Tampa and Carrollwood areas. Needed space is 500-750 sq. ft. In these areas, price per square foot runs $1-$1.50, or approximately $500-$1,125 per month for rent. Many of these locations include utilities.

Start-up Summary

Expenses and funding for the business start-up are shown below.

Products and Services

As stated in the Company Summary section, Evergreen TV Productions is a company of three divisions, selling both products and services according to each division.

Product and Service Description

Services include:

• Marketing college and university students’ news stories to small market tv stations nationwide.
• Posting students’ resumes for a certain period (three months) on its website.
• Assigning each student an account from which he/she can contact stations which purchased his/her tape for potential job opportunities.
• Assigning each station an account from which the news director may contact students as potential future reporters.

Products include:

• Video scrapbooks, produced from photos digitized and set to music.
• Tour and travel videos of local, business or other interest for use in area businesses, as advertising of area businesses, or to promote tour agencies.
• All types of “evergreen” or “timeless” news stories, such as Health, Travel, Business, Leisure, Sports, Politics, Feature Personalities, etc., which may be of interest to stations and their viewers.

Competitive Comparison

We stand apart from our competition in price and value.

Home Division: Currently, production companies are hesitant to offer video scrapbooks due to the amount of work necessary for a minimal return on revenue. They would much rather produce corporate productions with a high fee. Locally, a few companies will produce these scrapbooks, but they charge enormous fees. The reason for this is that they do not have a business system in place to allow them to produce these scrapbooks on a timely schedule with minimal cost. From an informal phone survey we gathered rates for a 10 minute video from $500 to $2,000. Additionally, this phone survey showed no true committment to the production elements of music and digital effects. Again, this is due to having no business system in place to provide these essential elements. It can be compared to a hamburger stand trying to become McDonald’s with no actual system in place to keep quality consistent.

Tour and Travel Division: We offer high value and quality to our customers, and treat every project as if it were the only project. Production companies in general have a reputation for sloppy and careless producing, for overbooking projects, and for inconsistent and exorbitant charges. Our referral acceptance program ensure we will not overbook, we will have a higher degree of responsibility with each customer who is referred, and we cannot charge one customer amount X, and another customer amount Y, as they will probably know each other. The referral program sets us apart, and reassures otherwise wary customers.

B2B Division: CONUS sells yearly subscriptions of regional news to tv stations nationwide for $20,000/year. Dr. Dean Edell sells yearly subscriptions of health news only, for nearly $30,000/year. MedStar sells yearly subscriptions of health news only, for $24,000/year. Mr. Food, Mrs. Fixit, TravelNet and many others all rank in the $20,000 and above category, and all offer only one topic, either health, food, travel, or how-to’s, but not something from each.

At our online website, EvergreenTV Productions offers a variety of topics to chose from, and stations can pick their own five stories each week to match their news or specific story trends, at a lower cost. They can customize their filler news, instead of throwing in whatever is available, making their newscasts flow smoothly, and eventually helping them generate viewers and thus sales, and all at a much more affordable cost.

Sales Literature

EvergreenTV Productions will rely heavily on presentations to retirement villas, business clubs, and other social outlets for advertising the Home Division. The B2B Division will rely upon one on one sales calls to colleges/universities and tv stations, and upon the Internet for e-mails, faxes and advertising of products and services.

Fulfillment

All end product supplies can be purchased locally from Office Depot, Sam’s Club, or Staples, or from a production company on the Internet at minimal cost. End product supplies include tape labels, and VHS/Beta/DVC video tape.

For the B2B Division, we do not buy our stories, but trade our marketing and resume services to students for their stories. A legally drawn-up contract is held between EvergreenTV Productions and each student, once his/her story is accepted. By agreeing, the student gives us the story for any commercial use, and he/she agrees to use that story only in job-searching. We then sell the story for profit and expenses (such as video tapes for dubbing purposes).

We also own over $12,000 worth of video and editing equipment, and can do our own stories, at no further cost to the company.

We use both Windows and Macintosh technology in our company. Windows and Office products are used mainly for all databases, word processing, and accounting needs. Macintosh products are used primarily for video editing, and loading video onto our website. We also have all the necessary components for a digital video production center, including cameras, mini-disc recorders, microphones, and lights. All other items can be rented per project at a low cost. Eventually, we would like to include DVD-R drives on our computers, to allow us to copy to DVD, rather than simply VHS tape (Home Division).

In addition to standard computers, scanner-copier-printer centers, we also use electronic faxing via the Internet, cell phone, DSL Internet subscriber line and several video tape recorders of various formats, including Beta SP, SVHS, DVC, and 3/4″. We are currently in communication with a media streaming Internet company regarding posting these news stories on the Internet to be downloaded directly to the tv stations who purchase the stories. This would eliminate the need for hard tape, and would give the stations instant access to stories they could download to their specific tape format.

Future Products and Services

Within the next five years, we will add storefronts statewide, all following consistent guidelines in our business system.

We would like to franchise this store nationwide.

Within the next three to five years, we will add production of our own brand of travel news to our product line.

Market Analysis Summary how to do a market analysis for your business plan.">

Home Division: There are no production companies in the area which currently focus on video scrapbooks. Several smaller companies “can” and “will” produce this for a high cost to the customer. With the advertising by both Apple and Sony focused on home digital video production, the awareness of this type of production is growing within the community, but as yet, no company has stepped up to the plate to offer this product. Consumers are becoming more educated about what can be done, but they do not know how to do it themselves.

For several months, EvergreenTV Productions has promoted this concept via word of mouth to small businesses, consumers on the street, and educated professionals. All show a keen interest in buying the product.

Tour and Travel Division : Many production facilities exist in the Tampa Bay Area; and all are capable of producing professional projects. As this is a referral division only, we do not plan to compete regularly for business. Instead, we will build a web of quality prospects by maintaining high productions standards, and accepting only those clients who come highly recommended. This is not our main focus, but is a tool to generate business and reputation.

B2B Division: EvergreenTV Productions focuses on the bottom 115 (Nielsen) tv markets. These are the markets whose station budgets don’t easily allow an expense of $20,000+ per year for programming services. We will offer the affordable alternative.

EvergreenTV Productions conducted a mail-in survey of 113 stations in the bottom 65 markets. The majority of these do subscribe to CONUS, Dr. Dean Edell, MedStar, or Medical Breakthrough. Of the 10 responses received, four stations did not subscribe to any news provider, but did indicate an interest in “filler news” at a reasonable cost. The conclusion is that many stations need stories, but cannot stretch their budgets to accommodate the high cost of programming. At this time, no service exists like EvergreenTV Productions programming alternative. Numbers for projected growth are not possible without history.

Market Segmentation

Three loosely defined market segments are identified. The “Home Division” category  is by far the largest potential segment and represents the consumer most likely to be our client. 

Target Market Segment Strategy

Home Division: Strategy for the home division is two-fold. First, we must find the appropriate means to communicate our product to potential customers. Because nearly everyone today has the ability to take photos and has a wide selection of photos at home, we must first narrow down our customer base by appealing to the emotions people attach to their photos. Older persons with larger families are more inclined to want to share their family histories. Newlyweds want their family and friends to share in their newfound happiness. By emphasizing these traits (nostalgia and euphoria) we can begin to gain a following for our product. Second, we must find a suitable location for our storefront, which enables us to find customers who share these traits. Malls and movie theaters appeal to “togetherness,” shopping together for gifts, weekend outings, brunch/lunch/dinner dates. The right location will give us access to our primary customers, those who will help us launch the product in the area by word of mouth.

Tour and Travel Division: This division’s strategy relies entirely on our referral program. Doctors’ offices and travel agencies give us a wider demographic schematic, as patients and families of patients are confined to a waiting room during a visit. Instead of watching afternoon televised programming, doctors will be able to provide their clients with informative, educational and entertaining programming as compared to many daytime talk shows.

B2B Division: Because EvergreenTV Productions utilizes the stories of university students, it is important to recognize the average age of a station’s reporters. A previous survey conducted by our company did confirm our experience, in that most small market tv stations hire only young “cub” reporters, as experienced reporters tend to move onward to larger markets and bigger stations. The quality of our product will match the quality of the station’s news. Therefore it is essential to target the bottom markets. This is also important to recognize from the service end of our business, as news directors will be interested in hiring reporters from our pool of news stories.

Market Growth

Home Division: We will be better able to track market growth in this division following the first two quarters of sales. At this time, with no active competition, we expect our growth rate to double and triple weekly. As Tampa Bay is a large retirement community, these numbers could be increasing for several quarters. We then expect to see a slight down curve as the product finds its niche within the community, with a more consistent level of sales.

Market Needs

Home Division: With the advent of digital editing capabilities on home computer systems, more consumers are aware of the potential of creating video scrapbooks, but most are not familiar enough with the technology to accomplish a simple video. Apple and Sony are selling large numbers of these computers despite a recent turndown in the computer industry. Digital still cameras are a must have, with consumers expanding their vocabularies to include “Memory Stick,” “Pixels,” and “Jpegs.” Yet, in the Tampa Bay area, no production companies are actively marketing video scrapbooks. We can use the above product interest, and the continued success of photo processing centers, to create a gauge for interest in this product. However, as with any relatively new product, we will not know the market’s true needs until several quarters of sales.

B2B Division: A void currently exists in the area of news programming. Larger stations are able to budget tens of thousands of dollars per year to support their needs. Smaller stations often rely on extending the weather and sports segments, or sitting on credits at the end of cast to “eat up extra time.” This reduces the newscasts’ value, and thus reduces the price of selling advertising as commercials, which is where tv stations make money.

Other small markets may subscribe to one or two programming services, at the expense of hiring quality personnel. These services limit the news directors and producers, because they have to run whatever story comes down on the satellite link that day. It may have nothing to do with other stories in a cast, or interest to the local viewing audience.

EvergreenTV Productions allows the stations to pick their own stories and run them when needed. In addition, by ordering weekly, they can choose from a constantly upgraded catalogue and pick stories which relate to news they are already running or have run recently. In other words, on a slow news day, CONUS may offer a story from a station in another state about a family lawsuit which has no relevance to that station’s viewers. EvergreenTV Productions, however, may offer a story about “Buying a puppy for your five year old.” It is timeless, and applies to a greater percentage of the viewing audience than the distant family’s lawsuit.

Within the service branch of this division, there is a greater range of competition, but few meet student’s needs. Many news talent agencies and resume services exist. However, none of them offer posting of resumes, marketing of resume tapes, and especially an opportunity to earn professional experience while the student is still in college, at no cost to the student. By positioning themselves with EvergreenTV Productions, students can hone in on various stations who have purchased their stories. They can link directly to those stations for future jobs, rather than send out a multitude of resume tapes in a shotgun style to get a foot in the door. And, they will not have to pay our company 10% of their first salary!

Market Trends

Home Division: The advent of home computers capable of digital editing can certainly be considered a market trend, and one that is highly influential to our home division. As more consumers know of the technology, more interest is created in our product. While large corporations spend millions in advertising to promote these computers, we can take advantage of this advertising second-hand. The interest is created by the large corporations, and we use like advertising and terminology to increase interest in our particular product. A second major trend is with photo processing centers, such as those at Walgreens, offering pictures on CD-ROMS. These centers are already taking pictures to the next level, with the purpose of sharing these memories with family and friends. The logical next step is to put these pictures together in a creative and professional video scrapbook, then copy them to VHS tape or DVD.

B2B Division: One major trend in the television news industry is staffing cut-backs. Newsrooms are using fewer reporters and photographers and replacing them with bought programming. Instead of paying $18,000/year for a reporter and $16,000/year for a photographer, smaller markets are buying news programming services at $20,000/year and saving on salary and health care expenses, while increasing the number of stories running per day. On average, a reporter will turn out one or two stories per day, while CONUS offers the ability to run two or three stories per day.

Another trend focuses on freelancing opportunities for reporters. Many are now working on their own, producing stories bought by several different companies. As tv begins to reflect the magazine industry in freelancing opportunities, more and more reporters will make a living working for themselves. In a long-term analysis, EvergreenTV Productions will be able to utilize these freelancers to do specific stories which fit the mission of our company.

A third trend is greater reliance on the Internet for programming. With the advent of TIVO, viewers can choose what they want to watch when they want to watch it. An even further long-term analysis could lend EvergreenTV Productions the opportunity to provide news that viewers can access specifically without going through their local tv stations. In the short term, local news stations may soon be able to download news stories directly to their control centers, without needing a tape for playback. By initially locating on the Internet, EvergreenTV Productions is putting itself in the position to take advantage of the increasing opportunities of Internet business, while at the present time offering easy access to a catalog of stories for order.

Service Business Analysis

Home Division: We are primarily a production company within the retail industry. Some industries are similar, but as this is new technology, it is a unique industry. At the current time, we know of only a few other production companies which consistently turn out video scrapbooks. The photography industry is similar in creating still pictures for retail.

• Production companies: Most are individually owned and rarely produce small projects such as video scrapbooks. We do not know of any production companies designed solely for this type of product, but do know of several small corporations who have similar guidelines. The downside to these companies is that they are limited in timely production ability. They cannot accept 10 orders for video scrapbooks simultaneously, as they are set up to produce one scrapbook every two to three days, rather than two to three hours.
• Photography companies: Like-minded companies which produce wedding, family, vacation, etc., still photos for families to treasure. They do not produce video scrapbooks from these photos.

Tour and Travel Division: We are limiting our production output in this division to a referral basis only. In general, the production company industry is very large, with companies specializing in corporate training videos, tour videos, advertising, etc. They rarely limit their productions to referral only, which means most often they will specialize in one area. To the customer, this means outsourcing to several production companies to meet his needs. A corporate president may have to hire two production companies to produce a training video and a travel video.

B2B Division: We are both a marketing service and news provider. Therefore, half of our business deals within the marketing industry, promoting students, while the other half deals within the news industry, selling news programming to news stations.

• Industry magazines: For a nominal fee, students seeking employment can post a want ad, specifying the type of job they are looking for. These magazines have good responses from tv stations advertising jobs, but have a lower success rate for students seeking jobs.
• Internet websites: For a nominal fee, students may post their resume and information on an industry targeted website such as www.tvjobs.com. Thousands of students and currently employed reporters compete for the same positions, again with lower success rates.
• Network-based programming: Affiliates belong to network news services which provide daily programming on hourly feeds. These stories are limited in region and topic, extremely time-sensitive, and restricted to the affiliation only. NBC affiliates belong to NBC Newschannel. ABC affiliates belong to NewsOne, etc.
• Subscription programming: For an annual rate, any affiliate may subscribe to these programming services. Their downside is in limiting the stories they offer to one specific topic such as healthcare, travel, or politics, rather than offering a wide variety of topics from which to choose. In addition, stations do not have a choice in which stories to run each day. Either stations can take one story daily from a satellite feed, or stations are sent a week of stories on tape.

Business Participants

Home Division: Most production companies have a full plate with a wide assortment of projects. They are benefiting from the growing need for corporate advertising/projects, and prices on production equipment are continuing to fall.

B2B Division:

Student Services:

• There are hundreds of national talent agents within the tv industry. A select few work with esteemed firms and take on only proven, exceptional talent. Hundreds of others are available to college students for a fee of 10-13% of their salaries. This is where agents make money, searching for a job for the students, gaining an interview, then reaping the rewards. Fewer reporters are looking for agents due to the fee and the increasing abilities of the Internet. Like travel agents, talent agents are finding their once lucrative positions threatened by the Internet.
• There are dozens of job search services available, more in the past few years due to the insurgence of the Internet. Most require an upfront fee of $10-15 per month for resume posting service, and the privilege of searching for jobs on their website from those stations which have subscribed to them. They will continue to do well as long as reporters are seeking positions.

Station Services:

• While there are many production companies, few offer news to tv stations. Most programming services are based in larger markets where their product has taken hold. They offer topic specific news for tv stations nationally, at a high cost. Most generate stories by one well-known personality and offer only one story possibility per day. They make the majority of their revenue from mid-to-large markets. They have a strong position in the industry, and because they are topic specific, do not threaten each other. Internet news on demand, where viewers can watch their favorite station from their home computers, is the biggest threat.
• Freelance reporters infrequently sell their stories to stations.

Distributing a Service

Home Division: Customers are accustomed to going into retail locations to make purchases or place orders. Having a storefront will provide them with this opportunity. Initially, we will host presentations to explain the product at various outlets such as retirement villas and apartment clubhouses.

B2B Division: TV Stations buy directly from the programming source. A sales representative may call or visit a station for a programming product, or the station may purchase directly via the Internet.

Initially, it will be vital for us to visit one-on-one with small market stations to obtain a base clientele. Those stations across the country will be targeted via telephone and direct mailing promotional kits. Those stations which responded to our initial marketing survey are prime first clients–those who have already defined their needs according to our questionnaire.

Competition and Buying Patterns

Home Division: As with any retail line, customers feel more comfortable and believe they are truly getting their money’s worth when they are given one-on-one attention. It is this attention we will give them in our 30-minute free consultations. Our customers will be more inclined to refer our business and product to friends and family if they believe we do not see them as simply a sale, but as people with needs being met. At the same time, it is essential we see the photos the customer is bringing in, and have the customer present to ask questions and verify the photo placement within the video. This initial attention to detail will also provide our customers with the knowledge that we will produce exactly the video they have in mind.

B2B Division: TV stations are prone to purchase news stories based on the bottom line. If one programming service becomes too expensive, the station will spin off to another programming service for a few thousand dollars less. Small market tv stations do not have this option, as most services are too expensive for their budgets.

EvergreenTV Productions will offer quality news stories at a very competitive price–in fact, half the cost of most other programming services–to gain access to those smaller markets. In addition, having a variety of news topics makes us a hot choice. Stations do not have to spend thousands for only one brand of news, i.e., health stories. They can choose from a wide variety, health, politics, financial, innovative, unusual, personalities, etc.

Main Competitors

Home Division (Video Scrapbook Production Companies):

Family Tree Videos: Strengths: A franchise production company geared toward genealogy, but includes producing video scrapbooks. Good-looking productions revolving around family interviews, documentation, and photos. Weaknesses: The formula is too complex to generate quality products in quantity. Many smaller production companies learn this method first, then give up due to lost time and not enough revenue. Independent Companies: Strengths: Nationwide, dozens of independently owned production companies produce video scrapbooks. Most are your neighbors, businesses you want to trust. Weaknesses: Quality is inconsistent and depends entirely upon the owner’s ability. If you’re not a close friend or family member, you may not get the product you really want or thought you ordered. Due to time constraints and the need for revenue, many of these smaller companies will put video scrapbooks on the back burner for bigger projects, such as weddings.

B2B Division (Programming Services):

Dr. Dean Edell: Strengths: Well known after years of radio and tv broadcasting. Big service, using satellite feeds to get stories to stations. National image, high volume. Weaknesses: Very expensive. At the top of the scale at $24,000+ per year. Limited to one topic, health news. MedStar: Strengths: Competitive pricing, less expensive than Dr. Dean. Utilizes chain of universities for national syndication. Weaknesses: Still too high a cost for smaller markets. Limited to one topic, health news. TravelNet: Strengths: National syndication, high volume. Has satellite feeds to stations. Weaknesses: Generic writing for travel pieces. Limited to one topic, travel news. Too high a cost for smaller markets. Mrs. Fix It: Strengths: Appealing change of gender, national image, excellent writing and presentation. Weaknesses: Too high a cost for smaller markets, limited to one topic, do-it-yourself home/yard/car improvements.

Many other services fall within this category, too many to mention. Some are purely regional and do not appeal nationally. Most are of high cost to small market stations. None that we’ve found offers a variety of news topics.

Strategy and Implementation Summary

• Create a “gotta have it” campaign. Our marketing efforts need to focus on a) introducing our specific brand of video scrapbooks and b) telling our customers why they and their friends all need one.
• Emphasize service and quality. Especially as this is a fairly new product to be launched into the market, customers need to know that we will cherish their memories and create a quality video.
• Emphasize variety and cost savings. We must differentiate ourselves from the large programming services by detailing the variety of news stories and affordable pricing.
• Build a relationship with schools and stations. Build long-term relationships with professors, deans and news directors to continue service and sales annually.
• Focus on key schools and markets. We need to focus on building a client base of schools who know and believe in our student oriented objectives, and who will help promote those objectives yearly. We also need to build loyalty and consistent quality with target small market tv stations/news directors.

Competitive Edge

Home Division: Our competitive edge in producing video scrapbooks is in our business system, which allows us a) to produce large numbers of videos while retaining quality, thus giving more customers a grade A product with a short turn-around time, b) to maintain consistency at every location, so customers can be assured they will get the same quality at one store that their friends/family received at another, and c) to train all employees using consistent customer service guidelines from initial consultation through any complaints/issues.

B2B Division: For TV stations, our competitive edge is having a variety of news topics to offer, and at a much more affordable cost to small market tv stations than larger programming services can offer.

For students, our competitive edge is offering a FREE resume service, FREE marketing service for that first job out of school, and a DIRECT connection to news directors in markets known to hire graduating broadcasting students.

Sales Strategy

• We need to sell the memories and emotions of these videos, not the product. While we produce videos, we create and tap into a lifetime of emotions cherished by our customers. Our advertising and marketing need to reflect this concept.
• We need to understand exactly what our service is, so our customers will also understand. Our customers must feel confident that we value their memories and emotions as much as our own, and will treasure them individually. An order for a video is not a product order, but a piece of family gold we are holding in safekeeping.
• We need to sell both the company and the product. As this is a new venture into an antiquated system, generating sales will require an enthusiastic approach in order to renovate the tv news programming concept. In-person sales are essential in the primary stages of generating sales. A reputation for service excellence, news variety and affordable pricing will continue the momentum of sales in the future.
• We have to sell our service and support to schools nationwide. Gaining the support of deans and professors is a vital element to generating inventory on a yearly basis. By developing a loyal clientele of professors, we ensure continued inventory growth annually.

Sales Forecast

Yearly sales forecasts are shown below and the initial year’s monthly forecast is shown in the appendix.

Strategic Alliances

Home Division: Strategic alliances with photographers, photo processing centers and travel agents will be key to generating sales in the first few quarters. We plan to initiate a co-marketing campaign, by possibly adding on 30-second commercials at the end of each video, promoting a photographer or travel agency. These will be tasteful and placed at the end of the tape, but will also co-promote a like business. In the future, we could sell these spots to like businesses to generate revenue.

Additionally, our alliances with retirement villas will be instrumental from start-up. While these will not involve co-promotions, it will be necessary to build a strong relationship so the villa officials welcome us to their facilities.

B2B Division: We heavily depend upon building a strong alliance with schools to create a substantial inventory to generate sales. The greater the size of inventory, the greater the variety we have to offer stations. We need to concentrate on making as many contacts with schools as possible. If we cannot offer students a marketing position, i.e., a substantial time frame in which we market their stories and post their resumes, we will not have their interest and it would follow, their stories to add to our inventory.

After the first year, the inventory will grow at a consistent rate. However, the first year’s inventory size could well determine our company’s sales success.

Marketing Strategy

Home/Travel Divisions:

• Build relationships with primary target customers (Market Segmentation section) and like businesses, such as photography shops, photography processing centers, and travel agencies.
• Emphasize service and quality while building a referral basis.
• Emphasize variety and affordability.
• Emphasize service while building relationships.
• Focus on schools with tv stations and broadcast communications programs.
• Focus on small market tv stations, bottom 115 Nielsen markets.

Positioning Statement

Home Division: Initially, for people celebrating an event or recognizing a lifetime of memories who would like to share photos of those memories in a video scrapbook with friends and family, our videos provide a special and unique gift opportunity. Unlike standard production companies which produce video scrapbooks in a random and time-consuming fashion, our videos meet consistently professional standards in quality in a timely manner. (See Competitive Comparison section.)

B2B Division: For students about to graduate and seek their first job within the tv news industry, EvergreenTV Productions offers an incredible marketing and resume posting service. Unlike www.tvjobs.com and others, it offers these services for free, and for a longer period of time (i.e., three months as opposed to one month).

For small market tv stations which need news stories daily to fill their newscasts, EvergreenTV Productions offers an affordable programming service. Unlike larger programming services such as Dr. Dean Edell and TravelNet, it offers a variety of programming at half the cost.

Pricing Strategy

Home Division: Our business system has helped define our pricing strategy. If our video scrapbooks are too time-consuming, the customer will be charged an exorbitant amount. If our video scrapbooks are even middle to low quality, we cannot charge the customer low enough. By making the productions both time-efficient and consistent in high quality, we can maximize our pricing to acceptable market levels. Our strategy is also based upon the fact that we are introducing video scrapbooks on a large scale into the market, with no previous history for this product. As our video style becomes more popular, we will be able to adjust the pricing accordingly. We are offering four package styles from which our customers may choose. By charting the most popular package, we will better determine the right price for our product.

B2B Division: Our pricing strategy is key to our offering. If we charge too much, or even 3/4 the price of larger programming services, we are undercutting our potential orders. The market of small market stations cannot bear the higher prices offered by larger programming services.

Likewise, by offering a free resume and marketing service to students, we are ensuring continued interest in our service in exchange for news stories. We need to be positioned to offer payment for these stories a few years down the road. As the popularity of EvergreenTV Productions grows, so will the number of programming services offering similar services.

Promotion Strategy

Home Division: Initially, we will depend upon presentations and business relationships to reach new customers.

• Retirement villas “social nights:” We have been invited to attend certain nights set aside at retirement villas for residents and family members in which we will present Photo Memories thru discussion and a brief video presentation.
• Photographers, photo processing centers, and travel agencies: We will form business referral relationships with like businesses to promote the product.

B2B Division: We depend on direct contact with communications deans and professors as our main way to reach students. That contact will be made to specific schools.

• Promotional Kits. We are sending colleges, universities and technical schools with tv stations on campus promotional kits which will include our objectives and student guidelines for various topics.
• Campus Visits and Phone Calls. We are contacting the professors and deans directly, either through campus visits or phone calls, to gain the support needed from deans and professors, who in turn are encouraging their students to submit news stories to us.

Distribution Strategy

Home Division: Our primary distribution will be through our storefront, which will also be the order center, consultation location, and production office. To make it easier for our customers at retirement villas, we offer to accept orders at and deliver to these locations.

B2B Division: Our distribution will focus mainly around our website, taking orders and processing them through direct mailings. In the initial period, we will be distributing tapes during person-to-person presentations.

We are prepared to mail on order, via the USPS. Stations may order for regular three-day delivery, up to overnight shipments, depending upon their needs.

Part of the business’s success will be based on planned tasks and timely completion of those steps. The table below lists steps, timeline and estimated budgets.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

EvergreenTV Productions is owned and operated by its founders, Louanne Walters and Bobby Gene Walters. It is a small company with immediate plans for hiring one or two employees per store. Each employee’s responsibilities will be outlined in our business system “Operations Manual.”

As we grow into the Tour and Travel and B2B Divisions, we will evaluate which positions need to be filled first. Long term growth includes plans for an Operations Manager, who will report to the President and handle all accounting and marketing responsibilities. Three managers will answer to the Ops Mgr, one per division. Each manager will be primarily responsible for accounting and marketing within his/her division, and will handle all hiring/training needs.

We currently receive a great deal of advice from outside sources, such as our accountant and attorney; however, we follow the advice which meets our goals and needs.

Organizational Structure

As a start-up, our divisions and departments are inter-related and handled for the most part by Louanne Walters. With time and revenue, we will expand to accommodate several departments: sales & marketing, service and administration, product development, and finance. Each division manager will fill these departments according to specific needs and the company’s business system operations manual.

The following chart outlines the anticipated organizational set-up for the first three to five years of EvergreenTV Productions, Inc.

Management Team

Louanne Walters, president: 33 years old, extensive experience in the radio and tv news industries. Formerly a tv news producer, reporter and anchor. Degree in broadcast communications, seven years with three NBC affiliates (KPOM, Ft. Smith, Arkansas – KRIS, Corpus Christ, Texas – KWQC, Davenport, Iowa) and one year as video programmer with Royal Caribbean International. Extensive public relations background as anchor and cruise director with Royal Caribbean International. Strong writing skills, strong story development and news sense. Attending courses at Small Business Development Center USF. Louanne also has strong sales skills, and is formerly a Toyota new car product specialist, and Voice Stream territory representative.

Bobby G. Walters, vice-president: 61 years old, extensive management background during 33 years with USAF. Degree in business and management. Twelve years as manager with local Wal-Mart stores.

Management Team Gaps

We believe we have strong leadership for developing the concept behind EvergreenTV Productions. At present, our weakest area is in accounting. We are currently taking an accounting course produced by “Great Courses on Tape,” focusing on finance and accounting. Additionally, we have hired Jim Wessman, CPA to advise and aid us in the development of EvergreenTV Productions. Jim is a qualified management counselor, and QuickBooks advisor.

We also need to hire division managers with a well-rounded management background, including human resources, accounting, benchmarking and goal-setting abilities.

Following the opening of stores for the Home Division, we will need to hire an operations manager, with an MBA and at least five years experience with a start-up organization.

Personnel Plan

Details of store staffing is presented in the Personnel Table, below and in the appendix.

We assume hiring employees on hourly pay the first year, and adding a few salaried management positions with benefits the second year. Our management salaries (marketing manager, president, operations manager) as shown below include taxable benefits. Payroll taxes for all employees are shown in the Profit and Loss.

Financial Plan investor-ready personnel plan .">

The most important element in the financial plan is the critical need for additional capital to assist in business operations through the remaining start-up process, and to maintain a positive cash balance for the first fiscal quarters. We do not anticipate any changes to our financial plan through accounts receivables or inventory, as our company operates upon the “payment upon receipt” principal for all goods, and our inventory cycle does not meet the standard criteria.

Moving from a home office to a storefront with employees, introduces greater liabilities. During the past seven month start-up process, we have largely committed to EvergreenTV Productions through personal savings, cashed stocks, personal credit lines and personal long-term loan options.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

We assume access to equity capital and financing sufficient to follow and maintain our financial plan as shown in the tables. We anticipate our financing to hold higher long-term interest than our current loan against stock. We assume that as our company grows, we will be able to utilize a larger credit line, decreasing our expenses in cash. Likewise, our short-term credit line will be available with a lower short-term interest rate, making more cash available.

We assume opening and promoting three stores within the Tampa Bay area before reaching saturation. Likewise, we assume relatively quick initial growth within the Home Division, following our plan of two stores open within the first year, and 10 stores statewide within five years.

We assume many tv markets are, or will become, Internet proficient. We assume most colleges and universities are, or will become, Internet proficient. We assume slow initial growth within the B2B Division. However, the majority of our long-term payments are for one time, or long-term purchases which will not need to be replaced in the first five years.

Key Financial Indicators

The benchmark chart shows the nature of our company. We estimate consistent turns on inventory, as our inventory is available for resale on a constant basis. In our Home Division, we do not keep inventory, but customers bring their photos to us. In our B2B Division, our inventory consists of news stories we will keep on hand for multiple sales. Several stations may purchase the same story, we simply make a copy of that story. Our blank tape inventory will be replenished monthly to avoid keeping a large inventory of tapes.

Our Gross Margin increases with increased sales, but as we have a very low direct cost of sales, this number will only increase fractionally compared to sales.

Sales and Operating Expenses are our closest measurements in this forecast. While sales increase dramatically, operating expenses increase with new stores, additional employees and taxes. However, by maximizing the number of employees within each store, we are also maximizing our location and limiting further expenses that additional storefronts would incur. We are also able to save drastically on advertising expenses, which would naturally increase with each new location.

Break-even Analysis

We assume running costs which include rent, utilities, office expenses, and an average of travel, advertising and miscellaneous costs. Miscellaneous costs are equal to quarterly costs such as business cards, brochures, bulk tape supplies and occasional equipment rental. Payroll increases every other month as we add new employees.

Projected Profit and Loss

Profit and Loss projects look very good, with the usual start-up loss limited to the first two months. The monthly projections for the first year are included in the appendix.

Projected Cash Flow

Cash flow projections are good, as shown in the annual table below, and the monthly table in the appendix. There are only two months of negative cash flow the foreseen the first year, and the all important cash balance shows steady increases.

Projected Balance Sheet

The balance sheet below and in the appendix show steady increase in net worth over the life of the plan.

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7812, Motion Picture and Video Production, are shown for comparison.

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Reporting by David Shepardson in Washington and Rajesh Kumar Singh in Chicago; Additional reporting by Allison Lampert in Montreal and Kannaki Deka in Bengaluru; Editing by Jamie Freed

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Swatch buyers in China hesitate over higher prices, CEO says

The Chinese market is likely to be difficult until the end of the year with consumers hesitating over higher prices, the chief executive of Swiss watchmaker Swatch Group was quoted as saying in a newspaper interview.

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Succession planning: the unseen catalyst for business growth.

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Succession Planning: The Unseen Catalyst for Business Growth

Succession planning is a significant transition for anyone, but it presents unique challenges for business owners. After years of building and running a successful business, deciding when and how to step back can be daunting, especially for those without a clear future plan. Over one-third of small business owners and entrepreneurs have no retirement savings, with 12% believing they will never retire, according to SCORE .

For business owners – those who built businesses rather than inherited them from their family – succession planning is not just about stepping away from the day-to-day operations of their business, but about transitioning from a life defined by business success to one that encompasses a broader spectrum of personal fulfillment and legacy building. It requires careful consideration of how to preserve the business's wealth and legacy while embracing new opportunities for personal growth and exploration. This shift often involves deep emotional and financial planning, as the lines between personal identity and business achievement are intricately woven.

Planning Ahead

"Succession planning is more than a contingency plan; it's a growth strategy," states Bobby Mefford, CRPC, owner of Mefford Wealth Management. “Initiating this process well before the anticipated need, ideally 5-10 years in advance, allows business owners to meticulously craft a roadmap that aligns with both their personal retirement aspirations and the business's growth objectives.” It’s important to integrate succession planning into the broader business strategy to establish a clear vision for the company's future.

Succession planning should include a thorough analysis of personal and business finances. “Working with a trusted financial advisor to create a diversified retirement portfolio that minimizes risk and maximizes returns is essential for small business owners. This portfolio should consider various income sources, including savings, investments, Social Security, and potentially the sale or continued income from the business,” adds Mefford.

Business Valuation

The report from SCORE found that 18% of entrepreneurs plan on retiring using the funds they receive from selling their business. “Yet, there is a huge perception gap among business owners of what it really takes to have a successful payday at the end of their career,” says Dave Yeske, CFP. “Selling a small business is not easy; it is very difficult to monetize a closely held business.” Particularly when the founder is also heavily involved in the company’s day-to-day operations. Only about 20-30% of businesses that go to market end up selling, according to research from the Exit Planning Institute .

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Valuing the business considers the business’s market position, competition, and growth potential. A professional business valuation can provide a realistic picture of what the company is worth and help make informed decisions about its future, whether selling, passing it on to a family member, or hiring management to run it.

Growth-Driven Leadership Transition

For many business owners seeking growth, their company is more than just a source of income – it's a legacy. Succession planning is necessary for entrepreneurs that don’t want to sell their business. This can be a complex process involving choosing the right successor, whether from within the family, the company, or outside, and creating a transition plan that ensures continuity. And yet, only 34% of family-owned businesses have a clear succession plan in place, according to research from PwC .

As with valuing the business, succession planning should start years before a business owner plans to retire. “Ideally, a small business owner should begin succession planning at least three to five years before they want to sell their business,” says Lauren Altschuler , CEPA, CBI, and M&A Advisor at Transitions in Business. Training and preparing the successor is a critical part of this process, as is setting up a clear legal and financial structure to support the transition. This may involve drafting a buy-sell agreement, updating the business’s legal structure, and planning for potential tax implications.

Lifestyle Considerations

Succession planning isn't just about finances, it's also about envisioning the next chapter of life. “In addition to thinking about the financial and emotional aspects of leaving their business, business owners need to consider what they want their succession plan to look like. They may want to travel, pursue hobbies, volunteer, or even start a new business venture,” says Mefford. Creating a long-term lifestyle plan can help in setting goals and budgeting for non-financial aspects of retirement. This might include relocating, downsizing, or even maintaining some role in the business, albeit in a less intensive capacity.

Growth planning for business owners is not just an end but a new beginning. By starting early, planning thoroughly, and staying adaptable, business owners can transition into retirement confidently, knowing they are prepared for this next chapter. The process involves a blend of financial, emotional, and strategic planning.

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Nissan to cut cost of making electric cars by nearly a third by 2030

Japanese carmaker aims to take on Chinese rivals, launching 16 EVs in the next three years

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Nissan is planning to cut the costs of manufacturing electric vehicles by nearly a third by 2030, as it seeks to compete with Chinese rivals.

It comes as the Japanese company, which sold 3.4m cars globally last year, aims to increase sales by an extra 1m by 2026.

As part of the plan Nissan will launch 30 new models in the next three years, with 16 of these slated to be electric vehicles.

This would mean that EVs will account for 40% of all sales by the 2026, and rise to 60% by the end of the decade.

It aims to reduce the costs of producing these vehicles by 30% within the 2030 fiscal year, by looking to new battery innovations, next-generation modular manufacturing and group sourcing of parts.

The move by Nissan mirrors that of other carmakers in the US, Europe and Japan as they try to bring down EV costs and prices amid tough competition from Chinese rivals, which have gained a significant market share in the industry, and are often able to produce more affordable vehicles.

The EU Commission said last year that Chinese models were typically 20% cheaper than European-made models .

Nissan was an early adopter of electric vehicle technology with the Nissan Leaf, which it claimed was the world’s first mass-market electric car, but has since fallen behind Chinese competitors such as BYD and Li Auto.

The Japanese carmaker said it plants across the globe adopt the Nissan Intelligent Factory concept, which was launched at its Tochigi Plant, and leans heavily on robots, reducing production time by a fifth.

Nissan’s Sunderland plant will be included in this plan, with adoption starting in 2026 and completing in 2030.

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It will also begin to develop EVs in “families” where a “main vehicle” will be created and variations based on that design will be rolled out. This will reduce costs on these variations by 50%, and lower development lead times by four months.

Earlier this month, Nissan said it would join forces with its rival Honda and work together on electric vehicle technology.

The memorandum of understanding between Honda and Nissan, respectively the country’s second- and third-largest carmakers behind Toyota , will see both firms work on EV technology, including components and software, with the aim of cutting development costs by combining resources.

As part of its three-year plan to drive up sales across the globe, Nissan aims to sell 330,000 extra vehicles in the US by 2026. It also hopes to increase Chines sales by 200,000, to 1m, sales in the next three years.

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Fisker had big dreams to compete with Tesla. What went wrong?

A decade ago, respected automobile designer Henrik Fisker was coming off the bankruptcy of his first car company when he contemplated his comeback. Instead of a luxury hybrid sedan, what he envisioned was an all-electric SUV that would appeal to the masses with its lower price and California beach-inspired design.

The Danish native put the car on the road last year, when his new Manhattan Beach, California, company,  Fisker Inc.,  released the Ocean. The midsize crossover features a full-length solar roof, an interior composed of "vegan" recycled plastic and a drop-down rear window that allows a surf board to fit. Starting price of the base model: $38,999.

The vehicle gathered design awards and the company initially projected it would make as many as 42,400 vehicles in its first year. Instead, Fisker produced just 10,193 vehicles at its contract manufacturing plant and delivered 4,929 vehicles — racking up sales of $273 million, but losing $762 million in 2023.

More signs of distress emerged in recent weeks as Fisker announced it was cutting  15% of its 1,200-person workforce , halting production for six weeks and working on a deal for $150 million in new financing, dependent on forging a strategic relationship with a major auto manufacturer. The company said the focus of the layoffs was in sales and related functions that would be handled by a planned dealer network.

On Monday, the company said talks for a strategic tie-up had not proved fruitful and the New York Stock Exchange  moved to delist  its stock, which collapsed and closed Thursday at 2 cents per share. Fisker reiterated a warning it made last month: that it might be forced to file for bankruptcy protection.

What went wrong? Multiple factors contributed to the company's fall, analysts said, including the challenges of starting an auto company from scratch, fierce competition in the EV market and production difficulties with its flagship Ocean SUV.

"When you are trying to start a car company, it is really, really hard," said Karl Brauer, executive analyst at  iSeeCars.com , an automotive research website. "It's a capital-intensive business and you have to go up against all these established players to successfully produce a car at a volume rate and at a price that makes you money."

A spokesperson for the company declined to comment and said Henrik Fisker was not available.

Fisker isn't the only EV startup that has been struggling in a crowded field. Industry sales have slowed amid higher interest rates that have made the costly cars more expensive and the challenges of expanding the market beyond the affluent first adopters who made Elon Musk's Tesla one of the most highly valued companies in the world.

Lucid Motors , a Newark, Calif.-based maker of luxury SUVs and sedans, got a $1 billion cash infusion this week from its biggest backer, an affiliate of Saudi Arabia's Public Investment Fund. Last month, Apple announced it was ending development of a self-driving electric vehicle after reportedly spending more than $10 billion on the project over a decade.

A crowded market

Fisker's 60-year-old founder drew attention designing cars such as BMW's Z8 and Aston Martin's DB9 before launching his first company, Fisker Automotive, in 2007. The Anaheim startup produced the Fisker Karma, an undulating $100,000-plus plug-in hybrid coveted by Leonardo DiCaprio and other Hollywood celebrities. Fewer than 3,000 were made before the company went under when its battery supplier went bankrupt, among other setbacks.

He had  bigger dreams for a new company  that would sell electric vehicles to car buyers across the globe. It went public in 2020 via a SPAC, or special purpose acquisition company, backed by big Wall Street private equity firm Apollo Global Management. The company raised $1 billion in capital and was valued at $2.9 billion, a figure that soared as investors poured in, capitalizing on the sky-high expectations for EV sales.

This time around, Fisker suffered some self-inflicted wounds, analysts said. That included releasing a vehicle — the Ocean — that was not quite ready for market, while trying to reduce its capital costs and raise profit margins by outsourcing all manufacturing. That was unlike Tesla or other California startups such as Lucid and Rivian in Irvine, maker of the popular R1T pickup truck, which operate their  own domestic plants .

"We're like Apple-Foxconn," Fisker  said days prior  to the company's October 2020 debut on the New York Stock Exchange, referring to the Chinese maker of Apple's iPhone. "This is the target we're setting for ourselves, to be the most profitable car company in the world."

Fisker had contract manufacturing experience with the Karma, which was made by a Finnish company. This time, he reached an agreement to have the Ocean produced at a plant in Graz, Austria, operated by Magna Steyr, a subsidiary of Magna International, a large Canadian manufacturer of automobile components.

Magna is highly respected in the automotive world and the plant has produced vehicles for U.S. and foreign automakers. Magna co-developed the Ocean's platform, including the chassis and underlying technologies, but ran into manufacturing challenges last year. Fisker had to cut its production estimates several times, and when the cars were released last year they had software bugs.

In one YouTube video  released last month , popular reviewer Marques Brownlee praised an early version of the car for its styling, ride and innovative features, but then slammed it for problems with its drive modes, Bluetooth connectivity and other issues. The review — titled "This is the Worst Car I've Ever Reviewed" — got 4.8 million views.

Software bugs

Fisker has said integrating the software for each component manufactured by the company's subcontractors has been one of the Ocean's biggest challenges. Last month,  Fisker said  the company would send its first over-the-air software update for the Ocean — a technology Tesla pioneered — and continue updates throughout the year and lifetime of the vehicles, using "driver feedback to fix software bugs and improve features."

Jessica Caldwell, an industry analyst for  Edmunds.com , said the auto-review site has not yet published its own take on the updated vehicle, but reviews of early buggy versions of the SUV done by others haven't helped its cause. "Giving people vehicles that are not quite done and ready — I feel like that is just setting yourself up for failure," she said.

An updated Ocean reviewed by U.S. News and World Report this week got generally favorable grades, with the writer saying it had "more innovative tech, a far better design and build quality that I think is miles ahead" of the rival Tesla Model Y SUV — while still complaining about software bugs needing another update.

Magna's plant in Graz has a  storied history , producing vehicles such as the Mercedes-Benz E-Class, the Jeep Grand Cherokee and the new Toyota Supra — making the arrangement look like "it should work on paper," said Needham & Co. analyst Chris Pierce. "But, you know, things are just a lot harder in the real world."

A spokesperson for Magna declined to comment on Fisker, but said the plant has produced 33 models and more than 4 million vehicles to "world-leading standards," including the Jaguar I-PACE all-electric SUV.

Fisker, meanwhile, is pivoting away from selling cars directly, and is moving to open a network of dealerships. Like other EV startups, Fisker copied the direct sales model adopted by Tesla that dispensed with the franchises that most automakers prize to market, sell and service their vehicles. However, that didn't work out.

Fisker said during last month's earnings call that the company received 250 "expressions of interest" from dealers in North America and Europe, and expects to have a network of 50 by the second half of the year. It also will continue to sell direct in Europe. "I expect we will keep signing up multiple dealers every week during the next few months," he said.

Tesla could do without dealers, Bauer said, as Musk was a master at generating free publicity — and because the company had few competitors when it was founded by two entrepreneurs in 2003 and later taken over by the billionaire.

"Musk had enough money and a 20-year runway to make it happen," said Bauer, who noted that amount of breathing room is no longer possible in an industry with multiple startups and legacy manufacturers producing their own electric vehicles.

He called Fisker's plan to switch to a dealer network "too little too late."

The company has released prototypes for two other vehicles: a sporty crossover SUV called the PEAR and the Alaska pickup.

Fisker  announced in May 2022  it planned to have the PEAR manufactured in a former General Motors Co. plant in Lordstown, Ohio, acquired by iPhone maker Foxconn — but that has yet to come to fruition.

Nissan Motor Co. also was reportedly considering investing $400 million in Fisker and building the Alaska pickup at one of its U.S. plants.

In its regulatory filing Monday, Fisker said it was evaluating various options, including a possible restructuring, refinancing its debt, issuing new stock and selling assets.

On Wednesday, Fisker  announced steep price  cuts of more than 30% on its entire lineup of 2023 cars.

Industry observers have doubted another major automaker would want to rescue the company given its problems, but Pierce, the Needham & Co. analyst, isn't convinced.

"l live in Northern California," he said. "Pretty much everyone drives an EV. If you believe in the environment, you have kids and you want all these changes, it would be great if there was much more EV adoption. So if there is a $30,000 EV out there that drives adoption, I do hope there is a partner out there and they make it work."