contents contents
full screenprintcontentsfull screenprint58 VIDEOMAKER >>> JUNE 2019
state of your videography company
will also make your business run
smoother on the whole.
For one, you will be able to discuss
budgets and negotiate more easily. You
will also be able to audit your business
faster and more efficiently. Banks and
other business professionals are more
confident working with a business
owner who understands their finances.
Good budgeting and accounting
practices also helps you analyze ways
to increase profit. At the end of the
day, it will only benefit you to learn
this information.
If you don’t learn accounting best
practices, you are a high-risk business
owner. People may take advantageof your lack of knowledge. Theft and
fraud will be harder for you to detect
if you are not aware of where your
money goes.
Let’s jump into the necessary skills
you’ll want to acquire as you move
from hobbyist to business owner.Learn to communicate
Communication is essential in any
business. There’s a reason almost every
job description asks for “excellent oral
and written communication skills.” But
what exactly does this mean and how
can you excel in these areas?
When it comes to your business,
using professional language. Combine
this with proper delivery and you have
the difference between a professional
and an amateur. This is especially true
for emails and presentations.
As a business owner, not only will
you have to communicate with your
team, but you’ll also have to pitch and
coordinate projects with investors and
even bigger businesses.
With this in mind, it never hurts
to take a communication class or
workshop. Another great practice is
to record yourself giving a pitch or
talking through your finances to hear
your dialog and recognize potential
areas of improvement.As videographers, we tend to focus
on the creative side of video produc-
tion. However, if you want to take your
videography to the next level and turn
your skills into a profitable business,
you will need to know a few things
about accounting and budgeting.
Accounting doesn’t have to be chal-
lenging or scary. It’s actually quite
simple when you have the right tools.
Let’s take a look.Good accounting is the first step
Learning how to manage your financ-
es will allow you to price your services
appropriately. That means knowing
both your base expenses and the
actual value of your services. It also
means taking your desired net income
into account. Your pricing must not
only accommodate your needs but
also reflect your value.
Understanding your costs will allow
you to accurately budget so that you
don’t end up losing money on client
work. Understanding the financialPROFIT MAKING
Turning a passion for video pro-
duction into a profitable business
takes time, patience and a bit
of business know-how. Here are
some of the basics to put you on
the right track.
by Rachel and Nicole HendersonRunning a video business
Before you begin a
client project, make
sure you have a
signed contract in
place. This ensures
cost and require-
ments are clear
from the start.385 C08 Profit Making.indd 58 4/23/19 2:13 PMPROFIT MAKING JUNE 2019
VIDEOMAKER >>> JUNE 2019 59
of your lack of knowledge. Theft and
fraud will be harder for you to detect
if you are not aware of where your
money goes.
Let’s jump into the necessary skills
you’ll want to acquire as you move
from hobbyist to business owner.Learn to communicate
Communication is essential in any
business. There’s a reason almost every
job description asks for “excellent oral
and written communication skills.” But
what exactly does this mean and how
can you excel in these areas?
When it comes to your business,
using professional language. Combine
this with proper delivery and you have
the difference between a professional
and an amateur. This is especially true
for emails and presentations.
As a business owner, not only will
you have to communicate with your
team, but you’ll also have to pitch and
coordinate projects with investors and
even bigger businesses.
With this in mind, it never hurts
to take a communication class or
workshop. Another great practice is
to record yourself giving a pitch or
talking through your finances to hear
your dialog and recognize potential
areas of improvement.by Rachel and Nicole HendersonStaying organized
Organizational skills can be very beneficial for
you as a business owner. Try to always keep your
paperwork, receipts and bank accounts organized
in an established system. A great tip to remain
organized is to have a set destination for each
of these things and create a schedule to ensure
you take the time to sort it. For example, make
Wednesdays a receipt scanning day to ensure you
don’t miss any transactions week to week.Planning each project
After your general business operations are orga-
nized, it’s time to plan your individual projects.
What is your typical project budget? Make a bud-
get spreadsheet that you can reuse for each shoot
with space for estimated costs. As you move
forward, adjust those estimates to the true costs.Contracts
Prior to the shoot, preparing a contract will
protect both you and your client. This not only
makes the relationship more professional, but it
will also outline all of your expectations and will
act as proof for the agreement.
It is important to note the payment schedule
such as the deposit, payment and editing terms
in the contract. As an example, you could ask for
a 30% deposit due 14 days before shooting, 50%
halfway through the production dates, and the fi-
nal 20% once the project is edited and completed.
It can also be helpful to include in your con-
tract that the production company owns exclusive
rights to the footage until the payment is received.Invoicing
Include an invoice with your contract as well to
verify the amount being paid and keep track of
finances on your end. You can always update
and resend the invoice if any changes occur. Also
include the forms of payments you accept.
When preparing an invoice, there are a few
recommended details to include.- Your name/company name.
- Your mailing address (for checks, tax paper-
work, and other correspondence) - An invoice number (for your records)
- Contractor/employee name and information
- Project name
- Due date
- The date the invoice was prepared.
- A detailed listing of charges (item, production,
day rate/hr rate). - Additional lines as needed (tax, discounts, etc.)
- A total line
Having all of this in your invoice will make it
easier to collect your money.Every producer is different
The ability to think critically is also essential
when it comes to budgeting for your shoots and
tracking spending. When looking at the numbers,
you must be able to spot patterns and come up
with a coherent short and long-term strategy that
matches your specific production style.
Try to think outside the box when you encoun-
ter a problem. This will allow you to develop a
solution unique to you and/or your client.
Another skill that goes hand in hand with
critical thinking is your ability to analytically
forecast. This is extremely helpful when you
are seeking to predict your future growth and
if you are looking for investors. Being aware of
your financial predictions and sales forecast will
truly allow you to know your business and your
projects inside and out.
To learn more about the fundamentals of busi-
ness accounting, check out these sources:
The 10 Bookkeeping Basics You Can’t Ignore:
http://www.score.org/resource/10-bookkeeping-basics-
you-can’t-ignore
Small Business Accounting and Taxes:
http://www.accounting-degree.org/small-business-
accounting/
6 Fundamentals Every Modern Entrepreneur
Needs to Succeed:
http://www.entrepreneur.com/article/236004Known for pushing the envelope with intricate and layered
mixes, genre blending is our forte. Every set we do is differ-
ent. We’re both music nerds... so our library is endless.
You can comment on this article by going online:
http://www.videomaker.com/?p=72002330Create a system for
keeping track of all
of your business-
related income and
expenses. Knowing
how your money
comes in and where
it goes will make
you a more confi-
dent and effective
negotiator.385 C08 Profit Making.indd 59 4/23/19 2:14 PM