The entertainment industry is booming, especially in the binge watch era. Viewers are consuming more and more film projects. Why shouldn't they take a look at one of you? A movie can quickly become expensive to produce, and a film company is likely to produce several pieces at once. If you want to start a film company, you have the following options to finance it.
1] Personal wealth
Not everyone has the money to start a business, but chances are you'll have to put at least some of your own money into your business. This is especially true if you are at the beginning of your journey and do not have to convince anyone of your great ideas. It may take you some time to establish yourself as an expert. Therefore, it can be difficult to convince others that you are worth the risk. You can get more creative and try cash flow banking or open credit cards.
Thanks to websites like Kickstarter, anyone can publish a project and ask for help getting it done. Creative projects are particularly popular on crowdfunding sites. If you can create a good campaign video and offer some engaging levels of rewards, you can grow and even exceed your funding goals in a short amount of time. However, if you fail to achieve your goals, you may not get money. Hence, it is important to choose the right platform for your project. Crowdfunding a movie company can be tricky unless you already have a particular movie in mind to offer to backers. It is also helpful to have an integrated audience, even if it is small.
3] friends and family
It might seem strange asking friends and family to fund your business, but asking questions has several advantages. These are the people who know you better than anyone else. If you're determined and have successfully done similar activities before, they know they can bet that you are a good investment. Even if this is your first foray into business, you can still win over friends and family with a formidable business plan and a passion for your project. Additionally, friends and family members may feel less scary than investors you don't know well. You will also likely pay less interest when you get around to paying it back.
If you are trying to start a film company, you are likely to be at least a little familiar with the film industry. You may even have worked on it. Your network of industry contacts can come in handy in trying to get your business off the ground. You never know who might want to invest in new and innovative creative projects. If you don't have any potential contacts, get some! Networking is a crucial skill for everyone in any company. It is important that you don't get into these relationships and only think about what others can give you. Think about what you can offer others and your contacts will think of you at the next opportunity.
5] Business Loans and Grants
A start-up film company is likely to be viewed as a small business, especially at the outset. You may qualify for a variety of small business loans and grants. You never know which organizations or donors are offering to support the arts. It is therefore important to research consistently. Many government programs can help you get loans at reasonable rates and it is not too difficult to qualify. Taking on debt may be scary, but a strong business plan and maybe even a mentor or financial advisor can help you feel more comfortable when you take the plunge.
The world needs new and creative stories, and start-up film companies are just the units that tell them. Your dream may feel a long way off for lack of funds, but luckily there are several ways you can secure funding. With a little research and effort, you should be able to find the right path for your business.
About Finnergan Pierson
Finnegan Pierson loves business and has a passion for technology and movies. As a freelance writer, Finn hopes to influence others so they can have a positive business experience.