Video Production Business Tip – Restructure Video Production Debt, Improve Monthly Cash

To work on my video production business expenditures, I have already tried to reduce my fixed expenses by negotiating with monthly vendors such as your landlord, Internet service provider, Telephone Company, etc. That’s a lot of money you’ll be able to save just by picking up the phone and asking questions regarding how you can bring your costs down.

After I went through this exercise some time ago, I started to think about how I could bring my monthly expenses down as it relates to my overall business debt. Right now, I pay almost $10,000 dollars a month in business debt that I took on some time ago in order to grow my business with equipment, real-estate and personnel. No, that’s not a typo.

Even though I have since “right-sized” my video business and it is profitable in its current state, I still owe the debt. Currently, the payment plans I’m on will have me out of debt in 3 years. That’s great but I’m no longer happy about having to pay so much money each month and I believe I can get a better interest rate.

My plan: To get a single bank to roll ALL my business debt into one large loan for a term of 5 years at a 6% interest rate. If I’m successful in doing this, I will reduce my overall monthly debt payments by $6,000.

Yes, you read that correctly! Once the loan is finalized, my video business will immediately increase its monthly profit by $6,000. That’s $72,000 extra a year that will be in my pocket instead of the pockets of my lenders. Plus, it will be a single check written each month instead of multiple.

Some of you may be wondering why I’d prefer to stretch my payments over 5 years instead of staying on course to pay it all off in three years. It’s really easy. If I pay $6,000 more per month for another 3 years, I’m losing $72,000 in cash flow each year for 3 years. Sure, I’d be completely out of debt in 3 years, but at the expense of $216,000 that I won’t be able to use to increase my personal net worth.

Plus, as soon as the refinance is complete and my monthly cash flow (or profit) increases by $6,000, the value of my video business will increase by roughly $500,000. And, if the economy continues to make it hard on the video production industry, I’ll have $6,000 less I’ll need to generate in sales each month just to keep our heads above water.

I spent a couple days last week approaching several banks with my offer and I should hear back from them in a few days. Overall, my financials are strong. I have 15 years in the industry and 9+ years running this particular video production business so I don’t think I’ll have any issues getting one of the banks to do the deal. But in today’s economy, nothing is guaranteed so I’ll keep my fingers crossed.

So, what does all this mean for you? I suggest that you look at your debt (if you have any) and start crunching some numbers to see if you can refinance the debt with a better interest rate resulting in a lower payment each month. You’ll need the extra cash flow in this down economy and as it starts to turn around, you’ll have extra money to either invest back in your video business or to start building your personal net worth.

One word of caution though. Don’t make any major financial decisions without first consulting your accountant. If you don’t have an accountant, GET ONE! They will save you A LOT of money and headache in the long run.

If and when you decide to approach the banks to refinance your debt, you’ll need to make sure you take the following with you:

  • 2 years business tax returns
  • 2 years personal tax returns
  • Year-to-date profit/loss statements for your business
  • Year-to-date balance sheet
  • List of debts you want to refinance
  • If your video business is an LLC or corporation, Articles of Incorporation or some type of document that proves you have the authority to borrow that much money for your business.

By having all these documents ready on the first visit, they can actually submit your loan while you are sitting in the bank instead of you having to go back to your studio to gather all the paperwork first. Also, you don’t have to take copies of everything for each bank. They’ll make copies of the above documents for you and give your originals back to you.

Good luck out there! The waters are rough right now but if you stay focused, you will find success in your video production business.

Video Production Business Tips – The Future of Video Production Businesses

I typically try not to spend a lot of time looking into a crystal ball, but a coaching client of mine asked what I thought the video production business will look like in 5, 10 and 20 years. My insight is based on how I perceive the industry with regard to society, multimedia and technology. Here’s what I have to say.

Regarding the video business in the next 5 years, I think video overall is coming back full-force. Corporate video was very popular in the 80’s but started to die down pretty significantly in the 90’s due to the emergence of CD-ROM authoring and distribution capabilities. This is also when PowerPoint hit the scene heavily in the corporate presentation environment. In my opinion, now is a great time to start a video business and with proper marketing and sales strategies, you’ll be able to really flourish in the coming 5 years.

In 10 years, I believe that bandwidth will finally catch up with High-Definition (HD) camera quality (probably before then but definitely by 10 years). Full-resolution HD videos/films will be accessible on your laptop, phones, in your cars, everywhere! The thing to always remember though is that no matter what the technology is doing, you want to remain highly focused on content creation, or storytelling. There will always be a new technology and a new group of investors willing to dump millions or even billions into the technology.

Let the big boys spend all their money on the technology. Just get real proficient at learning new technologies as they come available. Then, teach your clients how you can help them adapt the new technologies in their communications strategies. I believe that no matter how much technology changes, there will still be a need for good video producers/storytellers. In 10 years, there will be more channels than compelling content.

It will be much easier to start your own television/web network and advertisers will have an unlimited supply of choices on where to run their advertisements. Niche markets/audiences will be the key to success in a decade. If you command a high percentage of a particular market segment, you’ll be able to develop channels with content that serves that market and make a nice income selling advertising space or member subscriptions.

Note:The tools to produce videos will get cheaper and cheaper every year so it is vitally important that you position your video production business and yourself as a producer who understands business/marketing/training communications… not just video production. You will need to focus heavily on the consultation part of the video business instead of just cameras and software. There will be people who buy gear and call themselves “pros” on a daily basis but the companies that stay focused on the “strategy level of thinking” when dealing with clients will prevail.

This has worked for me so I continue to stay positioned in this manner.

In 20 years… who knows? I’m sure that video will still be a profitable business but the technology will probably be out of this world in terms of what it can do. As I’ve stated before, no matter what the technology does, their will only be a small percentage of the population that will understand how to craft a compelling and effective message. Study the technologies over the years and figure out quickly how they apply to the video business and how your clients can use them to improve their communications.

I think in 20 years, video WILL be as common and necessary as having a website or email address is today. Instead of business cards, you’ll have a video card. Instead of a brochure, you’ll have a brochure with tiny chips that can show videos right on the paper.

The above comments were all related to the corporate video industry. How will the consumer video industry fare?

The short and probably best answer is that people will always get married, have birthday parties, and need family history videos. The point is that consumer video needs will never go away. Unlike business, video needs that ebb and flow with the economy, personal video needs are ALWAYS there. There isn’t as much money to be made serving consumers but the demand will always be there.

In fact, I can’t seem to shake the thought process of developing several consumer- related video businesses that serve this unending need. (Weddings, birthdays, college sports reels, etc.) There is a lot more competition in the consumer video industry because the videos are easier to produce and the client doesn’t have the same expectations as to quality as the business customer does. The key is to develop branded products that are easy for the customer to understand and afford. Then, promote them like there is no tomorrow!

I recommend looking at two parallel plans going forward.

Focus primarily on building a video service that develops business videos but also look at serving consumer needs. In the early years of your video production business, the consumer needs often pay the bills when the video business clients go missing in action. Plus, the consumer jobs pay faster.

8 MLM Prospecting Tips On How To Turn Your Prospects Into Productive Business Partners

I don’t care what company you are in the vision of a business & salesperson should be to turn their prospects into business partners.

“So Keep Reading Because This Gets A Lot More Interesting…”

Your prospects are drowning in pain & begging for help so stop & ask yourself this: Is the product or service you have to offer going to get rid of their pain if so then why aren’t you helping them? It’s your responsibility to make their pain go away!

8 MLM Prospecting Tips On How To Turn Your Prospects Into Productive Business Partners…

MLM Prospecting Tip #1…Get Off Your Butt Get Out Here & Get Acquainted:

Establishing trust & credibility in this field is a must so start networking with your niche this helps you relate to them & get a better understanding of what they are going through. This is also where having a good marketing strategy falls into place, it allows you to get to know others & eventually inform them about your business?

A marketing simple strategy can start with Facebook, Twitter or LinkedIn or the social bookmarking sites.

MLM Prospecting Tip #2…What Are Their Pressure Points?

Can you feel the agony & pain they are going through right now? If so then you need to get to the bottom of it before you start talking about your opportunity, after you find out what problems they are having then you can focus on how your opportunity will help change their lives.

MLM Prospecting Tip #3…Time To Approach The Situation:

OK in order for you to do this successfully you have to give them a clear understanding that you have something of value to offer so it’s time to get down to the true need of your prospects & you can do this by listening to what they have to say.

After they are done talking you can ask any questions you may have just be sure you are paying close attention to what they are saying because you may have a winner standing right in front of you!

MLM Prospecting Tip #4…Give Valuable Solutions Away For Free:

Your prospects have to know that you’re not in it just for the money & if you are then you’re doing nothing but wasting your precious little time. You must figure out what you can give away at no cost?

Do you have any training materials or tools that you can give away? Providing value upfront is called “attraction marketing” it makes those in your niche more drawn to you because you are educating them on what to do & how to do it.

Learn how to become creative & have fun with what you’re doing, it as time goes on you will start seeing your business expand a lot more.

MLM Prospecting Tip #5…While Consistently Providing Value It’s Time To Start Presenting The Valuable Products That Cost:

Giving away free products is good but you are still building a business so you have to start earning income & if you are only giving away freebies then how in the world are going to build a profitable business?

The more valuable your products & services become the sooner you can start charging a fee for them, besides you can’t earn any “Return On Your Investment” if you don’t start charging for your services at some point & time. The best way to get started is by offering your products at a low price on the front end.

There are (3) ways you can offer your products to your niche along with a call to action:

List Of Subscribers

Blog Posts

Writing Articles

MLM Prospecting Tip #6…Provide So Much Value That They Can’t Hardly Stand It:

They paid for your product right? So you have to provide so much value that they are overwhelmed this lets them know that they got more than they paid for!

At this point it’s time to deliver tons & tons of value on your low cost item & while you are at it you can throw in a free bonus: reports, ebooks, video trainings, private coaching calls, etc… this will make them want to network with you even more & it keeps the relationship growing stronger.

MLM Prospecting Tip #7…Next Start Offering Your Higher Prices Items:

If the lower price item is packed with tons of value then they won’t mind paying for the higher priced items because they know they are going to benefit from it.

Here you can offer your best product or opportunity especially after you have done steps 1-6 at this point they have built up enough trust with you & they trust you enough to where they feel good about making a quick decision!

Do you realize what you have done so far?

You have consistently nurtured them, picked the ones that are teachable, willing to pay & ready to work with you. Plus your actions speaks for themselves by showing that you are a trustworthy person that’s sincerely ready to help others.

You can let your website, webinars, conference calls speak for themselves & now you can present your business & talk about the advantages they have of personally working with you.

MLM Prospecting Tip #8…Time For A Check Up:

Now it’s time to do a check up on what you’ve been working on:

What worked & what didn’t?

What should you have done differently to get a better outcome?

What do you need to test & tweak?

How is your squeeze page working out?

Doing a reality check keeps your mind fresh & lets you know what you need to do differently to improve things. This is also a great time to check over your goals to make sure you are on staying on task.

My Last Conclusion…

Don’t be afraid to take control of your business because the prospects in your niche are looking for someone to lead & guide them in the right direction.

The process of creating an innovative product business plan can be quite daunting. This is mainly due to the enormous process one has to undertake, coupled with the tough competition you have to go through once you release your product into the market. In order for you to be successful, you are required to carry out some extensive research, which will enable you to better understand your products competition and value to the customer. Other than the afore mentioned factors, it is also important for you to clearly set out your objectives and actions.

There are a number of tips for creating an innovative product business plan and they include:

– Creating a tactical plan

You are required to clearly formulate and to write down your expected profit and loss numbers. This is what makes up the first step of any tactical business plan. One of the main benefits of coming up with a good product business plan includes the fact that it allows you to be aware of your total start-up costs, as well as your marketing strategy. Failure to come up with the estimated figures will hinder you from working as effectively as possible, thereby preventing you from achieving your set goals in a timely manner.

– Doing Extensive research

Before you decide to introduce any product into the market, it is important for you to carry out some extensive research in that products niche. From the research carried out, you will become fully aware of the products viability within a targeted market. Carefully look through the demographics in order to select the right product for your business. Pay close attention to those products which fit into what your talents, education, and interests have been up to this time. Is there a product which you have been wanting to see on the market, that could be of value to the masses, but which has so far not been manufactured? Is this product something which you could design and bring to fruition? Will it have value, and yet be a bargain so that many will be able to afford to purchase it? If possible, choose a consumable product, one which is used in day to day life, and which will be purchased repeatedly within weeks or months of the original purchase. It was the great American industrialist, John Paul Getty, who stressed the importance of finding, then marketing, products which are continually consumed and replaced.

– Undergoing adequate training

This is one of the most important tips for creating an innovative product business plan. The reason being that by receiving adequate training from distinguished experts, you will be able to come up with a good business plan that is completely free from any miscalculations. You can also hire a business consultant who will be able to share with you effective tips for creating an innovative product business plan. As long as you know that it takes time, work, and especially tenacity to bring a new product into the market place, then you can have the success you have been looking for. Often times it takes some trial and error and failure, but with a good foundation of planning, research, innovation, and training the future rewards will be worth it.