Video Production Business Tip – Plan to Lose Money When Starting Your Own Video Business

Starting out your own video production business can be tough especially if you need to manage your personal finances too. The challenge comes when you know you have to handle the cash needs for both your new business and personal obligations. You have to figure out how you’re supposed to pay all the business and personal bills until your company can support both. Here are some options you can take.

1. Work full-time for someone else and build the video business at night and on weekends.

This means that if your business will primarily be weddings, there are other special events that you can edit after normal business hours. This makes for long days and sleepless nights but it’s a popular approach for people who have a lot of personal financial obligations.

2. Work part-time for someone else to supplement your income and spend the rest of the time building your business.

This will help you build your video production business faster but you won’t make as much money in the meantime. A good friend of mine and fellow video business owner worked for a few years as a waiter at a restaurant before his video business generated enough money for him to quit. He wasn’t thrilled to be working there but it helped him make just enough money to get by. 10 years later, he has a very successful and growing business.

3. Approach a bank about loaning you enough money to start/run the video business and pay your salary for 6 months to a year.

At first, this method sounds crazy. What if you fail? Then you’ll owe all the money back to the bank and won’t really have a way to pay it. But, what if you succeed? Then you’ll easily pay the bank back over time and be on your way to a very successful life as a video business entrepreneur.

I guess you are really the only one who can decide if this is the correct method for you. I can tell you that if you can totally focus on building your business without worrying how you will pay your bills for one year, you’ll have a much better shot of succeeding. Starting and running a new business takes 100% of your time and eliminating distractions (like working another job) will make things a lot easier.

4. Approach an investor and ask them if they’d be interested in financing your start-up.

This is similar to approaching a bank except that an investor will invest their own money into your company in exchange for a percentage of ownership. The amount of ownership depends on how much they invest and what you agree to give them. The upside to this method is that you don’t have to go into debt to start your business and you’ll have the cash needed to operate the business and to pay your salary.

The possible downside to this is that you will not own 100% of your business which means that you’ll have to answer to your investor on a regular basis regarding the business decisions you make. The right partner can help you achieve a level of success you never dreamed of. However, the wrong partner can cause you a lot of headaches and potentially cost you a lot in legal fees.

All this is a lot to process, but the one thing that will be the same regardless of what method you choose is that your video production business will lose money before it makes money. Also, your personal financial obligations won’t go away just because you decide to start a new business. Choose which of the above methods will work best for you and start planning to make it happen.