Making Money in Panama
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Based on the lessons I’ve learned by running a business, I have written several articles on this blog pertaining to entrepreneurship. Earlier this year I wrote an article providing tips on what you need to have in your contract before starting any job. As I looked back over that list, I realized that I missed something very important. What happens if your client decides to pull the plug before the project is finished?

“No problem,” you say, “my client paid me a deposit up front.” That may be true, but a deposit usually only covers certain up-front creative costs. Let’s say the time you have invested into a particular project now exceeds the amount of the deposit. Let’s assume that you are well into phase two, when all of a sudden, the project is put on hold. Your client becomes unresponsive. When he/she does finally return your calls, he/she says that the company has been forced to table the project. So, how do you recoup the cost of your time up to that point?

Since this has happened to me before, I now insert a clause into each of my contracts which says something like, “Should Client terminate the project before its completion, Client is responsible for paying Company all unpaid costs incurred in the production of this video up to the date of termination.” By inserting this sentence, I can cover myself in case my client decides to shelve the video project before it’s complete. The wording of your contract ultimately might be a bit different from mine, but the point is to make sure that you get paid for your time.

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On the set of "Lifted"

Running a successful business (whether you are a sole proprietor, small business, or freelancer) depends a lot on exposure. Visibility is incredibly important, because when a company is in the market for your services, you want to be the first vendor on the call list. Sometimes, when you are first starting out, gaining exposure means conducting business trade-offs. For example, you might shoot some photos for a local publication in exchange for ad space. You might design posters, ads, etc. for a local event in exchange for sponsorship recognition. Nothing is wrong with this approach, but it’s important to be very selective for whom you do these trade offs. If you aren’t careful, you will find that you are spending a lot of time and creative energy for little in return. Sometimes the exposure pays off. Sometimes it doesn’t. The trick is to learn how to find those trade-off opportunities that will maximize your publicity. You also want to be aware of those groups, businesses, non-profits, etc. that are only interested in how many “freebies” they can get out of you. Doing favors is fine. Donating your creative talents to a worthy charity is fine. But ultimately, you have to pay the bills and you have to make a profit. So it’s important to strike a healthy balance between the two.

In the past, I have been asked to produce video content for various non-profits. Many times, these non-profits have little or no money allocated for video. I try to help out when and where I can, and I have learned that if you are willing to make special arrangements for them, then they are willing to negotiate with you, so that both parties can benefit. For example, a few years ago I did some video production work for a non-profit. I was willing to do the job pro bono, hoping to gain some exposure among local businesses. Last year, the same non-profit came to me with two video projects in mind - First, they needed a promotional video for an annual fundraiser. Second, they were interested in producing some PSAs. I worked out a deal with them that I would produce the promotional video for free and in exchange they would pay me my normal production rates for the PSAs. It was a deal that benefited both my business and the non-profit.

I would encourage all of you to be charitable, but I would also encourage all of you to be business savvy as well.

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I’ve been drafting contracts recently for some new projects, and it got me thinking not only about the importance of having a contract, but the value in having the right content written up in your contract. You need to make sure that your contract covers any possible variable, so that if conflicts arise, you and your business will be covered. Of course, knowing exactly what to include can be difficult. After all, we that work in the production industry are creative folks, so the administrative tasks of running a business can be a challenge. Based on my experiences, here are a few guidelines on drafting a contract.

  1. Describe the scope of the project. This may sound like a no-brainer, but it’s very important. You need to make sure that both you and your client are clear on the project as a whole. What is this video for? What are the goals? What will the video hope to achieve?
  2. Based on the scope of the project, define the specific services you will perform so that the project responsibilities are fulfilled. Make sure you spell out exactly what you will be doing over the course of the production. Also spell out what you need from your client. Sometimes, in order to complete a video, I need my clients to provide me with still images, company logos, backgrounds, fonts, etc. In any contract, both parties should be clear on what their individual responsibilities are.
  3. Specify the video project’s budget. Verbage is important here. Don’t say, “the budget for the video production services described herein are estimated at…” Never estimate in your contract. Be specific. Just write in what the budget will be.
  4. Specify how much time you will be investing in the video. Every budget I draft is based on a number of factors, including the amount of time I plan on spending in pre-production, production, and post-production. Place these figures in your contract somewhere. It can read something like this, “The above budget includes X hours of pre-production, X hours of production, and X hours in post-production.  Should Client request changes to the project and Company’s time exceeds the budgeted time, Client agrees to pay Company its standard rate of X in order to complete the changes.” This particular clause covers you in case you get into production and your client starts making a lot of unexpected changes. If you aren’t covered in this way, you may find that you’re spending a lot of extra time on the video and not getting paid for it.
  5. Define the payment schedule. I always ask my clients for a deposit before I start work on any video project. This money helps to offset initial time invested in the pre-production phase. I also make sure to specify in my contracts that deposits paid are non-refundable. This covers me in the event that a client pulls the plug on the video. In addition to the deposit, you need to specify project milestones at which time additional payments are due. For example, I usually ask my clients for a second payment after the video shoot, with final payment due after the video is approved.
  6. Insert a clause to cover late payments. To help my cash flow, all of my invoices are net-15. However, net-30 is more realistic. Clients will often push that to net-45 or even net-60. To ensure that you receive payment from your clients in a timely fashion, insert a clause indicating that a late fee will be applied to any balance that is more than 30 days overdue. This will protect you in case your client is negligent about making payments.
  7. Specify the delivery date. Make sure both parties understand when project milestones are supposed to take place, including delivery of the final video. Now, look back to #3 on this list. It’s important to remind the client (within the context of the contract) that any delay on their part in getting necessary materials to you will delay the completion of the video. You don’t want to be locked in to a deadline on the 10th of the month when you’re in your office on the 8th still waiting for your client to send photos, logos, fonts, etc.
  8. Be sure to retain certain rights to the video. Every video completed is an addition to your demo reel that can possibly help you land the next job. So, in your contracts, specify that you retain the right to use the final video for display, publication, exhibition, awards, etc. for your own promotional purposes. I have never had a client that had a problem with this and it grants me the permission to show my work to other potential clients.

Working in video production as an independent professional or business owner can be a trial-and-error existence. Mistakes will be made and hopefully, lessons will be learned. The way I write my contracts is based on my experiences as a professional producer/director and business owner. Hopefully, these insights will help you in your own ventures.

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Any entrepreneur will tell you that adaptation is an integral part of a successful business. Companies have to study the marketplace. They have to watch and listen, and be willing to evolve as technologies, trends, opinions, and public tastes change.

2010 marks Parc Entertainment’s seventh year in business, and during that time we have been able to work with a variety of clients on some great projects. To date, we have branded ourselves as a video production and post-production facility. But we realize that today’s media is more integrated than it was just a few years ago. Video is now a big part of a company’s web presence. Clients that come to us for video production services often ask about web design and development. And web designers are often asked about video production. They each go hand-in-hand.

As marketing content becomes increasingly connected, we realize that clients need compelling and visually stunning content. They need a production facility that can engage, inspire, and entertain an audience. That’s where we come in. In an effort to give our clients what they are looking for, Parc Entertainment will soon be Red Fox Media. In addition to our video production and post-production services, we now offer full website design, development, and SEO for our clients. By February 1, 2010 we hope to launch our new identity and we encourage you to send us an email, call, or stop by our offices so we can discuss how our production services can benefit your business.

To see some of the website projects we have already completed, you can click on any of the following links:

Southern Fastening Systems

Industrial Health Council

Shelby Academy

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Based on my last post, I received another question regarding clients and client relations. My last post discussed those who like to include a little too much information into their videos. This particular question focuses on clients who can’t stick with the shooting schedule. Here’s the question:

My client is very knowledgeable about his business, but won’t follow a cut sheet to save their lives! We’ve been there to give directions and they are great about that. However, any general advice on how to shoot this smoothly (even w/o the cut sheets) so the post production isn’t a hair puller?

Let me first say that video shoots rarely stay on schedule. Once you get on location, things can get shuffled around and your day can run late. So, don’t panic if you’re at the end of the first day and you haven’t accomplished all that you hoped. I have written some articles on this blog that discuss shooting schedules. Hopefully you can find some valuable info in my archives that will help you schedule your video shoots.

Second, when you’re talking to your client about the shooting schedule, try approaching the subject from a financial angle. Staying true to the shot list will help everything run more efficiently, which will save your client money. I always tell clients that spending the time in pre-production to create and maintain a solid shooting schedule is vital to staying on budget.

Third, realize that many times you will simply have to “go with the flow.” As I said earlier, things fluctuate. Often, the activity on location will dictate how and what you shoot, not the other way around. For example, while working on a video project for a manufacturing company, I simply had to shoot the action as it happened. I couldn’t tell the foreman, “Hey, we need to shoot ‘X’ at station 2 right now,” because the manufacturing process has its own schedule. Sometimes there was no activity at station 2. I simply had to stay flexible and go where the action was. It did mean I had to jump around quite a bit, but that’s part of the documentary process. Sometimes it can’t be contained in a nice, neat shot list.

If you find that you are shooting your project in this style, remember to do one of two things (doing both would be even better):

  1. Maintain a running log of what’s been shot
  2. Slate everything (simply write down on a piece of paper what the camera is looking at, hold it up in front of the camera, and film it for a few seconds, just for reference).

Having a reference marker in your footage will help tremendously in post-production. That way, your editor can easily match up your shot with what’s mentioned in the script. Let’s say your video is for a drilling company and the script reads, “With our new, state-of-the-art Hole-Maker 9000, we can…” Well, if your editor has hours of footage showing different types of machinery, how is he/she supposed to know which piece of footage is the Hole-Maker 9000?

Yes, staying on schedule will make everyone happier and it will keep production costs down, but remaining open to new possibilities means that you may find a great storyline when you least expect it.

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Clients come in all shapes and sizes. For some of our video projects, we simply shoot and then turn over all raw footage to the client so they can edit it themselves. Some businesses we work with have their own in-house marketing team. They create the concept, write the script, and hire us to produce the final piece. Other clients will lean on our expertise to conceptualize, write, shoot, and edit their marketing videos. Every client is different. They have different needs, different expectations, different ideas, and different ways of doing things. Your job as a video producer/director is to listen to their needs, respect their opinions, and advise them when they need guidance throughout the production process.

A friend of mine recently sent me an email asking for my advice on a particular situation. She is currently working on a video and her client has some great ideas, but there is one problem: the client is trying to put too much into the video.

I’ve been in creative meetings when the client throws a lot of information at me. But that’s not a bad thing. When you first get started on conceptualizing and writing a video, you want as much information as possible. The biggest challenge comes when you have to narrow your focus and sculpt that information into usable material for the final script. If you’re having trouble convincing your client to reduce the amount of info that he/she wants in the video, here’s some advice:

  1. Listen and Take Notes - during those creative meetings, pay attention to everything they say and take notes as you go. The act of physically writing down your client’s ideas tells them that you value their input. By engaging them in this way, you will earn their respect and trust and they will be more receptive to your creative suggestions.
  2. After getting all the information, it’s time to trim the fat. Ask your client a few follow-up questions. These questions will encourage your client to narrow his or her focus and concentrate on those elements of their business that are most important: a) How do you want the public to perceive you?
    b) Using one sentence, how would you describe your company’s identity/mission?
    c) What is your mission statement?
    d) What are three key selling points for your business?
    e) What objections do people have when it comes to making a purchase? i.e. what prevents them from buying from you?
  3. Explain the process - As politely as you can, explain the process of creating a video. Emphasize the importance of creating a video with a strong, central theme and a simple message. Bombarding the viewer with too much information will only confuse the audience and will result in more questions being asked than being answered.
  4. Make Comparisons - Show the client samples from your reel and walk them through the case study of each project. Show them through these videos how a simple approach is usually the best approach. You might also ask your client to think of their favorite commercials or favorite long-format videos. Walk through those videos and ask your client, “What makes these videos so memorable? Why do you like them? Why are they successful?” Usually, it’s because the director boiled everything down to a simple concept that an audience could easily digest.

And remind your client of that adage, “The simplest solution is the best solution.”

Video production is an industry full of variety. In my career, I have covered several different businesses, topics, people, and places. Browse through any video director’s client list and you will no doubt see a broad spectrum of projects. However, there may come a point when you are approached by one of your client’s direct competitors to produce video content. Should you take the job or should you politely refuse because of your existing relationship?

The answer to this question depends on a number of factors - most importantly, the nature of the relationship with your existing client. Here are some things to consider:

  • If you signed a non-disclosure agreement with your client, then legally, you might not be able to accept a job from a competitor.
  • If you signed some kind of non-compete clause, then you probably won’t be able to take the competitor’s job.
  • Let’s suppose you produce a lot of content for your client on a regular basis. And let’s suppose each video requires you to be out on location meeting with your client’s vendors and other people your client does business with. Over time, these vendors might come to think of you as part of your client’s business (even though you, in fact, are an independent contractor). If those same vendors see you representing a competing company, they may take offense and the credibility of your first client could be shaken.
  • If your client considers you as their “go-to” guy/gal for production work, they may get their feelings hurt if they realize that you are doing work for their competitor. In which case, they may not want to hire you for their next project. Be careful not to burn any bridges.

Ultimately, the choice you make should be handled on a case-by-case basis, because every situation is different. Obviously, if you have only produced one video for a client, and that project is now five years old, it’s probably okay to accept a job from a competitor.

It also might be helpful to address these concerns with a new client before the first project gets underway. If the new client is looking for a long-term relationship, then you probably need to discuss any non-compete policies the company may have. I know it’s tempting to jump at a good offer when it comes your way, but more important than new jobs are the relationships you have established with your existing clientele.

So now I’ll open the floor for discussion. What would you do in a situation like this? Do you agree or disagree with the considerations mentioned in this post?

We all take pride in the work we do, but our self-confidence can be shaken in a heartbeat when someone responds negatively to a project that we’ve devoted so much time and attention to. The creative world is a subjective one. Someone might look at a video and deem it a masterpiece. Someone else might look at the same video and ridicule it. Criticism hurts, but its affect on our future work can be either positive or negative, depending on how we respond.

  • Some clients will always be deconstructive. There might be some clients out there who will never be happy, regardless of what you present to them. If you find that a client is constantly tearing your work apart, without offering any suggestions for improvement, it might be time to end the relationship. Perhaps there is a personality conflict. Perhaps your style doesn’t mesh with their vision. Whatever the reason, it might be time to refer them to someone else.
  • Criticism can help you improve. Some clients genuinely want to offer up their opinions to help you create the best work possible. Early in my career I had a client that took a chance on me. He saw my potential and hired me. I was excited to work on the project, but when I submitted a rough cut, I received a call from my client who said he hated it. I instantly felt sick to my stomach. The following weeks were difficult for me as I tried re-cut after re-cut. He responded to each version with a long list of changes. Although the project was frustrating and stressful, I can confidently say that the client helped me improve the quality of my work. Today, my clients are incredibly pleased with the videos I deliver.

Receiving criticism is never fun, regardless of the spirit in which it is given. But we need to use criticism in a positive way. Let it motivate you to view your own work from a different perspective. Let it encourage you to try new things. Let it challenge you to better yourself.

salesBusiness leads are great. As a young entrepreneur or freelancer, leads give you a boost of encouragement. However, those leads are worthless if you can’t keep track of them. And if you can’t keep track of them, more than likely you won’t be able to close the deal.

For me, it seems that leads start pouring in while I’m buried with other jobs, making it easier for those leads to fall between the cracks. It’s important to have some kind of management system in place so that you can organize your leads and follow up promptly.

This doesn’t have to be some sophisticated database, but it does need to provide you with some basic information:

  1. Name of your potential client
  2. Contact information
  3. Description of the project
  4. Estimated budget
  5. Status of the lead

The last item on the list is one of the most important things to keep track of. It tells you how close you are to closing the deal. I also like to make a note of how my contacts find me. This helps gauge the effectiveness of my marketing strategies.

I use Evernote to manage my leads, and I keep everything in a simple list form. Using Evernote is helpful for me because the information will sync between my iPhone and my desktop. So, if I’m out on a shoot and a new lead pops up, I can quickly make a note of it on my phone and have that information when I get back to my office.

What method works best for you?

There are wonderful benefits to owning a company, but growing the business takes an incredible amount of work, dedication, and patience. The farmer doesn’t see the results of his labor as soon as the seed is planted. In like manner, the young entrepreneur can’t expect immediate returns on his investments. Times will be good. Times will be bad. In the years that I have been running my business I have experienced quite the roller coaster ride. During slow periods, it’s important to make good use of your time and plant sees from which future successes will grow.

  1. Don’t Be Negative. I place this one at the top of the list, because we have all experienced feelings of discouragement, despair, and hopelessness. However, it’s important to remain positive. Negativity will result in apathy, which will do nothing for your business.
  2. Attend Networking Events. When other projects consume most of your time, you can’t afford to attend social events. However, when business slows, take advantage of opportunities to get out and meet new people. The relationships you develop today will benefit you in the future.
  3. Follow Up On Existing Leads. As I’ve mentioned on this blog before, I like to use Gmail as my email client. It allows you to create labels to easily organize and archive your messages. I have an entire list of conversations labeled “Leads.” When I have a slow period, I go back through those contacts to see if there are any deals I can close. When things are busy, it can be easy to overlook an existing lead, so take the time to follow up.
  4. Brush Up On Local Business News. Keeping up to date on what’s happening in your market is a great way to find new leads. Subscribe to the local business journal, or follow blogs that provide local business content. Staying on top of current business events will help you to better understand how your products and services can help those around you.
  5. Improve Your Marketing Efforts. Re-examine your brand. How are you reaching out to others? Is it time for your website to be updated? Have you neglected your blog, or other social media profiles? Sometimes when business is slower I take a look at my demo reel to see how I might re-organize it and improve it. You might also consider creating and sending a free monthly e-newsletter (see my sign up form to the right of this page) or writing an informative article and submitting it to local publications. Think of anything that will help you get your name out in front of people.
  6. Practice Your Craft. If you are a photographer, cinematographer, writer, graphic designer, or web designer, you can take advantage of slow times by improving your skill set. Create some work on spec. Get out and shoot something. Update your portfolio. If you are an editor who really needs to learn more about using After Effects, sign up for a class and learn something new. Watch some tutorials. The quality of your work will only get better.

For a business owner, slow times can be frustrating, but staying busy and staying productive are the keys for staying successful. Invest in yourself and your business. Use your time wisely. The small seed planted today will grow into a strong plant, if properly cared for.