Parc Entertainment - A Video Production Company - Birmingham, AL

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.

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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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?

Business 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.

In the world of video production, projects can span several months, depending on the complexity of the job and the amount of people involved. And during that time, a TON of emails will pass back and forth between the client and production company. Whether you work for the client or the production company, it’s important to save and organize those e-mails. Doing so will help both parties maintain clear expectations as the project moves forward.

Defining the Scope of the Project

When a potential client calls, interested in hiring me to produce a video, they usually go over the basic scope of the project. I am always diligent to take notes and ask questions during this initial conversation. As we draw closer to signing a contract, I always send an email, outlining the project, to make sure I understand everything correctly. Having all of these details recorded in an email is a valuable asset, because it’s much easier to reference an email than try to recall what was or was not said in a phone conversation.

Changing the Project

If a video project is under the oversight of a committee, the scope of the job might change several times before the contract is signed. Here again, saving and organizing every email is important, because it can get very confusing very quickly if changes are being made constantly. Contradictions can become a serious problem unless you have an email that you can refer to. Those emails are a clear record of what was said, by whom, and when.

Obtaining Materials for the Project

Many times a client will email me a signed contract. As the project moves forward, they might send me all kinds of materials for use in the video - scripts, photos, links, titles and other graphics, etc. I will always download these to my hard drive and store them in my project file. However, I will always archive the emails containing these attachments, in case something happens to the files on the hard drive. You always want your client to have faith and confidence in your abilities and your work ethic. Having to ask your client to re-send materials over and over doesn’t exactly send the message that you are organized and efficient.

Conclusion

I use Gmail as my email client. I find that when it comes to organizing, archiving, and searching for messages, Gmail works best for me. And it offers plenty of storage space. I usually hold on to conversations for about one year before deleting them, just in case a client needs to refer back to a specific job. Remaining diligent in your record-keeping will be of great benefit to your client relations.

Periods of uncertainty often plague both the freelancer and the small business owner. Staying motivated is key, and everyone has their own methods of self-inspiration. Many people surround their work area with inspiring quotes, just to maintain an aura of postivitity. Here’s a little nugget that I keep taped to my desk. I refer to it from time to time when negative thoughts start creeping in. I’d be intereted to know how you stay motivated.

This is the beginning of a new day.

God has given me this day to use as I will.

I can waste it or use it for good.

What I do today is very important because I am exchanging a day of my life for it.

When tomorrow comes, this day will be gone forever, leaving something in its place I have traded for it.

I want it to be gain, not loss - good, not evil,

Success, not failure in order that I shall not forget the price I paid for it.

Money, money, money. This is the one thing that most potential clients are concerned about when deciding whether or not to push forward with a marketing campaign. If you work in video production, web design, graphic design… well, just about any creative field, it can be frustrating when clients want more for less money. Somewhere along the way the true value of what we provide hasn’t been communicated. Maybe the fault lies not with the client, but with ourselves.

Let me explain. In a post last year I discussed the importance of knowing what you’re worth. As a freelancer and small business owner you need to be confident in the quality of your work and the value of your time. Your rates should reflect this view. However, during leaner times we sometimes find ourselves desperate to land the next job. And what do we do? We “low-ball” our bids in an effort to beat out our competitors. Over time, this approach has two effects.

• The marketplace is cheapened.
• The bar is lowered for everyone, creating a new price standard by which all other creative services are gauged.

Before you bid on a job, you have to decide what your ultimate goal is. If you simply want the job, so you can get something on your reel or in your portfolio, then you will probably try to undercut the competition. Keep in mind that if you cut your rates just to land the job, the client will expect more of the same from you down the road. They will continue to up the work load while trying to talk you down on price.

The alternative strategy is to let the quality of your work speak for itself. Communicate the value of what you will deliver. Tell your client that you want to provide them with the most competitive product, not a quick fix. Reinforce the idea that compromises both financial and creatively will ultimately compromise the end product. And if the client continues to balk at your bid, don’t be afraid to walk away. If the client’s entire focus is on money, then the relationship might not be a good fit for you.

As a small business owner or freelancer it can be very tempting to jump on any job opportunity offered up to you. That knee-jerk reaction to say “yes” to any and everything does communicate eagerness, but it can get you into big trouble down the road if you don’t carefully examine the situation before diving in.

In Luke 14:28 Jesus said, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” Regardless of your spiritual beliefs, there’s some wisdom here that’s applicable in your personal and professional life. The moral is, think before you commit. If you make a promise to your client, it’s vital that you deliver on that promise. If you can’t finish what you start, it not only makes you look bad, but it puts your client in a very inconvenient situation.

Sometimes a potential client will come to me with a very attractive project and a very tight schedule. I have to carefully weigh the needs of the client, the scope of the project, and the time frame in which it has to be completed. If I’m confident in my ability to deliver, I move forward on the project. If I don’t feel as though I can deliver all that the client is asking in the time frame allotted, I don’t walk away. Rather, I work with the client to see if we can trim the scope of the project to a more manageable size. I almost never say “no,” because often there are solutions that can be made to the satisfaction of everyone.

To succeed as a business owner or freelancer, you have to deliver a quality product on time and on budget. Before you jump in, evaluate the situation carefully and make sure you always deliver on what you promise.

During my high school acting days I remember one rehearsal in particular when my director was giving me specific notes about my performance. I felt that her criticism wasn’t justified and I tried to defend myself. She gave me some advice that day that I always apply to my business. She told me simply to listen to direction and not to make excuses.

In your career as a business owner or freelancer, you will have clients who aren’t entirely satisfied with the work. That can be a harsh fact, because of the pride people take in their work. However, when a client has concerns, it’s important to remember that the client doesn’t want to hear excuses - even when the problem is not your fault. Here are some things to remember:

RESPOND PROMPTLY - Avoiding a discussion with your client won’t make the problem go away. Acknowledge their concerns by returning their call and/or email quickly.

LISTEN ATTENTIVELY - You might not consider the client’s concerns to be very serious, but they do. Listen to what they have to say and don’t dismiss them. Ask questions. Make notes. Show them that you are eager and willing to correct the problem.

OFFER SOLUTIONS - Give your client options as to how the problem can be rectified and assure your client that you will take the steps necessary to ensure satisfactory results.

It can be very difficult to accept criticism, but running a successful business depends on your ability to meet those challenges and satisfy your clients.