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.

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.

Some people working within Adobe Premiere Pro CS4 have experienced two specific problems while trying to preview their edits on an external monitor:

1. They are unable to send a signal out to their external monitors.
2. They are unable to preview clips from an HD project in full HD resolution on their external monitors.

In this brief tutorial, we show how to properly set up Premiere Pro CSC4 to ensure that you are able to preview your edits on an external monitor and in HD (when working with an HD project).

*Note - You might want to watch the tutorial in full screen mode.

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

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?

Parc Entertainment is now in a new location in the heart of Five Points South. Our new address is 1312 20th Street South, Birmingham, AL 35205. We occupy the second floor of an old white Victorian house that backs up to Cobb Lane. Email addresses, phone and fax numbers remain the same. More exciting developments are in store for our company as we work on expanding our resources to help our clients execute their marketing strategies. Send us an email or give us a call if you are interested in video production, web design/development, or graphic design & identity.

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.

Last Thursday I posted part one of a two-part series on how to budget for a video production. In today’s article I want to conclude by looking at those items in your budget that are necessities, but can often be overlooked.

Estimate Your Per Diems

Once all of the items from last week’s article are taken care of, it’s time to make sure that you and your crew have something to eat throughout the shoot. Make sure you cover the cost of meals and craft services (i.e. the snacks and drinks you and your crew grab throughout the day). Per diems can range anywhere from $25 per person per day, to $50 per person per day. I have found that $40 per person per day works for me.

Estimate Your Travel

If you do need to book a flight for the job, call the airline and inquire about their excess baggage fees. You need to account for that cost in addition to the cost of your tickets (You can save money by either shipping some gear ahead of time, or by electing a crew member to drive the gear to your destination).

But even if the shoot doesn’t require a flight or hotel stay, you need to estimate how many miles you and your crew will be driving throughout the production. As of this writing, the standard IRS rate for mileage reimbursement is $0.55 per mile. Don’t forget to estimate your mileage for pre-production and post-production. And remember that with driving comes parking fees and possible road tolls.

Estimate for the Unexpected

What happens when a shooting day gets rained out and you have to add on an additional day? Did you account for that in your budget? You need to. I always add a little to the budget to cover contingency days and any other emergencies that might pop up while in production.

Estimate Your Production Fee

The final thing you need to add into your budget is a production fee. This is especially important if you are set up as a business (LLC, Corp., etc.). You’ve paid yourself and your crew. You’ve accounted for your expenses, and so you need to make sure your company has some left over at the end of the day. After all, if you want your business to grow, you will need to turn a profit.

These are my suggestions for how to prioritize your budget. Hopefully it will help you be more organized and, ultimately, more profitable as you grow your video production company.