Parc Entertainment - A Video Production Company - Birmingham, AL

The above scene is from Jaws and it takes place right at the moment that Chief Brody gets his first look at the great white shark. It’s then that he realizes that he and his team underestimated just what they are up against. The same problem can occur in any video production. It’s easy to underestimate the scope of your project. What seemed like a simple, straightforward shoot and edit can quickly balloon into something entirely unexpected. The last thing that you, as a video producer, want to do is to go back to your client and say, “We’re going to need a bigger budget.” That’s not a fun conversation. Here’s what needs to happen to ensure that neither you nor your client underestimate the scope of the video project.

1. Everyone (both client and video producer) need to be upfront and honest at the beginning. You as a video producer should never over promise. Be clear on what your capabilities are. And you, the client, should never try to downplay what’s involved in producing the video. If you are working from a script and are not as prepared as you need to be, then you need to tell the video producer, “I’m going to need several takes to get this right.”
2. All decision-makers need to be involved from the very beginning. If the “higher-ups” wait to watch the video after everything has been shot, you may be forced to re-shoot portions of the video if they don’t like what they see. Re-shoots are costly. You as the client can avoid them by making sure that anyone who has to put his/her stamp of approval on the video is present for all important decisions.
3. When it comes to budgeting for post-production, the “less is more” mentality doesn’t work. More is more. In other words, you will always need more money for post-production than you think you do. Many clients (and video producers) underestimate just how much time will be spent editing the video. You may accurately gauge the hours you will spend assembling the edit, but you may neglect to consider time needed for encoding, making approval copies, delivering approval copies, approval meetings, phone calls with the client, making changes to the edit, re-working sections of the script, additional color correction, audio mixing, more encoding, more approval copies, etc. The list can go on and on, so you need to be prepared. Always budget more for post-production.

Video producers and clients need to work together so both parties clearly understand what’s involved in the production of any video. These tips are intended to help you avoid potentially awkward meetings wherein you have to ask for more money, because you simply underestimated what you were up against.

Knowing how much to spend on advertising is a struggle all businesses deal with - especially during a recession. When economic times are lean, the gut reaction is to jettison all the weight you deem “unnecessary,” batten down the hatches, huddle together with your staff, and pray for daylight. In the long run, however, how will that strategy help your business? Sure, you may weather the storm, but when you come out safe on the other side, you may find that your competitors have taken a huge lead in the marketplace. How come? Because while you were hiding in your office, they were still out there in front of the public, maintaining their visibility.

A.G. Lafley, former CEO of Procter & Gamble, said, “I think it’s more essential to innovate through a recession, and certainly what we are trying to do at P&G is to continue to bring sustaining and even disruptive new brands and products for our consumers, to make their lives better, to offer them a little more value.”

Professor Andrew J. Razeghi of Kellogg School of Management at Northwestern University said, “Moments of economic turbulence provide the unique opportunity to start new businesses, launch disruptive new products, and strengthen customer loyalty - often at a discount.” Razeghi has a great presentation entitled, “Innovating Through Recession.” You can read it in its entirety here.

Or consider this statistic from a McGraw Hill study that surveyed over 600 businesses: In the 1981-1982 recession, businesses that cut advertising spending, increased their sales 19%. Businesses that continued to spend on advertising increased their sales 275%.

The key difference between those who continued to spend money on advertising and those who didn’t is visibility. Businesses who continued to advertise were in a better position once the recession ended. They were in the forefront of the customer’s mind when he/she was ready to buy. Make the word “visibility” your motto this year. Get out in front of your customers. Advertise. Market your business. Strive to be the first company people think of when they are ready to buy.

Related Article:

Grab the Market While the Competition Makes Cuts

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.

While watching a recent episode of the New Minute Minute from Daisy Whitney, I was treated to this little nugget of information. According to eMarketer, online advertisers are spending more and more money on video, versus any other format. The chart below details the advertising spending growth (in percentages) for various online formats from 2008-2014. As you can see, advertisers definitely favor online video. Look at the statistic for 2009. Advertisers spent 20 times more money in video than in Search, which is ranked second. And the amount of spending growth for online video is expected to remain a favorite format for advertisers through 2014.

Here are a few things we can take away from these statistics:

• Utilizing video for your online presence is a necessity in today’s market
• Video has impact
• Video is an effective communication tool
• Your competition is using video
• The use of video is one of the best ways you can gain an audience and improve your bottom line.

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.

I talk with many prospective clients who express interest in producing a video for their business. When all the discussions are over it’s time to sit down, fill out my budget, and submit the proposal to my contact. The cost of a video production is affected by several factors and so the budgeting process must be thought out very carefully. Otherwise, it can be easy to overlook certain items.

I have created a spreadsheet that itemizes just about everything that one could possibly have on a shoot. Those items are divided into categories for easy reference (Creative Fees, Crew, Per Diems, Travel, Editing Fees, etc.) One column lists my estimated costs and another column lists my actual costs. That way, at the end of the shoot I can compare both columns to see how accurate my original estimate was.

The main thing to do when budgeting a video shoot is to prioritize. In part one of this two-part series, I want to cover what I believe are your top priorities when creating a budget. In part two, I will go over those items in the bid that can easily be overlooked. Here are my suggestions:

Estimate Your Time

Start with yourself. Think about the amount of time that you will spend on this video project. Obviously you want to include the amount of time in production , but you never want to neglect the time you invest in the pre-production and post-production stages. Pre-Production includes conceptualization and scripting, scheduling the shoot, meeting with the client, scouting, meeting with the talent, and meeting with your crew. You’ll spend more time in pre-production than you might think, so budget accordingly. Post-production not only includes the time to edit, but it also includes your time to record the voice-over, meet with the client to go over the edit and make necessary changes. I always like to pad my post-production budget to account for revisions the client might ask for.

Estimate For Your Crew

After you ensure that your time is reflected in the budget, you want to allocate monies for your crew. Surround yourself with quality people and the entire project will turn out much better. Think about how many people you will need and how many days you will need them.

• If you aren’t as confident in your skills behind the camera, consider hiring a DP to handle the technical aspects of lighting, framing, etc.
• If you aren’t as confident in your abilities to manage the project and handle all the logistics of a production, consider hiring a producer.
• If you have on-camera talent, you might consider hiring a hair/make-up artist.

Aside from actual shooting days, will you need the crew to come in early for a tech scout? If so, make sure they are paid for their time. And don’t forget your post-production crew.

• Will you need an assistant editor to help you with the final cut?
• How about an audio engineer/mixer to record the voice-over?
• Will you need to hire a graphic designer to create a custom disc label and DVD warp-around?
• Will you need to hire a composer to write a custom music track?

Estimate Your Equipment

This is where you need to factor in the costs of any equipment rentals your shoot may require. Budgeting for a dolly or a camera jib will really increase the overall production quality of your video. In this category you also want to factor in the cost of your media:

• tape stock or solid state media cards
• hard drives
• blank DVDs (for when you need to send your client copies of the video for review)

Check back in on Monday, August 10 for part two on how to create a video production budget.

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.

Before director Danny Boyle was winning accolades for Slumdog Millionaire, he shot a little film about two English brothers who fall into an incredible amount of money. In the film Millions, brothers Damian and Anthony re-locate to a new area of town with their father Ronnie. All three are still reeling from the death of Ronnie’s wife and the new house gives them a chance to move past the grief.

Damian is an imaginative little boy, always conscious of others and always willing to help. So, when a duffel bag full of British pounds literally falls into his lap, he’s motivated to use the money to help as many people as possible. His brother Anthony, in contrast, wants to keep the money to himself and use it for his own benefit. But complicating their situation is the fact that England will switch over to the Euro in only 14 days, leaving their cash worthless.

Millions is told from Damian’s perspective, and the fanciful special effects and vibrant colors throughout reflect Damian’s imagination and his view of the world around him. Each scene becomes a visual treat, especially the opening sequence when the two brothers venture on to the empty lot of their soon-to-be-built house. They start to imagine what the house will look like and as they dream, the house builds itself around them.

The film has a distinctive charm that’s brought out both through the wonderful visual elements and the performances. Alex Etel’s portrayal of Damian is heartwarming, and although the character is naive and innocent, he teaches us a lot about humanitarianism. Overall, Millions is a delightful story with identifiable characters, a solid plot, and an emotional appeal that doesn’t become overly sweet.

7 out of 10 stars

Getting started as a freelancer or small business owner in the creative field is definitely exciting. Whether you are in video production, graphic design, photography, web design, etc. emotions become a mixture of anticipation and anxiety. As you grow your business, you will always be on the lookout for new relationships and new opportunities. But as you promote your busines, it’s important to keep some ethical guidelines in mind.

At some point in your career, you will be hired out as a sub-contractor for another company. You may be hired to go out and shoot some b-roll footage or you might be asked to shoot some stills of a particular event. During these jobs, you are representing some one else - not your own business. You should never use it as an opportunity to hand out your own business cards and gain clients for yourself. This can be difficult to do, especially if you are first starting out and the client is pleased with your work. Remember, how would you feel if you had an established relationship with a client and a freelancer you hired was on location promoting himself and not your business?

In other situations you might be brought in on a project because you have a specific skill set. For example, let’s say a marketing project manager has a client who requests video production work in addition to the website that’s already being designed. The project manager might pull you in to handle that aspect of the job. In this particular scenario you should try and meet with the client only when the project manager is present. Remember, it’s the project manager’s client, not yours, and he/she should definitely stay in the loop. If you have to email the client directly for any reason, always Cc: the project manager. There are two more things to keep in mind with this particular arrangement:

1. Never discuss payment terms with the client. That’s between you and the project manager. Remember, you are a vendor.
2. Never accept payment directly from the client, unless you have permission from the project manager. Usually a project manager will include a markup into the budget to cover his/her time and overhead. Never give the impression that you are trying to conduct business behind the project manager’s back.

I know that as a freelancer or small business owner, it’s important to be zealous in your marketing efforts. But what’s more important is that you remain ethical.

Part of being a successful freelancer or small business owner is having a specific vision for the type of work you want to go after. Early in your career, however, you might have to take jobs you wouldn’t ordinarily accept. But what happens when you are a few years into your career and a job is offered to you that doesn’t exactly fit with your vision? When should you take it and when should you pass?

1. Consider the Contact - the job itself might not be attractive, but if the individual offering you the job is someone who can offer bigger and better jobs in the future, it might be wise to take it. Do what you can to establish that relationship. If he or she is pleased with your work on the smaller jobs, they’ll be more inclined to come back to you later.
2. Consider Your Finances - Keeping an eye on your cash flow is important. If the three-month outlook isn’t where it needs to be, consider taking those smaller jobs to make ends meet.
3. Consider the Timeframe - How soon does the prospective client need the final product? If you can come through in a pinch with a quality product, your client will see you as a reliable resource and will be eager to hire you again.

Always consider the kind of reputation you are building. Evaluate it and make sure it’s a reputation that fits in with your goals.