The entertainment industry is booming, especially in the binge-watch era. Viewers are consuming more and more film projects, so why shouldn’t they be watching one of yours? Producing a film can get expensive quickly, and a film company will likely be making several pieces at once. If you’re looking to start a film company, here are some ways you can finance it.
1) Personal Assets
Not everyone has the cash to start a company, but chances are you’ll have to put at least some of your own money towards your venture. This is especially true if you’re at the beginning of your journey, when you’ve yet to convince anyone of your great ideas. It can take some time to establish yourself as an expert, so it may be difficult to convince others that you’re worth the risk. You can get more creative and try cash flow banking or open credit cards.
Thanks to sites like Kickstarter, anyone can post a project and ask for help in realizing it. Creative projects especially get a lot of love on crowdfunding sites. If you can make a good campaign video and offer some appealing reward tiers, you can raise and even exceed your funding goals in a short time span. If you don’t meet your goals, however, then you may not get any cash, so it’s important to pick the right platform for your project. Crowdfunding a film company may be difficult unless you have a specific film already in mind that you can offer to backers. It also helps to have a built-in audience, even if it’s small.
3) Friends and Family
It may feel strange to ask friends and family to fund your company, but there are several benefits to asking. These are the people who know you better than anyone else. If you’re determined and have been successful in similar pursuits before, they know they can bet on you being a good investment. Even if this is your first foray into business, you can still persuade friends and family with an impressive business plan and passion for your project. Plus, owing friends and family may feel a little less scary than owing investors you don’t know well. You’ll probably also pay less in interest when you get around to repaying them.
If you’re trying to start a film company, chances are you’re at least a little familiar with the film industry. You might have even worked in it. While trying to get your company off the ground, your network of industry contacts may come in handy. You never know who’s looking to invest in new and innovative creative projects. If you don’t have any potential contacts, get some! Networking is a crucial skill for anyone in any business. It’s important you don’t go into these relationships thinking only about what others can give you. Think of what you can offer others, and your contacts will think of you fondly when the next opportunity arises.
5) Business Loans and Grants
A start-up film company is likely to be considered a small business, especially at the beginning. Chances are you’ll qualify for various small business loans and grants. You never know which organisations or donors will offer to support the arts, so it’s important to research consistently. Many government programs can help you get loans for decent rates, and it’s not overly difficult to qualify. Taking on debt may be scary, but a strong business plan and maybe even a mentor or financial adviser can help you feel more comfortable taking the plunge.
The world needs new and creative stories, and start-up film companies are just the entities to tell them. Your dream may feel far away due to lack of cash, but luckily there are several ways you can secure financing. With a little research and effort, you should be able to find the right route for your company.