It can be difficult to start your own video production company, especially if you have to manage your personal finances. When you realize you must manage the cash flow for your business as well as your personal obligations, it can be a challenge. It’s important to determine how to pay your personal and business bills until you can afford to support them both. These are just a few of the options available to you.
1. You can work full-time for someone else and then build your video business on the weekends and at night.
If your business is primarily focused on weddings, you will be able to edit other special events after business hours. While this can lead to long hours and sleepless nights, it is a popular option for those with a lot of financial obligations.
2. Part-time work for someone to supplement your income while you build your business.
While this will make your video production company grow faster, it won’t allow you to make as much money. My friend and fellow owner of a video production business worked as a waiter in a restaurant for several years before he decided to start his own business. Although he didn’t love his job, it allowed him to make enough money to survive. He now owns a highly successful, growing business that he started ten years ago.
3. Ask a bank if they can lend you enough money for the start/run of your video business and to pay your salary for six months to one year.
This method may sound crazy at first. What happens if you don’t succeed? If you fail, then you will owe the bank all the money and not have any way to pay it. What if you do succeed? You’ll be able to pay back the bank over time, and you will soon be a successful video business entrepreneur.
You are the only person who can determine if this is the right way for you. You will have a better chance of success if your focus is on your business and not worrying about how your bills will be paid for the next year. It takes 100% of your time to start and run a business. You can eliminate distractions like working at another job.
4. Ask an investor if they are interested in financing your start-up.
It’s similar to approaching banks, except that the investor will invest their money in your company in return for a portion of ownership. The amount of ownership will depend on how much the investor invests and what they agree to give. This method has the upsides of not having to take out debt to start your company. You’ll also have the cash you need to run the business and pay your salary.
This has the potential downside that you won’t own 100% of your company. You will have to answer regularly to your investor about any business decisions you make. A partner who is right for you can help you reach a level of success that you have never imagined. The wrong partner could cause you headaches and possibly cost you a lot in legal costs.
This is a lot of information to process. However, the one thing that will remain constant regardless of the method used is that your video production company will lose money before it becomes profitable. Your personal financial obligations will not disappear just because you start a business. Start planning to make it happen.