![How to plan and track the budget of your video production company [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2.png?v=1715856324&width=1100)
If you don’t plan and track your video production budget properly, you're setting yourself up for failure.
When we developed our strategy pack for video production companies, we saw a lot of production teams struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial projects and clients.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your production company's finances around and set you on the path to success!
Get the budget tracker tailored for production companies
Most production company owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for production companies
Here is an example of a (very) detailed budget for a video production company, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and studio space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and equipment | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | High-speed internet and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Director | 1 | $5,000 | $5,000 | $60,000 |
| Producer | 1 | $4,000 | $4,000 | $48,000 |
| Camera Operators | 2 | $3,000 | $6,000 | $72,000 |
| Editors | 2 | $3,000 | $6,000 | $72,000 |
| Sound Technicians | 1 | $3,000 | $3,000 | $36,000 |
| Production Assistants | 2 | $2,000 | $4,000 | $48,000 |
| Office Manager | 1 | $3,500 | $3,500 | $42,000 |
3. Equipment & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Camera Equipment | Cameras, lenses, tripods, etc. | $2,000 | $24,000 |
| Lighting Equipment | Lights, stands, reflectors, etc. | $1,000 | $12,000 |
| Sound Equipment | Microphones, mixers, etc. | $800 | $9,600 |
| Editing Software | Software licenses and subscriptions | $500 | $6,000 |
| Office Supplies | Stationery, printer ink, etc. | $200 | $2,400 |
| Storage Solutions | Hard drives, cloud storage, etc. | $300 | $3,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $400 | $4,800 |
| Software Updates | Regular updates for software | $100 | $1,200 |
| Licenses & Permits | Filming permits, software licenses, etc. | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some production companies make 5x more profit than you!
We have studied the strategies of the best production companies in the world. Replicate them now!
What are the biggest expenses for a video production company?
Be mindful of these pitfalls. Here are five major costs every video production company owner needs to consider, along with some tips on how to manage them effectively.
- Equipment and technology costsThese can consume a significant portion of your budget. You're dealing with high-end cameras, lighting, and editing software, and prices can vary based on advancements in technology and brand quality. To keep these costs in check, focus on purchasing versatile equipment, negotiate better deals with suppliers, and avoid unnecessary upgrades. It's easy to overspend by buying the latest gear that doesn't significantly enhance your production quality.
- Your production teamYour team is your core asset, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need skilled professionals to deliver high-quality content. You can optimize labor costs by scheduling projects efficiently, cross-training team members, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and subpar work.
- Studio and office spacePrime locations come with high rent, but they can attract more clients. Utilities like electricity, internet, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a space that's too large or too luxurious for your needs.
- Marketing and client acquisitionYou need to promote your video production services, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Post-production and software costsThis includes everything from editing software to sound design tools. These are expensive because high-quality post-production is crucial for delivering polished content. Optimize by investing in reliable, multi-functional software and maintaining it regularly to avoid costly updates. You can overspend by going for the latest high-tech software that you don't really need.
How to spend less with your video production company?
Here are practical tips to help you, as a video production company owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Equipment Costs | Partner with local rental houses for discounted rates on cameras, lights, and other gear. |
| Labor Costs | Use project management software to schedule freelancers efficiently and avoid overtime. |
| Utilities | Invest in energy-efficient lighting and equipment to reduce electricity costs. |
| Marketing | Run social media campaigns for your video production services and collaborate with local influencers for free exposure. |
| Software Licenses | Opt for subscription-based software to spread out costs and always have the latest updates. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of your gear. |
| Office Rent | Negotiate lease terms during renewal or consider co-working spaces to reduce overhead. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Storage | Use cost-effective, cloud-based storage solutions for your video files and backups. |
| Props and Wardrobe | Purchase high-quality, versatile props and wardrobe items that can be reused across multiple projects. |
| Editing Software | Choose editing software that offers essential features with low subscription fees and integrates with other tools. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep skills up-to-date. |
| Waste Management | Implement a recycling program for set materials and donate unused items to local theaters or schools. |
| Technology | Invest in multi-functional equipment and utilize production management software for scheduling and budgeting. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital project management tools. |
| Inventory Management | Use inventory management software to track equipment and props, reducing the need for last-minute purchases. |
| Transportation | Plan shoot locations to maximize efficiency and reduce fuel costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Music and Sound | Use royalty-free music libraries and consider hiring local musicians for custom scores. |
| Uniforms | Choose durable, easy-to-clean uniforms for crew members and offer a stipend for maintenance instead of using an external service. |
Copy the tactics of the best production companies in the world!
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Expenses that are just useless for a video production company
Yes, some expenses for your video production company are just unnecessary. They don't contribute to increasing revenue or improving client satisfaction.
| Production Expense | Reason It's Useless |
|---|---|
| High-End Office Space | Luxurious office spaces don't necessarily attract more clients and can be a drain on the budget. |
| Premium Editing Software | Unless you are working on high-budget films, most clients are satisfied with mid-range editing software. |
| Excessive Equipment | Having too much equipment increases maintenance costs and leads to underutilization. |
| Top-of-the-Line Cameras | High-end cameras are not always necessary and can be cost-prohibitive. |
| Print Advertising | Traditional print ads often have a lower return on investment. Don’t include them in the marketing strategy of your video production company. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the client experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for stock footage or music often go unnoticed by clients. |
| Exclusive Locations | Using rare locations can inflate costs and complicate logistics. |
| Costly Furniture | High-end furniture in your office is not always appreciated by clients and can be a significant expense. |
| Custom Printed Materials | Personalized materials are a minor detail that most clients overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most clients are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Set Designs | Elaborate set designs are often ignored by clients and add to the cost. |
| High-End Props | Luxury props are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment for shoots is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your video production company!
Managing a budget for a video production company when funds are tight can feel like a nightmare. It's like being in a maze where any unexpected expense can derail your entire project.
This constant pressure makes it nearly impossible to invest in growth opportunities, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more creative freedom and more money to invest in high-quality equipment and talent.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of video production companies just like yours. Get them now!
Make your video production company more profitable
We have studied the strategies of the best production companies in the world. All their tactics are explained in our pack!
