Production Business Plans

Do you want to start a Production business plan?

Do you want to start a production company? With how beneficial a production company is, this is a great idea. However, to execute this idea, you will need to write a business plan for production company. You can start a production company at any scale and then expand it as you go. So, there is a lot of potential for scalability.

Writing a business plan isn’t always easy especially if you don’t have any prior experience. If you are new to starting a business, you can enlist the help of professional business plan writers. You can also go through this document if you want to learn how to write a business plan for a production company. You can also take a look at a business plan of a furniture startup for reference.

Executive Summary

2.1 The Business

Cocoon Productions will be a production company started by Calvin Kornwell. The target of the business will be to provide production services to the businesses in and around Illinois. It will be offering a wide range of services including but not limited to content development, casting and scripting.

2.2 Management of Production Company

To ensure that all aspects of your business are well managed and organized, you need to write a business plan for a production company. Your production company business plan pdf should include all relevant technical and logistic details of your company. If you pay attention to the production portion of business plan, it will help you manage all of your financial and human resources efficiently.

If you want to further improve your business plan, you can take a look at some other plans such as organic skin care business plan. For even more refinement of your business aspects, you can take guidance from business consulting services.

2.3 Customers of Production Company

The customers of Cocoon Productions will belong mainly to the entertainment industry. The main target customers for the business are listed below:

• Event and Live Streamers
• Social Media Marketers
• Big Agencies
• Creative Branding Partners

2.4 Business Target

Our primary target is to become a trustworthy production company in the Illinois area so that they can call upon us any time they need production-related services.

The financial targets we want to achieve in the first three years of launch are mentioned below:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Cocoon Productions will be owned and operated by Calvin Kornwell. He completed his master’s in media studies 4 years back after which he worked for a few production companies. Afterwards, he decided to start his own production company in Illinois.

3.2 Why the Production company is being started

Calvin noticed a lack of supporting production companies in his hometown Illinois. He realized that he could bridge the gap by developing his own production company that focused mainly on supportive functions. He also realized that he could bring a bit of flexibility and innovation to his company that would help it be more beneficial to the aspiring individuals in the entertainment industry.

3.3 How the Production company will be started

Step1: Plan Everything

The first step to starting any business is to write up a business plan for it. So, naturally, you will need to develop a sample business plan production company. You can refer to a template for starting a biodiesel company business plan, etc. to understand the nuances of the document. To help you in creating your business plan, we have provided a reference production management business plan for Cocoon Productions here. You can refer to this document to learn how to make a business plan for a production company.

Step2: Define the Brand

After developing a business plan production company, the next step is to attract customers to your business. For this, you will need to establish a brand for your company that will emphasize your values and benefits to your customers. You will then need to highlight this brand and market it so that your customers can come to you in response.

Step3: Establish Your Corporate Office

Calvin decided to rent out a couple of offices in a commercial building in the business centre of Illinois to start his production company. He will now take care of stocking up on the required equipment to start the business.

Step4: Establish a Web Presence

The success of a business in the entertainment industry is heavily dependent on its reach. Understanding this, Calvin decided to put some manpower towards the creation and maintenance of social media accounts for his production company. He also decided to get a website developed for the business to showcase all the important details and make communication with clients easier.

Step5: Promote and Market

The last step in developing a business is to execute its marketing plan and attract more people to the business.

Start-up Expenses
Legal	$132,100
Consultants	$0
Insurance	$29,000
Rent	$35,000
Research and Development	$10,000
Expensed Equipment	$51,000
Signs	$3,400
TOTAL START-UP EXPENSES	$260,500
Start-up Assets	$266,000
Cash Required	$209,000
Start-up Inventory	$39,000
Other Current Assets	$240,000
Long-term Assets	$255,000
TOTAL ASSETS	$1,009,000
Total Requirements	$1,269,500
START-UP FUNDING
Start-up Expenses to Fund	$260,500
Start-up Assets to Fund	$1,009,000
TOTAL FUNDING REQUIRED	$1,269,500
Assets
Non-cash Assets from Start-up	$1,314,000
Cash Requirements from Start-up	$177,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,576,000
Liabilities and Capital
Liabilities	$18,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$52,200
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$70,200
Capital
Planned Investment	$1,269,500
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,269,500
Loss at Start-up (Start-up Expenses)	$236,300
TOTAL CAPITAL	$1,505,800
TOTAL CAPITAL AND LIABILITIES	$1,576,000
Total Funding	$1,269,500

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Services

Before you start a production business and start to develop a business plan production, you need to decide on the list of services you will initially be offering to your customers. This filtering is an essential part of describing the production process in business plan. These details in a business plan will help you organize your resources more efficiently so that you can cater to all of your customers in the best way.

Since Calvin decided to offer a wide range of services through his company, Cocoon Productions, you can use this production business plan example to guide the development of a business plan for your business. You can also take a look at guides explaining how to start a candle making business plan for a better idea about explaining your services in a business plan.

Below, we have described the services provided by Cocoon Productions:

• Content Development

Cocoon Production will offer services for the development of different types of media including but not limited to the following:

• Graphic Content
• Videos
• Animations
• Sharable Social Media Content

 

• Casting

Entertainment companies and media houses usually need to hire talent agencies for casting for different projects. Therefore, we will provide casting services in our company as well.

• Hiring

Just like media companies outsource casting, they often outsource the hiring of the entire production crew. We will offer our clients a developed and filtered list of required candidates for different crew posts.

• Script Writing

We will also offer professional script writing services for our clients. Our clients can hire us for assistance in script and plot development as well as for independent scriptwriting for different projects.

• Logistic and Planning Assistance

Media companies usually handle a lot of projects at the same time. A lot of planning goes into different production projects. Therefore, Cocoon Productions will offer assistance, logistic and planning assistance for our clients as well.

Marketing Analysis of Production Company

When you want to start a business, you should have a deep understanding of the target market. And the best way to gain this kind of insight for your production company is to go through a production business plan sample. Business plan for a production company should contain an analysis of past, present and future market trends. This will help you set prices for your services in a way that is profitable to your business.

To write your business plan for production company, you can take help from an industry business plan. This will guide you when conducting a marketing analysis for your business. A business plan production that contains information about market trends will help you understand your customers better and present your services in a way that gains attraction.

Here, we have described the market trends and customers of Cocoon Productions.

5.1 Market Trends

According to IBISWorld, production companies in the US have a market size of $17 billion with a growth rate of 3.6%. With how much content is consumed daily in just US, there is no expected decline in the industry any time soon. And since the demand is so high, you can be assured that a production company will thrive in the current entertainment climate.

5.2 Marketing Segmentation

The potential customers of Cocoon Productions are categorized as follows:

Business Plan for Investors

5.2.1 Event and Live Streamers

Our primary customers will be the agencies holding symposiums and big events. We expect these customers to utilize our services time and time again. So they will be consistent and lucrative clients of the business.

5.2.2 Social Media Marketers

Most corporate agencies have started to embrace the importance of social media in marketing. As such, they will need our services to make videos to post on social media. We expect to gain many corporate clients through this gig.

5.2.3 Big Agencies

Big agencies are always on the lookout for more help on a project here and there. We expect to gain an in into these agencies through our flexible services. So, we expect big agencies to be regular customers as well.

5.2.4 Creative Branding Partners

Lastly, many standalone creative producers and content creators are looking for support. We aim to present our resources to these clients and gain them as long term customers of the business in a content-driven world.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Event & Live Streamers	33%	34,500	41,400	49,680	59,616	71,539	10.00%
Social Media Marketers	21%	22,500	27,000	32,400	38,880	46,656	10.00%
Big Agencies	26%	21,700	26,040	31,248	37,498	44,997	10.00%
Creative Branding Partners	20%	19,000	22,800	27,360	32,832	39,398	11.00%
Total	100%	97,700	117,240	140,688	168,826	202,591	10%

5.3 Business Target

• To become a reliable source of production resources and assistance.
• To expand the services we provide over time.
• To increase the scale of the company over the years.
• To earn a profit margin of around $75k/month at the end of the first 2 years of launch.
• To gain at least 50 regular clients by the end of our third year.

5.4 Product Pricing

Since we are offering a wide variety of services flexibly, our resources will be less pricey as compared to the market standard.

Marketing Strategy

To succeed in a saturated market, you need several competitive advantages over your competitors. And you need to advertise them adequately. The best way to develop and present your brand is by developing a marketing strategy. You need to work on this strategy while creating your production company business plan.

In this sample production company business plan, we are presenting the marketing strategies to be employed by Cocoon Productions. You can use this as a guide to shape your marketing plans.

6.1 Competitive Analysis

• We offer the flexibility of service packages. Our customers don’t have to pay for services they’ll never use.
• We offer support and resources for not just big agencies but also independent content creators.
• We have an excellent rapport with our clients. They can contact us any time they need.
• Our customers can contact us through our website or reach out to us on social media. So there is no need to cover the distance unless the need to.

6.2 Sales Strategy

• We will attract customers through posters, billboards, social media and Google Ads.
• We will offer service packages at a discounted rate for first-time clients
• We will offer regular discounts to regular clients.
• We will offer budget-friendly services to independent creative minds.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Content Development	200	212	225
Casting & Hiring	250	265	281
Script Writing	225	239	253
Logistic & Planning	300	318	337
TOTAL UNIT SALES	975	1,034	1,096
Unit Prices	Year 1	Year 2	Year 3
Content Development	$2,500.00	$2,900.00	$3,364.00
Casting & Hiring	$2,230.00	$2,586.80	$3,000.69
Script Writing	$1,950.00	$2,262.00	$2,623.92
Logistic & Planning	$2,500.00	$2,900.00	$3,364.00
Sales
Content Development	$500,000.00	$614,800.00	$755,958.08
Casting & Hiring	$557,500.00	$685,502.00	$842,893.26
Script Writing	$438,750.00	$539,487.00	$663,353.22
Logistic & Planning	$750,000.00	$922,200.00	$1,133,937.12
TOTAL SALES	$2,246,250.00	$2,761,989.00	$3,396,141.67
Direct Unit Costs	Year 1	Year 2	Year 3
Content Development	$1,000.00	$1,100.00	$1,155.00
Casting & Hiring	$1,200.00	$1,320.00	$1,386.00
Script Writing	$750.00	$825.00	$866.25
Logistic & Planning	$1,350.00	$1,485.00	$1,559.25
Direct Cost of Sales
Content Development	$200,000.00	$233,200.00	$259,551.60
Casting & Hiring	$300,000.00	$349,800.00	$389,327.40
Script Writing	$168,750.00	$196,762.50	$218,996.66
Logistic & Planning	$405,000.00	$472,230.00	$525,591.99
Subtotal Direct Cost of Sales	$1,073,750.00	$1,251,992.50	$1,393,467.65

Personnel plan

The success of a business in the entertainment industry needs a lot more than a few clients to be successful. For gaining and retaining clients, the behaviour of employees is essential. Calvin understood the importance of a good rapport between clients and the workforce. Therefore, he decided to implement a selection criterion which he included in the production business plans as well.

To find out how to include details about your employees in your business plans, you can refer to the sample production business plan here.

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7.1 Company Staff

• 1 Manager
• 6 Experienced Production Video Editors
• 6 Experienced Content Creators
• 12 Support Creatives
• 3 Technician to upkeep the machinery
• 1 Web Developer
• 2 Sales Executives to organize and promote sales
• 1 Accountant

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$64,000	$70,400	$77,440
Video Editors	$172,000	$189,200	$208,120
Content Creators	$182,000	$200,200	$220,220
Support Creatives	$300,000	$330,000	$363,000
Technician	$110,000	$121,000	$133,100
Web Developer	$24,000	$26,400	$29,040
Sales Execs	$60,000	$66,000	$72,600
Accountant	$30,000	$33,000	$36,300
Total Salaries	$912,000	$1,003,200	$1,103,520

Financial Plan

Profits are just one part of the equation of the success of a business. Good management is a very important factor. You need to manage your resources and finances efficiently to make sure that you don’t go into a loss. To ensure good management of all money-related affairs, you will need to conduct a financial analysis. This will help you set the prices of your services in a way that doesn’t bankrupt you and still keeps you attractive to customers.

You can use this production company business plan template to carry out a financial analysis for your business. You can also refer to a production company business plan pdf for help.

Here we’re providing the detailed financial plan for Cocoon Productions. This will help you get a good idea of how to adequately manage your business finances.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$2,246,250	$2,761,989	$3,396,142
Direct Cost of Sales	$1,073,750	$1,251,993	$1,393,468
Other	$0	$0	$0
TOTAL COST OF SALES	$1,073,750	$1,251,993	$1,393,468
Gross Margin	$1,172,500	$1,509,997	$2,002,674
Gross Margin %	52.20%	54.67%	58.97%
Expenses
Payroll	$912,000	$1,003,200	$1,103,520
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$1,091,200	$1,186,650	$1,297,420
Profit Before Interest and Taxes	$81,300	$323,347	$705,254
EBITDA	$81,300	$323,347	$705,254
Interest Expense	$0	$0	$0
Taxes Incurred	$16,260	$64,669	$141,051
Net Profit	$65,040	$258,677	$564,203
Net Profit/Sales	2.90%	9.37%	16.61%

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8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

1. How do you write a production plan for a business plan?

You can take a look at the above production company business plan sample to learn how to write a production plan for a business plan.

1. What are the 5 basic elements of a business plan?

The 5 basic elements of business plans for production companies or any general business plan are:

1. Business Summary
2. Services of a business
3. Marketing Analysis
4. HR Management Plan
5. Financial Plan

1. How do I write a simple business plan?

You can write your own business plan by following the template above.

1. What are the 4 main parts of a business plan?

These 4 things make an essential part of business plan:

1. Executive Summary
2. Management Plan
3. Marketing Plan
4. Financial Plan

Download Production Business Plan Sample in pdf