How To Start A Production Company In South Africa
What is a Production company?
A production company, production house, production studio, or a production team is a business that provides the physical basis for works in the fields of performing arts, new media art, film, television, radio, comics, interactive arts, video games, websites, music, and video.
How To Start A Production Company In South Africa
1. Determine your company’s niche.
What type of content do you plan to specialize in creating? Maybe you want to produce low-budget horror features, or maybe your focus is sci-fi genre projects or artistic independent films. It’s important to narrow your company’s brand identity to guide you when choosing projects to produce.
2. Choose a company name.
Choose a name that embodies your company’s identity, is memorable, and is meaningful to you. Once you have the perfect name chosen, make sure it’s not already taken, and then apply for a trademark
3. Draft a business plan.
A solid business plan is the key to a financially sound and functioning production company. Start small and employ a business model that lets you gradually build from a small business entity to a larger one. In particular, plan for your startup costs, from labor to office space to state and federal taxes. Draft a mission statement that summarizes your film company’s goals and how you plan to profit from your video production business. Then, think about where you want to be after your first year. What business opportunities do you see yourself pursuing in five years? Strike the balance between ambitious and achievable.
4. Hire an attorney.
The steps necessary to start a production company are complex, so you’ll want a small business lawyer or an entertainment lawyer who specializes in production services to give you legal advice throughout the process. Your attorney will review all the documents you need to start your business, and once you’re up and running, they can assist you in hiring your staff and creating the contracts for your projects.
5. Incorporate your business.
If you want to start your business the right way, you’ll want to formally organize it as a limited liability company, an S-Corp, a C-Corp, or a sole proprietorship. While a sole proprietorship is the easiest legal entity to establish, the drawback is that as the owner you are legally liable for any lawsuits made against the company. A Limited Liability Company (or LLC) is a better option for most production companies starting out because it provides great flexibility in regards to legal liability and business taxes.
6. Seek funding.
In order to grow, a production company needs money. Unless you’re independently wealthy, you will likely have to use your business plan to secure a small business loan (including a line of credit) or reach out to angel investors (either via crowdfunding or personal connections). Make sure your risk isn’t so great that you risk financial ruin if things don’t work out.
7. Get your paperwork in order.
When you’re in charge of your own film production company, you’re responsible for a lot of workaday minutia. You’ll need to set up a business bank account, get an employer identification number from the IRS, and file an operating agreement and articles of organization. Depending on your business location, states and municipalities may require business licenses, and they typically charge annual business taxes.
8. Assemble an all-star team of executives.
Great ideas tend to come from teams of people, so you’ll need to search for exemplary employees to help make your ideas a reality. You’ll want to hire four positions for your executive team: a head of development (who decides what scripts to produce and guides the creative team), a head of production (who’s in charge of budgeting and the physical production process), a head of post-production (who oversees the editing process), and a head of distribution (who’s in charge of marketing and selling your content). Other creative filmmaking positions such as writers, actors, directors, and cinematographers are usually hired on a per-project basis rather than working full-time with one company.
9. Hire a production accountant.
Entertainment payroll is a complicated job, so you’ll need a certified public accountant trained in entertainment financing to take care of your company’s accounting. Production accountants are trained to handle the constantly rotating crew that are common to the film production world, along with the various rules and regulations associated with the different entertainment unions.
10. Purchase production insurance.
Accidents happen in film production from crew members slipping on set to stunt performers getting injured while filming dangerous feats. In the event any unexpected incidents occur, you’ll need a good insurance policy to protect you.
11. Produce proof-of-concept projects.
When your company is initially starting out, you may want to produce some shorter and cheaper proof-of-concept samples to show off your company’s voice and the capabilities of your team. Short films and TV pilot presentations (condensed pilots) can be selling tools for convincing studios and investors to finance full-length projects.
12. Build a website and create a social media presence.
Hollywood players need to be able to find your company online, so hire a website designer to create a simple but informative website for your company. Less is usually more with production company websites your contact info and brief examples of your work are usually all you need.
It’s important to have a social media presence as well, but until your company expands to have a constant stream of content, it may be unnecessary to hire someone specifically to run your social pages.
Frequently Asked Questions (FAQs).
How much does it cost to start a production company in South Africa?
The budget of Semi-Sort is said by industry insiders to have been about R4.5-million to R5-million, and Material cost about R5-million.
How much does it cost to produce a film in South Africa?
It’s possible to say, then, that the average budget for a South African movie today is about R4-million to R7-million. The budget of Semi-Soet is said by industry insiders to have been about R4. 5-million to R5-million, and Material cost about R5-million.
What is the difference between a studio and production company in South Africa?
A studio produces films to the general public whereas video production companies work for other companies to help them produce their desired content. In general, studios are much larger and often acquire a corporate business configuration.
Does Netflix have a production company in South Africa?
Netflix, Inc. is an American subscription streaming service and production company. Launched on August 29, 1997, it offers a film and television series library through distribution deals as well as its own productions, known as Netflix Originals.
What is an example of a production company in South Africa?
Production companies are the backbone of the entertainment industry. They are the intersection between art and industry for film, TV, comics, websites, and video games. Big Hollywood movie studios like Paramount Pictures, Warner Bros., and Universal Studios are some of the most famous examples of production companies.
How do production companies work in South Africa?
“A film production company works on the process of producing video content for television, social media, corporate promotions, commercial or other media-related fields.” Video production usually is involved in multiple aspects all related to video making such as scripting, location scouting, and logistics.
Who invests in film producer or director in South Africa?
Because producers often assist with the financing of the film, sometimes coming up with the money out of pocket, their earnings are dependent on the success of the film and return of their investment. Directors, however, can become members of the Director’s Guild of America and earn guaranteed rates for their work.
Why do actors start production companies in South Africa?
Although many actors begin producing in order to take control of their career destinies in front of and behind the camera, others are simply interested in expanding the quality and scope of the industry.
What is the role of a production company in South Africa?
A production company is responsible for the development and filming of a specific production or media broadcast. In entertainment, the production process begins with the development of a specific project.
What is considered a production company in South Africa?
“A film production company works on the process of producing video content for television, social media, corporate promotions, commercial or other media-related fields.”