12 steps to starting your own manufacturing business (2023)

How to start a manufacturing company

1. Research the market

Going straight to work shooting all sorts of things might seem like a great idea when starting a production business. But before making a single attempt, it is important to do some market research. This is important for companies producing independent films or commercial advertising.

When making an independent film, research doesn't mean writing a film based on what's popular. Instead, you understand and determine how the film you want to make can be positioned in the world of independent film, streaming, etc.Major film festivals.

For the latter, researching film festivals can be the deciding factor in getting your film shown at film festivals. Here are some tips for choosing the right film festival.

If you plan on producing commercial work, research is just as, if not more, important. Research the market in your specific field and determine how you can position your business to meet the needs of the market in your field.

Research can also involve reaching out and learning from others. Here are the founders of a small production company Dose of Society. They contacted Gary Vaynerchuk, a well-known and successful entrepreneur, and asked how he could scale a small media company.

While the advice that Gary Vaynerchuk gives you is valuable in and of itself, it's important to do your own research in your field. It's also important to learn about competing companies and take note of their services. When you understand what you're dealing with, you can better decide how to position and market your business.

Foundation of a film production company

2. Determine your niche

When starting a manufacturing business, you will find that there is a specific niche that excites you the most. For independent film companies, this could be a specific genre, for exampleHorroror science fiction. In commercial manufacturing companies, this can be a focus for weddings, restaurants, startups, or even gyms.

Part of finding a niche is being yourself. If you follow what excites you and stick with it, you can find a path to the niche you will thrive in. Here's a video that explains why your niche should be self-defined and what you're passionate about.

As the video shows, it's important to follow your instincts when defining your niche and not what others say is a great niche to pursue. When you learn how to start a manufacturing business, take a look at existing businesses and understand which markets are saturated in your area.

How to open a film production company without money?

3. Name your company

Naming a business can be a lot of fun, but it can also be difficult. When naming your manufacturing company, be sure to bring your personality and have fun with it, but keep a few guidelines in mind.

Finding a name that is easy to remember and easy to look up is important. Business names can easily get lost in the details of the internet. Using the name of a city in your business name is a great way to help potential customers find your business more easily. Here's a great talk by Ted on creating a great brand name.

It is also important to ensure that your name is original and to avoid copyright issues for legal reasons. Enter possible company namesNational Commercial Registryto verify that your name is being used.

How do you start a manufacturing company?

4. Create a business plan

One of the most important steps to starting a manufacturing business isCreating a business plan for a manufacturing company. Starting a business can be easy without a business plan, but growing it sustainably will be incredibly difficult.

Putting your business plan down on paper allows you and your team to provide clear business direction with actionable steps. Here is some first-hand advice on how to think about starting a manufacturing business.

Perhaps most importantly, a business plan can be presented to potential investors, consultants, team members or clients to prove to them that there is a plan for the company's future. When people invest their money or time in a business, they want to know that there is a plan behind the idea.

How to open a film production company without money?

5. Assemble a team and equipment

While starting a business as a sole proprietorship is always an option (more on that in the next section), collaborating with friends is not only more fun, but can greatly increase your production value.

A one-man or one-woman show can deflate you and lower the production level of your projects. Inevitably, there will be projects popping up where you need them.Find and hire a great film crew. A good set includes some key positions. What jobs are absolutely necessary? Here's a video to give you a better idea.

This team is made up of freelancers, employees or business partners. Consult your business plan and finances to determine which company is best for your business.

Once you have your team, use itStudioBinder Team Roster Management Softwarehelps you stay organized and efficient in managing your team.

In addition to a team, you also need equipment. When starting a production company, the budget is usually very tight.production lighting sets,Spiegelloze cameras, Emcamera lensit can get expensive. Here's a video that breaks down some essential equipment requirements that won't break the bank.

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Register a film production company

6. Determine the nature of your business

Once you've decided whether you want to start the business alone or with a team, you need to determine what kind of business it is. This is a crucial step in building a film business and is heavily dictated by your company's corporate structure, taxes and business plan. Here is a video that outlines the different types of companies you can choose from.

To recap, here are your options, ifListed here by the US Small Business AssociationHere you will find more information:

1. Sole Proprietorship:

A sole proprietorship is easy to set up and gives you complete control over your business.

Individual companies are not separate business units. This means that your business assets and debts are not separate from your personal assets and debts. You may be personally liable for the company's debts and obligations. Still wondering what a sole proprietorship is? For more information see the video below.

Sole proprietorships can be a good choice for low-risk businesses and for owners who want to test their business idea before starting a more formal venture.

2. Partnership:

Partnerships are the simplest structure for two or more people to run a business together. There are two common types of partnerships: limited partnerships (LP) and limited partnerships (LLP).

Limited partnerships have only one general partner with unlimited liability and all other partners have limited liability.

Limited partnerships are similar to limited partnerships but grant limited liability to each owner.

Partnerships can be a good choice for multi-owner businesses, professional groups (eg lawyers), and groups that want to test their business idea before starting a more formal venture.

3. LLC (Limited Company)

With an LLC, you can take advantage of the corporate and partnership structure.

LLCs protect you from personal liability in most cases. Your personal assets - such as your vehicle, home and savings accounts - are not at risk if your LLC goes bankrupt or files lawsuits. LLCs can also have a limited lifespan in many states.

This can be a good choice for medium or high risk businesses, owners with significant private equity they want to protect, and owners who want to pay a lower tax rate than a business.

4. C Corp (Company)

A corporation, also known as a C corporation, is a legal entity separate from its owners. Businesses can make profits, pay taxes, and be held accountable.

Corporations offer owners the strongest personal liability protection, but the cost of incorporating a business is higher than other structures. Businesses also require more extensive administration, operational processes, and reporting.

This can be a good choice for medium to high risk companies, companies that need to raise cash, and companies planning an "IPO" or eventual sale.

5. S Corp (company)

An S corporation, also known as an S corporation, is a special type of corporation that aims to avoid the double taxation disadvantage of the regular C corporation. With S-Corps, profits and some losses can be transferred directly to owners' personal income without ever being subject to corporate income tax.

The S Corps, like the C Corps, live an independent life. If a shareholder leaves the company or sells its shares, S-Corp can continue to operate relatively undisturbed.

This can be a good choice for a company that would otherwise be a C corporation but meets the criteria for registration as an S corporation.

How to open a manufacturing company?

7. Consult a lawyer or legal advisor

The legal formation of a manufacturing company can be complex. Consulting a legal advisor or attorney will ensure that you take the necessary steps to get your business started. Many people start a manufacturing company without laying the groundwork.

Here's a first-hand video that explains why this is such an important step for anyone starting a manufacturing business.

There are many small business attorneys and entertainment attorneys who specialize in production services and can provide sound legal advice throughout the entire process. This step will help you to avoid costly problems in the future.

How to Start Accounting for Your Manufacturing Company

8. Set up your accounting

payroll entertainment,production insuranceand other expenses can get complicated and disorganized very quickly. By consulting an accountant and setting up your accounting right away, you can continue to avoid costly issues and legal repercussions for neglected processes in the future. This step pays dividends when it comes to filing your taxes, applying for a loan, or paying your employees.

How to Start a Website for a Manufacturing Company

9. Have an online presence

Whether your production company produces independent films or commercial work, an online presence is incredibly important. With a website, you can present your work and clients or target groups can find it.

These days, it's a good idea to build a presence on social media as well. Instagram, Facebook and YouTube are places for trailers, commercials and other video work to live and be discovered by clients or potential Hollywood actors.

How to create a manufacturing portfolio

10. Create proof-of-concept projects

Once you've created a website and an online presence, you need to produce work that lives there. Of course, this gallery of work will grow as you receive more requests from clients, but first you may need to come up with some proof-of-concept ideas that will help clients get a better idea of ​​what your production company can create.

StudioBinders Websérie,manufacturing, accompanied the entire proof-of-concept process, from the script to the first day of shooting. Here's the first episode on how it all started.

do ep 1 • Watch the entire series

If you're making independent films, producing a short film as a proof of concept for a feature film is sometimes a great way to showcase your project and potential funding.

How do you start a manufacturing company?

11. Create a customer network

Once you've laid the groundwork for your business, acquiring new customers is the next important step. Here you can see the real return on your investment. Here are some basic tips for attracting new customers to your manufacturing business.

The key to building a network of clients is networking and consistently delivering quality work. Your first customers will be your best allies in winning new customers, so maintaining a good relationship is essential.

How to Create a Business Plan for Manufacturing

12. Plan for the future

Planning for the future of your manufacturing business can be difficult in an industry that changes so frequently. Today, technology evolves and changes in the blink of an eye. Focusing on how the market is changing, industry trends and new emerging technologies can steer your business in the right direction.

Starting a manufacturing business is not easy, but if you're passionate, persistent and willing to try, it's totally possible. I hope these tips bring you one step closer to realizing your plan to start your own manufacturing business. Don't forget that there are many resources online that can help you get started.

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NEXT

A guide to creating your business plan

An important part of starting a manufacturing business is creating a business plan. And creating a business plan for your new manufacturing venture can be daunting. Fortunately, in our next article, we cover the basics of creating a business plan for a manufacturing company, and we've even included a free template for creating your business plan.

Next: Create a business plan →