A Complete Guide to Start a Production House in 2022

Starting a production house is like bringing all your imaginative scenarios to life. Imagination, coupled with planning to start a production house can help you achieve success faster.

 

8 Steps to Start a Production House

 

Step 1 - Research and Planning

 

For research , look into the following factors:

 

• What do you love to do?
• What are you good at ?
• How much do you know about it ?
• What should you know about it?
• Is your idea feasible?
• What are the requirements to implement your idea ?
• Do you have enough budget for it?
• Does it have a market?
• What is the current demand in this market?
• Who are your competitors?
• What are they doing?
• Who are the people your competitors are targeting?
• How are they targeting them?
• What is something that can make you stand out in the market?

 

After that comes the planning part. For this purpose, first, you should have all the above answers. 

 

Now, do the following things to make an efficient plan:

 

• Choose a business model that will help you grow gradually from a small business to a larger one.
• Secondly, plan your finances. To clarify, figure out the startup cost and set up a budget for labour, space, operating cost, and equipment cost. After that, find out your sources of funds.
• Thirdly, draft a summary about your business, for example, your business goals and how you will achieve them.
• Further, figure out how you will generate profit from a production house.
• Lastly, set achievable goals for your production house. Such as where do you want to be in the coming years. As a result, it will keep you motivated during hard times.

 

Research and planning will help you and your team decide the plan of action to start a business house. 

 

Shooting anything and everything might sound like a great idea to start a production house.

 

But, it could be a waste of time unless that brings you any benefit.

 

So, to avoid this, I would suggest you do your research first, then plan and then shoot.

 

Step 2 - Business Registration

 

To start your business the right way, you will have to give it a legal structure. 

 

While a sole proprietorship is the easiest legal structure to incorporate in India, it also makes the owner liable for everything.

 

So, as a business consultancy experts, we would suggest that the right structure to start a production house can be any of the following:

 

• Private Limited Company
• One Person Company
• LLP (Limited Liability Partnership)
• Partnership Firm

 

In fact, private limited company registration is the best for a production house. As it provides the scope of growth for your business. It also enjoys goodwill in the market. 

 

Some of the famous production houses that work as Pvt Ltd Company are :

 

• Dharma Productions Pvt Ltd.
• Reliance Big Entertainment Pvt Ltd.
• Yash Raj Films Pvt Ltd

 

But, the decision will entirely depend on the factors such as: 

 

1. number of owners
2. authority sharing ratio
3. investment capital
4. liability
5. flexibility 
6. future needs.

 

Step 3 - Funding

 

Once you have a proper business model, it will become easy to secure funding.

 

Firstly, how much funding will you need to start a production house?

 

The minimum investment to start a production house is Rs. 2 Lacs to Rs. 5 Lacs initially. (estimation for a small production house with a team of 3-5 people)

 

Here is a comprehensive list of available sources of funds to start a product house:

 

• Personal savings. 
• Borrowings from family or friends.
• Business bank loan.
• Credit card.
• Angel investors.
• Crowdfunding.

 

However, ensure that your business does not involve many risks to cause you trouble paying back.

 

Step 4 - Setting up the Production House

 

Initially, you can start with a home office if you have a small budget.

 

However, make sure to dedicate that one room to only work to avoid any distractions.

 

In the meantime, you can rent spaces for shooting at a very reasonable price.

 

You can either go to studios, forts, resorts, beautiful gardens, art galleries (if allowed), museums etc.

 

In fact, you’ll also need to know locations where you can shoot videos.

 

Here are 11 crazy locations in Delhi to shoot perfect videos.

 

Step 5 - Apply for Licenses

 

You do not require special licenses for a production house apart from those that are necessary for all businesses in India.

 

Such as,

• GST Registration (if required)
• Shop and Establishment License (in some cases). Gumasta License is required if you are based in Mumbai.
• Trademark Registration (For Brand Protection)

 

Besides, you might need a permit from your local government authority if shooting on city property.

 

Step 6 - Hire the Team and Buy the Equipment

 

Great ideas and great work cannot be done alone.

 

It will require a team of exemplary people to actually make your dream into reality.

 

So, for this purpose, you will mainly need to hire the following people:

 

• A Creative Head (to come up with content and script)
• A Managing Nerd (to decide the budget and product process for each project)
• An Amazing Editor (to edit the productions)
• A Social Butterfly ( to market and distribute the work so it reaches your potential new clients)
• A Good Communicator (to speak with the client and make calls)

 

Additionally, you will also need writers, actors, cinematographers and directors.

 

However, they are only required on a per-project basis. Thus, you do not need to hire full-time.

 

After hiring, buy the equipment you need for production.

 

Here is a list of important equipment for the production house:

 

• Video Camera
• Lenses
• Lighting
• Tripod
• Microphone
• Light Reflector
• Laptop or Computer with Video Editing Software and so on.

 

It totally depends on your requirements and scale of operations.

 

Step 7 - Build your Portfolio

 

Now, as you are ready with everything, start your production house and build your portfolio.

 

"More the clients, the better the portfolio."

 

Once you have a good portfolio, you can even target high budget clients and even target the international market.

 

Eventually, it will help with the expansion and growth of your business.

 

Step 8 - Take your Business Online

 

Last, but not least, make a website.

 

For this purpose, you will need to hire a website developer and a graphic designer.

 

Create a website that is attractive as well as informative. 

 

Now, you can benefit from the portfolio you made with all your efforts.

 

It is time to enjoy the fruits.

 

Upload your work on your website in an eye-catching way. 

 

You can also check out the websites of the same industry for inspiration.

 

You need to take your business online to create awareness. 

 

Why Choose StartEazy?

 

It can be quite confusing to convert your idea into a profitable business.

 

There are so many typical business aspects that can confuse your creativity with legalities. Moreover, it might force you to think that is it even possible ?

 

Let me tell you this first - "Nothing is Impossible". It is just a bit complicated without the experts. So we at StartEazy can help you launch faster.