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Internet Marketing and Web Design News - Florida & Beyond

Thursday, January 19, 2006 1:04 PM

Ready to grab destiny by the horns and start your own studio? Before you make the leap, know what you're getting into.

So, what makes you think you're ready to tackle the challenges of owning your own business? Without a clear idea of what's in store, striking out on your own can be a one-way ticket to the poor house.

First of all, there's a lot to be said for paying your dues at a major studio. You experience firsthand a streamlined production process, rub elbows with talented people, and broaden your technical and business skills. You build on the value of working as a team, and can experience a great deal of creative growth-all things you can easily carry with you to your own studio. Also realize that being a great artist with immense technical skills doesn't necessarily make you a great business manager. Talent is only a starting point in this business.

Deuce Bennet, co-founder of Creative Imagineering, a full-service video, graphics design, and production facility near Dallas, believes you need to go into business with your eyes wide open. "Not everyone is cut out for running their own studio. Doing CGI work requires one skill set-running a business, doing public relations, marketing, budgeting, and interacting with clients demands a different expertise altogether," explains Bennet. "Not everyone possesses the full group of skills required to run a studio. And, many people cannot function with the uncertainty of not having a steady paycheck." Like it or not, you probably have to relinquish the steady paycheck privilege when you launch a studio. The work flow is hardly consistent-it can be feast or famine-especially while you're getting established. And, realistically, it may take months before you get a paying gig.

And Now, the Business Plan

Whether you're creating a new entity, or starting a new division within an established company, don't do anything until you have a business plan and take the necessary steps to bring the plan to fruition. The old adage "no one plans to fail, but many fail to plan" certainly applies here.

A business plan is a document that maps a company's mission by detailing objectives and outlining budgets. It acts as a compass when determining which direction to go. "When creating a business plan, you want to build a clear focus and foundation for the company," states Ashley. "There should be real planning, and a really clear focus early on."

When writing a business plan, ask yourself: What are the skills you and your partners possess? What services do you intend to offer? How much revenue will you need each month to pay the bills? What type of workload and profitability targets are you shooting for in the coming years? What types of projects will you take on, and which ones will you turn down? Set your limits and clearly define your direction.

A business plan should describe the type of business, target market, and the services offered, and include marketing, financial, and human resources information. Also consider that once a business is under way, a business plan can quickly become outdated. Regularly revise and update your business plan as the studio evolves. If you don't understand business planning and investing, cash-flow statements, financial projections, contracts, and marketing, consider hiring a consultant to help lessen the confusion.

You will also need to determine the structure of ownership. Will your studio be a partnership, sole proprietorship, LLC, corporation, etc.? Don't jump in blindly. Find a good, local small-business consultant or tax lawyer to help determine the best solution for your needs.

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