Starting a production company entails turning your love of visual storytelling into a business that creates original video, film, or multimedia content. You’ll need to balance your creative spark with the demands of client relationships, invoices, contracts, gear maintenance, and more.

The first steps in creating this kind of company can be as small as filming a friend’s music video or as big as creating a short film for a local nonprofit. However you begin, a business mindset gives your creative work room to grow. The US Box Office grossed nearly $529 million in 2024, and the cinema industry is expected to expand at a compound annual growth rate of 8.3% through 2027. But before your productions become box office successes, you’ll need to form a legal entity, build a foundational set of gear, learn how to manage clients, and adopt a transparent pricing style. Below, we’ll explain how to build your venture from the ground up.

What’s in this article?

• What is a production company and why start one?
  
• What skills and equipment are needed for a production company?
  
• What are the legal requirements to start a production company?
  
• How do you price production services?
  
• How do you find clients for a production company?
  
• What tools can help manage production payments?
  
• What are the challenges of running a production company?
  

What is a production company and why start one?

A production company creates video, film, or multimedia projects. It might produce short social media videos for local businesses, shoot documentaries, develop corporate training modules, or craft full-length features. Sometimes, one company will do all of the above.

Many production companies start with small shoots (e.g., music videos, promotional spots, event coverage) and scale up to bigger projects as they obtain more gear and experience. Others switch from in-house corporate production roles to serve a larger variety of clients. The path looks different for everyone, but if you’re seeking a broader impact and a more consistent process, a formal company is the next step.

Starting a production company means embracing a career that offers the following:

• Creative freedom: You can take on your own projects, choose your collaborators, and build your team.

• Direct relationships with clients: You shape each project’s vision, cost, and scope. When clients see the results and trust your expertise, your company’s reputation grows.

• Control over branding and identity: Instead of being a freelance name on someone else’s credits, you operate under a distinct entity that you can scale.

• Potential for growth: The production space keeps developing with new platforms, tech, and audiences. It’s easier to expand your reach when you have a formal business in place.

What skills and equipment are needed for a production company?

A production company must have the know-how to complete projects effectively and the equipment or software to make them look and sound polished. Although the specifics can vary by niche, a few key categories stand out.

Important production skills

A production company is a business. Familiarity with budgeting, contracts, invoicing, and client management helps you stay afloat and profitable. But you also need creative skills to produce a high-quality product. Build a well-rounded team with these skills:

• Project management: Each assignment has phases—concept development, preproduction, principal photography, postproduction, and final delivery. Someone needs to plan the schedule, track deadlines, communicate with clients, and keep the crew informed.

• Cinematography and directing: Understanding visual language, lighting, camera placement, and how to get the best performance out of on-screen talent sets your finished product apart.

• Editing: Mastering programs such as Adobe Premiere Pro and DaVinci Resolve is a must for shaping your raw footage into a compelling final cut.

• Sound design: High-quality audio can elevate a project, while poor audio can ruin it. If you’re not an audio expert, hire someone who is so that your final product feels cohesive.

Important production equipment

When you’re starting out, you might feel pressure to buy top-of-the-line gear. But great storytelling can come from modest setups, and upgrading later is always possible. Here’s the basic equipment you should invest in up front:

• Camera: Start with what you can afford, but aim for something reliable. Digital single-lens reflex (DSLR) or mirrorless cameras such as the Canon EOS R and Sony Alpha 7 series are useful for many functions.

• Lenses: A collection of prime lenses (e.g., 24 mm, 50 mm, 85 mm) or a quality zoom can give you flexibility during shoots.

• Lighting: At least one LED panel or a softbox kit is useful for interviews or any scene that needs shaping.

• Audio gear: Consider shotgun mics, lavalier mics, or a small audio recorder. Crisp sound is important in almost every type of production.

• Editing and postproduction software: Acquire a workstation that can handle large video files and run editing programs without freezing. Reliable storage (e.g., hard drives, cloud backups) is also important.

What are the legal requirements to start a production company?

Forming a legitimate business protects you and your partners. While regulations vary depending on your region, there are some common steps for formally registering your company.

Decide on a business structure

Some businesses register as sole proprietorships, while others form limited liability companies (LLCs) or corporations. If you’re unsure of the best structure for your needs, consult a local attorney or accounting professional.

Register a business name

Registering a unique name helps with branding. Research your name thoroughly so you don’t run into trademark issues.

Create tax IDs and business bank accounts

Depending on where you’re located, you might need an Employer Identification Number (EIN) or similar tax ID number to operate legally. Opening a business checking account helps you separate personal and company spending.

Draft client contracts

In creative services, disputes can arise regarding who owns the footage and whether the client has the right to repurpose it. Written contracts help prevent those misunderstandings. Even if your first few clients are friends, drafting a contract is still an important step.

How do you price production services?

Setting prices can be intimidating. You don’t want to undervalue your services, but you also want to keep prices realistic enough that clients will agree to them. If you’re a newcomer, you might set introductory prices roughly based on hours worked plus overhead and keep rates low enough to build up your reel. Over time, you can raise prices to reflect market rates and your growing expertise.

Here are some considerations when you set your prices:

• Assess complexity: Is it a 30-second social media teaser or a 10-minute short film with advanced motion graphics? Each project requires a different time commitment and skill set.

• Break down your costs: Factor in your day rate, equipment rentals (if needed), postproduction time, and travel or location fees.

• Research the prevailing rate: Your local film community, professional associations, or an industry mentor can offer insight on how much to charge for certain types of work.

• Be transparent: When a client sees how you arrived at the price, they will have fewer questions about the final invoice. Clearly denote what each portion of their fee covers (e.g., preproduction hours, shoot days, editing rounds).

How do you find clients for a production company?

Building visibility as a production company involves networking and sharing your portfolio. Here are some ways you can attract clients to your company:

• Establish an online presence: Create a website or online reel that shows your best work. Keep it up-to-date.

• Attend industry meetups: Industry mixers or film festivals often lead to relationships that open doors. Making an impression on someone in person helps them remember you when they need a project completed.

• Use social media: Platforms like Instagram or LinkedIn can be places to share behind-the-scenes photos or final cuts. Consistent posting, along with smart use of hashtags, can bring in new business leads.

• Use direct outreach: If there’s a brand or organization you admire, email or call it. Show that you understand its style and have a project concept in mind. Genuine curiosity about their needs can lead to gigs.

• Word of mouth: Satisfied clients are your best form of marketing. Deliver on time, communicate well, and the referrals will come naturally.

What tools can help manage production payments?

When you’re running a creative company, it’s easy to focus on the cameras, lights, and editing suite. But a dependable payment process matters too. It keeps your cash flow steady and helps you plan your next steps without stress. Here are some Stripe tools that can help you manage payments.

Stripe Payment Links

Stripe Payment Links are a good fit for smaller production houses that want a simple invoice solution. You can create a link for a project fee and send it to your client, who can pay with a few clicks. If you prefer to bill a client in stages, this method also works for partial payments or deposits.

Stripe Invoicing

If you manage multiple projects, an invoicing system can help you track everything in one place. Stripe’s platform can handle recurring billing if you do monthly retainer work or offer subscription-based services.

Mobile payments

If the client wants to settle a bill on set, Stripe’s mobile solutions make it possible to accept payments right there. This can be helpful for smaller gigs such as event coverage and last-minute add-ons.

What are the challenges of running a production company?

Video production involves unpredictable creative demands, ever-changing technology, and clients who might have different expectations. Recently, the impact of the COVID-19 pandemic, writers’ strikes, and tight budgets have led to unprecedented challenges. Here are some common problems production companies face:

• Budget pressures: A client’s vision for a project might not fit with their budget. Balancing what’s possible with what they can pay can be tricky.

• Scheduling conflicts: If two high-value projects overlap, you might need to find additional crew or gear. Good project planning helps, but sometimes, scheduling conflicts are unavoidable.

• Creative differences: Working with a client who constantly requests changes can stretch a project far beyond its original scope. Protect yourself by having a clear revision policy in your contract.

• Gear upkeep: Cameras, audio equipment, and editing machines can break, become outdated, or require upgrades. Accounting for replacements and maintenance is an ongoing chore.

• Team dynamics: Hiring freelancers or full-time staff involves managing personalities, skill levels, and workplace culture. Even a solid project can suffer if your team isn’t collaborating well.

• Legal compliance: From music rights to location permits, you need to comply with the law or risk fines or lawsuits.

All of these challenges can be managed with proper planning, good communication, and a willingness to adapt.