Build Wealth Through Your Video Production Business
When you hear the word “wealth,” what does it mean to you? For some, wealth is about freedom—the ability to decide how to spend their time, focus on their family, and fully embrace life. For others, it’s tied to the classic definition: financial abundance, assets, and the security they provide.
In this episode of The Business of Video Production podcast, we’re exploring the multifaceted idea of wealth, with a focus on money—its role, its impact, and why it matters to your journey as a business owner.
Building wealth isn’t just about accumulating assets; it’s about creating financial stability and freedom for yourself and your family. Ultimately, it’s one of the core reasons why you pour so much time, energy, and resources into growing your business. Let’s dive into what wealth means for you and how to move closer to achieving it.
Building Wealth Through Your Video Production Business
When you think of wealth, what comes to mind? For some, it’s freedom—freedom of time, the ability to experience life fully, or the comfort of providing for family. For others, wealth means material abundance—money, assets, property, and investments. Regardless of how you define it, building wealth is often a key driver behind running a business.
In this post, I’ll dive deep into how video production business owners can think strategically about wealth, build financial security, and set themselves up for long-term success.
Why Focus on Wealth?
Let’s address the elephant in the room: why is wealth worth talking about? Isn’t passion for filmmaking and storytelling enough?
While passion and creativity are critical for sustaining a video production business, wealth gives you the freedom to pursue that passion without constraints. It enables you to provide for your family, achieve your personal goals, and navigate life's uncertainties with confidence.
Wealth isn't just about material possessions—it's a tool that can expand your options and secure your future. However, building wealth in a sustainable way requires focus, strategy, and discipline.
Understanding Your Relationship with Wealth
Before diving into the mechanics of wealth-building, it’s crucial to reflect on your own attitudes toward money.
What Were You Taught About Money?
Your upbringing and cultural background may have shaped how you think about wealth. Did your family teach you to see money as a tool for opportunity, or as something tied to fear and scarcity?
Understanding these beliefs can help you identify behaviors or assumptions that may be holding you back from achieving financial growth.
Wealth and Happiness
You’ve likely heard the saying, “Money can’t buy happiness.” While true in many cases, it’s also important to recognize the role money plays in reducing stress, providing security, and giving you the freedom to focus on what matters most.
Rather than chasing money for its own sake, think about how financial stability supports your values and long-term goals.
The Power of a Business to Build Wealth
Running a video production business offers unique opportunities to build wealth compared to a traditional job.
Job vs. Business: The Key Difference
With a job, your income is tied to your time. You work, you get paid, and when the work stops, so does the money.
With a business, you’re not only earning income from your efforts but also building an asset—your company. As your business grows, it can generate profit beyond what you directly work for, creating opportunities for reinvestment and financial growth.
Building a Sustainable Asset
A mature business operates like a self-sustaining machine. It generates consistent revenue, allows you to step back from day-to-day operations, and provides a foundation for long-term wealth through reinvestment or eventual sale.
Ask yourself: Are you building an asset that works for you, or are you stuck moving from job to job without creating something lasting?
Reinvesting in Your Business
One of the biggest mistakes I see production business owners make is taking money out of their business too early. To build a solid foundation, you must prioritize reinvestment during the growth phase.
Key Areas to Reinvest In:
Marketing and Branding: A well-designed website, professional portfolio, and strong SEO strategy can attract high-value clients.
Team Development: Hiring skilled freelancers or employees allows you to scale operations and focus on growth.
Education and Training: Investing in business coaching, sales training, or industry-specific courses can improve your decision-making and accelerate growth.
Equipment and Technology: While over-investing in gear can be risky, strategic upgrades can enhance efficiency and client satisfaction.
Reinvesting in these areas will strengthen your business and create a compounding effect on revenue over time.
When to Invest Outside Your Business
Once your business reaches maturity—meaning it generates consistent profits even after reinvestment—you can begin exploring opportunities to build wealth outside the business.
Signs Your Business is Ready:
Systems and processes are in place, ensuring smooth operations.
You’ve built a reliable team to handle production work.
You have a steady stream of clients and predictable cash flow.
When these conditions are met, it’s time to consider investments like real estate, stocks, or other assets that can grow independently of your business.
Avoiding Common Pitfalls
Building wealth requires discipline and avoiding shortcuts that could undermine your long-term goals.
Don’t Chase Quick Wins
It’s tempting to dabble in speculative investments like cryptocurrency or trendy stocks. While these can sometimes pay off, they often distract from your primary focus—growing your business.
Ask yourself: Does this investment align with my long-term strategy, or is it driven by emotion or FOMO (fear of missing out)?
Beware of Diversifying Too Early
Conventional wisdom often emphasizes diversification. While this is important in the long term, during the early stages of building your business, focus is more valuable. Concentrate your resources on making your business successful before spreading your investments too thin.
Seek Guidance When Needed
Financial planning and investing can be complex. Don’t hesitate to seek advice from trusted experts, such as financial planners or accountants, to ensure your decisions are well-informed.
Wealth-Building as a Two-Step Process
Step 1: Focus on Business Growth
During the early years of your business, reinvest as much as possible to establish a strong foundation. Prioritize:
Building a client base.
Creating efficient systems and processes.
Positioning your brand in the market.
Step 2: Diversify Once Profitable
Once your business generates consistent excess profits, use those funds to invest in other income-producing assets. Consider options like:
Real estate for rental income or appreciation.
Index funds or ETFs for diversified stock market exposure.
Long-term retirement accounts (e.g., 401k, superannuation).
This approach allows your wealth to grow passively while your business continues to generate active income.
The Role of Mindset in Wealth Creation
A wealth-building strategy is only as strong as the mindset behind it. Cultivate habits and beliefs that support your long-term success:
Stay Humble: Recognize that financial success is a learning process. Avoid overconfidence and continuously refine your approach.
Embrace Discipline: Stick to your investment principles and avoid emotional decision-making.
Focus on Growth: Always seek ways to improve your skills, systems, and business model.
Final Thoughts: Why Building Wealth Matters
Wealth isn’t just about material gain—it’s about creating security, freedom, and the ability to live life on your terms.
For video production business owners, your company is your most powerful tool for achieving this. By reinvesting in your business, focusing on long-term growth, and adopting a disciplined approach to wealth creation, you can build a sustainable financial future.
Ready to take your business and wealth-building journey to the next level? Learn how I coach video production business owners scale their businesses and achieve their goals.
Take action today, and start building the wealth and freedom you deserve.