I say ‘perfect’ a bit tongue in cheek. There’s no one right way to structure a video production company. You could be a solopreneur or manage a large team, work with different types of clients, and target various budget levels. However, after 25 years in the industry, I’ve refined a business model that works extremely well for me. In this post, I’ll break it down so you can see if it resonates with you, and then think more deeply about your own ideal model.

Working Directly with Businesses

For me, the best approach is working directly with businesses rather than relying heavily on agencies. While agencies bring in work and handle client interactions, they also add an extra layer of complexity. When you work with an agency, you have two clients: the agency and the end client. This can lead to more revisions, limited direct communication, and a lack of control over the project.

By working directly with marketing and internal communications teams at medium-to-large corporations, government departments, and universities, I can build strong, long-term relationships. These clients have established budgets for video production, and they value efficiency, clear communication, and quality work.

The Right Type of Work

Rather than focusing exclusively on one type of video, I offer a range of services that help solve business challenges. This includes case study videos, promotional content, training videos, website videos, live streaming, and animation. By providing multiple services, I can extend relationships with clients rather than only producing one-off projects.

Some companies specialise in one niche, such as training videos or brand videos, which can be beneficial for positioning as an industry authority. However, I prefer the flexibility of offering a variety of solutions to meet different business needs.

Budgeting for Profitability

There’s a lot of talk about high-end, big-budget brand videos being the gold standard in video production. While they do come along occasionally, they are not as common as you might think. My sweet spot is projects averaging around $10,000.

This budget range allows clients to invest in multiple videos rather than a single large-budget project. It also makes it easier to build trust and long-term relationships. Additionally, mid-range projects often have higher profit margins compared to high-end productions that require large crews, expensive equipment, and extensive post-production.

The Ideal Income and Team Size

My production company targets a high six-figure income, with around half of the revenue going to business expenses and the rest as profit. This level allows me to run a lean operation with a small core team of 3-4 employees, supplemented by trusted contractors. Keeping the team small means reduced overheads and a more agile workflow.

As the business owner, I handle sales myself. Many video production business owners aim to delegate sales early on, but in my experience, this makes sense only when you’re operating at a seven-figure revenue level. At that point, you can afford to train and manage a sales team. Until then, the business owner is usually the best person to sell their services effectively.

Office Setup: Flexibility Over Fixed Costs

Over the years, I’ve experimented with different office setups—from working at home to renting an office, then owning a space. After much trial and error, I’ve found that a combination of co-working space and a dedicated home office works best.

Co-working spaces provide flexibility and lower costs compared to long-term leases. They also eliminate the hassle of managing utilities, cleaning, and maintenance. My home office, meanwhile, gives me a quiet space for focused work, content creation, and client calls. This setup keeps my expenses manageable while maintaining a professional environment.

Avoiding the Studio Trap

Many production companies dream of having their own studio, but I’ve found that renting studio space as needed is far more cost-effective. Studios often sit vacant for extended periods, making them a financial burden. If a studio isn’t generating consistent revenue, it quickly becomes a liability rather than an asset.

Think About Your Ideal Business Model

Every video production business is different. The key is to build a model that aligns with your goals, lifestyle, and financial targets. Here are some questions to ask yourself:

• What type of clients do you enjoy working with?

• Do you prefer working directly with businesses or through agencies?

• What project budgets align with your goals?

• What team size and structure suit your management style?

• How much income do you need, and what profit margins will allow you to achieve that?

• What work environment makes you the most productive?

Take Action Today

If you’re unsure about your business model or want to refine it for better profitability and work-life balance, I can help. I work with video production business owners to create sustainable, profitable companies that align with their goals.

Visit ryanspanger.com/coaching to learn how we can work together to build your ideal video production business.