Looking to start your own business? Check out these three tips for a successful venture
The entertainment industry is competitive and challenging. You need to have a thorough understanding of what it takes to be successful, including how to create a successful blueprint that will help bring your new entity into fruition. If you’re beginning your business plan, there are a few things that you should keep in mind to ensure your strategy has a chance of becoming successful.
When crafting a functional and complete model for your business, you should first consider the character of your brand, including your objectives; your intended audience; the actual product or content you will be creating, reproducing, or selling; what types of talent your business will need when hiring and conducting business; what types of technical equipment you’ll need to be a success; and what your estimated timelines will look like for business processes. In addition to all of this, the following three tips for creating a successful business plan can help make sure that you have your bases covered.
1. Craft a persuasive business plan that’s investor-friendly
What does it mean to write a business plan that’s investor-friendly? It must be completely clear, and you must address the issues that will be important for investors. This includes how your business will be different than – and similar to – your competition. It’s fair to say that in the entertainment industry, whether you’re planning to enter music, film, gaming, or otherwise, you’ll have face competition. Investors will want to know what makes your business unique, what will make it successful, and how you will work to ensure the investments you receive pay off for you and for your investors, whether they be private funders, banks, grants, or others.
Some things that investors will want to see in a successful business plan are:
• A “problem” in the industry and how our business will be the solution – this is often an area in your plan where you can highlight how your business will be different than your competitions’ based on things that you will do differently, how you can offer something that will make the industry better, etc.
• Demonstrate why your business would be successful today. Although there are some brilliant ideas out there, they’re not always relevant at the time. Make sure you can explain why your business will succeed in the industry today – this may be a good time to outline any technology, advancements, or other modern characteristics that will make your business relevant today.
2. Understand the latest technology of your industry – and incorporate that understanding into your business plan
Just as you should consider how technology can make your business relevant in today’s entertainment industry, you should also determine how technology will contribute to your success. That means understanding the latest advancements in technology and how you can use these to your advantage. Or perhaps your business could benefit from older technology that is more effective for a specific purpose. Maybe your entire business is based on using retro production technology that will set you apart from your competition! Whatever role technology will play in your business, make sure to outline that in your business plan. Not only will it help you hook investors, it will allow you to determine how costly or affordable your business could be based on the cost of purchasing and using the technology you need.
3. Understand the legal and economic elements of starting your own entertainment business – including tax requirements and laws specific to your industry
Although you aren’t likely to think of laws or taxes when you first decide to start your own business, these are two crucial elements of enterprise that cannot be ignored. You should be aware of the laws that will dictate your business proceedings and the taxes your business will be subject to. Understanding these parts of creating and running a business in the entertainment industry will ensure that there are no surprises partway through your planning process. It will also show investors that you’ve considered the success of your business from every angle and that you – and your business – are a worthy cause!
Check out these resources that can help you create a successful business plan of your own!
• Sample Entertainment and Media Production Company Business Plans
• 2016 Entertainment & Media Industry Trends – Familiarize yourself with the latest entertainment industry trends so that you can address these in your business plan.
• Investor-Friendly Business Plan Format for Startups – This post isn’t specifically meant for entertainment professionals, but some of the basics of startup business plans can be beneficial for those starting an entertainment business from the ground up!
• Example Business Plan, Created by Reference for Business – a complete business plan sample for a TV and entertainment programming company that provides a useful demonstration of each part of a business plan.
At The Los Angeles Film School, we’ve created coursework that’s tailored to the skills students will need to not only run a successful business in the entertainment industry but to actually get their business started with a successful business plan. Our Entertainment Business Bachelor of Science online and on-campus degree program allows students to work with industry professionals who have experience working in entertainment and who know what it takes to thrive in their respective industries. With us, you’ll learn how to develop your brand, market and pitch your business, determine the best technologies for your business, earn the attention of investors, and so much more!