What will I be doing?

The more than 16,000 video-production businesses in the U.S. offer a wide variety of services. They video weddings, Little League games, children's birthday parties, bowling tournaments, grand openings and other special events. Some produce local commercials. Others transfer 8mm film and photos to video for customers. A few produce instructional tapes or documentaries for sale to television or directly to consumers. Most have fun at what they do.

What will I need to start?

There's more to producing a video than pushing the button on the side of the camera. Lots more. Producing quality video images that can be sold to others requires a knowledge of cameras, subjects, lighting and production techniques. It also requires video equipment for taping, editing, mixing, dub-
bing and copying tapes.

Who will my customers be?

Most video services offer a variety of services to individuals, companies and associations. Others focus on one type of service or customer, especially in areas crowded with video-production services. A successful video service in the Northwest specializes in video taping antique and classic car shows, auctions and other events for clubs and car owners. Another service in California videos school events such as sports games and graduations.

How much should I charge?

Because video equipment is expensive, most video-production services need lots of money to start. However, a few start with rented or borrowed equipment. Because of the costs, a video-production service will set prices based on a studio rate of $50 to $150 an hour.

Pricing is set by the estimated time it will take to video the event and edit it in the studio. For example, video taping a high school graduation that requires two hours of taping, an hour of setup and takedown, two hours of editing and another three hours to make 20 copies--a total of 8 hours at $60 an hour--will charge $24 a copy plus the cost of the tape. If the event is done on speculation, not knowing how many tapes will be sold, the videos will be priced by the minimum number of tapes you estimate will sell.

How much will I make?

Expenses for a video-production business can eat up 40 to 50 percent of gross income. A business that sells $100,000 in services can offer the owner an annual income of $40,000 to $50,000 before taxes. Most video services take a year or more to build to this level. Once established, an aggressive service can increase gross income by 25 to 50 percent a year or more. If overhead expenses are managed well and competition is aggressively faced, the owner can expect a very profitable business.

How can I get started?

Learn your business! It takes more than a camera to make a profitable video service. Study the market and your potential competitors for ways you can do the job more efficiently and profitably. Look for groups unserved by video services in your area. For example, consider specializing in video taping bar mitzvahs or outdoor weddings or college wrestling tournaments or whatever has many customers and few competitors.

Read the video trade magazines available at larger photo shops for opportunities, ideas and the latest equipment. Start setting up a studio and office in your home, depending on what type of video production you will do. Develop your video-production service as a spare-time venture until it is profitable, then consider going full-time. Have fun at what you do!

The SIC code for video-production services is 7812-11.

How can I use computers to increase profits?

Like other forms of photography, video is now digital. Not only is digital video photography clearer than analog, it is also easier to edit. Images can be enhanced, digital effects can be applied, titling is easier, and distribution becomes easier. There's a price: digital video equipment is more expensive. But the quality and the flexibility can help you increase your profits.