Financial Breakdown
Revenue streams (regular ongoing income – advertising, retainers for work etc.)
Due to the nature of my business, the primary source of income I would be getting from running the company would be the direct payments from the clients who I decide to work with. The amount I would be making from each client and their brief will be dependant on the type of content they would want me to edit for them, such as the length and purpose of said content, the complexity of the edits they request, and other similar details, leading to a discussion between me and the client settling on whatever price point we would both be happy with. It is important to note that as a result, the regular monthly income for the business would not be the same each month. On top of this, there is the possibility that I could gain a small, extra amount of income from running advertisements on the business's official social media posts, on platforms that allow that option, such as YouTube, Facebook or Twitter. For YouTube specifically, the company's page would have to reach a certain size in order for this to be possible (achieving four thousand hours of watch time on the content and one thousand subscribers to the page), but assuming these thresholds were reached, whatever content I decide to post on the pages, (such as updates to the business, examples of skillsets I could offer to clients, videos that may give the business more of a personal feel where I myself appear in them), could have advertisements ran alongside them. As mentioned, this would lead to an extra amount of income gained for the business, even though it would be an admittedly low amount.
Income based on sales / work produced – will be estimated but be realistic
As previously mentioned, the amount of income gained from each individual piece of client work completed would be varied and based on a few different factors. Specifically, these factors include the length requested of the final product, the estimated amount of hours required to complete it, the amount of requested resubmissions, complexity of edits the client want to be included, and the purpose of the final product which they would receive at the end (for example, whether it would be a video made entertainment or marketing purposes). Based on research I can do into competitor's offers and prices of similar services, I could make an estimate into what some of these project types could cost on average, but since the business's services are so wide, varied and dependant on so many factors, I could not possibly ever give a simple, definitive answer to how much every client would be required to pay me for their brief. If I were to be asked to handle the post-production of a wedding video for example, based off of the prices I have seen a lot of other people in the industry charge their customers in recent times, I would predict that the price of said service would be priced at roughly £175 to £400, depending on things like whether or not the footage is in simpler, standard definition, HD or 4K, whether they want it to last something short like 5 minutes or something much longer like 30, how much footage I am given to go through, and so on. On the cheaper end of the spectrum however, if I was requested to edit the video version of an audio podcast, I may cost this between £75 on the low end and £250 on the higher, depending on factors such as whether it lasted closer to 40 minutes or multiple hours, if they were using one or multiple camera angles, the quality of said cameras, how much was expected to be cut, and if any supplementary, visual edits were requested to go along with the basic footage and audio. Once again though, it is important to mention that these numbers are only rough estimates at the time of writing this, and could easily be decided to change at a later date based on factors such as new information being found that change my perspective, more personal experience in this side of the industry, or simply a different thought process.
Start-up costs – what do you need to buy to get going
Due to the nature of my business, the primary source of income I would be getting from running the company would be the direct payments from the clients who I decide to work with. The amount I would be making from each client and their brief will be dependant on the type of content they would want me to edit for them, such as the length and purpose of said content, the complexity of the edits they request, and other similar details, leading to a discussion between me and the client settling on whatever price point we would both be happy with. It is important to note that as a result, the regular monthly income for the business would not be the same each month. On top of this, there is the possibility that I could gain a small, extra amount of income from running advertisements on the business's official social media posts, on platforms that allow that option, such as YouTube, Facebook or Twitter. For YouTube specifically, the company's page would have to reach a certain size in order for this to be possible (achieving four thousand hours of watch time on the content and one thousand subscribers to the page), but assuming these thresholds were reached, whatever content I decide to post on the pages, (such as updates to the business, examples of skillsets I could offer to clients, videos that may give the business more of a personal feel where I myself appear in them), could have advertisements ran alongside them. As mentioned, this would lead to an extra amount of income gained for the business, even though it would be an admittedly low amount.
Income based on sales / work produced – will be estimated but be realistic
As previously mentioned, the amount of income gained from each individual piece of client work completed would be varied and based on a few different factors. Specifically, these factors include the length requested of the final product, the estimated amount of hours required to complete it, the amount of requested resubmissions, complexity of edits the client want to be included, and the purpose of the final product which they would receive at the end (for example, whether it would be a video made entertainment or marketing purposes). Based on research I can do into competitor's offers and prices of similar services, I could make an estimate into what some of these project types could cost on average, but since the business's services are so wide, varied and dependant on so many factors, I could not possibly ever give a simple, definitive answer to how much every client would be required to pay me for their brief. If I were to be asked to handle the post-production of a wedding video for example, based off of the prices I have seen a lot of other people in the industry charge their customers in recent times, I would predict that the price of said service would be priced at roughly £175 to £400, depending on things like whether or not the footage is in simpler, standard definition, HD or 4K, whether they want it to last something short like 5 minutes or something much longer like 30, how much footage I am given to go through, and so on. On the cheaper end of the spectrum however, if I was requested to edit the video version of an audio podcast, I may cost this between £75 on the low end and £250 on the higher, depending on factors such as whether it lasted closer to 40 minutes or multiple hours, if they were using one or multiple camera angles, the quality of said cameras, how much was expected to be cut, and if any supplementary, visual edits were requested to go along with the basic footage and audio. Once again though, it is important to mention that these numbers are only rough estimates at the time of writing this, and could easily be decided to change at a later date based on factors such as new information being found that change my perspective, more personal experience in this side of the industry, or simply a different thought process.
Start-up costs – what do you need to buy to get going
Assuming that I do not have any resources already in my possession before beginning this business, there are a decent amount of resources or supplies I would need to purchase before being able to get anything properly underway, although still an amount that may not be as high a number some other companies in similar industries may need. To begin with, in order to do any of the digital aspects of the work, I would need to be in possession of a computer setup (or perhaps a laptop, in order to allow myself to work away from 'the office' if need be) with powerful enough internals to run all the software I intend to the extent that I do. For my personal use at the moment, I own a 'ASUS ROG Zephyrus G14 14" Gaming Laptop' with internals of an AMD Ryzen 9, RTX 2060 and 1TB SSD, which is able to run what I'd need to easily, being sold usually at a cost of roughly £1499 to £1799. As well as this, things like a house to home my office, and all of the bills that would come with that, would also be required, however these would more come under the class of 'regular outgoing' costs. While this laptop in specific is quite a higher range, expensive investment for the company, looking around online and doing proper research could easily allow me to find a cheaper alternative, potentially being a less powerful one which, once enough profits were made from the company, I could upgrade from in the future.
Regular outgoings – what will regularly cost you money month by month
Being a business that will be based from home, a lot of the regular outgoing costs will be related to this, as it would cause costs which would usually be considered as everyday 'living costs' to increase, as a result of me spending more time than I usually would within whatever house I live in. These costs would include bills related to electricity, water, heating and internet, all of which would cost extra than it usually would. On top of these, there would be the less often, non-guaranteed costs of transport (whether that be petrol and ongoing car costs if I decided to go the route of purchasing a car/using an already purchased car for the business, or public transport costs such as train and bus tickets), Specifically, this transport would be to meet clients for face-to-face discussions about their briefs, if they were too be requested by said client. On top of these, in order to legally use the software I would need (these being primarily Adobe Premiere Pro, with After Effects also being a potential), an annual or monthly license fee will have to be purchased from the direct source, with the annual cost often ending up cheaper. Finally, in order to get people to hear about my business, especially in the early phases, I would be required to put a decent amount of money into advertising costs, online or physical, on social media sites like Instagram, YouTube and Facebook for example.
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