Following on yesterday’s post re: production companies
Wow … I got so much response to yesterday’s email about production companies. A recurring question was … When do I need to form a production company?
Let me take a moment to answer that question:
Form your production company when it makes financial, legal and business sense. A production company is no different from any other type of company, so the same rules and processes apply. Starting any new business requires a good deal of research and planning.
The costs (legal, licensing, taxes) of forming a production company can be prohibitive for someone who is struggling to break into the business. Why spend it now when you don’t need to? Use your money wisely.
If you’re a writer with scripts you’re shopping around, there is no reason to have a production company. Invest your money into your career, such as coaching to move your career forward, or a screenwriting course to improve your skills. A production company’s value is basically nil at that point. You don’t need a production company to say you have 3 or 4 scripts written and ready to go.
It may make financial sense when you have money coming in. You certainly don’t unnecessarily want to put money out with nothing coming in.
Ask your attorney when it makes legal sense to form a production company. For example, it might make sense if you are raising money for your film, when you have a distribution deal. But again, you ABSOLUTELY MUST HAVE legal counsel.
I recently had veteran entertainment attorney Darrell D. Miller on my radio show, “Inside Urban Hollywood,” and he talked about how to get a good entertainment attorney. You can’t just pay a retainer and poof, you have an entertainment attorney, it doesn’t work that way. Download the MP3 here: http://www.blogtalkradio.com/insideurbanhollywood/2010/08/03/high-profile-entertainment-attorney-darrell-miller.mp3?localembed=download
My bottom line is too many people think they need a “production company.” Do you want to spend your time involved in the business aspects of running a company or writing scripts and making movies? Is forming a production company about your ego or is it a smart and thoughtful business decision that will ADD VALUE to your career. Remember, a production company is a business and there are costs involved in running it. Where are you going to invest your time and money?
Finally, remember its about marketing and selling YOU and YOUR talent!
To your success,
Tanya Kersey
Hollywood Career Strategist
P.S. Sign up for a one-on-one webcam/phone coaching session with me at http://www.tanyakersey.com/coaching and let’s make sure you’re do all you can do to move your career forward.
P.S.S. Don’t forget about my American Film Market prep program which starts next week. There are only 6 spots available. For more info: afm-program@tanyakersey.com.
