How to Start a Video Editing Business Even If You Have No Experience

A video editing business is a company that provides services related to editing and producing video content for various purposes, such as commercials, promotional videos, documentaries, films, social media content, corporate videos, and more.

The global video editing software market was valued at approximately $1.1 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of around 4.6% from 2021 to 2027, reaching a value of over $1.6 billion by 2027.

The rise of digital content consumption, especially through social media platforms and streaming services, has led to increased demand for professionally edited video content.

Steps on How to Start a Video Editing Business

1. Conduct Market Research

Conducting market research for a video editing business is essential for understanding your target audience, identifying industry trends, assessing competition, and determining the demand for your services.

First, you will need to determine the specific demographic, geographic, and psychographic characteristics of your target audience. Consider factors such as age, gender, income level, industry, and type of video content they consume or produce.

Next, research other video editing businesses in your area or niche market. Identify their strengths, weaknesses, pricing strategies, target audience, and unique selling propositions.

Analyze their portfolios and client testimonials to understand the quality of their work and areas where you can differentiate your services.

Determine where your target audience spends their time online. This could include social media platforms, forums, websites, or niche communities.

Explore advertising opportunities on relevant platforms or through influencer partnerships. Consider content marketing strategies such as creating blog posts, videos, or social media content to attract potential customers.

Understand the legal implications of selling and distributing adult content, including age verification requirements and regulations in your jurisdiction.

Ensure that you obtain consent and respect the privacy of individuals involved in creating and consuming the content. Implement measures to protect your intellectual property and prevent unauthorized distribution of your images.

Develop surveys or questionnaires to gather feedback from potential clients about their video editing needs, preferences, and pain points.

You can distribute surveys through email, social media, online forums, or in-person networking events. Use the responses to tailor your services to meet the specific needs of your target market.

Lastly, compile the insights from your market research into a comprehensive business plan. Outline your business goals, target market, competitive analysis, marketing strategy, financial projections, and operational plan.

a. Who is the Target Market for the Video Editing Business?

• Small and Medium-sized Businesses (SMBs).
• Content Creators and Influencers.
• Digital Marketing Agencies.
• Corporate Clients.
• Schools, colleges, universities, and online learning platforms for creating educational content, instructional videos, online courses, and virtual lectures.
• Wedding planners, event organizers, and photographers
• Film and Media Production Companies.
• Nonprofits and charitable organizations.

b. Is Video Editing Business a Profitable Business?

The video editing business can be highly profitable due to the increasing demand for high-quality video content across various industries.

The global video editing software market was valued at $1.1 billion in 2020, with a projected growth rate of 4.6% from 2021 to 2027.

Targeting diverse clients such as SMBs, content creators, marketing agencies, and corporations can lead to lucrative opportunities in this expanding market.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the video editing business.

d. Who are the Major Competitors?

• Adobe Systems Incorporated
• Avid Technology, Inc.
• Blackmagic Design Pty. Ltd.
• Final Cut Pro
• CyberLink Corp.
• Magisto Ltd.
• Pinnacle Systems, Inc.
• Corel Corporation
• Sony Creative Software Inc.
• Lightworks Inc.
• HitFilm Ltd.
• Wondershare Technology Co., Ltd.
• Apple Inc.
• Autodesk, Inc.
• TechSmith Corporation
• VideoPad
• Grass Valley USA, LLC
• Movavi
• Filmora
• Vegas Creative Software.

e. Are There County or State Regulations or Zoning Laws for Video Editing Business?

In the United States, regulations and zoning laws for video editing businesses typically fall under local jurisdictions, rather than county or state-level mandates.

Zoning laws may dictate where businesses can operate and the types of activities permitted in specific areas. Video editing businesses operating from commercial spaces may need to comply with zoning ordinances that designate certain areas for commercial or mixed-use purposes.

Additionally, businesses may need to obtain licenses or permits to operate legally, although requirements vary by locality.

Regulations regarding business licensing, taxation, and health and safety standards may also apply. However, there isn’t a blanket set of regulations specific to video editing businesses at the county or state level.

Entrepreneurs in this industry should consult with local government offices, such as city planning departments or small business associations, to understand and comply with relevant regulations and zoning laws applicable to their location.

f. Is There a Franchise for Video Editing Business?

No, there are no franchise opportunities for video editing businesses.

g. What Do You Need to Start a Video Editing Business?

• High-quality computer/laptop
• Video editing software
• Fast internet connection
• External hard drives for storage
• Professional video camera or access to raw footage
• Audio equipment (microphones, headphones)
• Graphics and animation software
• Dedicated workspace or studio
• Website and online portfolio
• Business licenses and permits
• Marketing materials (business cards, flyers)
• Accounting software or services.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a video editing business are;

Creative Video Editing Business Name ideas

• Michael Stevenson© Video Editing Company, Inc.
• Perfect Lens® Video Editing Company, LLC
• Collins Weaver© Video Editing Company, Inc.
• Motion Perfect® Video Editing Company, Inc.
• Tricia Paulson™ Video Editing Company, Inc.
• Gillians Andersons ™ Video Editing Company, LLC.
• Aston Percheron© Video Editing Company, LLC
• Sol Perkinson® Video Editing Company, Inc.
• Shevy Jones© Video Editing Company, Inc.
• Cornell Johnson© Video Editing Company, Inc.
• Julian Hallmark® Video Editing Company, LLC
• John Jamel® Video Editing Company, LLC
• Jake McNown’s™ Video Editing Company, LLC
• Bob McInnes© Video Editing Company, Inc.
• Joel Gersham® Video Editing Company, Inc.
• Peter Parker™ Video Editing Company, Inc.
• Fiona Williams™ Video Editing Company, Inc.
• Collins Meadow© Video Editing Company, Inc.
• Debbie Wright® Video Editing Company, LLC
• Sean Taylor™ Video Editing Company, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for Video Editing Business?

Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation when it comes to the business structure for a video editing business, the one that most players in this line of business consider is an LLC.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Video Editing Business?

• Business License
• Professional License (if required by your jurisdiction)
• Trade Name Registration
• Sales Tax Permit
• Occupancy Permit (for physical location)
• Copyright License (if using copyrighted materials)
• Music Licensing (if using copyrighted music)
• Film Permit (for shooting on location)
• Home occupation permit (if operating from home).

d. What Type of Certification is Needed to Start a Video Editing Business?

• Adobe Certified Professional (ACP) in Video Editing
• Apple Certified Pro – Final Cut Pro X
• Avid Certified User (ACU) – Media Composer
• Blackmagic Design DaVinci Resolve Certification.

e. What Documents are Needed to Open a Video Editing Business?

• Business Plan
• Business License
• Trade Name Registration
• Tax Identification Number (EIN)
• Articles of Incorporation or Organization (if forming a corporation or LLC)
• Operating Agreement (for LLC)
• Lease or Rental Agreement (for physical location)
• Home Occupation Permit (if operating from home)
• Insurance Policies (liability, equipment, etc.)
• Contracts or Service Agreements
• Client Release Forms
• Vendor Contracts (if outsourcing services)
• Employee Contracts (if hiring staff)
• Financial Statements (balance sheet, income statement, cash flow statement)
• Marketing Materials (business cards, brochures, website content).

f. Do You Need a Trademark, Copyright, or Patent?

For a video editing business, trademarking the business name and logo can protect brand identity. Copyright applies to original video content, safeguarding against unauthorized use or reproduction. Patents aren’t typically applicable unless there’s a unique invention or process integral to the business.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Video Editing Business?

The startup cost for a video editing business is not uniform. Basically, a video editing business will cost from $25,000 to $250,000 or more to start and that can easily go higher depending on your overall business goals and objectives.

b. What are the Costs Involved in Starting a Video Editing Business

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $2,300.
• Marketing, Branding, and Promotions – $1,000.
• Insurance – $1,400.
• Rent/Lease – $55,000.
• Operational Cost (salaries of employees, payments of bills et al) – $85,000
• Equipment, and Software – $65,000
• Website: $1,500
• Opening party: $3,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Video Editing Business?

• The size of the video editing business
• The choice of location
• The required licenses and permits
• The cost of branding, promotion, and marketing of the business
• The cost of furnishing and equipping the facility
• The cost of the insurance policy covers
• The cost of registering the business
• The cost of recruiting and training your staff
• The cost of the purchase and customizing of uniforms for your employees
• The cost for the grand opening of the video editing business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your video editing business. You can operate your video editing business from your home, a shared office, or even from a small studio.

e. What are the Ongoing Expenses of a Video Editing Business?

• Software subscriptions/licenses for video editing tools.
• Equipment maintenance and upgrades (computers, cameras, audio equipment).
• Internet and telecommunications expenses.
• Utilities for office or studio space.
• Marketing and advertising costs (website maintenance, online ads).
• Professional development and certification fees.
• Insurance premiums (liability, equipment, etc.).
• Rent or mortgage payments for office or studio space.
• Salaries or freelancers’ fees for employees or contractors.
• Continuing education and training expenses for staying updated with industry trends and technologies.

f. What is the Average Salary of Your Staff?

• Chief Operating Officer (Owner) – $75,000 Per Year
• Administrative Manager – $60,000 Per Year
• Video Editors – $55,000 Per Year
• Marketing Specialist – $45,000 Per Year
• Customer Service Representative – $35,000 Per Year

g. How Do You Get Funding to Start a Video Editing Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

5. Write a Business Plan

a. Executive Summary

Bob McInnes® Video Editing Company, Inc. is a dynamic and innovative video editing business headquartered in the vibrant city of Los Angeles, California.

Established by industry veteran Bob McInnes, our company specializes in providing high-quality video editing services to a diverse clientele, including small businesses, content creators, marketing agencies, and corporate clients.

What sets Bob McInnes® Video Editing Company apart is our unwavering commitment to excellence, creativity, and customer satisfaction.

Led by industry expert Bob McInnes and backed by a team of talented professionals, we deliver exceptional results that exceed client expectations.

Bob McInnes® Video Editing Company, Inc. is poised to become a leading provider of video editing services in Los Angeles and beyond.

With a focus on innovation, customer satisfaction, and business excellence, we are well-positioned to capitalize on the burgeoning demand for high-quality video content.

b. Products and Service

At Bob McInnes® Video Editing Company, we offer a comprehensive range of video editing services tailored to meet the unique needs and preferences of our clients. Our services include but are not limited to:

• Editing: Cutting, arranging, and enhancing raw footage to create captivating narratives.
• Color Correction and Grading: Ensuring consistent and visually appealing color balance throughout the video.
• Audio Editing and Mixing: Enhancing audio quality and synchronizing with visual elements.
• Motion Graphics and Animation: Adding dynamic graphics, titles, and visual effects to enhance engagement.
• Rendering and Exporting: Finalizing edited videos for distribution across various platforms.

c. Mission Statement

At Bob McInnes® Video Editing Company, Inc., our mission is to empower our clients to tell their stories and bring their visions to life through expertly crafted video editing solutions.

We are dedicated to providing unparalleled creativity, quality, and professionalism in every project we undertake. By leveraging our passion for storytelling and cutting-edge technology, we strive to exceed client expectations, inspire audiences, and make a meaningful impact in the world of digital media.

Vision Statement:

Our vision at Bob McInnes® Video Editing Company, Inc. is to be recognized as the premier destination for innovative and exceptional video editing services globally. We aim to continuously push the boundaries of creativity and technical excellence, setting new standards for the industry.

d. Goals and Objectives

At Bob McInnes® Video Editing Company, Inc., our goals are to deliver exceptional video editing services, exceed client expectations, and establish ourselves as a leader in the industry.

Our objectives include expanding our client base, fostering creativity and innovation, and maintaining the highest standards of quality and professionalism in all our endeavors.

e. Organizational Structure

• Chief Operating Officer (Owner)
• Administrative Manager
• Video Editors
• Marketing Specialist
• Customer Service Representatives.

Marketing Plan

a. SWOT Analysis

Strength:

• Led by Bob McInnes, an industry veteran with extensive experience, our company benefits from deep knowledge and expertise in video editing.
• We have a team of skilled professionals with a diverse range of creative talents and technical skills.
• Bob McInnes® Video Editing Company has built a strong reputation for delivering high-quality video editing services that exceed client expectations.
• Based in Los Angeles, a hub for media and entertainment, we have access to a wide range of clients and industry resources.

Weakness:

• Despite our strong presence in Los Angeles, we may face challenges in expanding our client base beyond the local market.
• Our company’s success relies heavily on the expertise and leadership of Bob McInnes, which poses a risk in terms of succession planning.
• The cost of equipment, software licenses, and skilled labor contributes to our overhead expenses, impacting profitability.

Opportunities:

• Advancements in video editing software and technology present opportunities for us to enhance our services and stay ahead of competitors.
• We can explore offering additional services such as motion graphics, animation, and virtual reality editing to meet evolving client demands.
• There is potential to expand our reach beyond the entertainment industry and target sectors such as marketing, education, and corporate communications.

Threat:

• The video editing industry is highly competitive, with numerous players vying for market share, which could pose a threat to our profitability.
• Rapid advancements in technology could render our current tools and techniques obsolete, requiring ongoing investment in training and equipment upgrades.
• Economic downturns or fluctuations could impact client budgets and lead to reduced demand for our services, affecting revenue and growth prospects.

b. How Do Video Editing Businesses Make Money?

Video editing businesses generate revenue primarily by providing professional editing services for various clients and projects.

They charge fees based on factors such as the complexity of the editing task, duration of the video, and additional services requested (e.g., color grading, and audio editing). Some businesses may also offer subscription-based models for ongoing editing needs.

It is important to note that, video editing businesses may also generate income through training programs, software sales, and affiliate partnerships with related industry products and services.

c. Payment Options

• Online Payment Portal
• Credit and Debit Cards
• ACH Bank Transfers
• Electronic Funds Transfer (EFT)
• Check Payments
• Wire Transfers
• Mobile Payment Apps.

d. Sales & Advertising Strategies

• Showcase your past projects and capabilities through a visually appealing online portfolio and website. Highlight your expertise, customer testimonials, and contact information to attract potential clients.
• Utilize platforms like Instagram, Facebook, and LinkedIn to share snippets of your work, behind-the-scenes content, and client testimonials.
• Attend industry events, workshops, and conferences to network with potential clients, collaborators, and industry professionals.
• Develop targeted email marketing campaigns to reach out to potential clients, share updates about your services, and promote special offers or discounts.
• Optimize your website and content for relevant keywords related to video editing services.
• Invest in paid advertising campaigns on platforms like Google Ads, Facebook Ads, and YouTube to increase visibility and reach your target audience.
• Implement a referral program to incentivize satisfied clients, partners, and industry contacts to refer new business to your video editing company.

Financial Projection

a. How Much Should You Charge for your Product/Service?

Hourly Rate:

• Average hourly rates range from $50 to $150 per hour, depending on the editor’s experience and skill level.
• Complex projects or specialized editing tasks may command higher rates, while simpler tasks may fall at the lower end of the spectrum.

Flat Fee or Project-Based Pricing:

• For specific projects, video editing businesses may offer flat fees based on the scope of work.
• Prices vary widely depending on factors such as video length, complexity, and desired turnaround time.
• Average project-based prices range from $300 to $5,000 or more, with rates adjusted according to the client’s requirements and the editor’s expertise.

Retainer Contracts:

• Some clients may opt for retainer contracts, where they pay a fixed monthly fee for a set number of editing hours.
• Retainer rates typically range from $500 to $2,000 per month, with discounts offered for long-term commitments.

Additional Services:

• Video editing businesses may offer additional services such as color correction, audio mixing, motion graphics, and animation for an extra fee.
• Prices for these services vary depending on the complexity and duration of the project, with average rates ranging from $50 to $200 per additional service.

Package Deals:

• Some video editing businesses offer package deals that bundle multiple services together at a discounted rate.
• Prices for package deals vary depending on the services included and may range from $500 to $10,000 or more, depending on the scope of work and client requirements.

b. How Much Profit Does Video Editing Business Owners Make a Year?

The profit that video editing business owners can make in a year can vary widely depending on several factors, including the location of the business, the volume of transactions, the fee structure, operational costs, competition, and the overall economic environment.

It’s important to note that there is no fixed or guaranteed amount of profit, as it can differ significantly from one business to another. On average, video editing businesses typically aim for profit margins ranging from 20% to 50% of their total revenue.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the video editing business
• The types of related service offerings
• The location the video editing business is covering
• The management style of the video editing business
• The business approach of the video editing business
• The advertising and marketing strategies adopted by the video editing business.
• The number of years the video editing business is in business

d. What is the Profit Margin of a Video Editing Business?

The profit margin of a video editing business is not fixed. It could range from 20 percent to 50 percent.

e. What is the Sales Forecast?

• First Fiscal Year: $240,000
• Second Fiscal Year: $360,000
• Third Fiscal Year: $550,000

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Video Editing Business?

• Choose a location close to your target clients, such as media production companies, marketing agencies, or creative professionals.
• Consider the cost of renting or leasing in different areas and choose a location that is within your budget.
• Select a location that fosters creativity and inspiration for your team. Look for neighborhoods with a vibrant arts and culture scene, coworking spaces, or shared creative studios where you can collaborate with other professionals in the industry.
• Ensure that your chosen location has access to reliable internet connectivity and sufficient electrical infrastructure to support your video editing equipment and technology needs.

b. What State and City is Best to Open a Video Editing Business?

• Asheville, North Carolina
• Palm Beach, Florida
• San Francisco, California
• Washington DC
• Boston, Massachusetts
• Las Vegas, Nevada
• Los Angeles, California
• New York City, New York
• Washington, D.C.
• Scottsdale, Arizona
• Chicago, Illinois
• Dallas-Fort Worth, Texas.

c. What Equipment is Needed to Operate a Video Editing Business?

• Computer (a powerful desktop or laptop computer with sufficient processing power, RAM, and storage capacity to handle video editing software and high-resolution video files)
• High-resolution monitors with accurate color representation
• Professional video editing software such as Adobe Premiere Pro, Final Cut Pro, DaVinci Resolve, or Avid Media Composer
• Storage Solutions (External hard drives or network-attached storage (NAS) systems)
• Audio Equipment (Microphones, headphones, and audio interfaces)
• Graphics and Animation Software tools like Adobe After Effects or Cinema 4D
• Input Devices (Keyboard, mouse, and graphic tablets)
• Cameras and Recording Equipment
• Backup Systems such as cloud storage services, RAID configurations, or automatic backup software.
• Color calibration tools and reference monitors
• Office Furniture and Accessories (Ergonomic chairs, desks, and office accessories)
• High-speed internet connection for downloading/uploading large video files, accessing online resources, and collaborating with clients remotely.

7. Hire Employees

Hiring employees for a new video editing business can bring several benefits. Firstly, it allows for the division of tasks, enabling specialization and efficiency in editing workflows.

Additionally, a team can provide diverse perspectives and skills, enhancing creativity and problem-solving capabilities. Employees also contribute to scalability, enabling the business to take on more projects and grow.

8. Launch the Business Proper

In recent times, no video editing business opens its door for business without first organizing an opening party to officially launch the business.

You can choose to do a soft opening party if you are operating on a low budget or you can choose to go for a grand opening party.

The bottom line is that with a proper launching of the video editing business, you will be able to officially inform people and businesses in your city that your video editing business is open for business.

a. What Makes a Video Editing Business Successful?

• Consistently delivering high-quality video editing services that meet or exceed client expectations.
• Building strong relationships with clients and prioritizing their needs and satisfaction.
• Staying updated with the latest trends, technologies, and techniques in video editing ensures relevance and competitiveness in the industry.
• Investing in ongoing training and professional development for yourself and your team.
• Effective marketing strategies, including a strong online presence, targeted advertising, and networking efforts.

b. What Happens During a Typical Day at a Video Editing Business?

A typical day at a video editing business involves a variety of tasks aimed at creating and enhancing video content. This includes reviewing project briefs and client feedback, organizing and importing raw footage, and selecting the best shots for editing.

Editors then apply their creative skills to assemble footage, add transitions, effects, and audio elements, and fine-tune the visual and auditory components to achieve the desired outcome.

Collaboration with clients and team members, meetings, and revisions are common throughout the day, ensuring that projects progress smoothly and meet deadlines.

c. What Skills and Experience Do You Need to Build a Video Editing Business?

• Video Editing Skills
• Creativity
• Attention to Detail
• Communication Skills
• Time Management
• Problem-Solving Abilities
• Technical Knowledge
• Client Relationship Management
• Business and Marketing Skills
• Experience and Portfolio in video editing.