Are you about starting an animation studio? If YES, here is a complete sample animation studio business plan template & feasibility report you can use for FREE.
An animation studio is a company that is involved in the production of animated media. Such companies conceive of products to produce, own the physical equipment for production, employ operators for that equipment, and hold a major stake in the sales or rentals of their animation works.
This type of business is not capital intensive and you can start the business from your savings and from your home office. If you are hardworking and you have the right network in place, you can generate your startup capital from one business deal.
However, starting up a big – time animation studio business may not only require pretty huge startup capital, it also needs a significant investment capital, solid planning, and attention to detail in order to keep your business profitable.
If you are diligent enough and if you have good business / marketing strategies, you can build the business from scratch to profitability within record time. Below is a sample animation studio business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Animation Studio Business Plan Template
1. Industry Overview
Animation studio business falls under the Video Post-production Services industry and the industry includes companies that prepare motion pictures for public distribution by performing editing, subtitling, closed captioning, animation and other special effects services.
It is important to state that companies that are involved in movie or television production and perform post – production activities in – house are not part of this industry.
Following consumer disinterest in 3D film and shifting interest from TV to online content, many animation studios have re – strategized and re-positioned their client base toward the increasing number of online streaming services and advertisers that require editing services for their productions, boosting revenue for the Video Post-production Services industry.
Despite the fact this new range of digital post-production activities has created a pressing need for highly skilled post-production teams that are used to new digital effects, the market has simultaneously been flooded with professional editing software and increasingly affordable hardware.
The Video Post-production Services Industry is currently in the growth stage of its life cycle. Statistics has it that the Video Post-production Services Industry in the united states of America, is worth over $6 billion, with an estimated growth rate of 3.8 percent.
There are about 2,501 registered and licensed video post-production / animation studios in the United States and they are responsible for employing about 26,545 people. Despite the fact that Technicolor SA can boast of having a lion market share in the industry; the industry is still very much open for competitions from all players.
Research conducted by IBISWorld shows that the concentration of most film and TV studios heavily influences the areas in which video post-production companies establish their business locations. Historically, industry operators have needed to locate their facilities near major studios to quickly transport completed reels and receive immediate feedback.
The report further stated that digital distribution technology has greatly reduced the need for post-production companies to be so closely located to their clients, although many of the industry’s oldest companies continue to do so out of convenience.
The animation studio business will continue to blossom because businesses that are into movies, entertainment and advertisements will always patronize their services. Despite the fact that the industry seems over – saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own animation studio in the United States of America.
Some of the factors that encourage entrepreneurs to start their own animation studio business is that the business has pretty low entry barriers, it is a thriving business and the business is easy to set up and manage with relatively minimal startup capital and manpower and it is a business that is not location bound.
You can have your animation studio in the United States of America and work for clients in Hong Kong or any other country.
Over and above, the animation studio business is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start up. Just ensure that your studio is located in an environment with the right demography and you will be fine.
2. Executive Summary
Sally Daniels® Films & Animation Studio, Inc. is a U.S based films and animation studio. We have been able to secure a standard studio facility in a busy business district in Colorado Boulevard, Pasadena – California. Sally Daniels® Films & Animation Studio, Inc. will be involved in the production of a wide genre of animations.
Our business goal is to become one of the leading animation studios in the United States and we will make sure that every production job that leaves our company can favorable compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative animation artists in and around Pasadena – California.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company. At Sally Daniels® Films & Animation Studio, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by delivering excellent jobs and also meeting our client’s needs precisely and completely. Sally Daniels® Films & Animation Studio, Inc. is a private business that is owned and managed by Sally Daniels.
Daniels has a Degree in Computer Engineering from the University of Illinois. This Arlington, Virginia native originally attended college to become a video game developer and has Advanced Professional Certificate in Animation, Certified Professional Animators, Toon Boom Certification and 3D Modeling, Art & Animation Certification.
3. Our Products and Services
Sally Daniels® Films & Animation Studio, Inc. was established with the aim of maximizing profits in the Video Post-production Services Industry.
We want to compete favorably with the leading animation studios in the United States of America which is why we have but in place a competent quality assurance team that will ensure that all our animation production services meet and even surpass our customers’ expectations and match international best practices.
Our service offerings are listed below;
- Post processing animation video content
- Audio editing (adding looping and sound effects)
- Adding closed captioning, subtitles or dubbing
- Creating and inserting graphics, animation or special effects
- Creating credits
- Formatting animation content for various media
- Receiving and incorporating feedback from test audiences
- Promotional activities
4. Our Mission and Vision Statement
- Our vision is to establish a standard animation studio whose production and brand will not only be accepted in Pasadena – California but also throughout the United States of America.
- Our mission is to build a world class animation studio that will be known to produce top – notch animation contents and to become the number one choice for TV.
- We want to build an animation studio that can favorably compete with other leading brands in the industry.
Our Business Structure
Sally Daniels® Films & Animation Studio intends starting small, but hopes to grow big in order to compete favorably with leading studios in the industry. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own.
This is why we are committed to only hire the best hands within our area of operations. We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Accountant
- Animation Artists
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Creative Director:
- Serves as project manager of the organization; works directly with employees
- Responsible for designing and approving concepts for animation production
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Maintains quality service by establishing and enforcing organization standards.
- Makes certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and animation artists/specialist
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Sally Daniels® Films & Animation Studio, Inc.
- Serves as internal auditor for Sally Daniels® Films & Animation Studio, Inc.
Animation Artists
- In charge of post processing animation video content
- Handles audio editing (adding looping and sound effects)
- Adds closed captioning, subtitles or dubbing
- Creates and inserts graphics, animation or special effects
- Creates credits
- Responsible for formatting animation content for various media
- Receiving and incorporating feedback from test audiences
- In charge of promotional activities
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
- Receives parcels / documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the human resources and admin manager.
6. SWOT Analysis
Sally Daniels® Films & Animation Studio, Inc. employed the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured animation studio that can favorably compete in the highly competitive industry in the United States.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Sally Daniels® Films & Animation Studio, Inc.;
- Strength:
Our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in various niche areas in the animation production. Aside from the synergy that exists in our carefully selected workforce, we have some of the latest software apps and equipment and of course our work output and services will be guided by international best practices.
- Weakness:
As a new animation studio in Colorado Boulevard, Pasadena – California, it might take some time for our organization to break into the market and gain acceptance especially from high profile clients in the already saturated and highly competitive the Video Post-production Services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
- Opportunities:
The opportunities in the Video Post-production Services industry is massive considering the number of organizations that would need our services. As a standard films and animation studio, we are ready to take advantage of any opportunity that is available in the industry.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new films and animation studio in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
The Video Post-production Services industry over time has experienced rapid growth due to rapid technological advancements. Online video is one major trend in the film and video production industry. Recent statistics from Comscore show that on an average day in 2011, over 100 million Americans viewed an online video content.
This represents growth of 43 percent over the previous year. Well over 43.5 billion videos were streamed in December 2011 alone; a 44 percent increase over the previous year. This growth shows no signs of dwindling, as people increase the number of videos they watch, in addition to viewing longer form content on leading video sites such as Netflix and Hulu.
Another known trend in the film and video production industry is that most production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.
8. Our Target Market
When it comes to film and animation video production business, your animation movies can be marketed to adults, children as well as teenagers. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our products and services.
We have conducted our market research and we will ensure that our studio attracts the kind of clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;
- Households
- Recording Artists
- Advertising and Branding Agencies
- Corporate Organizations (Branding and Advertising Agencies et al)
- Teenagers, Adults and Children
- TV stations
Our competitive advantage
The competition in the Video Post-production Services industry is getting stiffer by the day, you have to be highly creative and come up with appealing designs and concepts in order to survive in the industry.
The Video Post-production Services industry is indeed a profitable and at the same time a highly competitive industry; it enjoys strong demand as organizations and individuals continue to request for animation videos for entertainment or promotional purposes.
We are quite aware that to be highly competitive in the Video Post-production industry means that you are not only expected to deliver highly creative animation videos, but you must be able to meet set targets.
Our competitive advantage lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in various niche areas in the industry. We equally have some of the latest 3D printing machines and equipment and of course our work output and services will be guided by international best practices.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Sally Daniels® Films & Animation Studio, Inc. is established with the aim of maximizing profits in the industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of our clients. Sally Daniels® Films & Animation Studio, Inc. will generate income by offering the following services;
- Postprocessing animation video content
- Audio editing (adding looping and sound effects)
- Adding closed captioning, subtitles or dubbing
- Creating and inserting graphics, animation or special effects
- Creating credits
- Formatting animation content for various media
- Receiving and incorporating feedback from test audiences
- Promotional activities
10. Sales Forecast
One thing is certain, there would always be corporate organizations and individuals who would need the services of films and animation studios whenever they have to conduct promotions and branding.
We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow our animation studio to enviable heights.
We have been able to examine the animation video production market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Sally Daniels® Films & Animation Studio, Inc., it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year: $250,000
- Second Fiscal Year: $400,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their set targets.
Our goal is to grow Sally Daniels® Films & Animation Studio, Inc. to become one of the leading studios in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Pasadena – California but also in other cities in the United States of America.
Sally Daniels® Films & Animation Studio, Inc. is set to make use of the following marketing and sales strategies to attract clients and win animation videos contracts;
- Introduce our films and animation studio by sending introductory letters alongside our brochure to corporate organizations, advertising and branding agencies, religious organizations and key stake holders.
- Promptness in bidding for animation video production contracts from the government and other organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Join local chambers of commerce and industries to network and market our services
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate and individual clients which is why we have made provisions for effective publicity and advertisement of our studio. Below are the platforms we intend to leverage on to promote and advertise Sally Daniels® Films & Animation Studio, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Colorado Boulevard, Pasadena – California
- Distribute our fliers and handbills in target areas
- Contact corporate organizations in our target areas by calling them up and informing them of Sally Daniels® Films & Animation Studio, Inc. and the services we offer
- List our films and animation studio in local directories
- Advertise our films and animation studio in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our company
12. Our Pricing Strategy
Almost all films and animation studios adopts all the available pricing system as it applies to the genre or type of the job or project they are expected to execute.
At Sally Daniels® Films & Animation Studio, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Sally Daniels® Films & Animation Studio, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Sally Daniels® Films & Animation Studio, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for animation videos without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
The cost of setting up film and animation production studio can be quite expensive especially if you want to start a standard film and animation studio. Essentially, this are the area we are looking towards spending our startup capital on;
- The Total Fee for incorporating the Business in Los Angeles, California – $750.
- The budget for Liability insurance, permits and license – $2,500
- The amount needed to acquire a suitable office facility with enough space for standard movie production studio in a business district 6 months (Re – Construction of the studio facility inclusive) – $100,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
- The cost for equipping the movie production studio with the required video gears – $10,000
- The cost of launching our official Website – $600
- Budget for paying at least 5 employees for 2 months and utility bills – $50,000
- Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $10,000
Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard animation studio in the United States of America.
Generating Startup Capital for Sally Daniels® Films & Animation Studio, Inc.
Sally Daniels® Films & Animation Studio is owned by Sally Daniels. She has decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
One of our major goals of starting Sally Daniels® Films & Animation Studio, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our animation video production a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Sally Daniels® Films & Animation Studio, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility plus renovation of the facility: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industries: In Progress