Should I buy an existing video production company or start one?
Buying gives you a reel, client list, crew contacts and gear on day one, but only if the reputation belongs to the company and not just the owner. Starting means building a portfolio and winning clients yourself. Test how much of the work would stay after the owner leaves.
Video work is won on trust and on what a client has already seen. That is the real choice here. Starting your own company means you earn that trust one project at a time. Buying one means you may inherit it, if the seller can pass it on. Think about how you win work today and how long you could go without it.
What you inherit
An existing company may come with a reel, a client list, repeat accounts, crew who know the way it works and gear that is already paid for or financed. Those save time. Ask to see each one rather than take the listing at its word, and ask the seller what happens to a client who only ever dealt with the owner.
When the reputation is the owner’s
In many small studios the owner is the director, the salesperson and the face clients remember. If so, a purchase may mostly be gear and a name. Ask whether the seller would stay for a handover and introduce you to the main clients. Ask which clients have worked with someone else at the company, because that shows the relationship can move.
What starting asks of you
Starting gives you a free hand with your style, your gear and your clients, and no history to untangle. It also means building a portfolio, finding crew and living through the slow first stretch. Price out the gear you would need and compare it with what an existing company would hand you. Our page on what to check before buying a video production company lists the questions to ask.
Making the call
- List the clients and crew who would stay without the owner, and see how many you can name.
- Compare the gear you would buy new against what the company owns outright.
- Decide how long you could go without steady income while a new company builds its name.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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