There is a lot that can define an entertainment company ranging from a circus act to a multinational conglomerate like Disney that provides digital entertainment as well as amusement parks. Considering that digital entertainment has taken over the world by a storm in current times, let's stick to the virtual landscape for simplicity reasons throughout the length of this post.
According to a recent study by Statista.com, the worldwide entertainment and media market is projected to rise to $2.1 trillion in 2021. The entertainment and media market encompasses a wide variety of mediums including magazines, newspapers, radio channels, TV, and other forms of popular entertainment such as books, film, music, video games, etc. However, projections for internet video show that by far this segment of entertainment is expected to grow the most and that too by a staggering 11.6% in the coming years.
All of this news must have you feeling wanting to know how to start an entertainment company and if that is the case then look no further. In this post, I would offer you a quick and easy guide as a rundown of the basics. So fasten your seatbelts as this is going to be a fun ride!
When you think of an entertainment company you need to first understand the scope of your business and the very means of providing the sort of entertainment for your targeted audiences. This planning and strategy around your operations are essential as they can help you determine the startup cost for your venture.
Let’s suppose you want to launch an online video streaming service or an app like Netflix, then your main cost allocation would go something like this:
· Android or iOS app development – somewhere from $38,000 to $54,000 for each operating system.
· Back-End Development – somewhere from $37,000 to $48,000.
· Front-End Development – somewhere from $29,000 to $38,000.
This brings your sum to a total cost of $141,000 to $194,000. However, at the same time, you also have the choice for going with an MVP (Minimum Viable Product) which will only cost you 40% of the aforementioned figure. In fact, the most reasonable of all options is to work with a copy or a clone of the original app which can cost you as less as $5000 to $8,000.
Operating as an official business requires you to register your company’s name and its structure to your state’s revenue agency. For the structure of your establishment, you can choose various options such as sole proprietorship, partnership, or an LLC (Limited Liability Company – works best if you plan on growing the strength of your business).
Next up you need to apply for an EIN (Employer Identification Number) as well as a Federal Tax Identification Number which can be acquired with the help of the IRS website. I would also recommend that you apply for an official bank account number as well since that will help you manage your affairs in a more organized manner and keep your assets safe and separate. Plus you should also get yourself a separate business credit card solely for handling your business funds and finances.
Every business is generally required to run out of an office. This is why a business that is operating out of a physical location is typically required to file for a CO (Certificate of Occupancy). This will help you confirm that you and your business officially meet all government regulations as well as zoning laws and building codes.
You can visit the SBA (Small Business Association) website to inquire about any licenses or permit that you need to apply for to start an entertainment company. Both Federal and State licenses have to be acquired to ensure that stay well within the legal limits and don’t cross the authorities. There are also specific entertainment licenses available for your nature of business within the entertainment industry such as:
· Arcade License
· Athletic Exhibition License
· Cabaret Show License
· Carnival License
· Carousel License
· Concert License
· Circus License
· Dancing School License
· Exhibition & Show License (for both indoors and outdoors)
· Ferris Wheel License
· Jukebox License
· Live Entertainment, Nightclub, or Restaurant License
· Public Dance License
· Skating Rink License
· Special Event License
· Theater License
Before we delve into the intricacies of marketing your entertainment platform, let me say that getting yourself a nice business logo design should be your number one priority. Your logo is what can help your viewers differentiate you and a good logo can go a long way from creating impressions and making you stand out from competitors.
Follow this up by obtaining a website development service for small businesses. In the world of digital media, your proprietor website will serve as a landmark as well as your virtual real estate on the World Wide Web. Additionally, you should also consider creating a dominating online presence with the help of social media platforms, a decent amount of effort for SEO (Search Engine Optimization), and blogging to promote your services.
You can get logo designing and website development is done conveniently by Logozila for your entertainment business.
Let’s be honest here, the type of entertainment business that you desire to run is obviously up to you. For instance, if you are a talented person then maybe all that you need to do is simply run a YouTube channel that offers daily vlogs or periodically upload videos discussing relevant topics for your niche audience or showcasing your talents. After all, YouTubers do make quite a lot of money and this makes it extremely lucrative.
According to CNBC’s report, the top five YouTubers that earn quite much include the likes of:
· Ryan Kaji, with earnings of $26 million.
· Dude Perfect, with earnings of $20 million.
· Anastasia Radzinskaya, with earnings of $18 million.
· Rhett and Link, with earnings of $17.5 million.
· Jeffree Star, with earnings of $17 million.
The world of entertainment is huge and it’s only about to get bigger in the coming years. A word of final advice, if you do decided to make yourself a living through the world of entertainment then know this, original content is more valuable and investment-friendly. Original content can be a little easy to produce if you are a creative person. Nevertheless, you should consider some professional legal support to keep you off copyright infringements as they can be a pain to deal with even if you have no malicious intentions, to begin within the first place.
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