Budgeting Tips for Videographers
Updated: Apr 8
Let's face it...running a business takes a lot of work. Running a Video Marketing Company is no different. It takes a lot of time, patience, discipline and budgeting! On the last Wednesday Weekly Webinar, I broke down why videographers have to budget each and every video project. It's important and here's why:
Why Videographers Need to Budget
Like already mentioned, this doesn't just stop at videographers, but we know being in that business, there's a lot to handle because some may forget or have trouble staying organized with it. The following points are three key reasons why people everywhere - no matter the industry should budget money.
Budgets enable you to have complete control from beginning to end. Here are two red flags and obvious reasons for when you need to start budgeting:
Constantly wondering where your money went
What happened to your money
What happens when you do start budgeting?
Helps prioritize where spending goes
Track and progress your spending habits/when you need to stop
Gives you the chance to plan and prepare for the future
By being in control of your budget, it ultimately helps monitor spend, manages money, and keeps from overspending (The Balance).
2. Measure Success
They allow you to measure how you are doing all throughout the process of each project. By being in control of budgets, this will then further prove the worth of why even budget to begin with.
"With a budget, you can move to focus your money on the things that are most important to you." -Miriam Caldwell
By moving forward with a plan, it makes goals more realistic to achieve and conquer. By setting aside allocation in the budget, you are steps closer to whatever goals you may have. Whether it is saving up for better costumes, studio setup, or other assets (for non-videographers: saving for a home, getting out of debt, or retirement) - it is all doable by protecting the money that has been saved. Those that do not have a budget, tend to not save as much money compared to people who budget. By transferring money into savings each month, reaching goals will be easier than ever and help prepare for whatever comes.
3. No Surprises
Budgeting is so powerful, it can even prevent you from getting blind-sided so that you are not losing money or undercharging for your services. The following are categories that are (usually) required for most videographers' budget, or they should think about at least: locations/sets, characters (actors), proper, wardrobe, set dressing, vehicles, special equipment, and crew (Videomaker). Not only that, but ask the client what kind of money they're set aside for the project is important when we think of expectations, so there are no surprises at the end of the day.
Tips to Creating a Budget for Videographers
You can create budgets on QuickBooks Online (QBO) by Customer. So let's say I have a company named Philly Fluff (customer) and I already went through the process of outlining costs to my customer and separated the process in the invoicing for them. (Check out the blog on How Videographers Can Earn More Money With How They Invoice) From here, I go into QBO and begin to list my budget for anticipated expenses.
In the example below, you can see where we zoomed in and listed the budgeted amount.
We anticipated that on this project (Philly Fluff) we were going to spend $1,250. If you look at the column that says Actual, we ended up paying out $1,050. That means we spent less than we planned which is great! So in the Over Budget column, we see that we spent $200 less than what was originally budgeted.
Salaries & Wages
On the other hand, if you look at the Salaries & Wages portion, we budgeted $2,500 and paid out $2,750. This means we are over $250.
Budgets - Essential to a Video Marketing Business?
Let alone, businesses in general. So the question is, what are you waiting for? That $10,000 video project may look amazing from a birds-eye view but when you begin to dig deep and create budgets, you might realize that you need to pull back on some things or charge the customer more for what they are looking for. With budgets, the goal is to have complete control all along the way, never get blindsided and NEVER LOSE MONEY.
Check out the blog on How Videographers Can Earn More Money With How They Invoice
Make sure to check out our Wednesday Weekly Webinars for more training.
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