The US entertainment industry is consistently growing, and experts project that it will be worth $865.6 billion by 2027. Those looking to start a business in a thriving market may want to consider working within this sector.
Here, we’re going to talk about some business ideas to help get insurance producers get clients’ startups off the ground. Read on to learn some expert tips for starting a company in the entertainment industry.
1. Choose a Business Category
“Entertainment” is a broad business category. It contains four core subcategories that their business can fall under: film, television, radio, and print.
Film businesses create, cast, and produce movies. Television companies do the same for television shows. Some business ideas here include casting agencies, film marketing, editing visual media, filming, and photography.
Radio-related businesses may record radio shows to put on the air. In 2023, however, they are more likely to focus on recording and launching podcasts on platforms like Spotify and Apple Music. These companies may also record, edit, and launch music in a wide range of genres.
Finally, print entertainment business ideas include books, magazines, and newspaper issues. The final products may be launched on paper or online.
Some other entertainment businesses include live bands, modeling agencies, comedians, photographers, event planners, and more.
Your client should choose their category carefully by picking something they’re passionate about. They and their team will also need specialized technical skills to succeed in their chosen subcategory.
2. Create a Business Plan
Once their company has a niche and production objectives, it’s time to plan their business.
This starts by determining their target market. They will likely take on both private clients and public enterprises like schools and commercial organizations. Determine which of these is more important to their business and tailor their objectives and marketing efforts to them.
To make this decision, conduct market research with tools like Google Analytics. Figure out industry trends and assess their competitors’ primary audiences. They will figure out what demographics (age, occupation, income, etc.) they want to work with so they can tailor their efforts to match their personal goals.
Then, choose a name and slogan that will represent their business. This information should be minimalistic and memorable. Keep things simple, consistent, and easy to spell so people can Google their entertainment business to learn more.
They also will need to create a simple and easy-to-visualize logo. This should be made up of only one or two colors. It also needs to be unique, identifying, and easy for people to remember and connect with. Check out this page for more information on how to design an awesome logo!
In the end, compile all of these considerations into a single document. Keep this business plan with them when starting their business. This will keep them goal-oriented and focused on what matters.
3. Determine Costs
Once they know the market, they will need to consider their startup costs. Some common ones are:
- Purchasing an office space
- Hiring, training, and onboarding employees
- State/federal registration fees
- Purchasing basic equipment
They also will need to think about their ongoing costs. These will include:
- Rent for their location
- Salaries for employees
- Website hosting and development
- Marketing expenses
Develop a realistic budget based on these projected costs. Determine how much they can likely make over time. Weigh their costs vs their projected income so they can be profitable and set aside money in a way that makes sense.
Then, create a business bank account for their entertainment business. This is critical because they can easily separate their business from their personal finances. It also will let them apply for a business credit card to help finance their startup.
4. Fulfill Legal Obligations
Before beginning its operations, an entertainment business will need to register itself. This means making it a legal operational entity.
They need to register with the state where they’re running their business. This means researching the paperwork and legal avenues that their specific location requires entertainment businesses to take. Generally, they will need to register with the Secretary of State’s office. Registration will be based on the business structure.
Sole proprietorship businesses where they begin an organization as an individual will look different than partnership businesses. A limited liability company (LLC) will look even different, as will a corporation. Determine what avenue they want to take before registration.
They will also need to take care of some other legalities as well. For example, they must file for an Employer Identification Number (EIN) with the IRS. This is needed for tax purposes.
They will also likely need other paperwork if they plan to broadcast information or live performances. This might include a Universal Licensing System or an IBFS licensing system. Do some research and be vigilant so they can avoid lawsuits or other legal issues.
5. Get Entertainment Insurance
One of the most important entertainment industry tips for startups is to get insurance for their business. Entertainment insurance covers property and casualty risks at live events.
Coverage may include liability for physical risks for cast and crew members. It also may include insurance covering sets, equipment, microphones, and the venue for the performance itself.
It’s important that startups work with Prime Insurance Company because we have many different types of entertainment insurance. We offer coverage for things including but not limited to:
- Commercial general liability
- Personal liability
- Premises liability
- Spectator liability
- Active shooter coverage
- Errors and omissions coverage
- Communicable disease liability
- Cancelation coverage
- Equipment rental liability
- True Umbrella
- And much more
Prime also has over 40 years of experience and supportive in-house team members to answer all their questions. We take care of insurance paperwork and legalities so that they can relax.
This is especially important because of our partnership approach. It’s important that the startup is in the loop about their insurance so that they can reap as many benefits as possible. We’re here to communicate with them about logistics, involve them with our legal team, and more.
Beyond Simple Tips for Starting a Company in the Entertainment Industry
While starting a business in the entertainment industry can be a challenge, keeping professional business ideas in mind can make the process much smoother. Now that you know some tips for starting a company in the entertainment industry, it’s time to get started.
Prime is committed to using our 40+ years of experience to provide new entertainment companies with top-notch insurance and liability solutions. To learn more or to get a quote, go to our landing page or contact us at 800-257-5590 or quotes@primeis.com.
