Video as Home Base Bussiness???

[A_51]

For a wile I had been thinking about doing video conversions as a side business or home base business. A couple of days ago a saw on a magazine an ad for a franchise. The name of the franchise is “Home Video Studio” here is a link http://www.homevideostudio.com/index.cfm . It has a cost of $130,000 a royalty of 9% and a 2% for something else. What do you guys think about this? I know that a lot of you are doing business on the field and I will appreciate your opinions and thoughts.

[thecoalman]

You can buy a hell of a lot of good equipment, rent a store front and fail miserably for lot less than $130,000.

My advice is, especially if this is side business, start small. Most business fail because people go head long into something they know little about, investing a lot of capital only to find that the initial return is not there. It takes years to develop a good business. Who are your customers going to be and how are you going to acquire them?

On a final note the biggest benefit of acquiring a franchise, the only benefit IMO is you acquire the Name. If you purchase a McDonald's franchise and put it in a good location you are almost assured success because everyone knows the name. That is a unknown business for what probably amounts to 99.999% of the US population. All they are doing is selling you equipment and some support.

[A_51]

I agree to your opinion. One of the reasons that I started this threat is because in the couple of years that I have been visiting it I have found that the best advices and information are either here or linked to here. The amount of knowledge people is excellent too.
I already have some (very basic) equipment and I’m able to do some of what they claim that people can do with their franchise. I completely agree that if you buy a franchise you should get name recognition and advertisement. Until a couple of days ago I have never heard of this people and I only learn about them on a business magazine and not from TV or any of other type of mass media.
I think that if someone have bought this franchise is very possible that they are in this forum and I would like to hear from them about their experience too. Also I would like to hear from people like you in the industry that would like to share the insides of this business and what might be needed to do these things. I own the following hardware and software.
• A clone PC with AMD XP2000 chip, 1 GB of Ram, 2 dual format DVD Burners one of wish is Dual layer burner.
• Capturing ATI AIW video card.
• Video editing software, TMPEG, Cuttermaran, Adobe premiere 6.5 and Magix movie edit pro 11.
• Authoring programs, TDA 1.6, GUI dvd author, PGC Edit.
• Tsunami video suite.
• DAC-100 analog to DV converter.
• External cheap DVD recorder, LITE ON LVW1107
• Plus a bunch of the usual tools from the site DVD Decrypter, DVD Shrink, IMG burn, VOB Blanker, and others.

[BJ_M]

that is REALLY expensive for a franchise of that type ....

thecoalman is right ... that would cover all your start up equipment , a couple months rental and some advertising

[ZAPPER]

I ain't no expert, but you could blow $130,000 easy and still be wishing for more!

Killer editing bay with multiple monitors and multiple PCs for mixing and editing just the video. Good sound PC and equipment. Production burners/replicators. Tape decks and assorted players for the original copies that will be brought in to you. Big bucks on software. If you were going to add much to a family video you should have a little theator type veiwing area so that you can veiw the footage with the customer/s as they relate information about the scenes that you will/can document to be added to interactive DVDs or naration or whatever.

I think that I could burn through that money pretty quick. Or you could start out with very little and work into it (Hard work is over rated!)


I didn't check out your link, but I have seen pretty complete hardware and software packages for a little less than half of that. Just keep in mind that a business can be as simple or as complicated as you want to make it.

[thecoalman]

I ain't no expert, but you could blow $130,000 easy and still be wishing for more!

Sure you could, you could blow through a million and be wishing for more but you'd be taking a big gamble and that's not a sound business decision. You can invest any amount of money you want in any business but that doesn't mean you're going to be a success. My advice to anyone trying to start a business is to start slowly and build from there, the most important thing is having/gaining experience.

[rallynavvie]

I think all told I only ever spent maybe $40k on all my equipment and that was spread out over a couple years. I think perhaps I grossed $130k in the 4-5 years I was doing it. The greatest portion of my earnings weren't even from DVDs I burned myself, it was from mastering and sourcing them to a press.

When I got started there was almost nobody that knew the DVD spec in studios because it was never taught as part of video production programs in schools. If anything there was very cursory instruction. Even today I'm finding little in the way of classes that teach solely MPEG2 structure and how it relates to DVD, HD-DVD, and BRD. I had learned a lot from here and did a lot of trial and error on my own videos to get good at mastering. Menus and DVD structure were my competencies.

When I took it public I had a good dual-processor workstation (my trusty old Tyan 2460), a Canopus ADVC-100, two Pioneer burners and a Sony burner in an enclosure, a little caged Sony TV for preview, and a used copy of DVD Maestro (which cost me more than everything else combined). As I made some money I invested it back into equipment until I had a good VTR to replace the ADVC and my weary MiniDV camcorder, a Rimage replicator, two more SMP workstations, and the latest Adobe software. Because I also have some print design background I also did covers and liner notes for exorbitant amounts.

You need to start out small, like everyone said, and work your way up. At least if you start small you're out less if things don't go well or you get sick of doing it. Use your earnings as funds for more and better equipment if you think things are going well. I'd be hesitant to concentrate on the video editing portion since there is plenty of competition there.

[A_51]

I agree with all of you guys. Thanks for posting you opinions and keep them coming.

I wanted to hear also from the people who have this franchise so that they can explain, what is it that make it worth to invest that amount of money on type of business model? What is it that separates them from the rest?

Maybe I should write an email to this people hand have them join the threat.

[A_51]

Here is the email that I send to the franchise.

Dear Mr. Robert Hanley

I saw your ad on small business opportunity magazine and it caught my attention. I'm a member of a forum for the video enthusiast people at videohelp.com . Currently we have a disscution of video as a home base business and I will appreciate if we can hear from your company, services and how your business model makes it the ideal for investing.

Thanks

PS the threat on the site is https://forum.videohelp.com/topic331092.html you need to sing in to be able to respond.

[Supreme2k]

Not to be a nitpicker (but you can see it coming)...

You may want to spell-check your messages (and proofread) before sending them. It makes you look more professional and it may help avoid some confusion.

For example, a simple typo like "threat" instead of "thread" may lead the person to believe (also misspelled) that you have some issue with him.

Also, discussion and sign ("disscution of video", "need to sing in ")

Just some friendly advice from the grammar nazi.

You want to practice proper grammar especially in your business, as a typo could get you into serious trouble on a work contract.

I know that you may say "It's just a message board! It doesn't matter!", but it really pays to be consistent in your writing. Believe me, when people see flaws in your writing, they (customers) may mark you as incompetent or they (associates) may see you as an easy target for deception.

[thecoalman]

Just some friendly advice from the grammar nazi.

Nazi should be capitalized. :P

[Supreme2k]

Actually, from here:

2. often not capitalized a: one who espouses the beliefs and policies of the German Nazis

...which would be more fitting to my adherence to grammar as being Nazi-like :P

[A_51]

Sorry, English is not my first language.......

[lordsmurf]

You're in the USA, and English is not your first language (or even a good solid second language), and you want to open a business? Seriously?

And then looking at your past posts, you're using pure freeware and consumer-grade software, and you want to offer that as the product for pay?

I don't think this is going to be your forte.

You'd do better putting $130,000 in mutual funds and cashing in down the road.

[A_51]

OK, this is getting old. I started a topic and for what I can see is more important how things are bring to the topic that the topic it self. Please be constructive on the discussion of the topic or reserve your opinions to your own. I’m not interested on a flame war. If spelling is so important on the forum maybe a spell check could be integrated on the site as a tool.

Now let’s move back to the topic.

[Supreme2k]

But every post has been about the topic. If you want to do business, it is crucial to have proper grammar and spelling for the reasons that I have outlined above (among others).

[thecoalman]

I don't agree, many people that can barely speak the language have had much success. The area you live in and the type of business may be a factor but generally people are likely to set aside language skills where money is concerned and will choose the better service or product whether the proprietor speaks English well or not. Basic language skills may be crucial but great language skills are not. The OP writes quite well for a second language, I wouldn't even suspect it wasn't his first if he didnt mention it. If that is any indication as to how well he speaks he'll do fine as far as that goes.

[Supreme2k]

On the other hand, I suspect that "Sorry, English is not my first language....... " is an excuse. Seems odd that he quickly cleaned up his act right after it was brought to light.

Language skills may not be crucial when you're getting your lawn mowed, but they certainly are in any contract-based business.

[A_51]

There are many variable to consider when someone is thinking about opening a new business. Which is the market? Who are the mayor players on it? Who is buying, what do they buy and why do they buy? Because all this is recommended that a business plan is prepared among other things. The people that made the franchise claim that they have all that done for their customers. I wanted to know among other things of someone that already own one of those outfits how their in house equipment and procedures separate them from the rest and maybe begin a healthy conversation about that topic.

I completely agree that presentation of your self is important when doing business especially with a paying customer. I just relax too much when I wrote the original message and didn’t even bother to check it before posting it, my mistake.

Supreme2k I don’t have to give you or any one on this site excuses especially when no harm of any form have been done. See my main job is as an engineer for a fortune 500 corporation designing systems and giving support to external (as out of the country) distributors and customers in over 30 countries. If you think that I will keep doing the same mistake you are dummier than how you sound.

If someone would like to talk about “Video as a business” they are welcome. I someone would like to talk about “the importance of proper grammar in business” they can bite me and open their own topic.

Regards

A_51

[Supreme2k]

See my main job is as an engineer for a fortune 500 corporation designing systems and giving support to external (as out of the country) distributors and customers in over 30 countries.

I don't belive you.

[gadgetguy]

No matter how much or how little you spend, whether you buy into a franchise or go it alone, the most important aspect of any service based business is customers/clients. You and you alone will be responsible for obtaining customers and you will make no money until you do. Check that franchise contract carefully, do they have a guarantee and what does it cover and explicitly not cover. In every one I've ever read they explicitly state that sales and marketing are your responsibility and even if they offer national advertising, they don't guarantee customers.
My advise is to start building a client base around the equipment you currently have or can get relatively inexpensive. If you receive a request for a task you don't have the equipment for, rent what you need for that order and build that cost into your quote or hourly rate. As you get bigger and more similar requests come in, then buy. You'll be in a better position to afford it then. Also take out a liability insurance policy. People are likely to be entrusting you with what they consider to be priceless footage and if you ruin their tape you could be looking at much more than the cost of a replacement tape to get it settled. Make sure you explain to your insurance agent exactly what you plan on doing and make sure the policy covers it. (and no, I don't sell insurance).
And I'm sorry, but I can't resist...
Your signature... You want to belive as opposed to what, dead or memorex?

[A_51]

I have not read any material out of these people other than their ad in a magazine and in their web site. They have not identified themselves, at least on this topic besides the invitation via email. I think that the price is really high and really wonder why it is so. I mean, not only you pay 130K but since is a franchise you have to pay around 11% on royalty and others. I think that there is something I’m not seen. Maybe the whole concept is bigger than what I have conceived in my mind but to me that’s still a lot of money and I don’t yet see any benefit to the investor for it to be a franchise.
I only do video as a hobby but I encounter a lot of people that are either technology challenged or simply don’t now how to do the tasks they want. I know a lot of people that want some sort of video job but don’t want to go thru the learning curve, they just want the end product.

[gadgetguy]

... I only do video as a hobby but I encounter a lot of people that are either technology challenged or simply don’t now how to do the tasks they want. I know a lot of people that want some sort of video job but don’t want to go thru the learning curve, they just want the end product.

I have encountered many people like this too, until they have to pay for it. Then it's no longer important to them. That's why I made the suggestion I did.

[rallynavvie]

Hey, I started mine as a hobby and learning mostly on my own (though a large portion of my troubleshooting was solved here ) but I found that niche market which I don't think exists as much anymore thanks in part to cheap DVD burners, availability of easy DVD production software, simple editing suites like Premiere Elements, and a more tech savvy generation of kids who can probably pick up where their parents get stuck and finish up the project

I started off by getting in with event videographers who essentially sub-contracted their projects to me to get on DVD with all the structure the customer wanted. This was a good start for someone with a good DV capture (I still use my old Canopus for analog-digital conversions), professional editing suite (first with AE/Premiere/Maestro then with the Adobe Video Suite), plenty of free time after their day job, and above-average skills with all the associated applications. My day job then expanded my customer base enough so that I could drop the annoying videographers to make better money. Eventually I fell in with some A/V departments with some big companies doing their mastering work and made the majority of my money from copyright. Whenever those companies wanted to order more discs they had to go through me and I charged royalties on every pressed DVD. My burners at home no longer worked other than to produce masters or screeners and most of my production was done at the DVD presses.

After my 5-years in the minors biz I've learned that these pieces of equipment are essential:
- A good digital VTR for capturing from DV/MiniDV/etc. and VHS variants. They jog and move tape to help with your editing/capturing and such (batch caps FTW!) and my little Sony was probably the best $2000 I spent. I'd budget about $4k for one of these.
- A solid video production workstation is going to set you back at least $3000. I'd probably spend about $4k-5k for something that will last a couple years. Get ready to spend this amount every year or two in upgrading to another new PC. Nice thing is you're adding to your production power with each new PC purchase.
- A replicator is going to be your big expense if you're actually planning on doing small-run production (50-500 discs) at $25k for a good one. That price does include a printer but automated DVD production for those quantities is essential. I guess you could always hire people to swap discs in and out of your DVD burner farm for cheaper but that's busch league.
- Lots of time an patience are required. Customers are very exacting when they're spending that sort of money. I have to scrape up some of my old pricing figures but I know the big companies were paying thousands just for the mastering which took about 10-12 days of about 4-6 hours.

[Rob@homeVideoStudio]

Hello everyone. My name is Robert Hanley, I am the President and Founder of Home Video Studio. This is the first time I have posted on this site. I was asked to contribute by A_51. His email got into my junk mail file and I just today saw it so please forgive this late post. I am happy to see that the thread is still on going (although I did see there was a slight side-thread on grammar). Here is part of the original post by A_51:

A couple of days ago a saw on a magazine an ad for a franchise. The name of the franchise is “Home Video Studio” here is a link http://www.homevideostudio.com/index.cfm . It has a cost of $130,000 a royalty of 9% and a 2% for something else. What do you guys think about this? I know that a lot of you are doing business on the field and I will appreciate your opinions and thoughts.

There have been many comments on my business, the franchise I founded and run today. I invite anyone's questions whether they be here in this forum or to me personally via my cell phone (which can be found on my website) or via email.

Home Video Studio is a franchise not unlike Subway or McDonalds. Basically, I teach people how to make money with video. We work with most types of video and video production. We provide up to four weeks of training your first year (Marketing, Sales, Video production, Final Cut Pro, Motion, Photoshop, etc.). We have an annual convention (this year at Disney World in Orlando) and live tech support. There is much more than to it of course. But in a nutshell that is it.

Our Royalty is 7% (not 9% as was reported here) and our Advertising percent is 2%.

Our Studios start at $109,000.00 and can go up to $194,900.00.

If you are wondering what my credentials are, you can read my bio on my website. In short, I attended Film School in the early 80's. I dropped out and started my own film production company in 1982. Throughout my career I have done just about everything from the cheapest little video, to $80,000.00 corporate image videos. TV spots, big and small, shoots in Hollywood and New York, Super-8, 3/4", 16mm, 35mm, Betacam, Mini DV, etc. I have had large crews of 10 or more and have been a one-man band many times. I wrote, produced, shot and directed an independent feature film in 1989-90. However, by 1991, I found myself a starving artist.

I, like many of you started out focused on equipment. What camera would I use? What format? How would I edit? Then, what to do with that equipment. How much to charge? Where to find customers? Back then the film and video business was pretty much a closed business. It was tough to break into. Now days, just go to Best Buy purchase a camera for $250.00 and you are in business. Better get a computer to edit on as well. I would suggest a Mac.

Or, you could pay me $109,900.00 to $194,900.00. Many do. For good reason.

In 1991, I re-invented myself and started just doing small jobs. Since I had got the video production but out of my system, I didn't really care if I ever stepped onto another production set -- or picked up a camera to shoot something. I just focused on making money with video -- mainly post-production. I started making tons of money. In 1998, I made $100,000.00 in net profits working out of my spare bedroom. The next year I started teaching other people how to run their own home video studio.

Home Video Studio today has locations coast to coast in the United States, two in Canada and one in Sweden. I'm not here to try and sell a franchise. I was just asked to post so I did. I welcome any questions. Of course I invite you to our website homevideostuido.com.

Robert Hanley
Founder and CEO, Home Video Studio

P.S. Just 3 more days to the iphone!



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[MackemX]

Advertisement IMO

welcome to the site Rob

as some welcoming advice, IMO I would have asked the admin (Baldrick) before posting all that just out of respect for the rules regarding advertising . Personally I would remove it until given permission to post something like that

sadly it just looks like a very well worded sales pitch to me

p.s. Supreme2K did have a point (although sharp ) about grammar/spelling and giving an impression of being professional and capable

[gadgetguy]

Advertisement IMO

...

I agree, however he was specifically asked to come and post about his business, and as advertising goes, it's pretty low-key (at least what was posted here).
All that aside, welcome Rob@homeVideoStudio.

My earlier comments were not specifically directed to your company, but a general warning to investigate any business opportunity before shelling out any money. Now that you're here let me speak direct. IMO, the value of a franchise is largely in name recognition and until this thread I had never heard of you or your company. The amount of money required to buy in is extremely excessive, even if you are supplying all of the hardware required. You are a self described film school drop out, which does not instill confidence in you or your company. You may have been and may still be very successful, but what I've read of you and your opportunity, it's one that I would pass on.

[Rob@homeVideoStudio]

My earlier comments were not specifically directed to your company, but a general warning to investigate any business opportunity before shelling out any money. Now that you're here let me speak direct. IMO, the value of a franchise is largely in name recognition and until this thread I had never heard of you or your company. The amount of money required to buy in is extremely excessive, even if you are supplying all of the hardware required. You are a self described film school drop out, which does not instill confidence in you or your company. You may have been and may still be very successful, but what I've read of you and your opportunity, it's one that I would pass on.

Well I invite direct questions. And let me say that I am not here to find clients or sell Franchises. That is not our style. Value. That's interesting word. One Man's Value....

A Franchise is a system. It is more than brand recognition (and we do have our brand and our products). Basically HVS is a short-cut to success in the video production and post-production business. By the way, we are No. 1 in most markets in the United states. Yellowpages.com.

I agree you would problably pass on it (us). That's okay. We are not for everybody. In fact, we have a very strict approval process so it is also possible that we would pass on you (or anybody for that matter).

I do like discussions and will welcome any questions as I mentioned earlier.

We rarely sell to established video professionals (I have not read your profile so I have no idea if you are one or not).

And about dropping out of Film School....if I am not mistaken, Bill Gates dropped of Harvard to start Microsoft!

Robert Hanley
CE0 & Founder
Home Video Studio

[A_51]

Hi guys, I been away for a wile. Welcome to the forum Rob. Thanks for join in.

[Rob@homeVideoStudio]

Thanks for the welcome and thanks for inviting me.