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How My Video Agency Is Doing

It's been a while since I last posted and it's because I've just been so focused on trying to grow my video production agency. Looking back I can't believe it's been three years since I posted this blog post about moving out of being a beginner. I don't feel like a beginner anymore these days but I also don't feel full confidence that I have what it takes to succeed as a entrepreneur.

It is quite a journey looking back at when we first started doing small business videos, we we're paid just a couple hundred bucks; now moving up the value chain, we've closed projects in the five figure range, which is exciting because it allows us more resources to put into the craft and creativity of the video. For example, one of our most recent projects involved renting out a large cross-fit gym and then setting up a 15 ft dolly track, and a fog machine. That was super fun and I really got to experiment with carrying out my directorial vision. One of the most exciting opportunities last year was the chance to pitch to Sandisk. We had always dreamt of having enterprise clients so we we're really eager for the opportunity. The pitch went really well and was accepted, but we found out that many enterprise clients don't pay deposits; Since we're too small of a company we had to turn that project down. It was sad mainly because these past two years I've been so gung-ho on my dream: Making videos for fortune 500 companies -- for Nike, Apple, and shooting television / Super Bowl commercials; and its sad because we had been so focused on growth in the form of high-value clients (which is riskier) rather than growth in client base and while that trajectory looked promising it is abruptly halted by this ceiling.

All of this sounds like I'm getting a ton of traction -- and I think I am, but from a financial standpoint it sucks. Sure, I've cut my expenses down and can survive but I'm not making much money at all. All of our profits go back into the business, and we have super low margins because we use so much budget to make the video look good. The project budget gets spent on equipment, crew, actors, and set dressing, so at the end, there's barely any profit left for the three of us. I wouldn't mind it so much if I felt I had a good grasp of marketing, but I can't seem to find consistency. Certain things have worked. I'm running Google Adwords, and that's been a good source of leads for us for far, but it's not consistent enough and the cost per click is insane.

The hardest part of marketing is knowing that the biz dev responsibility lies on my shoulders. I didn't mind it at all when I first graduated out of college, but now that it's been a few years, I can't help but question myself: Am I just playing around? Am I in the wrong market? Maybe I should do something else

With each passing year the pressure grows. The pressure of making this a sustainable source of income. Like I mentioned before, I personally don't mind a low income because I believe in the Early Retirement Extreme philosophy, but It's hard not to be envious of your friends working at tech companies making such-and-such. And it's not just my employed friends either, I have entrepreneurial friends who are also young and in their mid twenties with growing businesses, and while I'm super happy for their success I can't help but question the lack of my own. I look at my progress from when I was 23 to 24, from 24 to 25, and 25 to 26 and I wonder if this is sustainable going into my late twenties and thirties.

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