HOW TO START A VIDEOGRAPHY BUSINESS

The moving images have almost replaced the conventional still photographs with people opting for films of social gatherings, religious, political and marriage functions, etc. The technological advancement has brought the video close to people, which has led to the tremendous growth of videography studios centres even in small towns and villages. The project cost is NGN 925,000 and the estimated annual revenue is NGN 31,200,000.

Production Process, Capacity and Technology

The operating process involves simple steps. However, much depends upon the skill and acumen of the person handling the camera. Equipment; Video Recording Equipment is bought and put in place. Trained and specialized cameramen take the positions of manning this equipment. It is not easily quantifiable as this depends on a number of factors including the quality of the recordings being given out, the charges, etc.

Capital Investment Requirements (CBN Exchange rate – $1 to NGN 380) as of 7th of May, 2021)

Capital Item	Qty	Price Per One NGN	Amount (NGN)	Amount (USD)
VHS/SVHS Video camera	1	200,000	200,000	526
Lighting	2	30,000	60,000	158
External Microphone	2	50,000	100,000	263
Computer	1	150,000	150,000	395
Computer Software	1	50,000	50,000	132
Labelling Machine	1	120,000	120,000	316
Camera Accessories	1	80,000	80,000	211
CD burning and recording deck	1	15000	15,000	40
Other Equipment	1	150,000	150,000	395
Total Cost			925,000	2434

1. Production costs assume 312 days per year with a daily capacity of 2 video coverage.

2. Depreciation (fixed asset write off) assumes a 4-year life of assets written off at 25% per year for all assets.

3. Direct costs include materials, supplies and all other costs incurred to produce the product.

4. A production month is 26 workdays.

5. Currencies used are Nigerian Naira and US Dollars.

Production and Operation Costs

Direct Materials, Supplies and costs

Cost Item	Unit Cost NGN	Qty/ Day	Pdn Cost/Day NGN	Pdn Cost/Mth NGN	Pdn Cost/Year NGN	Pdn Cost/Year USD
Direct Costs:
Video CDs	100	2	200	5,200	62,400	164
Rechargeable Batteries	2500	0.5	1250	5,000	60,000	158
Sub-Total					122,400	322

General costs (Overheads)

	Cost Per Month NGN	Cost PerYear NGN	Cost PerYear USD
Utilities	2,000	24,000	63.2
Selling and Distribution	30,000	360,000	947.4
Rent	4,000	48,000	126
Depreciation	10,000	120,000	316
Miscellaneous Expenses	8500	102,000	268
Sub-Total		654,000	1721
Total Operating Costs		776,400	2,043

Project Product Costs and Price Structure

Item	Qty/Day	Oty/Yr	Unit Price	TR/YR NGN	Total Revenue(USD)
Videos, Films, Movies etc	2	624	50,000	31,200,000	82,105

Profitability Analysis Table

Profitability Item	Revenue Per Year NGN	Per Year Revenue Per Year USD
Revenue	31,200,000	82,105
Less Prod & Operating Cost	776,400	2,043
Profit	30,423,600	80,062

Market

The use of electronic media has created a favourable climate for the filming of all programmes and events among all sections of people in society. This can be done to generate higher incomes even in rural areas. Advertising is needed for this project to quickly pick up demand.