Small Animation Studio for Ads and Brand Films

Advertising and marketing agencies, brands, property developers, broadcasters and larger businesses.

Project fees quoted per production, often paid in stages, plus ongoing retainers for regular social or campaign content.

• Animation production and project management
• Quoting, budgeting and contracts
• Managing freelancers and deadlines
• Pitching to agencies and brands

• Cash flow, since clients may pay 30 to 60 days after delivery, so ask for deposits and staged payments
• Startup costs add up: high-spec workstations, software subscriptions for each team member, studio fit-out and a lease deposit, plus several months of working capital
• Check whether freelancers are genuine contractors or could be treated as employees
• Workers compensation insurance once you hire, through your state scheme
• Public liability and professional indemnity insurance
• Check software licences for each team member and rights for music and assets
• Check whether you need council approval for premises or a home-based business

Startup costs are typically around $40,000 to $150,000, depending on workstations, software subscriptions per team member, studio fit-out and lease deposit. Also allow for several months of working capital, as clients may pay 30 to 60 days after delivery.

Monthly revenue is typically estimated around $5,000 to $25,000, depending on the clients and projects you win. Asking for deposits and staged payments can help manage cash flow, as that is revenue before wages and costs.

Check whether freelancers are genuine contractors or could be treated as employees, and arrange workers compensation through your state scheme once you hire. Also check software licences for each team member, rights for music and assets, and insurance cover.