Mark Simon is an independent animation producer who knows firsthand about the budgeting blues.

As I sit back and watch animators open up shop as independent production companies, and then shut down six months later, I see a growing stain by the front door and I realize it’s time to take my pet peeve, Lowball, on a walk. Let me introduce you to my pet peeve. Lowball underbids and over-promises. Clients see him as a cuddly way to get something produced, though seldom delivered properly, for a rate far below that which is practical. Successful independents see him as a detriment to good business practice.

You see, Lowball is a mutt that is often found hanging around after university graduation and studio layoffs. He may be cute and have lots of talented tricks, be he seldom understands the needs and financials of producing an entire project or running a business. Lowball and his friends in the pound are usually great at the few things they did in school and at larger studios, but they seldom saw the big picture and ran the show.

Lowball, in his youthful exuberance, is quick to jump on a project expecting that his only costs are his time, some paper and pencils, and couple of talented friends that can help out. Without putting together a real budget, they throw out unrealistically low numbers, which often sound large when they think it’s only for two people. Far too often Lowball runs out into the street as a production is moving forward and gets hit by an 18 wheeler of unexpected costs, hardware problems, overhead, the need for more crew, production problems, client delays and changes, and is thrown into a nearby production pond which is over his head.

Lowball, having always been protected from clients in his other jobs, never realized what he was going to run into. When his clients keep taking a week or more to approve things, make changes that cause him extra work and Lowball doesn’t protect himself in his budget or contract, he often realizes that he’s paying a crew to just sit. Who is going to pay for the extra time the crew needs to finish the project? Without a good production plan and contract, it won’t be the client.

Lowball is a nasty pest who can ruin your business.

I have gotten many phone calls from clients who tell me they spent most of their budget on someone less expensive, but it didn’t work and now they would like me to fix it for the three cents they have left. Most other studios will tell you the same story. Unfortunately, that’s usually not possible and everybody loses.

While Lowball and his friends think they will land all sorts of projects by giving low bids, they are both hurting themselves and the industry in the process. They get hurt because their naiveté may cause their projects and business to fail. The industry gets hurt because clients get a false sense of value and expect that everyone should then charge those unrealistically low rates. When projects go way over budget and way over schedule that also leaves a black mark on other creatives.

Some of Lowball’s friends have been very successful, but they knew enough to budget and schedule properly and had help expecting all the possibilities. Of course, most of the successful ones were already producing and directing in a studio environment and had gained the necessary experience. No one likes to hear it, but you still have to pay your dues.

Since I don’t want to clean up any more messes by the door, Lowball needs advice and training in knowing how to schedule and what to charge. There are two great books that will help him pre-plan and budget an animation project. For large projects, films and TV series, he should read Catherine Winder and Zahra Dowlatabadi’s book, . These successful animation producers have written the definitive guide to producing large projects and their book includes a large, blank budget form and sample production schedules. The other book is one of mine, Producing Independent 2D Character Animation. It covers every aspect of producing a short or commercial and it also contains a blank budget.

Quite often, Lowball yanks back on his chain to get away from the budget I spread out on the floor to cover his messes. While it may not be pleasant, it’s a lot better than losing money and going out of business.

The best part of using a good budget template is that it acts as a reminder of all the costs you are likely to incur during a production. By filling in the blanks on a budget you may be reminded of all the copies of the script, the boards, the designs, etc. that will be made for client and crew. Or you may be reminded to budget for software, animation supplies, audio recording, editing and timing. How about the dubs and freight costs? Time and materials to back up your work during and after production? Rent? Overtime? Production assistants? Transfers? Working meals? How about casting expenses? Phones? Get the idea? Production budgets include anywhere from 450 to 700 potential line item costs.