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Wanting to Start My Own Animation Business

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Wanting to Start My Own Animation Business

I've always wanted to start my own animation business. However I know that I probably should start off small instead of going directly for stuff like TV shows and movies and the like as you most likely have to either work your way up to that status or be really lucky. I also plan to really do my homework as I will research with what made successful companies blowup as well as what made many unsuccessful companies go down.

Anyway I really want to open up a studio that specializes in 2D and does 3D work as well (I strongly prefer 2D but it's best to be able to do as many things as possible) to start doing work for online advertisements, television advertisements, web animations, music videos, and the like. I know that sounds small but I figure it would be best for me to work my way up to the top.

Now I have a few questions:

- Will I make good money doing this? (I'm not saying something like millions but how much would you guys expect)

- How much would it likely take to set up a studio capable of performing these tasks?

- How many animators will I need? (I have a general idea, but would like to hear what you guys think)

- How long will it take the business to get underway?

- Should I be using PC or Macs? (I personally prefer Macs but they are pricey, is it really worth it to spend the extra money on them?)

- Is there a lot of work out there for a new studio in the things I've listed?

I've co-owned and operated an animation studio before, here's my answers:

- Will I make good money doing this? (I'm not saying something like millions but how much would you guys expect)

No, you will not. Certainly not at the outset. You will very likely make LESS than a individually employed animator at a established studio--and for at least several years.
Because of the overhead, you MIGHT take home $30,000(Cdn) in the first year, if you are lucky.
If your studio offers a superior product, for a competitive price and in a desired time-line then you can stand to do quite well, and perhaps even grow.
But bear in mind that most studios that open, close their doors or scale down to sole-or small proprietorships within about 5 years.

- How much would it likely take to set up a studio capable of performing these tasks?

Depends on what you are going to offer, and what equipment and space you'll need, plus how many staff.
Office space can be a couple thousand a month, then there's phone, electricity, internet and office supplies--not to mention furniture and workstations. And there's legal stuff like bank accounts, incorporation etc.

You could be looking at as much as $250,000 cold just to open your doors.
If you start out of your home, it'd be a lot less, but you'd still could have to cough up as much as $20,000.

- How many animators will I need? (I have a general idea, but would like to hear what you guys think)

What do you want to do? Commercials? TV shows? Features? Do you want to hire as employees? Or as freelancers?
If the former, you are looking at salaried wages starting from day one. A minimum rate for a decent professional animator is about $1000 a week.
If you hire 10 animators, that's $20,000 on the first payday, plus the wages for your supporting staff.

- How long will it take the business to get underway?

It depends on how soon you can get projects in the door, doesn't it?

- Should I be using PC or Macs? (I personally prefer Macs but they are pricey, is it really worth it to spend the extra money on them?)

Depends upon the software you are going to run, of which you'll probably need to buy legal copies of. So in addition to the computer platforms, you'll need to pay about couple thousand over top each station to get the software to do the job with.

- Is there a lot of work out there for a new studio in the things I've listed?

The only honest answer possible, and the one answer you will not like:

You'll find out....

"We all grow older, we do not have to grow up"--Archie Goodwin ( 1937-1998)

I see thanks. That cleared a lot of thing up. Surprised about how little money I'll make, but than again not really. I mean this IS a long term investment.

Wow $1000 for a professional animator? Maybe I should go for that?

I see thanks. That cleared a lot of thing up. Surprised about how little money I'll make, but than again not really. I mean this IS a long term investment.

Wow $1000 for a professional animator? Maybe I should go for that?

Heh, don't get too excited.
I quoted a minimum expected wage for a pro animator.
In reality, the actual wage can be as low as $500 a week (or lower) and usually rides around $750 in a lot of circumstances.
Wages of over $1000 per week do happen, but bear in mind you need to be very accomplished and talented to get such rates. This is not a case of simply calling yourself an animator, or taking some schooling and expecting such a rate........you need to demonstrate a high level of skill.

The reason you'll make so little money is because projects are not always year-round, and work is not always steady. Animation tends to be a full-time craft, but only a part-time job, especially if you are a freelancer. You can also often factor in revisions into that equation as well, because if the work is supervised and subject to revisions, you will rarely be paid for those revisions, so the fix-times come out of the weekly work time--and that cuts your weekly income proportionately.

Don't forget.......the service work out there is not always animation. Some of it is pre-prod, and animators are not always strong in that area. You might need storyboard artists, layout crews, directors, sheet-timers, clean-up artists, inbetweeners, and supervisors for each category. They all cover specific disciplines in the production pipe-line and have varying skill and wages demands.
For example, a decent storyboard artist should be paid about $2000 a week on average. A director should be paid about $3000, and supervisors somewhat higher than regular talent.

Some people might argue these numbers are too low, some might say they are too high--it depends upon the cost of living in your area. One things is for certain is that if you want to KEEP talent in your stable, you need to pay AND reward them. Just paying people to work on a crappy project is no incentive to stay, even if the pay is good. Crap is crap no matter how much they try to gloss over it.
Likewise, a "sweet" project that pays bottom dollar is a morale-nightmare--because why put your blood and soul into something only to make a pittance doing so?
Running a studio is a business, and artists are notoriously business resistant/aversive.
Odds are very good that you will have to turf 30% to 50% of the talent that walk in your door, because they flake out--and if you set up your business in a small city, you might run out of local talent to use.
Add to it, if the talent malign you (fairly or even UNfairly) you could have talent from outside your area not be willing to work with you, simply based on word of mouth. That can mean the calibre of work you can offer clients will be limited to the talent you have on hand.

Also, your talent will ALWAYS be suspect to leaving for other projects at other studios, especially if those projects are more appealing or pay better.
You can be the sweetest guy in the world to your staff, but it means nothing because talent will tend to be loyal only to themselves.
Its completely unrealistic to assume ( or delude yourself) that all the projects that come into your studio will be interesting and worthwhile.
And no matter what.........you'll be faced with the dilemma of idle time--which is when you have no money making projects coming in.
Its unrealistic to retain staff on hand and paying out $$$ when nothing of monetary value is being produced. Its a business model that almost never works out, and MANY studios have tried it. The money simply runs out, and when it does the only option is to lay off staff--and once they are gone, they will migrate to other studios anyways.
You will then have to hire all-news, unproven talent for the next project.

If you have never worked in the animation field before, I would work as a animator or a producer for AT LEAST ten years before undertaking opening a studio.

If it sounds like I'm trying to dissuade you from this......I'm not.
I'm giving you realistic answers and attitudes from experience.

"We all grow older, we do not have to grow up"--Archie Goodwin ( 1937-1998)

If it sounds like I'm trying to dissuade you from this......I'm not.
I'm giving you realistic answers and attitudes from experience.

Please don't apologize at all. The responses you are giving are perfect. I don't want anything sugar coded just the facts.

So in short this is what I got:

- Stepping into the animation field alone right now is pretty risky as starting out will be very hard as finding work will be few and far in-between. Like yeah I'll make some good money...when I have work to do for a client but those period in-between when I don't get paid is a HUGE black hole. It doesn't matter what route I take with this (spending a quarter million on leasing a studio or some thousands by doing it at home) not getting paid is a HUGE deal. The only way to truly be safe with this is to get your name out by most likely being established before entering the entrepreneur field.

- It's a LONG term investment. Yes if all goes right I'll be making bank, however that's if all goes right as there is A LOT of risk to it and it is a LONG road before getting to a safe haven as finding a fair share of steady clients takes years. Until than it will be like walking through Hell's Highway before getting to that destination.

-[Side Note: Job as an Animator] Being an animator doesn't pay too bad, but it's just average pay. You can make good money doing it but that's only if you're the cream of the crop in talent.

Being honest I would still pursue it if it wasn't for the sheer fact that I'd be making such little money for such a share of time. Personally the more I look into it the more animation sounds like a hobby for me. If I want a taste of the industry I could just have a profession in something else far more stable and higher paying while just creating cartoons at home and probably post them online and submit them to a film festival (I already do the former and a teacher stated that I should do the latter).

EDIT - How did your animation studio go anyway?

EDIT 2 - I still think the things you are referring to may sound a bit too grand for me. I'm mostly going to start focusing on small scale things like website ads and the like just to get started. But I think most of the things you listed will still apply

- Stepping into the animation field alone right now is pretty risky as starting out will be very hard as finding work will be few and far in-between. Like yeah I'll make some good money...when I have work to do for a client but those period in-between when I don't get paid is a HUGE black hole. It doesn't matter what route I take with this (spending a quarter million on leasing a studio or some thousands by doing it at home) not getting paid is a HUGE deal. The only way to truly be safe with this is to get your name out by most likely being established before entering the entrepreneur field.

Its always been this way, and I'd expect nothing to change in that regards.

EDIT - How did your animation studio go anyway?

At our peak, we had a staff of about 15 people, irrc.
I was with the company for about 2.5-3 years before I left it. I co-founded it in 1995, with two other partners, who were related to each other.
After a few years, I came to the realization that their goals and mine for the company were not compatible and I decided to leave to pursue freelance, and did so without regrets.
As I understand it, the studio is still in operation as a small two person proprietorship.

EDIT 2 - I still think the things you are referring to may sound a bit too grand for me. I'm mostly going to start focusing on small scale things like website ads and the like just to get started. But I think most of the things you listed will still apply

There's two ways to approach a studio--singularly, or as a effort to hire others.
If you try it on your own, you are basically just a freelancer doing service work-for-hire. You can pick what you want to do, and cover only your own needs.
If you try a studio with others involved, the stakes change considerably. You have to compromise, adapt, sacrifice and negotiate.....on everything.
Its akin to a marriage, and is probably even more demanding than same.
Your whole lifestyle will need to change to accommodate it.
Its not something to approach lightly.
I learned that I prefer to be a freelancer more than a studio owner and boss.

"We all grow older, we do not have to grow up"--Archie Goodwin ( 1937-1998)

Hmm...maybe freelancing is more of my thing. I mean I even have experience doing so and that's what I was thinking of originally.

Being a freelancer could you please give me some advice?

I'd like to know some things such as how much I'd get paid, how hard it is to find work, and what will be some good things to know about getting started as well as what would be the best way?

Hmm...maybe freelancing is more of my thing. I mean I even have experience doing so and that's what I was thinking of originally.

Being a freelancer could you please give me some advice?

I'd like to know some things such as how much I'd get paid, how hard it is to find work, and what will be some good things to know about getting started as well as what would be the best way?

Most of what you asked above applies to a freelancer.
For other questions, look at this link:

http://forums.awn.com/showthread.php?t=5906

"We all grow older, we do not have to grow up"--Archie Goodwin ( 1937-1998)

Most of what you asked above applies to a freelancer.
For other questions, look at this link:

http://forums.awn.com/showthread.php?t=5906

I see. So there is only money in animation if I'm patient as well as bust my ass off. Seems like I should find a different career and just do this as a hobby. Who knows I might get lucky and win a film festival. :p

But yeah thanks a lot Ken Davis this has been a real eye-opener for me. I still might have considered doing it if I wasn't already on my way in college.

Every manager should always

Every manager should always follow the development of technologies and innovations that appear in this area of business, by the way, have you read about the appointment of Daniel Gordon GLD Partners? This is due to the fact that consumer taste is constantly changing, as are the economic conditions in the country. What was in demand in normal conditions of life may be completely unclaimed in a crisis.

Hello, I believe everyone has

Hello, I believe everyone has wanted to start their own business, and maybe even created someone. I also decided to try my luck and start my own business, but I lacked the necessary startup funds and had to take a loan. I searched for a lender for a long time before finding the best one, and I am glad I invested the time. I highly suggest a service, that goes above and above for its clients. But before you take it, you must be sure that you can pay it off on time.