Eric DeeranOne mission — help agency owners build businesses they actually love running.

"Big budget" projects are cool, but they aren't cool if they aren't profitable

1 Oct 2024 · 1 min

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Short excerpt from a YouTube conversation (Eric Deeran - Master Filmmaker channel) about business lessons for creative production. Speakers report that despite reaching $1M in revenue in the first year, they still lost hundreds of thousands of dollars because they did not accurately calculate project profitability. The discussion emphasizes tracking per-project profit, knowing how many clients are needed, validating offers (reactivation), and recognizing that big-budget projects can still be unprofitable.

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And I think another thing too is, is, is really figuring out the profitability of each project and that's, that's a big thing because we were bringing in money and we were, we were a million dollar company in our first year but yet we still lost hundreds of thousands of dollars because we did not figure out what it actually was and what it meant to be profitable. And I think that's been a big thing for us in approaching our new plans is okay now we know exactly how much profit we get so we know exactly how many clients we need to. We need, we know how to get those clients now and you know, and we've only just begun. So. So yeah you guys.
Have literally just started. This was a reactivation obviously. So it's, it's proving out the offer knowing that it works. But to your point too, I think it's super important to know that where it's like you could have projects that are big budget. Right? Big budget but you're not making money on them. Interesting point.