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

3 Sept 2024 · 1 min

Watch on YouTube

0:54

A short YouTube discussion (Eric Deeran - Master Filmmaker) stressing that high production budgets don't guarantee profit. Speakers describe learning to calculate project-level profitability after an initial year where the business generated about $1,000,000 in revenue but still lost “hundreds of thousands of dollars.” The talk also notes a recent reactivation to prove an offer and emphasizes needing to know exact profit per client to plan how many clients are required.

Questions this video answers

About $1,000,000 ("a million dollar company in our first year").

They said they "still lost hundreds of thousands of dollars."

Chapters

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.