What separates established industry vets from new company owners is the knowledge that can only come from experience. This knowledge was made incredibly evident when a new client of SYZYGY’s came to us for help at the very beginning of their company’s establishment. They’re a non-union production company led by experienced producers whose collective careers include global campaigns and content for many Fortune 500 companies, celebrities, and well-known brands. They knew from the outset that partnering with the right team to manage their finances was essential. But why? And what difference does starting with a financial team truly make?
In these economic times, any edge—particularly business acumen and financial insight—can be the difference between companies that survive and those that don’t. When a company is new, however, its owners often choose to handle accounting themselves in the hopes of saving money, when in the long run, hiring a financial team early on can increase revenue in the short term and position it for exponential creative and business growth in the future.
The client in question knew the benefits of hiring a financial team from the get-go because prior experience taught them the hard way - a decision fortified by their specialized knowledge. Fortunately, if you are reading this, you don’t have to learn through trial and error; you can learn from the mistakes of those who’ve been there before and lived to tell the tale.
After engaging SYZYGY, the client scaled to $5 million in new billings in their first two years. With a financial department at their disposal during the start-up phase, our client was able to buy themselves time to focus on growing their business while we managed the rest. And they got more than an accountant out of this decision - these critical resources made all the difference in those first two years:
Vetted Resources
“Syzygy gave us perspective and the ability to balance our financial needs while providing good resources. They were helpful in finding the right partners for payroll, banking, and credit.”
Suppose you are attempting to handle your company’s finances on your own or piecemeal a team together yourself. In that case, you might solicit personal referrals from colleagues or friends, which can vary in efficacy. However, working with a third-party financial company means their references have been vetted over time and based on serving client needs. You can leverage these well-established, business-based relationships when finding a bank to get a loan, payroll services, or lines of credit. At SYZYGY, for example, we can help clients get advantageous deals with vendors (banking, payroll, etc.).
Increased Revenue
As the old saying goes, “You have to spend money to make money,” which is true when considering your company’s plan for the long haul. It’s tempting to forgo hiring financial managers to save money. In the short term, that’s true; you’ll save money. But ultimately, you’re leaving yourself financially vulnerable to error and the expense those mistakes incur. By spending now—paying an experienced financial team as soon as possible—you can save money on mistakes like double payments, penalties, poor cash management, fraud, and so much more. Let their expertise guide you and watch your company’s revenue increase in ways you did not expect.
More Creative Capacity
“A lot of owners trivialize the processes that go into being a good production company. SYZYGY has allowed us to be a good production company by following up on all of the other aspects of being good to your partners, the vendors, and the crews.”
As a company owner, you wear many hats, but how many of those hats fit you? Unless you went to school for it, you’re probably not an Executive Producer/Certified Public Accountant. Starting a production company—or any business—is stressful. The last thing you need is to manage too many tasks outside your realm of expertise. Employing a finance team clears part of your plate by elegantly delegating some of your workload to professionals, but what you do with that free time is up to you. Do you want to use that extra energy and brain space to strategize an upcoming slate? Take creative pitch meetings? Win over a new director for your roster? Don’t forget that you’re a filmmaker at heart, and your business moves and vendor relationships enable you to be an even better production partner.
Peace of Mind
“Having a trusted CFO allowed me to focus on sales and growth and allowed SYZYGY to focus on making sure the company was stable from a process standpoint.”
The stress of owning a production company is to be expected, and while that anxiety may always exist, hiring financial managers will ensure financial peace of mind. Evading catastrophe and feeling financially safe is entirely possible when you use the experts to your advantage. With quantitative facts based on hard data, your financial partner is the reality check you need to calm your nerves.
We love working with clients at all stages, from start-ups to well-established shops. What they all have in common is that they know the lasting impact of hiring expert financial advisors. This strategic move is the first of many that signals to us—and the industry at large—that you and your production company are serious about longevity and earning serious money. It’s what separates the big dogs from the rest of the pack.
Had the client we mentioned initially not tapped us so early in the game, some of that $5 million in earnings may have had to be allocated to covering bases and correcting errors. By investing in a financial team from the outset, production companies can avoid costly mistakes and focus on what they do best—creating impactful content. This key decision secures financial stability and paves the way for long-term growth and success. But you don’t have to take our word for it; our client’s results speak for themselves.