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Putting The Pieces Together
Final Part III: Starting A Studio  By: Kenny Roy, AnimationMentor.com Mentor When contemplating the industry's future, it is clear that content-creators will influence with the greatest sway the evolution of our lofty craft. Already observable within internet distribution, old-guard media giants are putting more faith, more credence in the indie filmmaker and the YouTube star. It only makes sense that animation is becoming a more commonplace artistic endeavor; the sheer access that an individual has today to create their own vision is like-able to the advent of the printing press, or the impact that camcorders' meteoric ascent in public popularity had on our sister-art, filmmaking. Fact is, kids got 'puters these days that would whip even the fastest production boxes not 5 years ago. And with off-the-shelf software consistently improving ease-of-use, speed, and functionality, today you've got a formula for success for the independent animator. How are you going to get the people together to create your project? The funding? Is it even possible to create a studio out of nothing? I dare say while very risky, starting a studio has been the most rewarding thing I've ever done. Besides marrying my wife. (I have to say that, she reads these. Hi honey.) It is because I have set a goal for myself (which I vociferously encourage you to do if you are opening up shop) that is teetering above my head like a carrot on a stick that makes going to the office an incredible experience every day. Booting up the machines, making some coffee, and sitting down to work is like a dream come true. So, I'm sure you're sold by now. But before you quit your day job, there are a few things you should know about starting your own studio. First, let's define some terms. You are going to actually have to start a company. That is a different process in each state, and certainly each country, so hiring a lawyer or doing good research on the kind of company that best suits the needs of the animation industry (LLC, C-Corp, etc.) is an arduous task, however necessary. (I am not qualified to advise anybody on what kind of company to create, but I will say that Arconyx Animation Studios is an LLC). So, starting a studio does not mean clearing off a card table in the garage and inviting your friends to work there for free while you get ‘established.’ The only thing that comes of free work and 'good-faith' arrangements is bitterness. Avoid it categorically. To do so, you're going to have to wait for that first project to come along, but that is a good thing. Here's why: It is a little-known fact to the artists that a studio is actually an extension of a ‘production,’ which is an entity that can only exist in the space surrounding a living PROJECT. Therefore, while productions will move on to new projects, furthering their agenda by 'producing' the work (hiring the companies, including animation studios, to provide a service), a studio cannot exist in a vacuum. This is the reason that in slow times, studios will normally lay off their entire workforce. It is simply too costly to have a full time staff, and so freelance artists who can be hired and fired quickly are the mainstay of the VFX and animation studio life cycle. So to get back to the point, a studio IS a project, and a green-lit, funded project is, for all intents and purposes, a STUDIO. So, by being awarded a budget, you are effectively being given the money to fund your studio for the duration of the work. It's that simple. Chain a few projects together successfully, and before you know it, you've been open for a year. Second, and just as important, you must have a goal. Understand that in this business, there is "Meat and Potatoes" and there is "Dessert" (Thanks Angie for the terms). You have to eat your meat and potatoes before you can get your dessert. Your goal may be a feature film in a few years. But to get there, you have to take on the gritty stuff first. For small startup animation studios, the majority of the contracts that bear resemblance to the allegorical 'low-hanging-fruit' are going to be small mash-up jobs by first-time or one-time clients. Similar to the issues you face being a freelancer, when owning a studio you go for the jobs that for some reason do not have the high profile appeal that would make a bigger or better established house place a bid, but are bigger than you alone could complete. These again include museum films and ride films, game cinematics, Internet webisodes, corporate videos, cable TV commercials, and the like. These projects will keep the lights on, and are vitally important to pursuing and completing. What they will allow you to do is accrue two VERY important facets in achieving your goal: Capital, and Talent. With a hopefully respectable profit margin on the work you do, putting aside a certain sum for development is a great idea. Creating your own shorts from your studio is a great way to get recognition. It's also a good idea to have a bit of a cash-buffer in the case that you must bid a very slim profit on a great project or for a high profile client. Not putting yourself out of business to get the work is essential to keeping your company from closing its doors. And as far as talent goes, it all comes down to people. Finding the right person for the job entails not only technical and artistic assessment, but teamwork and proactive attitudes, especially at the boutique level. Treat your employees how you would like to be treated, and you'll enjoy all the success you deserve. I mentioned this next comment back in the freelancing article, but it bears repeating: Make sure you devote a little time every day towards getting new business. Since your studio will have to effectively close down if you can't string projects together, your aim should be to always be talking to the next client while working on the current project. This process may eventually become too much for one person to handle, which may mean hiring representation. There are a few people out there that would ask for a salary, and I would avoid them. A better deal is to give a certain percentage of the budget for work 'brought-in.' Getting someone to SELL your services can be the best thing that happened to you. One thing that you are going to have to face, in any industry really, is competition. And an unfortunate aspect of the animation industry right now is that bidding wars are getting ugly. Studios desperate for the work are willing to take on projects even at a loss, but it doesn't have to be that way. You see, the way that a project is created, is ultimately up to the producers. But they are normally making their decisions based solely on past experience, and current 'trends'. That means that sometimes you can actually protect a producer from his or her SELF by educating them on how best the project can be conducted. Let me give you an example. I have actually been asked by a client over the phone if I was going to employ facial capture on a project – when I asked why they thought it would be a good idea, they replied “I don’t know, I saw it in a magazine and it looks really great.” When I recovered from the disturbing image of someone thumbing through a magazine in a dentist's office, stopping to stare at a single frame of a face to later call me and tell me that facial capture “looks really great,” I realized that this is the best time in the world to be out on my own. I explained that the facial capture system is not geared for cartoony performances, and even if mapped correctly, would take lots of cleanup to bring out the funny facial performance that they are going for. Understanding that I just saved them lots of money, the producers were appreciative, and more importantly more trusting of my expertise in bidding their project. Working with clients who hold an interest in how the process works is, I’m afraid to say, FUN! When you can explain that being educated in the animation process saves production any amount of money, it is very rewarding – especially when it means winning a case for establishing a keyframed performance and not having to settle for enslaving your studio to 'trends' like mocap. A simple example of how studios can change the industry is this – imagine if a producer is dead-set on a mocap performance, but no studio bids on the project unless it's keyframed. Win one for the craft in your pursuits. This article can only scratch the surface, unfortunately. There is no way to prepare for owning a company, and being responsible for people. I could write a book on the things that I've learned so far, but it would not be a book that you should read; you need to learn these things on your own, and soak up the experience like I have. For some additional, ongoing musings on the trials of creating a VFX company, you can visit My Blog (www.kennyroy.com), my company webpage, which I will be updating with projects as we go along, (www.Arconyx.com) and a fellow animator who, like myself, is breaking out into the world of VFX house ownership (http://www.marcbourbonnais.com/blog/). A good read. After a few projects under your belt, your studio should be functioning like a well-oiled machine. Also, with a clear goal in mind, you can be assured that the probability of being able to attain your dreams as an artist can be realized. Finally, by working WITH your clients to establish the most cost-effective, highest artistic method of creating the work, you will play a part in turning the self-destructive trends of the animation business around... ...And that means more work for all.
Look forward to working with you, Kenny
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