Should Freelance Animators Set Up a Limited Company?

A freelancer at work

Part of our job at Bucks is to teach our students to be working professionals, which includes not only the ability to do excellent work at a high level of professional skill,  but also the ability to run a small business and tackle freelance work. Almost all digital artists take on freelance work of one kind or another, and we help our students out by bringing in small commercial projects at our virtual online studio at nano-films.com, giving our students paid experience on live briefs. Being a freelancer involves learning a lot of new business skills, and one of the most common questions asked by students is: "Do I Need to Set Up a Company before I become a freelancer?" The short answer is "no", but it's not quite as simple as that - it all depends on your personal circumstances.

Render Under Caesar What Is Due To Caesar

Both in the UK and the USA it is very simple to be an independent freelancer. You just start working for clients, send out an invoice, and get paid. At the end of the tax year, you report to the IRS or the Inland Revenue all your income, less your expenses (computers, software, travel expesnes etc) and you pay tax on the difference - which is your profit. It's called being a sole trader, and it is very simple to do. It is the same basic structure for anyone selling a product, whether it is a shop on ebay or a stall at the farmer's market. You don't need to register with the Revenue - you jut start trading.

Setting up a company is different. You have to pay fees to set the company up in the first place, to register it, and also to file annual reports, as well as paying annual corporation tax. It's much more of a hassle than being a sole trader, and there aren't really any tax advantages.

So why set up a company? There are three main reasons:

1. Because your customers and clients make you. Once you reach a certain size, plenty of companies won't like doing business with a sole trader. They are used to dealing with companies, and they will insist on it. 
2. Liability. As a sole trader, you are personally liable for everything the company does, down to your last penny.  Most companies are Limited Liability Companies (hence Ltd) which means that if the company goes bust or gets sued - you won't lose your house.
3. It's the grown-up thing to do. Once you start to grow and employ people, it makes sense to have a formal vehicle for your operations. Sole trader status is convenient, but it only makes sense for small operations of low complexity.

In effect, company status is something that, sooner or later, will likely be forced upon you as you grow. It is one of the perils of success. While you are still small then, you are probably better off being a sole trader, but with size and complexity comes the need for a more formal status.

To see more about the benefits and burdens of setting up a company versus being a sole trader, see this link:  http://www.theguardian.com/small-business-network/2013/sep/12/sole-trader-limited-company-freelances

For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks.  

Animation at BFI in London - Raw Shorts on Saturday November 22 - Just £6!

The British Film Institute (BFI) is running a session on animation titled "Raw Shorts" for aspiring animators and film-makers, on Saturday November 22nd in London, at 12.30pm. There will be lectures, workshops and Q&A panels on all aspects of animation production. We highly recommend that our students attend - at just £6 per head this is the perfect way to learn about the industry and maybe even meet some movers and shakers in the business.

National Film Theatre: Home of the BFI at London's South Bank. Photo: Wikipedia

The event is described as follows:

"a look at how animation can bring another dimension to your film, or stand alone in its own right. Filming through a lens has physical limitations on what you can put and do in front of a camera. Animation offers a way of letting your imagination run free and achieve scenes that would otherwise be impossible to shoot."

According to BFI:

"Professional artists, animators and animation software experts will discuss the topic during an on-stage Q&A, followed by a choice of animation workshops and masterclasses on the most popular techniques of animation. At the end of the day you’ll also have the chance to network with industry experts and fellow filmmakers and animators"

To find out more, and to buy tickets, follow this link here:

For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. 

Who Invests in Independent Animated Feature Films?

Photo: Wikipedia

Who invests in independent feature films? And how does the aspiring film-maker find those investors? At the European film finance conference, Closing the Gap, Perrine Hamon of Media Deals, and Thierry Beaugard of Peaceful Fish explained what kind of investors are out there, and how to find them. Any animator who has a dream to make their own independent animated feature film needs to know just a little bit (and possibly more) about the nuts and bolts of movie finance.

The good news is, there are plenty of places that specialise in film finance. Wealthy individuals, government bodies, equity investors - the industry offers many choices. The bad news is, getting your project to them in the right shape to make it investable is a formidable challenge.

Thierry Beaugard of Peaceful Fish

Perrine Hammon explained what it is that his company, Media Deals, actually does. They are mainly interested in financing media startups, rather than making content for film & TV. Media Deals is "a network of investors in the media sector". They have "around forty Investors, and they are always finding more".


Types of Investors


What kind of investor is right for you? And what kind of deal terms are typical in the business? There are four principal types of investors in movies:

Not that kind of angel.

1. Business Angels

Business angels are individual investors, who invest in films "on a case by case basis". The sums involved range from "around €10k to €1m". It's generally their own cash they are putting in, and they generally like to be personally involved in the project. They often invest at the start of the project, helping with its development. Why do they invest? Because of their own personal interests - and also the film's commercial prospects. Usually, a business angel is a very wealthy individual "who really likes movies".

What kind of deal terms will a business angel want? 

The chances are they will want "at least a 50% uplift" for their investment. After all, film is risky. And if they are investing in the company making the film, they will want to take a percentage of the company.

Where are they to be found?

Business Angels tend to "congregate in networks". These include, for example, the European Business Angel Network , the European Venture Capital Association (EVCA), and other loose networks of like-minded individuals. Film-makers might also "try family and friends" for start-up assistance. Many angels are alumni of business schools, former bankers and businessmen. These are the kind of people who might "invest around €10,000 in a movie". They are not easy to find and you will need a credible business presentation to get in the door.

How do you pitch to business angels?

Once you have found them, you will have to "make presentations to groups of angels". A bit like Dragon's Den, but for movies.  The best advice to start with your home market first, pitching to local entrepreneurs and business networks. Especially good are business angels who have "never invested in films" - they have yet to be disappointed.

One problem that film-makers face is that most business angels tend to prefer investing in companies rather than individual projects. Usually they tend to prefer companies, as these can be sold at a profit. Projects are - generally - less profitable than investing in companies.

How Venture Capital Works. Image: Wikipedia

2. Venture Capital Funds

Venture Capital funds, or "VCs", tend to be applicable to bigger businesses rather than very small start-ups. They tend to have "big funds, with a big portfolio, and rather higher costs" than individual investors. Usually, they are "not interested in small projects". Rather, they tend to seek "high-risk high-reward projects, and tend to invest in companies". They usually invest after the development stage, in the "production stage" of the business plan.

How Do You Pitch to VCs?

For a successful pitch, you must have the following in place:

1. Financing Plan
2. Marketing & Distribution Plan
3. Revenue Projections
4. Corporate track record.

It goes without saying that at this point you need a credible producer on board who can help you prepare this kind of material.

Now close the deal. Photo: Wikipedia

What are the Typical Deal terms for a Venture Capital Fund?

VC investors expect to recoup their investment, plus a significant premium. Many will want an equity stake in the company. They will also likely want a revenue share of the IP [intellectual property] rights of the project.

One way to present your own project is to set up a Limited Liability Company (LLC) which holds the rights for the project you are developing. The VC investor will likely get a stake in this company, which is known as a Single Purpose Vehicle (SPV) because its sole purpose is to hold the rights for your film.

Another approach, suggested by Dutch producer Emjay Rechsteiner, is not to give shares in the SPV, but rather to make your investors a partner to the collection agreement [the agreement that governs the payment of revenues for he film]. Why? Because an SPV can go bust. By contrast, the collection agreement is transparent and clear, and that way "you don't have to keep the SPV for 20-30 years, paying for book-keeping and accounts and so on". This approach "gives investors security". The revenue from the IP rights "streams through the collection agency". What you will have in place is known as "The Collection Agency Management Agreement (CAMA)". The agreement is run by a neutral third party, the collection agency, who collects the revenues for the film. If you don't do this, "problems may arise with IP rights over time", whereas "a CAMA helps to keep the rights simple". Other investors however, said that they "would only lend to an SPV". Their lawyers "would not allow him to follow this collection agency model".

3. Public/Private Funds

The size of the sums invested by public/private funds tend to vary from €10,000 to several million. These investors tend to like "projects that satisfy a mix of public and private interests". Some development money is available (generally, development money is the hardest money to get). Usually, there is a "regional spend requirement". In other words, they want you to spend the money they give you in their own region or area. Quite likely they will want a share in the Intellectual Property (IP) as well.

Mediatech investors like companies that make stuff, not just creative content. Photo: Wikipedia

4. Mediatech financiers.

Mediatech financiers generally invest in companies, mostly hi-tech start-ups. These are usually a "marriage of content & technology". Typical deal terms include an equity stake in the company, board membership, and an exit strategy to sell the equity stake within a given time frame. These investors tend to want technology more than content - but the two can and do often go together.


What do equity investors want? And what are the typical deal terms that investors look for in film?
We'll be taking a close look at the nuts and bolts of film investment, and how to structure your deal, in a separate blog post.

---Alex

Secrets of Independent Film Finance Revealed

How do you finance an independent animated feature film? And what is Gap Finance? If you are trying to raise funds for a movie, gap finance is something you need to understand. In brief, it's the point in the funding process where you bridge the gap between what you have been promised, and what you actually have in the bank to start making your picture. At the European Media Forum Closing the Gap, Ian Hutchinson of Silver Reel partners explained what Gap Finance is, and how it actually works.

Ian Hutchinson

Ian Hutchinson introduced Silver Reel as a "quite new" finance company. They are fairly small, and they are in essence a debt fund, that is to say they "they provide finance against tax credits and pre-sales, in other words - Gap Finance". However, it is important to understand what they do not do. "They do not do development and they do not take big risks." So, if you are looking for a business angel or equity investor to get your project started from scratch, these are not the folks to talk to. However, if you've got some of the way towards financing your film, you will need to talk gap finance.

Ian financed over 80 films with Bank of Ireland

Ian Hutchinson described himself as an investor "with a banking background". He has "financed over 80 films at the Bank of Ireland", before leaving to found Silver Reel. What does Silver Reel do? The answer is: "project finance for high end independent films, in the region of £5-40 million. Their credits include Killing Bono, Iron Clad, Railway Man, LoveBirds and Jobs, the movie about Apple founder and entrepreneur Steve Jobs.

Silver Reel gap financed Grace of Monaco

What does Silver Reel Do Exactly?

To start with, Silver Reel "only finance films that they believe in creatively". Ian does not read the script of a movie himself - he leaves that to his creative team - ie script readers. Silver Reel "employ people to read scripts, and to give coverage". [What is coverage? Coverage is the process of giving notes on and evaluating a screenplay - Ed]. In essence, the script readers and Silver Reel "evaluate the value of the product". How do they do this? By "looking at comparable films". They ask themselves the question - "will this film work around the world? What will territories will buy it?". There is a process, and "every box must be ticked". Generally, "buyers [of movies] are conservative". At Silver Reel, "they want everything". In short, they want "great numbers, a brilliant director, a great script, a low budget, a high value for the project, and a star cast". Tick all of those boxes and you are in with a chance.

Film finance is a jigsaw puzzle. Image: Wikipedia

What elements do you need to put in place?

For starters, a sales agent. "Your Sales Agent is the single most important element in the film finance jigsaw puzzle." But beware - they are not all created equal. Before accepting a sales agent on board, you or your producer "should check with your financiers to see if they are acceptable". The question to ask is "are they big and strong enough" to sell your movie around the world?" You should "try to view the sales agent as a friend and ally. Take their advice. They know what people want to buy." According to Ian: "Some sales companies will give you sales estimates up front. These may or may not be accurate", but they are very important. "If your script is strong, the big sales companies will be interested, so you should aim high".

It's all about raising the money. Image: Wikipedia

How does Silver Reel Structure the deal?

Silver Reel is a lender; they will "lend the money" to make the film, although there is (of course) "a fee and interest to pay on the loan". They also "often take a small 5-10% equity stake" in the film. Generally, "it's good for the investors to have an upside if the film does well." In effect Silver Reel is "a lot like a bank". US Banks "may offer gap finance, but European banks do not". Why? Because "banks are very cautious, even Los Angeles banks" who know the business.  How big a gap can Silver Reel finance? "Up to 20% gap finance".


What are the Big Mistakes made by Producers?

The biggest mistake is "giving the Same pitch to different people". Why? Because you must "customise your pitch". Ask yourself "Who are you selling to?" You should also "keep it short". Do you need "twenty minutes to tell your story? No. Keep it to two minutes". Why? Because "sales agents aren't really interested in story; they want to know about the marketing hook". How can they sell the film? Who will want to go and see it?

How does the process work?

Ian "starts off pessimistic". He asks himself "what is the worst case scenario?" After all, "not many films get a US theatrical release - It probably won't happen" for most independent films. As a UK film-maker, you must "have your film pre-sold in UK". Why? because "foreign buyers won't buy your film if you can't sell it locally". You must have the confidence of your local market. Silver Reel "must have a worst-case scenario prepared and ready", else they will not invest. Your home market is "your number one market".

Pixar - making it tough for the competition

Do Silver Reel invest in animation?

Animation "is a greater risk" for Silver Reel, says Ian. Why? Because it "takes longer to make, and therefore costs more money" in interest payments on the loan. Also, "Pixar is so good - they have set a very high bar" for others to emulate.

What you need for Silver Reel to look at your project?

You should "not come to Silver Reel without a director, a script, and a sales agent attached". In other words, "come with as much in place as you can. Silver Reel provides production financing". In theory at least,  they "start to pay out on the first day of shoot." How long do they lend for? "The cycle is usually 18 months to get their money back, from the first day of shooting. If that does not happen, then something has gone wrong." This is where animation can be a problem, because it takes longer.  As Ian put it: "Investors like short cycles. They target a double digit return for investors". Silver Reel is a "relatively low risk fund - they want to protect capital". So, "out of 15 films they have invested in, they have lost money on only one." Who are their investors? The investors are "seriously wealthy people in Switzerland". These are experienced investors, and perhaps just "2-3% of their wealth maximum is invested in film". However, it is good business. "Film is doing well at present - better than hedge funds". What are Silver Reel, really? They are in effect "like a bank deal, but more expensive". However, they are "much less bureaucratic than a bank. Who makes the decisions at Silver Reel? - the three principals" who own the partnership.

You must have a completion bond

How does Silver Reel work in practice?

They start by estimating what the Tax Credit on the film is going to be worth.  To do this, they "need accountants to estimate what it is actually worth" in hard numbers. Silver Reel "will advance 80-90% of the value of this tax credit. They also advance cash on pre-sales". It is hard to get pre-sales, however [A pre-sale is where you pre-sell a territory - such as the UK - to a distributor. In other works they agree before the film gets made that they will buy it from you for a fixed price - Ed]. Pre-sales are still available, but "prices have come down", owing to the overall problems in the film industry.

Overall, "gap financing is expensive". It is "the most expensive bit" of the financing process. Sometimes, Silver Reel "will agree to take cash out of revenues rather than out of the budget, but then they charge much higher fees". This is known as "super gap" financing. Why is it so much more costly? Because it involves "much higher risk". .

Tax Credits: What are they?

"All of them [tax credits] are different. Most tax credits are actually rebates. Most will require you to make your film in that country. Then, you submit your audit and you get cash back from the Government body which offers the rebate." How does it work in the UK?  Here in Britain "you get 20% back from HMRC, though it is actually more like 15-18% in the end". When do you get the rebate? "You get this at the end, so therefore you need to find someone to lend you the cash in the meantime, and also take the risk that you will not qualify." What are tax credits for, and why do governments offer them? "The purpose of tax credits is to create a sustainable industry. Some regions such as Canada will give you a 35% rebate, and Australia will give you as much as 50%."


Completion Bond (or guarantor)

In addition, "a Completion Bond is a requirement"; the film must be bonded. [A completion bond is an insurance policy which guarantees that the film will be completed and delivered on time and on budget - Ed].  Not just any company either; note that "there are just three reputable completion bond companies out there". Why must the film be bonded? Because without a bond, "the risk is too great". What is a bond company? The completion bond company is a company "backed by insurance companies. They guarantee to complete the film". What does it all cost?" The answer is "2-3% of your budget". Why do some films not use a completion bond? Because "Producers don't like it", because it costs extra, and budgets are tight. But, "not many financiers will proceed without one". And, the "bigger the budget, the more financiers will insist on it." However, you can "treat them as a partner - they are there to help. They can look at your budget and see if it realistic or not".

Collection Agents

Collection Agent 

What is a Collection Agent? "A Collection Agent keeps everyone honest". But, it "must be a reputable one. They collect all the revenues". Who are they? "The big ones are Freeway and Fintage", the latter "based in Hungary, run by Dutchmen". What does it cost? The cost is "1% of all your revenues". You need to budget for this, though Ian says that it is "not usually in the budget". What is it for? It is really an "audit process - they are experts in revenues". When someone asks "Where has all the money gone? - They will know".


What about Co-Productions. Does Silver Reel like them?

Co-Productions "add complexity to the legal process. The trouble w co-pros is that there can be too much soft money." [Soft money is government grants, which generally do not have to be paid back  -Ed] Ian is "not sure if there is always a commercial potential" where government grants are involved. Rather, he "wants to see market validation". In other words, is there really a market for your film?


Here at Bucks we want our students to be film-makers as well as good technicians. Animation is not just about learning to move characters around and create a performance (though this is a vital part of it), it is also about telling stories, and learning the craft of film-making. We hope all our students will have a story they want to tell, a story that they will bring to the screen in one form or other. Great films are a marriage of great creativity and great business - only with the help of the latter can a great story come to the screen.

---Alex

For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. And find out about how our online video tutorials work.

Timo Vuorensola, director of Iron Sky, explains how to crowd fund your feature film

Timo Vuorensola, director of Iron Sky, gave a lecture at Closing The Gap, a European conference on film financing, explaining how to crowd fund an independent feature film. Iron Sky was initially funded through online sources, and later on secured more conventional funding on the back of the crowd-sourced contributions. Timo explained how he pulled off such an ambitious and successful project by starting an online fan base to help make his film.

How did Timo Vuorensola develop Iron Sky?

In the late 1990s Timo Vuorensola was a student in Finland, studying film and visual effects, and he began work on StarWreck, a student fan project which was made over seven years for just $15,000. It was a "SciFi Star Trek satire"; the pitch was "Star Trek versus Babylon 5".

Timo Vuorensola. Photo:Wikipedia

The film was crowd sourced by fans and distributed free in 2005 on the web, just before YouTube became huge. Timo describes it as "the first film distributed free on the web". They sold a bunch of DVDs and made "a lot of money".

While they worked on Star Wreck, they began work on their next film, all about Nazis on the Moon, which became "Iron Sky". According to Timo, there is actually an online community that genuinely believes there are Nazis on the Moon. In the end, Timo managed to raise $1 million from the internet. Then, on the strength of this, they were able to raise a further $2m from other investors. Then, having raised this seed capital, they had enough money to get started making the film.

It was the trailer for Iron Sky was the key to their success - it went viral and soon reached 10 million hits on YouTube.




How did Iron Sky get underway?

They began making Iron Sky in 2006. It was filmed in Frankfurt in 2010, some was shot in Gold Coast Studios in Australia. In Australia, they got a very good tax rebate (40%!) and a skilled crew. Also, as Timo put it, it's a "very laid back place - highly recommended".

The film was sold to 70 countries and made "$8m worldwide".

What did the fans contribute?

Timo got the fans to write the lyrics of the Nazi songs, by running an online competition. They used the website www.wreckamovie.com, which helps to raise seed capital for films, and they built their own website at www.ironsky.net

In the end, crowd funding is about "people asking other people for help". But, "you can't ask crowds for big things. You must offer them stuff they can do in 45 minutes to an hour - you have to start easy". Iron Sky got started by creating a global map where fans could "demand to see Iron Sky!" All fans had to do was register and fill out a form.

What was the Risk involved in crowdsourcing?

The risk was quite simple - "failure". Timo was very much afraid of it. But his producer said: "we have no other way" to fund the film. In the end, "the community came together". Timo emphasised that "very few projects work this way though, you have to be very smart". So, how did they do it?

They started out with "a really cool teaser throwing out a hook". (see above at YouTube) The pitch was simple: "In 1945 Nazis went to the moon...in 2018 they are coming back".  Timo owns a small visual effects house, so he was able to get some nice visual effects done for the teaser.

Their website said - Buy War Bonds! You could buy a bond to help finance the film - just like in WW2. What fans got was "a piece of paper which costs €50 and says that you helped to pay for the film". What do the fans do with it? They "frame it and put it on the wall". The website had "lots of information, such as how much they needed to raise from various sources. In the end, €300,000 came from crowd funding.

What were the problems?

Timo explained that crowd investment "is very complicated", with "lots of legal problems". However, as they had no real alternative, their lawyer was "driven to make it work". There are certain restrictions - for example you can "only have ninety nine investors from each country". They needed "cash quickly for the film shoot", so they "got a bank to cash-flow the crowd investment. Norde Bank gave them €1m". The total budget was €7.5m. But, as Timo emphasised, "you need legal advice if you are asking people for money...there are rules & regulations".

Building your online community

To begin with, said Timo, "you must build your community. You must show them first that you know what you are doing. If you just go and ask for money - it simply does not work". But how to start? "You have to start talking with them; there must be participation. How can people help you? You must communicate with them, on Facebook, on Twitter through video blogging - you must contact your fans".

Does the process undermine your creativity?

No. Because film-making is a dictatorship, not a democracy. You have to run it from the top. You can communicate, and share - but they are not there to tell you what to do.

Swastika fortress on the moon

How do you get people excited about the project?

Timo explained that "your elevator pitch is vital" [an elevator pitch is a one line summary of the premise that underpins your film - Ed]. You have to "get people excited, since it is easy to get lost in the web. You have to keep it simple. You need good concept art. The video must be top quality. Your fans may do concept art for you for free". How does that work? "You can create tasks for concept art. People upload their art - other fans can comment on the designs.".

The film has a "long credit roll - the fans get a free screen credit! That alone is worth it for many people. Being in the Thanks section - this has huge value". What about the IP (Intellectual property)? Fans and contributors "have to sign agreement that the IP is owned by the film". The Creators of the movie "have all the rights". There is "an online form for people to fill out. You have to be blunt and honest". It's a case of "You do the work and we make the money", but then, "if you don't like it, then don't do it".

Timo urged that the online community "must be part of your daily routine". You must "Tweet, blog,  do a video...it takes at least 45 minutes a day".

Who runs the website?

Timo suggested that "you may need a community manager on your film". This would be "someone who really understands the web, and can use Wordpress, which utilises a simple code". You must "develop your Facebook, Twitter and blogging presence", since a traditional advertising agency "will be very expensive".

To see more about Iron Sky, visit www.ironsky.net. To buy your own copy of the film (The "Dictator's Cut"), visit this page at amazon. All the images shown here are copyright Iron Sky Productions.

---Alex

For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. And find out about how our online video tutorials work.

Sarah Smith talks about her new London animation studio "Locksmith"

Good news for animators in the UK! A new studio is coming to town, bringing with it the prospect of jobs, creative success, and - at last - a proper animation studio in London. In this interview a few days ago at awn.com, Locksmith Animation founder and director Sarah Smith talks about her new animation venture, which is backed by London VFX house Double Negative, and supported by entrepreneur Elizabeth Murdoch. 

http://www.awn.com/animationworld/london-calling-how-sarah-smith-plans-bring-animation-back-uk?utm_source=dlvr.it&utm_medium=facebook

Here at Bucks we welcome this excellent news - our job is to train our students to be among the best candidates to apply for jobs at Lockmsith when their doors open.  We'll be ready when they are.

---Alex

For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. And find out about how our online video tutorials work.

What questions should you ask a client when you start work on your first freelance job?

What questions should you ask a client when you start work on your first freelance job - or indeed any freelance job? It's your job as a professional to keep everything on track and deliver what you promised. All projects start off full of optimism and excitement, but the scope for misunderstanding is great, and the risk of things going wrong is considerable. So it's worth asking the right questions up front, to ensure that the job goes well and your happy client comes back for more. Below is a list of useful questions to get you started.

What does the client have to spend? Image: Wikipedia

What is your budget?
All clients have some kind of idea in their head of what they can afford to spend. A couple of hundred? A few thousand? A million? The answer to this question is the single most important factor in what you can deliver. After all, with animation you get nothing for free. Everything must be made from scratch.

How long should it be?
Many clients, especially those who have never done animation before, struggle to understand just how long it takes to create. Finding out what the client's expectations are of the length of their project is vital. A minute? Two minutes? Half an hour? Find this out as early as possible.

A screenplay. You need one of these

Does the client have a script?
Many clients have no idea what story they want to tell. In this case, part of your job will be to write a script based on their needs. This can be fun, but also frustrating if the client has no idea what they want. But, you must have a script (also known as a screenplay) before you begin, else you are groping in the dark.

What style of animation does the client want?
Does the client have any animation or images in a style that they like? If they don't know, show them some clips from YouTube in styles that you like, or think you can reasonably achieve given the budget you have. Everyone likes Toy Story, but few clients can afford Pixar quality animation. Part of your challenge is to find a style that the client likes and that they can afford.

What is the deadline?
Next week? Next month? By Christmas? And is the deadline in any way flexible? Unrealistic deadlines are often a deal-breaker.

What is the target audience?
Who is it for? Kids? Businessmen? Adults? Teenage boys? This will affect the style of your storytelling and the tone of the film.

Is there a message the client wants to get across? 
What feeling should the audience have after they have finished watching?

Who is directing? Photo: Wikipedia

Who will approve the work?

Ideally, you want to get notes from one person only. It's a common problem to find that the client that you thought was making decisions has a number of bosses that they answer to, and you end up getting notes from multiple people you have never heard of. These notes are often contradictory and tie you up in knots. Try to make sure that one person is in charge, and that person gives you one set of notes.

What is the final output?
What does the client want at the end? A digital file? Film? A DVD? HD? 4K? What aspect ratio? Agree up front exactly what you will deliver. Sometimes clients want editable files so they can tinker with the edit, which can cause all kinds of problems with incompatible software and non-transferable files.

Payment schedule and contract
It's a good idea to agree terms in advance. Money up front? On completion? Half and half? Big clients will have a standard contract, smaller ones may look to you to draft a basic agreement.

Below is a video made for especially for illustrators, presumably by a freelancer who has been burned one too many times.




The basic lesson of course is to agree as much up front as possible, to avoid confusion, misunderstanding and disappointment later on. Problems thrive in dark corners where both parties make assumptions about what will happen in the future.


For more on the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. And find out about how our online video tutorials work.

Why Animated Films are Box Office Gold

According to a piece in today's Telegraph, animated films are now the UK's favourite, taking in as much of a fifth of all box office revenues. In 2013 animation became the top-grossing film genre at UK cinemas, making almost £250million, a fifth of total box office takings. This is good news for animators, and good news for us at Bucks. After all, we're aiming to be the best place in the UK to learn animation, training our students to be the very best at this rapidly growing and flourishing medium.

Gravity - live action or animation?

The news gets better if you include the visual effects industry as well as animation. Was Gravity, for example, a live action or an animated film? Sure, it had Sandra Bullock in it, but almost every shot in that film was digitally generated. Without animation and visual effects, there would have been no movie.

---Alex

For more about the experience of studying at Bucks New University, come and visit us at one of our Open Days,  take a virtual tour of one of our animation studios, check out what our students think of our course, and see why we're ranked in the top 12 creative universities in the UK. Find out why we're giving free laptops to all our students, and why we give all our students free access to videos at Lynda.com. Also, see what financial assistance might be available to you. Learn which is better for animation, a PC or a Mac? Get hold of a copy of a map so you can find your way around campus, and learn about motion capture at Bucks. And find out about how our online video tutorials work.

What Does an Invoice Look like?

Universities like to talk about employability but we have not always been very good at preparing students for the practical nuts and bolts of the world of commerce. Here at Bucks we're changing this, providing practical guidance for the world of work not just in terms of creative and technical skills but also important practical ones like - how do you invoice a client? Of course, it's obvious when you know how - but terribly confusing when you don't. Below is brief summary of what's involved.

I remember the first time I did a freelance job for an independent production co, back in the late 1980s. The job was a breakfast cereal commercial for Passion Pictures. Today, Passion is one of London's leading independent film-makers, then it was a fledgling start-up in Soho. I was very inexperienced, trying not to show it.

Andrew Ruhemann, who founded Passion, asked me to prepare an invoice for the work I had done. An invoice? What was that? I had no idea what one even looked like. Too embarrassed to ask (I was doing my best to look like a pro), I ended up producing a hand written bill on a scrap of paper that would have put a plumber to shame.

You can and will do better. At the top of the blog is a sample invoice, taken from Wikipedia. It includes all the vital information that should be on an invoice. This will include:

1. A heading at the top, saying "Invoice"
2. Your name, your own brand, or your company name (if you have a company). If you don't have a company, you can put your own name or simply a trading name, which can be anything. "Awesome Animation", "Garage Films" - or whatever. A trading name is just that - the name you trade under.
3. Invoice Number. These should be sequential. Begin at number 1 and start counting.
4. Today's date.
5. Your terms. These are usually "payment due within 14 days" or thereabouts.
6. Supplier name and address - that's you, the supplier of services
7. Client name and address - that's the person or company you are invoicing.
8. Description. This is a description of the services you have done. Be as specific as you can.
9. Amount owed. This is the price for the job. This should be agreed with the client in advance. Clients don't like nasty surprises. You won't need to charge VAT yet (unless you turn over more than £75,000 a year) so you can leave that at zero.
10. Your bank details. Without this you won't get paid.

Below is a sample invoice based on the ones that I typically send out for freelance work. Adjust it to suit you own preferences. Copy the format, and make it look pretty!


Always make sure you double-check every invoice before you send it out. Nothing is more embarrassing than getting it wrong - and clients will not appreciate it.

Which leads us to the last important question: how long should you wait for payment before chasing up your invoice? The answer is: not less than 4 weeks. Chasing clients after a few days or even a week or two is bad manners, whatever the payment terms on your invoice. Most companies tend to do their accounts once a month, so anything less than that and you will simply be outside the payment cycle. Generally, for bigger companies, you will have to wait longer. Be patient! Everyone pays in the end. Apart from criminals of course - and why would you do business with them?


 
(Editor's Note: For more information on working as a freelancer, check out our recent post on Portfolio Careers.  For advice on careers, check out our guide to animation careers here. For more on what studios look for in a great demo reel, try this link, hear what London's Blue Zoo has to say about finding work, and take a look at this video by Sony Pictures Animation. You can also watch Alex's ten minute video on creating a great reel, and read this post on the perfect demo reel. Also, check out our guide to animation careers here, and also take a look at this map of digital studios - a great place to start your search for work in the business. And don't forget to read our guide to putting together a great CV.)