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How I Built a Production Company to $1M+ (And What Actually Made It Work)

By Pete Guzzo

How I Built a Production Company to $1M+ (And What Actually Made It Work)

In 2015 I started Kestum Bilt from zero. No clients. No retainer. No floor.

By the time I handed the keys over in 2024, it was doing $1M+ a year, averaging $750K per engagement, with a 66% client retention rate. In a business where most production companies don’t keep a client past the first campaign.

This is what actually made that work.

The thing everyone gets wrong about production companies

Most people think the job is making good content. It is. But that’s the minimum requirement to stay in the room, not the reason clients come back.

Clients come back because you made the whole thing not their problem. The budget held. The timeline held. The scope changes got absorbed without a crisis call at 11pm. The deliverable matched what they said yes to six weeks ago.

That’s not creative work. That’s operations. And most production companies are run by people who are brilliant at the creative part and have no system for the rest.

What 66% retention actually requires

The industry average for production company client retention is bad. Most clients hire a shop for one campaign and move on, to another vendor, in-house, or nowhere. A 66% retention rate in that environment isn’t a relationship thing. It’s a systems thing.

Here’s what we ran:

Scope lock before creative. We didn’t let the creative work start until the scope was locked and signed. That sounds obvious. Almost nobody does it. The moment you start developing concepts before the SOW is finalized, you’re doing spec work and calling it pre-production. When the budget changes, and it always changes, you have no anchor.

Financial honesty upfront. One of the most expensive conversations in production happens after the concept is already developed, when the client sees the estimate and the number doesn’t match what they had in mind. We had that conversation first. Not after the treatment was written and everyone was emotionally attached to the approach. Before.

NET 60 / NET 90 planning. Big brands pay slow. Navy Federal, Dick’s Sporting Goods, national clients: they are not cutting a check in 30 days. If you’re a small company and you can’t float a large production for two to three months, you will either lose the job or drown on it. We built the cash planning into every engagement from the start, not as an afterthought when the invoice was overdue.

The Seiko/Jimmie Johnson campaign

This one is worth naming specifically because it’s the kind of job that either makes or breaks a company.

80+ crew. Five jurisdictions. A high six-figure budget. Seiko and Jimmie Johnson: motorsport, precision, and a client whose brand has zero tolerance for “we’ll fix it in post.”

We ran it clean. Every jurisdiction permitted and coordinated, every crew position filled with someone who had done that specific job before, every production day accounted for in the schedule with no room for creative improvisation at 2am.

The reason it worked wasn’t talent. The talent was there across the board. The reason it worked was that we built the production system for that specific job before the first call sheet went out.

The Hispanic market play

This one is underappreciated in the production world, which is exactly why it worked.

30+ projects through agency partnerships focused on the Hispanic market. Most production companies don’t chase that work because they don’t know how, or they assume it’s a separate lane. It’s not. The production skills are identical. The cultural competency is the differentiator, and it’s learnable if you build the right partnerships and you’re not lazy about it.

For us it was consistent, recurring work with agencies that needed a shop they could trust to do it right. That’s the definition of retention.

What I’d tell someone starting today

If you want to build a production company that lasts past your first three clients, build the operations layer first.

Not the reel. Not the pitch deck. The project management system, the client communication cadence, the financial planning model for slow-paying clients, the scope documentation process.

The creative work will get you in the door. The operations work is what keeps the door open.

That’s what Kestum Bilt was actually built on.

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