How to Start a Video Editing Business in 2025 [Full Guide]

In a world where video is everywhere - from viral TikToks and YouTube tutorials to corporate explainers and online courses - editing has become one of the most sought-after creative skills.

If you’ve ever found yourself creating clips for your Instagram, playing with smooth transitions, or adding music that transforms footage into a story, you already have the beginnings of a video editing career. 2025 is the perfect time to take that talent further and build it into a real business. If you’re wondering how to start a video editing business and make your dreams come true, this guide will give you a detailed overview.

Why start a video editing business now?

Before we dive into how to start a video editing business, let’s consider why 2025 is a great time for this:

1. High demand for video content

Brands, influencers, educators, non-profits - everyone needs video. The shift toward short-form content for social media has only increased demand. But it isn’t just snackable clips that matter - YouTube has evolved into a serious home for long-form content too. Many viewers are tired of having to pay for multiple subscription services such as Netflix, Hulu, Disney+, etc. So, many are moving over to the first free option. In fact, YouTube’s content is increasingly resembling traditional TV: long interviews, episodic series, podcasts, and even game shows. In the UK, YouTube recently overtook Netflix to become the second most-watched streaming service, with long-form content playing a significant part in that shift.

2. Lower barrier to entry

Starting a video editing business no longer requires expensive studio setups or huge upfront investment. The tools have become far more accessible. A capable laptop, quality editing software, and a bit of creative flair are enough to get you started.

Most popular editing programs offer affordable monthly plans or even free versions, so you can begin experimenting right away without going into your savings. Combine this with royalty-free music libraries, stock footage sites, and cloud-based storage, and you can build a lightweight setup that’s fully professional and cheap.

3. Flexible business models

Video editing is one of the most flexible creative careers available. You can work entirely online, take on clients from anywhere in the world, and tailor your services to fit your lifestyle and goals.

Many editors begin as freelancers, taking on contract projects for marketing agencies, YouTubers, or small businesses. Others develop monthly services, providing ongoing editing for social media channels or podcasts. If you prefer something more long-term, you can sell editing packages or create digital assets such as templates, transitions, and editing courses that generate passive income.

4. Scalability

Once you’ve mastered your craft and built a strong client base, scaling your video editing business becomes surprisingly achievable. As your workload grows, investing in a small team or studio setup can transform your solo business into a real agency. You might even branch into teaching, consulting, or selling editing assets. The key is to grow sustainably, maintaining quality while expanding your business.

How to start a video editing business: Before you start

Like any new business, your success starts with a good plan.

Define your niche and services

Defining your niche early is the best way to start. Focusing on a specific type of client or style allows you to deliver better results, build a strong reputation, and streamline your services.

Questions to help you find your niche:

• What do you like to edit? Is it social media reels, YouTube vlogs, corporate videos, event coverage, or short films?
• Who is your ideal client? Are you aiming to work with influencers, small businesses, content creators, or marketing agencies?
• Which video styles or genres have the most potential? Think about which types of editing might be underserved right now.

Once you’ve settled on a niche, you can start creating structured service offerings that make it easy for clients to understand what you provide.

For example:

• Basic: Simple trim, transitions, music
• Advanced: Motion graphics, colour grading, sound mixing
• Add-ons: Storyboarding, consulting, captions, etc.

💡Pro-tip: Using clear tiers (for example, Bronze / Silver / Gold) helps clients quickly see the value of each package and makes pricing straightforward. A well-defined niche combined with tiered services also makes marketing easier, as your messaging can target exactly the clients who need your skills.

Create your brand

For a video editing business, a strong brand helps you stand out in a crowded market and attracts the right clients. Here’s how to define your brand:

• Name: Pick something memorable, relevant, and easy to spell. Your name should reflect your style and the type of clients you want to attract. Keep it short, professional, and easy to search online. You can even use our free business name checker to see if your ideal name is available, helping you secure a name that’s both unique and ready for registration.
• Visual style: Choose colours, fonts, and design elements that reflect your editing style.
• Unique selling point (USP): Highlight what makes your services different. Show what your expertise is, so you stand out among the competition.

Once you have your brand, it’s time to put it out there.

• Website and portfolio: Showcase your best work and client testimonials, and make sure it’s easy for visitors to see your skills and get in touch with you.
• Social media: Online platforms like Instagram and TikTok are essential for demonstrating your work and attracting clients.
• Consistent branding: Your logo, colour palette, fonts, and messaging should be the same across your online presence. Consistency helps you look professional and stay memorable.

What are the legal requirements to start a business?

Before you start editing your first project, it’s worth taking a little time to set up your business properly. Getting your legal structure, contracts, and finances right from the start protects you in the long run and makes your business appear more professional to clients.

1. Choosing the right legal structure

In the UK, you have two main options when setting up a video editing business:

• Sole trader (freelancer) - The simplest and fastest way to start. You’ll have fewer admin tasks and can begin working right away. However, you’re personally responsible for any business debts or liabilities.
• Limited company (LTD) - A separate legal entity that protects your personal assets. It involves more paperwork and annual filings, but can give your business a more professional image and open doors to larger clients.

💡Pro-tip: No matter which structure you go for, ANNA can help you register quickly and without any stress.

2. Contracts and terms

A contract defines expectations, reduces misunderstandings, and ensures you get paid fairly. Your contract should outline:

• Scope of work: What you’ll deliver (number of edited videos, length, style)
• Revisions: How many rounds of edits are included before extra fees apply
• Timeline: Deadlines for drafts and final delivery
• Payment terms: Deposit, milestones, and final payment schedule
• Ownership rights: When the client owns the finished product
• Cancellation terms: What happens if the project is delayed or cancelled
• Confidentiality and liability: Protects both parties’ information and limits risk

Having this in writing builds trust and shows that you take your work seriously.

3. Insurance and liability

Creative businesses often overlook insurance, but this can lead to serious problems, especially when working for bigger clients. You should consider getting:

• Professional indemnity insurance: Covers you if a client claims financial loss due to your work. This is particularly important in the event of missed deadlines or lost files.
• Public liability insurance: If you film on location or meet clients in person, this insurance protects you in the event of any mishaps.
• Equipment insurance: Protects your editing equipment, especially if you travel or freelance from various locations.

4. Data protection

If you handle client footage that includes people or personal information, ensure you comply with the UK GDPR rules. Always get permission before using or sharing identifiable footage, keep files safely stored (think passwords, encrypted drives, and backups), and only hold on to data for as long as you need it. Effective data protection builds confidence, strengthens your reputation, and ensures your business remains compliant with the law.

How to start a video editing business: Financial planning

1. Startup costs

One of the biggest advantages of video editing is its low barrier to entry. You can get started for as little as £1,000 to £3,000, depending on your setup.

Typical costs include:

• Computer or laptop : £700 - £1,500 a month
• Editing software (Adobe Premiere Pro, Final Cut, DaVinci Resolve): £20 - £50 a month
• External storage: £100 - £300 a month
• Music and footage libraries: £10 - £50 a month
• Branding & website: £200 - £500 a month

Total: £1,030 - £2,400

2. Ongoing costs

• Cloud storage and software subscriptions
• Internet and utilities
• Marketing and advertising
• Occasional freelance support

These costs vary, but you can expect anywhere from £350 to £500 a month if you’re going small, and around £800 to £1,500 a month for a medium-level business.

3. Profit margins

Video editing services often command 50 to 70% gross profit margins, depending on your pricing model. Many editors charge £30 to £70 per hour, while premium specialists or agencies charge £ 300 or more per finished video.

How to get your first clients

Getting your first clients can feel daunting, but the key is to showcase your skills and make it easy for people to find you. Start by creating a portfolio of short edits, demo reels, or sample projects that highlight your versatility. Even re-editing publicly available footage can effectively demonstrate your style and technical ability.

Where to share your work

• Instagram reels and TikTok: Perfect for showcasing your creativity, speed, and flair in short-form video edits.
• LinkedIn: Reach corporate clients, agencies, or educational institutions with a professional showcase of your capabilities.
• Freelance platforms: Sites like Upwork and Fiverr are great for landing initial paid contracts and building credibility.

Marketing tips

• Optimise your online presence: Ensure your website and Google business profile are easy to find through local SEO.
• Show impact: Post before-and-after edits to demonstrate how your work improves video content.
• Leverage testimonials: Ask happy clients to provide reviews or written recommendations.
• Offer trial edits: Providing a short sample project can convert potential leads into loyal clients by showing the value you bring firsthand.

Networking strategies

Connecting with the creative community is invaluable. Join Facebook or Discord groups, attend media meetups, and collaborate with videographers or content creators who may need an editor. Many long-term partnerships start through these connections, so be proactive and approachable.

How to handle taxes and compliance

When learning how to start a video editing business, you also need to make sure you are tax-compliant. Your tax obligations will depend on how you register your business. Here’s everything you need at a glance:

Keep digital records of invoices and receipts, and ensure you meet all HMRC filing deadlines at the end of the year to avoid penalties.

💡Pro-tip: Having an accounting software linked to your business can be a lifesaver. ANNA+Taxes helps you stay on top of your finances by automatically tracking expenses, sorting transactions, and generating invoices. It even reminds you about tax deadlines and helps with VAT submissions, so you can focus on running your business instead of worrying about the paperwork.

Lessons from the industry

Starting a video editing business can be exciting, but learning from others’ experiences can save you time, money, and frustration. Here are some key lessons and pitfalls to watch for:

• Always protect your work with contracts: Even small projects benefit from clear agreements that define scope, revisions, deadlines, and payment terms.
• Build a strong portfolio early: Showcasing your best work helps attract clients faster than simply listing services.
• Stay current with trends: Platforms, editing tools, and styles change quickly. Continuous learning keeps you competitive and allows you to charge higher rates.
• Invest in quality tools and software: Reliable equipment and up-to-date software prevent delays and ensure professional results.
• Don’t mix personal and business finances: Always keep separate accounts to simplify taxes and track profitability.
• Don’t undervalue your services: Setting rates too low can make your business unsustainable and undervalue your skillset.

Ready to start your video editing business?

Starting your own video editing business is exciting, but managing the admin, finances, and compliance can feel overwhelming.

How ANNA can support you

• Quick company registration: Set up your limited company in minutes and get everything in one place, from legal paperwork to your business bank account.
• Business banking made easy: ANNA’s business account helps you separate personal and business finances, track income and expenses, and manage cash flow effortlessly.
• Tax readiness: Set aside money for Corporation Tax, VAT, or self-assessment with built-in tools that reduce stress at the end of the year.
• 24/7 support: ANNA’s team of experts is there to answer your questions, any time of day or night.

Pair your creative editing talent with ANNA’s smart tools, and you’ll have the freedom to grow your business without the usual admin headaches.