I decided to conduct further research on industry experts
and the advice given on creating a structured business plans, primarily in film.
I came across Producer Kevin Geiger, who is most known for Chicken Little and Species. He offers several informative tips on
business plan development for creating films. One tip that he offered that
stood out the most is that it is good to have a production company for creating several
small projects, but when it comes to creating feature length films, it is
easiest to create a production company with the name of the movie. Separate the and use the
production company to serve as the entity for producing a film under an LLC (limited liability company). So, that encouraged me to change that aspect of my business and use the feature film as a business within itself.
Creating an LLC umbrella for a particular feature film opens multiple doors. It provides several tax benefits. An LLC allows the company to deal with investors directly and helps balance out the types of investors that are attached to the film: the investors seeking partial creative control or the investors primarily concerned about the return on investment.
Geiger also mentions that most independent filmmakers
struggle creating a strong business plan pitch. It’s important to immediately
show an investor how they will make their money back. Selling movies is one of the hardest aspects about the film
process. The success of a film is unpredictable in so many ways that the several
questions that will always be asked are:
- How will this movie be released? (Digital, theatrical, or DVD)
- How much money will this movie make?
- Will this movie break even? How much do you anticipating the film make?
- Within the last few years, what other movies similar to this have sold successfully within the marker?
The sections of the business plan that investors will most
definitely look at are the marketing and promotion sections. They will need the
visual on how the movie will reach its audiences and make sure the potential
for profit. Another section of the business plan that investors will be
interested in is the trends in the film industry. Trends are always shifting,
so utilizing the trends will increase the chances of increasing revenue.
A business plan for a film is approached in a non-traditional format, but includes some of the same logistics as a traditional business plan. When the business plan is approached to an investor, the first aspect an investor wants to know is, "How much money will I make back?" Showing how an investor will make return on their investment. It is important to remember to always inform the investors of everything that happens with the film. If anything were to happen, and they felt they should have known and were not informed, the investment could be pulled from the project.
