The year was 1999. I knew that I was getting closer to launching out on my own to make my first feature film "The Keyman." I was at 40,000 feet over the Atlantic headed for Spain.
The guy I was seated next to looked like a businessman type. I had a very rough draft of my first business plan and I asked him if he wanted to read it and give notes. He looked through it and gave me some of the best concise advice I'd ever had.
"First," he started, "I invest based on what the idea is and on the people who are to make the idea work." He went on to tell me that the rest was fluff, mostly necessary but fluff nonetheless. He wanted to know clearly what the idea was and who was doing it.
On that flight I came up with what I began to call the three "R's." And these have led off every business plan I've done.
Right Idea
Right Team
Return on Investment
My Executive Summary begins here. Now as I pitched investors over the years, I've added, adjusted and changed some of the info. Probably the biggest addition to the guy on the plane-- comparable picture reports and financial projections. And for that information, FilmProfit has been a great source.
I'll go into all this, including providing you samples from my business plan in the workbook for the "Greenlight Yourself: course. Were prepping workbooks now for Saturday's class in Fort Worth, so if you plan on attending and haven't registered, please hurry and do so. www.s-films.com/pov
Showing posts with label business plan. Show all posts
Showing posts with label business plan. Show all posts
Wednesday, January 27, 2010
Wednesday, February 18, 2009
Self Greenlighting
One of the most common questions I get is how to get started making a movie. So here's a little primer for all those go-getters who have gumption and initiative. This is not how to get H'Wood to hire you to make your movie. This is for those who want to DIY.
1. Have a good idea, and preferably a great script. Whether you write it or talk a friend into letting you have it (and signing an option agreement for a dollar or something), make sure you have clear title to the property.
1B. Find some seed money to pay for the attorney coming up in 2 and 3. ($10K would be a good start).
2. Create the legal entity. Some create an LLC (limited Liability Corporation). Others create an LP (Limited Partnership, with a corporation as the general partner). If you've never done this before, seek an attorney-- each state has different rules.
2B. You'll need to decide how much to raise, what size are the units (mine are typically $5K each), and how the returns will be divided up.
3. Get your paperwork together. For an LP, this might include: The LP Agreement, the Offering Memorandum, Subscription Booklet and Business Plan. Keep the first three together. Keep the BP seperated from the others. The Offering Memo is "every reason why not to invest." The BP is "every reason to invest." Your attorney will create the first three. You'll need to create the BP or hire someone to do it. On the left is the original cover for The Imposter business plan.
4. Now work the phones etc. Call every wealthy person you know. Get appointments. Prepare a presentation. Pitch them at the meeting. Hopefully, you will get them to agree to come in. After their attorney has time to review the paperwork, have them sign the last page of the LP agreement, fill out the sub booklet, and paper clip the check.
5. When you have raised enough-- go make your movie!
1. Have a good idea, and preferably a great script. Whether you write it or talk a friend into letting you have it (and signing an option agreement for a dollar or something), make sure you have clear title to the property.
1B. Find some seed money to pay for the attorney coming up in 2 and 3. ($10K would be a good start).
2. Create the legal entity. Some create an LLC (limited Liability Corporation). Others create an LP (Limited Partnership, with a corporation as the general partner). If you've never done this before, seek an attorney-- each state has different rules.
2B. You'll need to decide how much to raise, what size are the units (mine are typically $5K each), and how the returns will be divided up.
3. Get your paperwork together. For an LP, this might include: The LP Agreement, the Offering Memorandum, Subscription Booklet and Business Plan. Keep the first three together. Keep the BP seperated from the others. The Offering Memo is "every reason why not to invest." The BP is "every reason to invest." Your attorney will create the first three. You'll need to create the BP or hire someone to do it. On the left is the original cover for The Imposter business plan.4. Now work the phones etc. Call every wealthy person you know. Get appointments. Prepare a presentation. Pitch them at the meeting. Hopefully, you will get them to agree to come in. After their attorney has time to review the paperwork, have them sign the last page of the LP agreement, fill out the sub booklet, and paper clip the check.
5. When you have raised enough-- go make your movie!
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