Business Plans for Filmmakers

7. The Product or the Film Project

89 7. The Product or the Film Project As with the other traditional headings for the major sections in a business plan, “The Product” is a bit too generic for a film-related business plan. The section may be more appropriately referred to as “The Film,” or “The Films,” “The Motion Pictures” or “Description of the Film Project,” but something more specific than “The Product” and more directly related to the film industry seems preferable. Scope of the project. It is possible that a filmmaker will set out to raise money from prospective investors to produce an educational film, an industrial film, a documentary, an infomercial, a television pilot, a video game, a live stage play or even a feature-length movie just for DVD release. It is up to the filmmaker to define the scope of the project. But it is also the filmmaker’s responsibility to demonstrate to the prospective investors that the project can be commercial in that it can possibly make money for the investors. That’s usually done through some sort of “box-office comparables” or “comparable earnings” research or other presentation relating to the commercial performances of similar projects released in the past (see “Box-office comparables” below). This chapter and most of the book are written based on the assumption that the project is a feature or documentary film being prepared for theatrical release, recognizing that even if the project does not get a theatrical release, it still may be exploited in other markets and media. If another type of project is the subject of the business plan, this information obviously needs to be modified to suit the specific need. Some individuals seeking to raise financing from investors for a film or filmrelated business venture damage their own credibility by appearing to “take over the world.” Their very first venture is so ambitious and out of sync with their backgrounds and anything else they’ve accomplished thus far in their lives that it becomes virtually impossible for them to raise the amount of funds they seek. Nobody believes they are going to be able to do what they are claiming, and even a well-written business plan is not going to solve that. Although it is not the place The Product or the Film Project 90 of a business-plan consultant to tell filmmakers and entrepreneurs that they cannot accomplish what they have set out to do, it is important that filmmakers and entrepreneurs be very realistic about their prospects. In most instances, if a filmmaker has never produced a feature film before, it is probably better to start with a single film project as opposed to seeking investor financing for an ambitious slate of films or a motion-picture franchise opportunity including merchandising and associated video game or a vertically integrated corporate conglomerate. It’s great to think big, but looking at the proposed transaction from an investor’s point of view, the investor doesn’t want to be nervous or scared off because the filmmakers appears unrealistic. The scope of the project or business venture needs to appear doable to prospective investors and consistent with the filmmaker’s background (or the combined backgrounds of the team assembled). This section of the business plan sets out the scope of the project. Subcomponents of “The Project,” when seeking to finance the costs of a single feature-film project, might include a synopsis of the script, chain-of-title information, production strategy, locations and logistics, cast, crew, preproduction, principal photography , postproduction, marketing, distribution, target audience and box-office comparables. Multiple projects or related ventures require additional descriptions. Synopsis. If the business plan is being used to raise development funds, this subsection may be referred to as a “Description of the Story”—the story to be told through the script. If the business plan is being used to raise money for the production of a slate of films, the synopses for the projects to be included or for which the rights have been optioned may be included. Again, a filmmaker needs to be very accurate in describing the situation with respect to whether these projects will be available to include in the slate. In this situation, if there are other projects that have not yet been selected, the filmmaker will want to disclose the factors to be considered in choosing the projects (e.g., specific genres, anticipated MPAA ratings, level of violence, recognizable actors, based on novels and so forth). Once again, based on the...