This, thereby, provides a quarter by quarter financial picture for the investor for at least three years or even five years. Though in today’s world of transferable tax credits and rebates the cash flow statements might become more complex, they should still show a profit.
However, these statements are always based on revenue projections (hopefully provided by a professional sales agent) on a film yet to be produced, so in the real world most independent films do not live up to the expectations of the projections made in the plans.
It is a well-known fact that getting the money and paying it back is the most difficult aspect of independent filmmaking – actually shooting and making the film is the easiest part! ...maybe, but no matter what, your business plan must look and feel professional.
Well presented, bound, well written with quality graphs/diagrams, quality paper and printing. To many plans come from generic templates and they all begin to look the same but with different titles.
The producer's package might include, for example, a screenplay, a list of credits for key persons attached to the project and a proposed budget, whereas a business plan might include a synopsis of the screenplay, narrative biographies of the key persons attached to the project and a use of proceeds section, which corresponds closely to the budget top sheet.
Independent Film Business Plan Drafting An Essay
A business plan can be as simple or as sophisticated as the producer and his or her advisors choose to make it.
Thus, the business plan becomes a method for conducting a general solicitation while looking for active investors, and if the active investor campaign does not prove successful, then the use of the business plan can be halted, a three or four week interim waiting period can be observed and then the information in the business plan can be converted into a private placement securities offering memorandum for the purpose of seeking investments from a larger group of passive investors.
If the approach is used for the subsequent securities offering, those persons contacted during the active investor general solicitation (using the business plan) may be approached as prospective investors for the private placement since the initial contact with those prospective investors is likely to be sufficient to establish the preexisting relationship which, although not technically required by the federal securities laws, still is an important element in proving that no general solicitation occurred.
It can be used with a joint venture agreement to raise money from another entity also acting as an active investor/joint venture partner.
In limited circumstances, it may also be used as a means of identifying possible founding shareholders for the initial incorporation, a strategy discussed elsewhere in the book Another important use of the business plan is helpful in establishing a preexisting relationship with prospective investors for a subsequent securities offering.