An example is that you may use a business plan to send out to the world to describe your market, investment opportunity, film genre, production advantages and more, but legally, you will need distinctly different documents before you are able to accept any funds from anyone. Anne Expert CFP, CLU, Financial Advisor The Financial Group Believe me, first impressions really do count. Importance Of A Business Plan For Film Projects, FREE How to Write a Film Business Plan Course, Six Things You Absolutely MUST Know before raising money, 10 Things You MUST Do To Attract Film Investors, Financial Projections Passive investors are the route the large majority new or somewhat experienced filmmakers will take. Accordingly, investors may receive back less than originally invested. It is not a complete legal agreement, like the PPM, but offers guidance and a lot of legal language that can be re-used. Welcome to Filmproposals, the site for Independent Film Makers serious about raising film financing. We expect to be paying higher costs in marketing and advertising than other companies as we attempt to build sales volume. With businesses that have a full financial plan in place more prepared to pitch to investors, receive funding, and achieve long-term success. We are assuming approximately 75% sales on credit and average interest rates of 10%. Your business plan can look as polished and professional as this sample plan. Thank you! I'm now sending out my completed business plan/film proposal document to potential investors and the one comment I'm getting back almost immediately is that it's so well laid out and professional. We have budgeted enough investment to cover these losses and have an additional credit line available if sales do not match predictions. These sites contain information that has been created, published, maintained or otherwise posted by institutions or organizations independent of CLS Investments, LLC (CLS). The producer's package rarely (as in never) applies to a first time filmmaker or one without established studio and entertainment connections. Strangers outside of the entertainment industry cannot legally, and will not invest, in a producer's package. If you want to ask the public for investments and you do NOT want to register your security with the SEC (which is like $50K or more and extremely complicated), then you must follow certain rules. Previously, this same Film PPM was used to raise funds for: A new Film PPM will easily cost a filmmaker upwards of $10K, however, you can pay an attorney for a few hours of time to review a prepared document and suggest changes. Regardless of whether pursuing active or passive investors, many filmmakers, especially those fairly new to the industry, will create their business plans and financial projections. :) ) The information is clear and easy to understand, and Melissa is very prompt in answering emails. A business plan is a foundation, or rather a springboard, towards the establishment and growth of a new business.A business plan is an essential tool for companies raising capital—and your business plan needs to be investor-ready. Easily write a business plan, secure funding, and gain insights. Keep reading to see the differences between a Film Business Plan and a Film PPM. 17605 Wright St. Omaha, NE 68130. The real Most film/theatre projects are financed through a ‘limited’ or ‘private’ offering exempt from the otherwise expensive and time consuming securities registration requirements. Alternatively, we offer our Film Investor Agreement Outline which includes explanations, sample clauses and key sections geared towards active investors. These are considered to be conservative in case our predictions are erroneous. It is almost always prepared by entertainment industry professionals for entertainment industry professionals, most of whom have their own in-house counsel. With several hundred articles and experts around the internet, it is difficult to make heads or tails of which tools-templates-documents and professional services you need and those you may want. This is the large majority of FilmProposals.com customers and site visitors and to whom this article is directed. To save a ton of $$$$ in attorney fees, we provide a PPM template for you that comes with a full PPM, Articles of Incorporation and a Subscription Agreement. If they only pursue active investors, they have all the information they need, except a financing agreement. I know by now you should know the different financial services that people invest in , so I don’t need to start telling you what you already know. 2042-CLS-10/24/2018 Phone: 888.455.4244 or 402.493.3313 17605 Wright St. Omaha, NE 68130. It’s also one of the most vital. Our long-term loan will be paid off in ten years. Example Producer's Package: "UTA is packaging this and arranging the financing, and the agency reps everyone in the package but Weng, who is at CAA, and Storm, who is with Franfurt Kurnit and Romark Entertainment." CLS does not necessarily endorse or recommend any product or service described at these websites. 8 Alternative Funding Options for Small Businesses, 3 Steps to Figure Out How Much Money You Need to Start a Business, See more articles in Funding a Business », How To Transition From Corporate To Consultant and Win Your First Client, 8 Construction Industry Digital Marketing Trends to Leverage in 2020, How to Plan and Budget for an eCommerce Website, See more articles in Starting a Business », How AI Tools Can Help You Optimize Your Marketing Budget, Why Niche Audiences Are Important and How to Find Yours, Segmentation vs. Personalization — Differences Explained, See more articles in Managing a Business ». This is most often called a Subscription Agreement (and is included in our PPM template). The following table shows the projected balance sheet for VSS. Second, is the intention of two documents and how they will function during fundraising. This is the large majority of FilmProposals.com customers and site visitors and to whom this article is directed. Before making any commitment to a specific format for any of the discussed matters, it is important to obtain professional legal counsel. As shown in the table in the Appendix, we expect monthly profits to begin in December 2003. We do not expect to have any short-term cash flow problems even though we will be operating at a loss for the first nine months. The Business Plan, though not legally required, is a commonly used tool to attract and set discussions with potential active investors. Hi Melissa! Read more on Accredited Investors and be VERY clear on how and to whom you are able to advertise before you publicly ask for any money.