Last week I laid out a glossary of general use film financing terms, but the blog ended up a bit too long and dense to be a single post. So, I broke it into two. Last week was the basics, this week is more of the next level, and focuses entirely on investment terms. Some of these may seem tangential and unnecessary, however if your goal is to close an investor, you’ll need to thoroughly speak their language. If there’s something you don’t see here, check out last week’s blog here.
A colleague of mine asked me if I had a glossary on film financing terms in the same way I wrote one for film distribution (which you can check out here.) Since I didn’t have one, I thought I’d write one. After I wrote it, it was too long for a single post, so now it’s two. This one is on general terms, next week we’ll talk about film investment terms.
Pretty much every filmmaker wants to find money to make their movie. Unfortunately, many don’t quite realize that in order to raise the kind of money you need to make anything above a micro budget movie, you’ll generally need a lot already in place. It’s something of a catch-22. Investors need name talent to market the film, and distribution to make it available. Distributors need name talent and a tested team to give any meaningful commitments, and name taken need to know they’ll be paid. There are ways around all of this, but generally they require money up front. This blog is about how you raise it.
They say that most people know whether or not they would get into bed with someone in the first conversation. Admit it, you didn’t realize I was talking about investors giving you money right there, did you? Jokes aside, there are a few key things your investor is going to need to know about your project in order to give you any serious consideration.
There are 3 different documents you would need to approach an investor about your independent film. I’ve written guides on this blog to show you how to write each and every one of them. Those three documents are a Look Book (Guide linked here.) a Deck (Guide Linked Here) and a business plan. (Part 1/7 here) But while I’ve Written about HOW to create all of these documents, I’ve held back WHY you write them, WHO needs them, and WHEN to use them. So this blog will tell you WHO needs WHAT document WHEN and HOW they’re going to use it.
The year is starting to wrap up, so now’s a good time to plan for how to make your career skyrocket in 2019. If you’re not developing a film, you should be. But if you read last week’s blog outlining why we’re likely going to be looking at a recession in 2019, and what that means for the film industry then you might be understandably nervous as to how you’re going to get your work done. So here’s my advice to you.
One of the most common questions I get is where to find investors for a feature film. Inherent in that question is simply where to find investors. While I may not have a specific answer for you regarding exactly where to find them, I do have a set of rules for figuring out where you might be able to find them in your local community. This is meant to be applicable outside of the major hubs in the US, and as such it’s not going to have to be more of a framework than a simple answer.
Most of the time filmmakers seek to raise their investment round in one go. A lot of people think that’s just how it’s done, so they ask would they try anything else?
But just as filmmakers shouldn’t only look for equity when raising money, Filmmakers should consider the possibility of raising money in stages. Here are the 4 best stages I’ve seen, and some ideas on where you can get the money for each stage. There’s an old adage that Investing is like Dating. In fact, I’ve talked about the similarities both on meetings with investors, and dates with people who are qualified to be investors. So as a something of a tongue-in-cheek yet still (Mostly) safe for work post, here are 7 ways courting an investor is like dating.
As a key part of writing a business plan for independent film, a filmmaker must figure out how much the film is likely to make back. This involves developing or obtaining revenue projections.
There are generally two ways to do this, each with their own advantages and disadvantages. The first way is to do a comparative analysis. This means taking similar films from the last 5 years and plugging them into a comparative model to generate revenue estimates. The second way is to get a letter of intent from a sales agent, and get them to estimate what they could sell this for in various territories across the globe. This blog will compare and contrast these two methods (Both of which I do regularly for clients) in an effort to help you better understand which way you want to go when writing the business plan for your independent film. |
AuthorMy name is Ben, I'm an Entrepreneur, Producer's Rep, and Author. I'm the founder of Guerrilla Rep Media, Co-Founder/CMO of ProductionNext, and founder of Producer Foundry. Together, the organizations seek to help make filmmaking a more economically sustainable endeavor. I am dysic, I have capitalization issues, and the blogs are often unedited. opinions all my own. Join my Mailing List for FREE Resources!I'm happy to offer a FREE Resource Package to anyone who joins my mailing list. You'll also recieve monthly digests of my articles and other valuable resources.
My BooksAudiobook Free through Audible.comAvailable exclusively through Amazon.comArchives
April 2020
Categories
All
|
Home |
About |
Services |
Menu |
Contact |
Copyright © 2019 Guerrilla Rep Media. All rights reserved