DEVELOPMENT Business Plans

Business Plans are a necessary component of every successful film's development.

 

The movie industry is often referred to as the Entertainment "Industry," or the Movie "Business." The terms remind us that unless a film makes money, there will be no next film. For this reason, this detailed document, that lays out the life cycle of a film, is not called a Film Production Plan but a Business Plan.

 

We always write business plans. For documentary clients they usually take the form of a proposal that covers everything from the creative treatment (and perhaps a completed script), to the production schedule, cast and crew attached, the budget, and a distribution plan.

 

Business plans for feature motion pictures, however, often require a budget equal to that of a small documentary. We've written a few. They need to make the case for profitability, and thus must detail:

 

  • A long list of financial Risk Factors and why the project may likely fail.
  • Federal Security and Exchange Commission investment Regulations.
  • The production company and it's management.
  • The script, the story and ancillary products.
  • Bios of confirmed on-camera talent and crew.
  •  A Low, Medium, Medium High, and High production budget by department.
  • Financial projections of the earnings of earlier comparable films.
  • Production schedule.
  • The current financial state of the Movie Industry.
  • Distribution schedule by channel.
  • Marketing plans.
  • How money will be raised, tracked and accounted.
  • How and when investors will be paid back.
  • Financial projections and cash flow for the first five years
  • Copies of the deferral agreement, insurance requirements and tax credits, and...
  • The all important Return On Investment calculations for the different budget and funding scenarios.

 

 

State of the Industry: Ticket Sales Trends

State of the Industry: Home DVD and VOD Sales Trends

Release Schedule in Months

Comparable Films Financial Performance Summaries

Production Budget: Four Alternatives

Return On Investment: Three Performance Scenarios