In a follow-up to our previous blog on film financing, we
will look at elements of our previous perceptions regarding what makes a good
business plan in such an industry. Moreover, the ideas of our chosen industry
leaders Louise Levison and Thomas Trenker are examined specifically regarding
issues. In further researching these 2 leaders, four key areas are immediately
pushed to the forefront. In the case of Levison, writing a business plan that
is thorough and contains elements of trouble anticipation comes to mind. On the
other hand, Trenker’s use of networking events held around the country in the
form of town hall meetings for perspective filmmakers and investors is a novel
approach that is eye opening. Moreover, the need for budgeting for just such
networking events in the initial start up section of a business plan is
essential.
Let's look in depth at both of these processes. As mentioned
in our last blog, Filmmakers and Financing Plans for Independents by Levison
offers a template to any aspiring or established filmmakers on how to create
and in present a dynamic project business plan. As Levinson's conjectures, the
thing that sinks the vast majority of film companies is their lack of
thoroughness in the creation of the business plan. People want to know where
their money will be spent, and how it will be returned on their investment.
Furthermore, once these numbers are established, what can be done to even
further to increase the profitability and decrease area of the loss for the
production company? It is these analysis skills that Levison tries to engender
to the reader (Levison, 2009).
In turn, Trenker brings the keys of networking to creating
an environment conducive to making financing a reality. In the vast majority of
cases, the e-mail box is a wasteland generally populated with large amounts of
spam and useless attempts to market. However, when an e-mail bearing the
possibilities of the finance forums town hall meetings sponsored by Trenker’s
Film Angels appear bearing the weight of seriousness, the opportunity brings the
environment of opportunity. The power of opportunity is reflected in a manner
that not just in making money, but in the profitability long-term. When placed
in connection with the lessons learned from Levison’s approach, this
opportunity translates into a great confluence.
So, if providing a complete oversight of the lessons
learned, the following points are essential.
Levison
- Make your business plan thorough
- Show your investors that you're qualified
- Make sure your investors are repaid in a professional manner
- Plan to make your company stronger in the long term regardless if it is a single project or not.
Trenker
- Networking is opportunity
- Use your opportunities wisely
- Profitability is the result of a combination of factors
When all that these objectives are taken into consideration,
the filmmaker can greatly reduce not just the risk, but chance of conflict in
the long-term financial picture; the return to investors is well thought out
and the filmmakers reputation is greatly enhanced. I certainly incorporated
these areas into my revised business plan.
