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Cones Technically speaking, the business plan is not a financing vehicle or entity but can be used in conjunction with several other investor-financing techniques to raise money for independent feature film projects.
For example, a business plan can be used with an investor-financing agreement to raise money from one or two active investors. 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 43 Ways to Finance Your Feature Film Southern Illinois University Press.
Another important use of the business plan is helpful in establishing a preexisting relationship with prospective investors for a subsequent securities offering. 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 private placement 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.
The film production company business plan can be very similar to the producer's package except that it is usually bound and may be presented in a more organized fashion. The business plan is often the first step in procuring investor financing, whereas the producer's package is more commonly used for similar purposes in obtaining funding from a distributor or other industry sources.
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.
A business plan can be as simple or as sophisticated as the producer and his or her advisors choose to make it. Like other forms of film finance, using the business plan has inherent advantages and disadvantages.
The advantages of the business plan approach include: There still may be some liability, however, for inaccurate or misleading statements. Disadvantages of the business plan approach include the following: The following is a sample outline of a business plan to be used in promoting a feature film production company:time business, earning extra money freelancing, or working part-time from home.
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THE MARKETING PLAN IMPROVING YOUR COMPETITIVE EDGE. A Marketing Plan is a written strategy for selling the products/services of a new business. It is a reflection of how serious a company is in meeting the competition head on, with strategies and plans to .
This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $).