Filmmaking As Your Small Business

When deciding on a business, some people choose filmmaking.

Other people open frozen yogurt shops.

I should know. Thanks to the frozen yogurt shop (near my house), I’ve eaten a TON of frozen yogurt over the last year. And without mentioning the business, it sure seems like the owner of the shop is passionate about Yogurt, just like you and I are passionate about filmmaking.

Since moving to LA and producing several indie movies (and more recently working with hundreds of filmmakers in my various distribution roles), I realize the major ineptitude most filmmakers suffer from is a lack of general business acumen.

Filmmaking As Your Small Business

Photo © Haider Y. Abdulla / Dollar Photo Club

Filmmaking As Your Small Business

Here’s the deal. Most filmmakers know about the movie business. And these filmmakers usually fall into one of two categories. Either they understand the studio business or they understand traditional independent filmmaking.

In my humble opinion, I think both arenas are based on an old paradigm. In the studio system, the business revolves around asking a lot of folks for permission.

  1. “I finished this great screenplay. It’s high concept and awesome!”
  2. “Would you please read my screenplay?”
  3. “Can we have a meeting?”
  4. “Did you read my screenplay?”

All of which results in a lot of this: “We have decided to pass at this time.”

As an independent filmmaker, many of us also suffer from a similar permission based way of doing business.

  1. “Mr. Investor, if we are lucky this movie will get into Sundance.”
  2. “If we are really lucky, we will get a great distribution deal.”
  3. “And if we are really lucky, we might get a distribution deal.”
  4. “And if we are really, really lucky we will get a 3 picture studio deal, and we will live happily ever after.”

And that got me thinking about this talk about modern moviemaking. Can we now consider movie making a small business?

I mean, if you think about it, all you need to start a small business is an idea, some start up cash, raw material, production and a customer base – and a way to sell whatever it is you’re selling.  And unlike years past, non-discriminatory video on demand marketplaces provide that… So what would modern moviemaking as a small business look like:

  1. We have a screenplay with a strong, well defined concept.
  2. We know our target audience and how to reach them.
  3. We will need to sell 5,000 video on demand downloads to recoup our investment.

Why should we over-complicate our filmmaking?

What do you think? Can Modern Moviemaking be your next small business?

Your comments are welcome below…

Comments

  1. Patrick says

    -5000 VOD downloads to recoup (I assume you’re using a $9.99 purchase as your figure to recoup a $50k film?)

    -With an industry standard conversion rate of 1%, you’d to have 500,000 people view your trailer on your site.

    -In order to drive 500,000 people to your site, you’d have to put a “call-to-action” out to approximately 50,000,000 people (yes, fifty million).

    -what advertising platform do you suggest using to reach 50,000,000 people, at a cost effective rate?

  2. Josue Molina says

    As independent filmmaker and entrepreneur, our goal is NOT to land the perfect “distribution deal” but to make profit and to have complete or as much control of our product as possible. Rather than introduce to investors other movie projection sales (Box Office #s), hold off on it and show them 3 of your self-distributed films and their results. Make your 4th film the big one. By then you’ll be an filmpreneur guru and will know how to make deals. Real ones, not stuff you read on a book.

    If you do land a deal with a big distributor or its that what you aim for: Isn’t it so tempting to go over budget. I say, start small, get familiar with the markets and your audience.

  3. Matthew Saxon says

    As long as you dont restrict yourself to the more creative side of the industry, you can make a lucrative small business.

    As well as offering your skills and equipment to films, short films and music videos, you can also you your time in between projects doing corporate promo’s and training video’s, wedding video’s and offering to record showreel’s for actors.

    Dont be fearful of the less glamorous side of things like wedding video’s…these little jobs can pay very well and will allow you time and even funding for your creative projects.

  4. John Martin says

    Just curious what anyone has to say to filmmakers who can produce a good product with little money and minimal crew but simply lack the marketing knowledge/experience?

  5. Colt Kaufman says

    Great read, and material. Thanks

    Got projects in the works right now and looking to get my sense of direction on launch.

    Colt

  6. Declan says

    Well, yes making my film-making career a small business is what i am doing; weather that be through personal projects that i write and direct myself or working as a producer for someone else. That is the plan.

    However, in this, the digital age; where internet is the provider of all things from paying your bills to a provider of art, music and entertainment and of course a new source of enterprise it is a new game and despite the brief window of opportunity that was available to create an inexpensive production allowing filmmakers to bring something new to the table of their prospective investor(s), i believe that window has been shut.

    I don’t like saying it but any serious filmmaker with any insight at all can see that indie filmmakers had their chance to jump in with VOD and get their films viewed at a meager cost to their audience, has had both that platform and that audience stolen away because inexpensive production costs and the alternative method of getting the films out their via VOD has run its course for the indie filmmaker.

    This has happened because we are not corporations, we don’t have the huge workforce or in deed the money, indie filmmakers are often just one person trying to express themselves we are effectively like the painter, all he or she has is their brush and their talent.

    So it begs the question, what can we do then? I suggest stop attempting to break into the studio system because whenever any other method becomes popular these corporations jump right in and make that new way part of the studio system by another name. I believe the only way to combat this is to use bittorrent to our advantage and back it up with indie cinemas across the world and of course to exhibit our films the way they were meant to be viewed!!

  7. Michael Fitzer says

    You’ve laid the foundation but I’m afraid this is a gross oversimplification of how this industry is evolving and how consumers are consuming.

  8. says

    Unfortunately over-saturation and VOD sites pushing LARGER films, I feel like that avenue is no longer viable to most indie filmmakers.

    Hopefully it changes, but damn is it tough trying to get any movement in that market.

  9. says

    It’s my goal to help all filmmakers feel empowered. Filmmaking was once cost prohibitive. But now, as you mention, the resources are out there. There are no more excuses. This is an exciting time!

  10. nwrann says

    I fully agree with both of your takes on modern movie making, 1) Indie film as small business & 2) Modern Moviemaking manifesto. I used to be a small business owner (I owned a coffeeshop in New Haven, CT) so I know what it’s like to develop a business plan and create a product that has a niche market (we were the first 100% fair trade coffee shop in New Haven and the first wi-fi internet cafe) and figure out the customer base etc.

    Unfortunately, when we started our estimates and guesstimates and hopes and dreams were so pie-in-the-sky we made these “Social Networking Will Save Indie Film” proponents look like grounded conservatives. But the important thing was that we learned A LOT of lessons. And when I embarked on the filmmaking adventure I started applying those business lessons. What a lot of people don’t understand is that by knowing the business it frees the art.

    It doesn’t restrict it.

    Many indie filmmakers think that the art has to be cultivated or about a certain thing to be successful, that the art has to fit the business. The fact is that the business needs to fit the art. There is no reason why a filmmaker can’t make the most low percentage movie about the most obscure thing. But the filmmaker has to realize that they can’t spend a million dollars making it. And in order to do that, they need to look at the 3 tenets of moviemaking as a Small business that you have:

    1) We have a screenplay with a strong, well defined concept.
    2) We know our target audience and how to reach them.
    3) We will need to sell 25,000 video on demand downloads to recoup our investment?

    If the filmmaker realistically knows that they’re only going to sell 1,000 VODs at $1.99 each then their budget better not be over $2,000 and should only be $1,000 if they intend to make money from this venture.

    My question though, is where do you find investors willing to change their mode of thinking that indie film is a gamble relying on the whims of a distributor?

  11. Sabina says

    This mode of thinking, I feel, will empower a whole lot of independent thinkers to get out of the mindset of “If only…” and “I need…”. Truth be told, many of us have resources our filmmaking ancestors couldn’t even dream of literally at our fingertips!

  12. says

    Thanks for your well thought comments. It looks like I’ve found another modern moviemaker to add to the list! To directly answer your question, with a non-discriminatory sales channel, you only need to look to the local wealthy businessman in your home town. Based on those three tenets, the business should finally make sense.

    Again, great thinking and great feedback.

  13. nwrann says

    p.s. The Other Jason Brubaker (www.ReMindblog.com) referred me here about 6 months ago during some conversations I was having with him. good stuff.

  14. Jurgen says

    There’s still a feeling in some parts of the art world (including indie filmmaking) that a real artist doesn’t concern him/herself with commerce. That’s fine while you’re in film school, but the real world doesn’t support that idea very much anymore (the days of generous grants are over). I think your approach is the only way forward, thanks for sharing it.

  15. Peta says

    Its seems really simple, but for some reason it sometimes doesn’t click. You have put it out in a really good way! I absolutely agree with what you are saying…

    Before I produced my first feature (independent Australian comedy ‘The Marriage of Figaro’), I went and did a MBA. My friends thought I was crazy, that i should go to film school rather than business school. But after producing a successful film which i also self distributed in a commercial cinema (for 3 weeks before it was picked up by a distributor) I am very glad that I did it. It armed me with all of the knowledge you need to make a successful film (and helpful after the fact in terms of planning what next).

    In the same way how you have explained, before the ‘The Marriage of Figaro’ was written, we worked out where we thought there was a gap in the market, also who exactly the audience was and then it was written for them and to budget. I wrote a business plan and everything happened according to the business plan (except the self-distribution part – although that ended up taking care of itself after pulling good numbers in the initial release).

    But I’m not advocating that everyone has to have a MBA to make a film, but it definitely helped me. But just looking at what you are doing from a business perspective as outlined above is a good start…

  16. Hunanyankhachatur says

    i really like these ideas that you have,that means you’re very smart what will u suggest for beginners ,like i want to shoot my own movie and don’t know from where to start,the screenplay is mine originally ,i’ve been writing it for 3 years finally i have this very interesting story about life, love, danger, fear,game and etc….. if i shoot this project with the normal crew i’m sure it will shine after because it’s way too interesting,but how you can see dreams needs connections :-) thanks

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