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Most investors are seasoned business professionals who manage their money in a superb way. They have run successful enterprises and will know how to evaluate your business. (Yes, your movie is your business.) If you present a project with inexperienced management, lack of star talent, no distribution deal in place with no clue how you’ll return the money, prospective investors will quickly realize the inherent risks of your project. This is assuming you can actually finish the movie on time and on budget. Good luck!
While risk tolerance is different for every investor, your project becomes more appealing if you find ways to convey an upside for minimal risk. In this regard, one of your biggest challenges is to make your movie good business. If you’re pitching a business project that has no revenue generating framework (your movie is not yet made and there is no distribution) you will need to find selling points other than than an invite to the wrap party to make your project appealing.
Fortunately for you, a strong script can open many doors to name talent. Name talent can increase your odds of a distribution deal. Distribution can create the opportunity for ROI (Return on Investment). If you put all the pieces together and the stars align, then you may have something worth presenting to investors.
What is name talent? To find out, use the grandmother test. Ask your grandmother if she ever heard of Jason Brubaker. If she has not, chances are I’m not a name. Then ask if she ever heard of Tom Cruse. Chances are she has. So as a rule of thumb, if your grandmother has not heard of a particular actor, neither has the potential investor or paying audience.
The good news is, to the rich, 100K feels like 100 dollars. So money isn’t the same. Still, you will need to find rich people willing to take risks. Since most of these folks are sophisticated, you’ll need to convince them your project offers more than a party. Here is how to eliminate some of risk for potential investors.
1. Control the rights to a great script.
2. Attach name actors to your project.
3. Have a distribution deal in place.
4. Attach an experienced director and cinematographer.
5. Attached an experienced production manager.
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