Creating an independent film business plan allows you to fully understand the business aspects of your project. You will want to outline your budget and show how the money will be spent. You will also highlight your team, your objectives and importantly, your marketing, sales and distribution strategy. Completing an independent film business plan is a great step towards getting the money, but this is not the only step.
In the United States, the Securities and Exchange Commission was set up to protect uninformed investors from scams. With the creation of the SEC, several laws, regulations and guidelines have been put in place to protect the innocent. In order to stay compliant you will need to talk with a qualified entertainment attorney who focuses on securities law. The reason for this is simple. You want your movie project to be taken seriously.
With your attorney’s help, building off the information outlined in your business plan, you will create a set of documents called a private placement memorandum. Your PPM will outline the goals for your movie. It will explain the possible upside to your project, but more importantly, it will help prospective investors understand the inherent risks. The name of the game is compliance, transparency and trust.
In addition to creating a PPM, your attorney will probably advise you to set up a legal business entity such as a corporation or limited liability company. While most anybody can bring litigation against you at any time, it is important that you find ways to keep your movie business separate from your personally assets. Taking this step is essential and worth the far more than the price you pay for the paperwork.
If you need help writing an independent film business plan, this this resource may help. And if you have the plan, but need help creating relationships with prospective investors – this film funding resource may help.