Get Your Screenplay Read. Image via Wikipedia

A few years back I finished the first draft of my first screenplay ever. Like a lot of folks who dream of Hollywood success, I was eager to share my work with the world. Problem was, I had no idea what I was doing.

Through a friend of a friend, I was put in contact with an “entertainment attorney.” I put the words in quotes because while there are tons of people with a strong work ethic and great integrity, this particular guy was not one of them.

I remember getting off the phone. I was super excited because this guy had agreed to read my screenplay and offer me feedback. So like most writers, I sent off my screenplay – packaged with the appropriate cardstock cover and two brass brads… And a few weeks later I get a email:

“Jason. Thanks for sending me your screenplay. I read it. Because you want to produce your own movie, I think you will need a lawyer who understands how to put together a private placement memorandum. And also, while we did not talk about this prior, you owe me $250 dollars for the hour I spent reading your script. Please send me a check ASAP.”

These days I would tell him to go “F” himself. But back then, I had no idea what I was doing. So I sent him his money. And to make it even worse, $250 dollars represented an entire week’s salary.

The whole point of this is – if someone agrees to do you a “favor,” it’s best to get reciprocal expectations in writing.

Image via Wikipedia

Have you ever wondered how filmmakers raise money for their movie business?

Last week (while back east for the holidays), I set up a meeting with a very successful businessman (who I met in 2004). My goal was to pitch him my current business idea.

Here are the steps I took to set up the meeting and make the pitch:

1. I emailed and asked for a meeting to discuss an “interesting business idea.”
2. Then I got a response. We scheduled the meeting.
3. Prior to the meeting, I worked liked crazy to refine a PowerPoint presentation. The PowerPoint followed a standard business plan outline. Once complete, I acted out the presentation about a dozen times. I also visualized how the meeting would go. And I also created and answered sample questions.
4. On the morning of the meeting, I dressed to impress. In my car, on the drive there, I rehearsed the meeting. (Yes. I talked to myself). I also prepared a printed copy of the presentation and created a Plan-B just in case the projector malfunctioned.
5. When I got to the meeting, I requested that their IT person help me set up the projector. Then I flipped through each slide to made sure the overhead projector worked.
6. When the decision maker arrived, I gave a firm handshake and we exchanged some friendly conversation. I asked a lot of questions about his current business.  (As an entrepreneurial filmmaker, you must always consider your audience. If your prospective investor manufactures widgets, you should know about his business and then find ways to bend your pitch so that your project may benefit his core business.)
7. I then began the PowerPoint. I presented each slide with enthusiasm.
8. After the presentation, the prospective investor had questions. (Questions equal interest. Lack of questions equal lack of interest.) Here are some questions: How will this project garner ROI (return on investment)? How long will it take to get the money back? What multiple will this investment potentially return? (If your business idea can not garner a higher return than  a savings account, why do business at all?)
9. After questions were answered, I ASKED what he would need to move forward. He mentioned that he would need to see how the money would be spent and exactly how I plan on returning it. (I provided a basic overview in my slides, but he wanted more granular detail.)
10. I told him I would circle back with more details and provide him with a copy of the business plan.

Some of you may ask why I didn’t take my refined business plan to the meeting. The reason is, getting money for a movie is not the same as selling a car. Since we are talking about a long term business and a lot of other people’s money,  I first wanted to gauge his level of interest and see if we could build rapport. I also wanted to find his red flags. And I also wanted to keep him wanting more…

I will address all of his points in the business plan and circle back for the next meeting. I will also ask him if he would kindly introduce me to some of his successful friends.

Why do I share this?

FIRST: Assuming you have met with a lawyer and figured out a way to protect yourself legally -This is important – then here is my question:

If you aren’t afraid to hear the word “NO,” then what is stopping you from setting up a meeting and presenting your ideas to prospective investors?

It doesn’t always mean you’ll get the money (if it were easy, everybody would do it.) – but it does mean that every NO is one no closer to YES!

If you want to find out more about my system for meeting prospective movie investors, check out The Independent Producer’s Guide To Financing Your Movie.

“Discover A Simple, Step-By-Step System For Finding Investors and Getting Money To Finance Your Movie!”

Today, I’m going to offer yet another bit of perspective on the whole question of how to raise money for movies.

As you may or may not know, independent film funding can be a little overwhelming. If you’ve ever dabbled in the business side of making a movie, you know what I mean. The first time I heard people talk about writing a business plan or offering a private placement memorandum, I suddenly felt like I was on another planet. And if you’re like most filmmakers, you would much rather focus on actually getting your movie made, instead of cold calling rich and successful people to set up random pitch meetings.

• So, the first challenge you have in the world of film finance is: How do I find investors for my movie?
• The second challenge is: How will my feature film provide enough ROI (return on investment) for my investor?

Assuming you’ve followed some of my previous advice on creating relationships with rich and successful people, even if you do make a favorable impression on a few rich folks, your potential film investors may still shy away from making an investment in your project. Why? Because without star talent, a known director, a film distribution outlet and an experienced crew – it’s very tough to answer the important question of ROI.

Your potential investors want to know how you plan on spending their money, how you plan on getting their money back, and when. Can you provide your investors with this information? If not, then you can understand why independent film financing, especially for your first feature, can be a pain in the butt.

However, having worked as an account executive for one of the biggest investment banks in the world, I would like to share some thoughts and end today’s article on a positive note. If you can come up with a plan that at least attempts to answer the question of ROI – then you’re in the ball park. While I can’t say it’s common, there are a few potential investors out there, for which their excess cash sometimes burns a hole in their pocket. These folks will assess the potential for gain and loss, and despite the risk (which you will always disclose and never hide!), they will still choose to do business with you.

I have a friend (who I’ll interview in a few weeks) – but anyway, he made a short film that went viral on the internet. One day he gets a call from a random multimillionaire who says he has always wanted to produce a movie. Suffice it to say, my buddy is now in pre-production on his first independent feature film.

Stranger things have happened. What’s important is that you keep pushing forward!

- – -

If you are wondering how to get money for your movie – Almost every resource will tell you that you need a business plan. Very few resources will tell you how to actually go out, find prospective investors, qualify them, contact them, get a meeting and build a relationship.

Since getting money for movies was such a frustrating experience for me, I spent the last few months creating: The Independent Producer’s Guide To Financing Your Movie. In it, YOU will gain valuable insider experience so you can avoid my past mistakes, find investors and make your movie. To learn more CLICK HERE

Even though some filmmakers think getting money is somehow limited to the arena of filmmaking, it’s not. The truth is, all budding business professionals need to shake the money tree from time to time. So luckily for us filmmakers, the world of business provides us with rules to and resources for getting money.

GET THE MONEY

The traditional ways people raise money in the United States, aside from going to a bank, is by meeting with an attorney, putting together some complex paperwork in-line with the Securities and Exchange Commission regulations, creating relationships and meeting with potential investors, asking for money – and then getting the check!

Now, this is pretty complex. So I hope you’ve taken some time to look at your movie. Do you need a few million to make it? Or can your project be made for much less? This factor alone will determine your strategy. Just keep in mind – If you’ve worked really hard to eliminate costs in your budget, then it’s possible to make a fancy looking movie for under 15K… Or less.

Yes. You read that right.

But for today, lets take a look at some traditional action steps used in raising a few million dollars:

ACTIONS

1. Cultivate a legitimate friendships with rich and successful people.
2. Get an attorney to write up something called a private placement memorandum.
3. Figure out how you’ll spend the money.
4. Figure out how you’ll get the money back.
5. Under a million and it’s doubtful your venture will be perceived as a worthwhile investment.

Now again. Raising money is a super simple subject (just find rich people and ask for the money) – but the laws and rules and regulations mean that you’ll need to know a few things about protecting yourself and your business from liability. The following resources are worth reading if you want to add to your growing knowledge base on “how do I get money to make my movie?”

I found OPM: How to Attract Other People’s Money for Your Investments–The Ultimate Leverage, to be a pretty good read. It’s not filmmaking related – but as I often say, if you want to get a step ahead of your filmmaking competitors, you need to learn a thing or two about general business. And speaking of business, I also think Risky Business: Financing & Distributing Independent Films provides some specific movie making information that I would have otherwise not considered.

In four days, I’ll send you a lesser known, secret strategy for raising funds. (And it won’t involve asking a dentist or a doctor. Promise!)

Happy Filmmaking!