How to Make a Good Business Plan
Great
You can be the finest filmmaker on the face of a planet, but having a sub-par business plan can seriously limit a film’s chances of success. Writing a solid business plan that will not only pique the interests of potential investors but also be useful in keeping the projects on track is a fine art in itself, and if we’re being honest with ourselves, it’s rarely a filmmaker’s favorite task.
As with any aspect of the process, taking shortcuts can get the job done but it won’t necessarily get it done well. You could easily throw a bunch of numbers at a spreadsheet and call it a business plan, but you’d only be doing yourself a disservice. Luckily, there are tools available – such as Quick Film Budget, of course - which make it exceptionally easy to get a professional job done right, first time.
That said, there are some proven tips and tricks which can take your business plan to the next level.
Here are a few to keep in mind.
Yes, You Do Need One!
Don’t be swayed by any ‘advice’ you see online suggesting you can get away without having a business plan, because it’s just not true.
Without question, anyone expecting some kind of return on his or her film – or funding it through private equity - will need a business plan. But you’re probably wondering if this is a bit overkill for indie films with a tiny budget of X, especially it isn’t intended to be commercial or even turn any profit (art purely for art’s sake, as it were).
Of course, there’s nothing wrong with that in the slightest. But since a well thought-out business plan can help make every production dollar go further, it’s especially important to have a business plan on a ‘for the love’ project… don’t you at least owe it to yourself to make the film as good as it possibly can be, despite its limited budget?
Accept that you need one, and then relax. The process of bringing your plan to life is not as painful as you might imagine – get yourself a copy of Quick Film Budget, put aside a couple of hours and you’ll be able to put your best foot forward for the rest of the project.
Not Every Detail is Important
For some reason, it’s alarmingly common for panicked filmmakers to cram in absolutely every bit of minutiae into their business plans. This is fairly understandable, because if you’re not quite sure what details will be important to a recipient, it makes intuitive sense to include everything. Unfortunately, this doesn’t work in the context of a business plan.
Investors aren’t going to be interested in how much you’re going to pay the make-up artist, or what the expenditure allowance is for coffee. They’re interested in one thing, and one thing alone: will the film make a profit?
As such, only include information that pertains to – and answers – that question. By all means keep track of everything within your own personal business plan, but be selective when it comes to what you present to potential investors.
Figures are Better than Names
Great talent is a boon to any project, and big names are certainly worth their salt (both in an aesthetic and monetary sense). The only problem is, the price of salt varies and investors aren’t as easily excitable about big names as the director or casting manager. As we all know, just because a Hollywood A-lister has agreed to take a lead role doesn’t necessarily mean the movie will be a financial success – for example, Christian Slater’s movie Playback grossed only $264 last year despite costing around $7.5 million to make.
Do list any notable names attached to the project since they help tie up the package, but realize that they’re not your strongest card and if you try to play them as such an experienced film investor will see right through it. Stick to the pertinent numbers first and foremost when formalizing your plan.
Supplementary Material Can Help Drive it Home
While we’ve just covered how important it is to include the right financial information above all else, we also can’t downplay the importance of supplementary material. Although your business plan needs to tell investors what they need to know in an efficient manner, it also serves as a marketing sales pitch.
Since investors are human beings too (believe it or not!), including non-financial metrics can help sweeten the deal. These can include any notable social media interest statistics, past performance of key crew, affiliations or support from reputable film schools such as new york film academy or other institutions and any planned PR events.
Fresh Eyes
Using Quick Film Budget will have you up and running in no time, but do make sure you let the plan rest for a few days on completion. Take a step back from it and approach it as if you’d never heard of the film before, or better yet, rope in some savvy colleagues who can offer an honest critique.
Within no time, you’ll have a killer business plan and can get back to what you were born to do: making great movies.
You can be the finest filmmaker on the face of a planet, but having a sub-par business plan can seriously limit a film’s chances of success. Writing a solid business plan that will not only pique the interests of potential investors but also be useful in keeping the projects on track is a fine art in itself, and if we’re being honest with ourselves, it’s rarely a filmmaker’s favorite task.
As with any aspect of the process, taking shortcuts can get the job done but it won’t necessarily get it done well. You could easily throw a bunch of numbers at a spreadsheet and call it a business plan, but you’d only be doing yourself a disservice. Luckily, there are tools available – such as Quick Film Budget, of course - which make it exceptionally easy to get a professional job done right, first time.
That said, there are some proven tips and tricks which can take your business plan to the next level.
Here are a few to keep in mind.
Yes, You Do Need One!
Don’t be swayed by any ‘advice’ you see online suggesting you can get away without having a business plan, because it’s just not true.
Without question, anyone expecting some kind of return on his or her film – or funding it through private equity - will need a business plan. But you’re probably wondering if this is a bit overkill for indie films with a tiny budget of X, especially it isn’t intended to be commercial or even turn any profit (art purely for art’s sake, as it were).
Of course, there’s nothing wrong with that in the slightest. But since a well thought-out business plan can help make every production dollar go further, it’s especially important to have a business plan on a ‘for the love’ project… don’t you at least owe it to yourself to make the film as good as it possibly can be, despite its limited budget?
Accept that you need one, and then relax. The process of bringing your plan to life is not as painful as you might imagine – get yourself a copy of Quick Film Budget, put aside a couple of hours and you’ll be able to put your best foot forward for the rest of the project.
Not Every Detail is Important
For some reason, it’s alarmingly common for panicked filmmakers to cram in absolutely every bit of minutiae into their business plans. This is fairly understandable, because if you’re not quite sure what details will be important to a recipient, it makes intuitive sense to include everything. Unfortunately, this doesn’t work in the context of a business plan.
Investors aren’t going to be interested in how much you’re going to pay the make-up artist, or what the expenditure allowance is for coffee. They’re interested in one thing, and one thing alone: will the film make a profit?
As such, only include information that pertains to – and answers – that question. By all means keep track of everything within your own personal business plan, but be selective when it comes to what you present to potential investors.
Figures are Better than Names
Great talent is a boon to any project, and big names are certainly worth their salt (both in an aesthetic and monetary sense). The only problem is, the price of salt varies and investors aren’t as easily excitable about big names as the director or casting manager. As we all know, just because a Hollywood A-lister has agreed to take a lead role doesn’t necessarily mean the movie will be a financial success – for example, Christian Slater’s movie Playback grossed only $264 last year despite costing around $7.5 million to make.
Do list any notable names attached to the project since they help tie up the package, but realize that they’re not your strongest card and if you try to play them as such an experienced film investor will see right through it. Stick to the pertinent numbers first and foremost when formalizing your plan.
Supplementary Material Can Help Drive it Home
While we’ve just covered how important it is to include the right financial information above all else, we also can’t downplay the importance of supplementary material. Although your business plan needs to tell investors what they need to know in an efficient manner, it also serves as a marketing sales pitch.
Since investors are human beings too (believe it or not!), including non-financial metrics can help sweeten the deal. These can include any notable social media interest statistics, past performance of key crew, affiliations or support from reputable film schools such as new york film academy or other institutions and any planned PR events.
Fresh Eyes
Using Quick Film Budget will have you up and running in no time, but do make sure you let the plan rest for a few days on completion. Take a step back from it and approach it as if you’d never heard of the film before, or better yet, rope in some savvy colleagues who can offer an honest critique.
Within no time, you’ll have a killer business plan and can get back to what you were born to do: making great movies.
