September 8, 2013 Leave a comment
“ACCREDITED INVESTOR” – THE OFFICIALLY WEALTHY WHO YOU NEED TO SOLICIT FOR FINANCING
The “accredited investors” as defined by the new SEC ruling allowing for general solicitation, are officially wealthy, and are accustomed to dealing with basic financial reports and terms.
THE HIGH RISK OF INVESTING IN FILM
Mr. Bucks has heard about the high risk of the film business. You will need to create the confidence with Mr. Bucks that you CAN produce – at a return. So, now, more than ever before, it behooves Indie film producers to understand the basics of the film industry as a business – especially if he/she wants to solicit the officially wealthy who don’t know film.
THE BUSINESS LANGUAGE OF FILM
For those of you who do learn the Business Language of the film industry you will find that doors previously closed to you will open – just a crack , at first, but with some perseverance the Completion Guarantors, experienced Directors and Cinematographers, some Mini-Major Studios, etc. will be impressed and will offer more and more opportunities. Success breeds success, and it starts with generating confidence.
CREATING CONFIDENCE THAT YOU ARE FISCALLY RESPONSIBLE
From my point of view (30 years in the ‘biz) there are 5 or 6 things you should learn more about, and with a little practice, you will have a very good shot at creating the confidence needed by the investor that you are fiscally responsible. You really can’t lose. In my book, “Walk The Talk” I refer to it as “Directing the Money”.
Here are the topics. All are inexpensive online self-study courses. Most of the information is on video. See the Filmmaker page of my website:
1. Learn More About the Full Business Cycle of the Film Industry (From Development through to Revenue Sharing)
2. Have a working Insight Into Film Tax Incentives in America and Canada as a Source of Financing (Including Section 181)
3. Know How to Manage Film Budgets Professionally (not create from scratch, just to be able to manage)
4. Know How to Manage Cost Reports Professionally
5. Know the fundamentals of Creating Cashflows “Out”/”In” for Bank Loan Purposes
6. Understand the Role of Hot Costs During Film/TV Production
Knowing these topics you won’t be confused with the clutter of people who “have a great idea”.
For more information on the online self-study courses offered see the Filmmaker page of my website
Cheers / John