Q: Do I need a film business plan in order to obtain funding for my film?
Aloe Entertainment: A film business plan is based upon distribution analyses and marketing strategies that identify how your film can maximize revenues. Most filmmakers find that the information contained in the plan is incredibly helpful in creating either a private placement memorandum for investors or a grant proposal from non-profit funding sources.
Q: Is it possible to have both private investors and obtain grant funding?
Aloe Entertainment: It is possible to have both non-profit and for-profit funding for a film. However, this is extremely delicate and requires close consultation with an attorney with expertise in both areas.
Q: If I have a business plan, do I also need a PPM?
Aloe Entertainment: It depends. You should consult with an attorney to learn more about the laws in your state. In general, a business plan is acceptable if you have a small number of active investors, that is, people who actively make decisions for the production. If your investors are passive, with no decision making on the project, this may mean you have an offering of securities that requires a PPM. Even if you need a PPM, many independent film producers find that investors are intimiated by the heavy legalese in the PPM. A film business plan can articulate the strengths of a feature film or documentary very effectively. If investors are interested in taking the next step, the PPM can then define the legal requirements.
Q: If I have a PPM, do I need a business plan?
Aloe Entertainment: A business plan can be incorporated into your offering memorandum in consultation with your attorney. This may make your PPM more accessible, and more understandable, to potential investors. Without the context of a film business plan, investors can find a 20-60 page legal document quite intimidating.
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