Sunday, May 21, 2017

2. WHAT INVESTORS CAN DO TO MINIMIZE RISK

In the completed Business Plan for ANNALIESE Pictures, LLC, under Appendix D, are three short articles that will be of interest to potential motion picture investors, whether they be "accredited" or "non-accredited" in the S.E.C.'s eyes. The three are posted on this blog and are linked here:
  1. WHY INVEST IN MOTION PICTURES
  2. WHAT INVESTORS CAN DO TO MINIMIZE RISK  (below in this post)
  3. WHAT COMPANIES CAN DO TO ENABLE SUCCESS.
There is no such thing as an entirely safe investment in motion picture ventures. Motion picture investments are risky and the entire principal can be lost.  However, there are ways to minimize the risk, increase the value of the risk taken, and greatly increase the probability of a motion picture’s success. Creating a safe and satisfying environment for motion picture investments must be fostered by the investor, and the company.

To minimize risk as an investor, you should:

  1. Invest only the amount of money you can lose without negative impact to your life style.
  2. Pool your smaller contributions with a group of friends to meet investment thresholds required by the company.
  3. Contribute funds only to projects that promote the values important to you.
  4. Perform due diligence on the company and the individuals leading the company. Only invest in people you trust, yet do not extend that trust to believing that the people running the company are going to make you rich. 
  5. While you may be a “passive” investor in a technical sense, you should be active socially in promoting the movie project. The more active you are, them more others will find out about the movie, and the more likely the project will be a success. 
  6. Get involved with projects that will give you satisfaction and enjoyment in seeing the project’s progress and completion.
  7. Understand and choose the best way to get involved with the movie’s production. There are three principal ways that involve money, and several that do not. With money, you can be involved by exchanging cash for equity, providing personal or gap loans, or by contributing to the project’s Crowd Funding effort. You can also be involved without money by contributing in-kind equipment or services that are substitutes for cash, and by socially promoting the movie.

See other articles in this series:
1. WHY INVEST IN MOTION PICTURES
3. WHAT COMPANIES CAN DO TO ENABLE SUCCESS
Stan Williams

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November 19, 2017 at 02:05PM

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