Saturday, May 20, 2017

3. WHAT COMPANIES CAN DO TO ENABLE SUCCESS

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 THE INVESTOR CAN DO TO MINIMIZE RISK 
  3. WHAT COMPANIES CAN DO TO ENABLE SUCCESS (below in this post)
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.

Companies like ANNALIESE Pictures, LLC, can (and will) minimize the risk of motion picture investing (prior to green lighting the picture) by adhering to the following motion picture business principles.

  1. The company manager will work without pay until 120% of the investors cash is recouped. 
  2. The company manager will invest early development cash up to the project’s green-light. Some of these expenses may be reimbursable after green-light if the expense item is included in the budget.
  3. The company manager will use his own tangible assets (computer, transportation, petty cash, supplies, etc) until to the project’s green-light.
  4. The company will purchase the rights to a well-developed script that incorporates the secrets of successful motion pictures stories as elucidated by a true and consistently applied moral premise. 
  5. The company will attach “named” cast to appropriate principle roles in order to attract distribution and audiences but not overly burden the budget.
  6. The company will hire professional, experienced crew in all key departments. 
  7. The company team will produce the movie for a budget lower than its competition, thus minimizing the recoupment threshold.
  8. The company will purchase a completion bond to protect against cost overruns.
  9. The company team will attempt to attract foreign pre-sales prior to production, but this may not be possible until the movie is complete.
  10. The company will involve a producer who has a close association with experienced, professional crew, finishing facilities and distribution channels.
  11. The company will persistently seek a profitable distribution deal once the project is greenlit, but be patient for the best deal. 
  12. The company will escrow all investment contributions until greenlight is possible, and if greenlight is not possible within one year, all escrowed funds will be returned to investors.
  13. The company will follow all standard account practices and allow auditing of their books at the investor’s expense to ensure compliance with the Operating Agreement. 
  14. The company will comply with all SEC Regulation D 505 rules. 
  15. The manager and key staff will conduct their business and personal affairs with moral integrity to maintain the investors’ trust. 

See other articles in this series:
1. WHY INVEST IN MOTION PICTURES
2. WHAT INVESTORS CAN DO TO MINIMIZE RISK
Stan Williams

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November 19, 2017 at 02:05PM

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