Howdy, friends! My question is a basic beginner question. I'm about to get busy researching and implementing steps with my sons this month, but I thought it made clever sense to begin here. A community of folks who have learned many things through trial, error, and success, and who are willing to share those lessons with others. :D
So, simply and basically, my sons (with help from me) are starting their own entertainment company. The plan was to begin two years from now but we've stumbled upon a fantastic and surprisingly EXACTLY what they want opportunity that we don't want to pass up. So, we're working at figuring this thing out now. And by "this thing" I mostly mean money. Our biggest question, the place where we have the least experience, is with funding. Investors. That sort of thing. (Mom perspective: I'm also trying to encourage them to step up when an opportunity shows itself rather than make excuses.)
They have three film projects to work on right away (a very short film, a short film, and a feature film) along with several outlines and ideas for others. Our biggest question is financing, but we're also interested in any and all suggestions regarding starting an entertainment company. We've spent our lives dabbling in the industry, and surrounded by entrepreneurs, yet we still feel like beginners. So feel free to offer even the most obvious-seeming suggestions. Thank you so much!!!!
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credit cards, part time jobs, savings. don't worry about investors until you make something worth selling
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I recommend LinkedIn for investors.
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There's an Austin, Texan entertainment attorney, John W. Cones, who is also a securities attorney, since you mention the word "investor." He will explain the basic 2 types of investors, active and passive. An active investor would have some say in your productions, so they would need some background in the field, and you would need a business plan. The passive investor would be like a dentist, or some other professional that has money but doesn't know what to do with it. The passive investors come within the securities realm, and you need not a business plan but a securities offering disclosure. Also, look into the regulation D exemption. Something for you to research.
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These are helpful ideas, thank you! Dan - My boys are already working several jobs and using their own money (so far their money has been used mostly for learning) while volunteering, also. They've filmed concerts, accepted acting and modeling jobs, and worked as production assistants often. But we have been wondering if producing something first, as a way to get interest, was the clever way to go. Dedra - I never thought of LinkedIn! That's a good point! It's built specifically for this sort of networking. Paulette - I had no idea there was even such a thing as a passive investor! We were worried that the challenge with investors would be playing too much to their tune. We are comfortable with collaborating but there is a worry of unbalanced collaboration when you have to please the money. However, knowing about passive investors gives us another avenue to consider.
I knew asking the question here was a good way to get the ball rolling! My sons are busily putting together their business proposal and mission statement. They have so many unique (and in my opinion, necessary) ideas!
Thank you for all the suggestions. Don't be shy! Keep 'em coming!
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If you have a lot of friends, crowdfunding is a good option. Best of luck!
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Thanks, Maroun. I don't have many friends but my four sons sure do! I have talked with them about running a crowdfunding campaign. We've got a busy fun week of decision making ahead of us, and then - ACTION! :D Thank you!!
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distribber.com is diy distrio, it's hard to find VoD comparables, I have a business plan for a company that might help.
Thanks, Patrick! Distribber seems like a possible avenue for my mom's films, actually. She has produced a comedy pilot as well as an international docu-series, with plans to make more, and we've been wishing we knew more about distribution. So you are telling my sons AND my mom what to do. I guess that makes you family! Welcome! (Hope you like never-ending coffee and conversations. tee hee!)
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Tsara, congrats on taking the first step. I think a possibility for financing might be to contact your businesses around town. Tell them what you're doing and if they would like to make a donation or possibly be recognized as a producer with monetary contributions. If the filming is going to be local, they could always become a sponsored advertisement or even have their business in the filming.
Another great idea. Thank you, Izzibella!! The filming will be local and, actually, my son works at a movie theater that might want to be part of the first film they are shooting, particularly since it's a film about the healing power of movies. :D Thanks!!