The Independent Film Market

Over the last three years independent filmmakers have been doing well in the box office. Major film studios have long cut funding for the unknown filmmaker. In fact without insider connections new filmmakers cannot pitch their movie scripts to the major studio movie producers. This exclusion has caused independent filmmakers to create creative ways to produce their films. Independent filmmakers have turned to do it yourself low budget movies, DVD only releases, and Video On Demand.

Who remembers the crazy college students from Florida who took a few video cameras into the woods and filmed a story about a witch? Well the Blair Project cost less than $35,000 dollars to make and grossed over $48 million opening week at the box office. The Blair Witch Project continues to be one of the highest grossing horror movies in history making over $500 million dollars to date. The low budget film approach has proven to work in Hollywood. The movie Paranormal Activity cost $15,000 dollars to make and grossed $67 million opening weekend at the box office. I am beginning to see a trend here, aren’t you?

DVD released movies have literally leveled the playing field for independent filmmakers. Major studios own or control film distribution in the US. Simply put without a distribution deal independent filmmakers cannot get their films out to the theaters thus filmmakers cannot make any money. Also there are absorbent costs to market films that can cut into the filmmakers profit. By releasing a film straight to DVD, filmmakers can save millions of dollars in marketing while earning larger gross margins from films. The independent Christian movie “Fireproof” was released straight to DVD in 2008. It became the highest-grossing independent film of 2008 grossing over $33,000,000 million dollars. (www.thenumbers.com)

What’s with the “RED”? I know you are wondering why am I asking this question? The answer is simple, Netflix and Redbox aka the blockbuster killers has redefined the way people few movies at home. Society has shifted from spending the weekend at the movies.  Skyrocketing gas prices, bad economy combined with good old fashion laziness has created a stay at home trend. People are more comfortable lying on the sofa with a can of coke and microwave popcorn to order a movie from the local cable provider. The cost of $3.95 for a video on demand is a lot more economical than a whopping $10.00 ticket at the theaters. The formula is quite simple for independent filmmakers, straight to DVD + V.O.D= double profits. A successful straight to DVD release will certainly do well in V.O.D sales.  According to modelsandmogul.com DVD and VOD sales in 2009 were $683 million dollars. (www.modelsandmoguls.com)

All the elements are available for new filmmakers to go out and make movies. Anyone can buy the same cameras and post production equipment that the major film studios use. As of now these trends are here to stay. If you are serious about making a mark in the film industry the time is now.

Sources

www.thenumbers.com

www.modelsandmoguls.com

Alternative Funding Sources

The number one obstacle for most budding entrepreneurs starting a business is not businesses plan.  Unfortunately is it not having enough capital for start up costs and a years worth of funding for operation.  Far too many entrepreneurs are under the assumption that the current economy has caused funding capital for new businesses to dry up. This is further from the truth venture capitalists and investors have changed their criteria in how and what they invest in.   There are funding sources available if new business owners know where to look.

Depending on the type of business you want to start up, there are hundreds of funding sources for new businesses.  One particular source would be the SJF Ventures invest in business that have $1MM to $20MM in revenue and are poised for rapid growth.  SJF invest in businesses that are seeking $1MM-$2MM initially.SJF has offices in California, New York, and North Carolina.   This type of investor would best suit a business that is already in existence and looking to increase and expand its operation. SFJ Ventures was a funding source found on the Community Development Venture Capital Alliance website (www.cdvca.org).  The CDVCA provides private equity capital to businesses in underinvested markets.  Each member of the community has its own requirements and qualifications for apply to obtain funding.

Another great funding source for new businesses would be through private investors from the Native American community.  Native Americans have quietly accumulated wealth through the ownership of gaming casinos on reservations.  Government grants given to Native American non-profit organizations are another source to find start-up capital.  The First Nations Development Institute is a grant-making program that provides technical and financial resources to tribes and Native nonprofit organizations. Keep in mind that this site is for Native Americans and it’s tribal nations, so any other groups would not qualify for funding.  This is a great place to seek potential investors for your business from Native Americans.

The Opportunity Finance Network is a membership-based network that funds opportunities for members.  The OFN is a community development of financial institutions throughout the United States that provide funding to stabilize communities. These funds are in the form of loans and investments that range from $100,000 to $3 million in terms lasting from 3 to 10 years.  New business owners could benefit from using his network to find start up capital.   

Finding capital to start a new business is not always difficult.  Researching non-traditional funding sources could prove successful for anyone looking to find capital. There maybe advantages and disadvantages to using non-traditional funding sources. Some advantages are that investors who view themselves as non-traditional funding sources are more likely to meet with people looking to start a business.  Investment capital is reserved for individuals who desire to start a business. Qualifications and application process is more lenient than traditional funding sources.  The disadvantages are funding is restricted to certain types of business start-ups.  The amount of start up capital may be available for only certain period of time.  Start-up capital is available on a first come first serve basis.  Despite the advantages and disadvantages non-traditional is an arena that new business owners should not overlook.

Sources

http://www.opportunityfinance.net/

http://www.cdvca.org/

http://www.firstnations.org/default2.asp?id=69

http://www.sjf.com

Expert Business Advice

Starting a business can be a very difficult task.  The most single important thing that anyone starting a business can do is to write a business plan. The business plan will determine if your business idea is worth starting and if your business idea will actually make money.  The business plan is the one single item that banks, venture capitalists, and private investors will require of anyone seeking money to start up a business. While writing a business plan always seek advice from experts in the industry you are trying to create a business in.

In developing my business plan I have researched a number of experts in order to learn how to write an effective business plan.  One expert that helped me to write an effective business plan is Dave Lavinsky. The advice given by Dave Lavinsky is to create a business plan based on an idea that can be marketed and make money now. Too many would be entrepreneurs make the mistake of thinking people would invest money in their company based on a great idea. The economy has caused a shift in the investment trends for venture capitalist. Your business idea needs to be able to cash flow within the first year or better. While writing my business plan I researched other companies to see what made my company uniquely different from any other company in the market. I also developed my business to key in on an overlooked niche target market.

David Grumpert the famed author of “Business Plans That Win” advises that a person must determine what kind of business plan fits your company needs. After doing my research I determined that I needed a full business plan for my film company. A full business plan consists of 25-35 pages. I recommend 25 pages at the most because banks and investors tend not to read your entire business plan but rather target key areas.

My business plan changed significantly based on the advice of experts in the industry. By heeding this advice my business plan is more realistic and more suitable for investors and banks to fund my company. I would advise anyone to first research what the experts in your industry are saying about writing a business plan and obtaining funding. 

Business Plan Advice

Starting a business begins with an idea. This Idea is intangible has to be written down for the business to become reality.  Writing a business plan can be challenging  for new entrepreneurs who lack the skill to do so.  New business owners seeking to start new businesses can hire a business plan writer to write a professional business plan.  The business plan is the most important element needed to obtain venture capital .  A successful business plan should have a solid financial structure, unique concept, and marketing plan.

David E. Gumpert  is the author of  the best selling book entitled “Business Plans That Win”.  David wrote an online article for Bloomberg business week in which he explains the 5 types of business plans.  David’s advice is that you must first determine what type of plan is needed for your business. For new business owners, a full business plan is recommended. A full plan consists of  25-35 pages in which the business has a full explanation of  the business concept the company, location, the owners, financials, and marketing data.  Potential investors will not read the whole business plan but instead will review key  sections.

According to Dave Lavinsky, investors and venture capitalist are not investing in just a great idea anymore. In order to get funding for your business idea a business must be able to show strong marketing and the ability to create cash flow within the first year of doing business.  The business must be able to show that profitability going into the fifth year of business.  The current recession has caused investors and venture capitalists to scrutinize business plans to avoid  losing money.

In a special report written by John Tozzi  “The Truth About Venture Capital”.

John explains  that venture capitalist are looking for business plans and companies that have the ability to show fast growth.  “Venture firms focus their investments on the handful of industries where explosive growth is possible. Biotech and medical devices made up 23% of 2007's venture deals, according to the Money Tree Report. An additional 24% went to software companies. Retailing and distribution, consumer and business products and services combined accounted for 289 deals, or 8% of the total. Location counts, too. California is home to 41% of the companies VCs funded last year. An additional 13% were in New England.”(www.businessweek.com)

Despite this turbulent economy there is still hope for anyone wanting to start a new business. Avoid the use of  business plan software  because it is viewed as unprofessional. Seek the advice of an expert  if you are wary about writing a business plan. A well-written business plan with the correct information is a step in the right direction in obtaining funding to starting the business of  your dreams.

Sources

http://www.businessweek.com/smallbiz/content/jan2008/sb2008017_014641.htm

http://feedroom.businessweek.com/index.jsp?fr_story=a6be55484f395148180836b4e80cb8d042fb2c8e

http://www.businessweek.com/smallbiz/content/feb2008/sb2008021_536847.htm

Sims 2.1

Real estate has created more millionaires than any other industry to date. The real estate market is failing miserably in this current economic recession. Private real estate investors have found a secret marketing niche to make millions of dollars in a down real estate market. These investors have turn to Internet marketing. The Internet has created a paradigm shift to way real estate is marketing. D.C. Fawcett and Greg Clement have developed a real estate Internet program called SIMS profit system. SIMS stand for Smart Internet Marketing Solution. SIMS is a digital marketing and Internet implementation plan. Sims is has 8 modules that any real estate investor can use to explode their business online. The goal of SIMS is to change the mindset of a real estate investor from an investor to a “marketor” as Greg declares. Let’s look at Module 1.

Module 1 of Sims teaches how a real estate investor can create a host of websites; squeeze pages and blogs to promote a number of niche markets in real estate. Sims teaches investors to create a pipeline of leads through various sources. The amazing part of Module 1 is that every website, squeeze page, and blog is automatically linked to every social media site that the investor uses. Preston Ely is a millionaire real estate investor who uses social media to promote a host of digital real estate products through Facebook. Preston used social media sites that were linked to 30 squeeze pages (a page that a person opts into to receive certain information by giving their personal information) to build a large list of real estate buyers. Preston had the largest buyers list in Tampa, Fl. D.C. Fawcett is a luxury home short sales investor who used social media and websites that targeted luxury homeowners in foreclosure. D.C. generates over 3000 leads a month in which he makes over $100,000.00 a month. D.C. builds relationships with both investors and homeowner through newsletters and emails. Both the newsletters and emails are filled with psychological triggers that create action. These actions often result in investors purchasing D.C’s seminar or real estate product. Most homeowners request a call from D.C.’s office about facilitating the short sale of their home. My personal real estate mentor, Chris Bruce uses a subscriber-based blog to promote his real estate mentorship program. I had the pleasure of finding Chris’s blog on Google by accident. I opted in for a 7-day beginners boot camp and received a free eBook for requesting the information. Days later I received and email with an invitation to Chris’s webinar. I have been a student of Chris for 8 months now.

The use of the Internet and digital marketing is a powerful tool. I am currently developing my own real estate investing company. It is my goal to create a franchise that will not focus on one deal at a time. I want to use these Internet techniques on websites, blog, squeeze pages, web 2.0, video marketing, and offline marketing that will supply leads for years to come. Any business that is not using digital and Internet marketing will not survive in the future.

SIMS 2.0

The real estate market has created more millionaires than any other industry to date.  The real estate market is failing miserably in this current economic recession. Private real estate investors have found a secret marketing niche to make millions of dollars in a down real estate market.  These investors have turn to Internet marketing.  The Internet has created a paradigm shift to way real estate is marketing.   D.C. Fawcett and Greg Clement have developed a real estate Internet program called SIMS profit system. SIMS stands for Smart Internet Marketing Solution. SIMS is a digital marketing and Internet implementation plan. Sims is has 8 modules that any real estate investor can use to explode their business online. The goal of SIMS is to change the mindset of a real estate investor from an investor to a “marketor” as Greg declares.  Let’s look at Module 1.

Module 1 of Sims teaches how a real estate investor can create a host of websites; squeeze pages and blogs to promote a number of niche markets in real estate.  Sims teaches investors to create a pipeline of leads through various sources.  The amazing part of Module 1 is that every website, squeeze page, and blog is automatically linked to every social media site that the investor uses.  Preston Ely is a millionaire real estate investor who uses social media to promote a host of digital real estate products through Facebook.  Preston used social media sites that were linked to 30 squeeze pages (a page that a person opts into to receive certain information by giving their personal information) to build a large list of real estate buyers. Preston had the largest buyers list in Tampa, Fl.  D.C. Fawcett is a luxury home short sales investor who used social media and websites that targeted luxury homeowners in foreclosure.  D.C. generates over 3000 leads a month in which he makes over $100,000.00 a month.  D.C. builds relationships with both investors and homeowner through newsletters and emails. Both the newsletters and emails are filled with psychological triggers that create action. These actions often result in investors purchasing D.C’s seminar or real estate product.   Most homeowners request a call from D.C.’s office about facilitating the short sale of their home.   My personal real estate mentor, Chris Bruce uses a subscriber-based blog to promote his real estate mentorship program.  I had the pleasure of finding Chris’s blog on Google by accident. I opted in for a 7-day beginners boot camp and received a free eBook for requesting the information.  Days later I received and email with an invitation to Chris’s webinar. I have been a student of Chris for 8 months now.  

The use of the Internet and digital marketing is a powerful tool.  I am currently developing my own real estate investing company. It is my goal to create a franchise that will not focus on one deal at a time. I want to use these Internet techniques on websites, blog, squeeze pages, web 2.0, video marketing, and offline marketing that will supply leads for years to come.  Any business that is not using digital and Internet marketing will not survive in the future.

The art of Bifylelodge.

Modern etymologists are baffled about the origins of the word "Bifylelodge". The word has taking the english language by storm. It is used in almost every form of the english language. It can be used as a noun, a verb, and adjective. The mystery of the creation of the word is deeply rooted in a blend of urban colloquialisms.  Bifylelodge is a mixture of the meaning of the words bullshit, fraud, and the slang use of the word Fly. Thus is the meaning of the multiple uses of the term in the english language. For example you have just read a bunch of Bifylelodge!