Business Plan Emphasized

I can’t tell you how important the value of a business plan is, not only does it can get a startup the funds it needs, but also it’s like an instruction manual for the business, keeping the owner on track. In the last blog “want to be a business owner, make a business plan” I talked about a coupe of business plan experts. This blog just reiterates points made and adds to them. Also what I believe to be the most important section of a business plan is. I want to keep you aware of the resources and what they are saying.

Dr. Steven Gedeon is an expert business plan writer and reviewer. One very good point he makes about business plans is that they should “have creditability, and show a guide to action?” The creditability means every plan should either list all qualified management or employees, and why these particular people will add to the success of the business. Is the business owner using their capital for employees that are an asset or just working there? Also having a guide to action shows the investors that the business owner has a plan, how to go about business and what they will need to do so.

Dave Lavinsky and Jay Turo of Growthink.com are business plan developers. A point made by them that connects with Dr. Stevens’ advice is also a good action plan and being able to reverse engineer a 5-year projection. What I find even more useful though is their point on communication. They state strategies are useless if not effectively communicated. A business plan should be gone through many times, editing out any mistakes and to make sure every point is well communicated. Make sure you do not have to be in the industry to understand the plan. If you can teach someone else something you know, that means you truly understand it.

Bill Payne an entrepreneur and business plan reviewer states that business owners should research and thoroughly prepare a plan, and organizing a good management team. Nothing is better than good research and preparation, a business owner may know their business well, that’s why they started the business, but they can never know too much. Knowledge is an advantage, and more advantage over your competitors means more of the market.

If I myself were to make any changes to my own business plan it would be any additional information I have learned due to continuous research. A business plan can always be better, thinking its good enough is just plain ignorant.

The operation section of a business plan is the most important because it shows investors and banks that the business owner understands the complete production process and how much work is involved. Business owners know what kind of business they want to start and why, but knowing what it takes to keep it operational is something else. The operation section includes: where you will have your business and how much it will cost them to stay there. What does the production process entails? giving the investor a good picture of how the business owner is utilizing their time and capital. The amount of employees the business needs, what they will be doing, and how qualified they should be. Other parts of the section include quality, inventory, supply, research, regulations, legal matter, health, safety, and financial control; all that give emphasis on not what the business is, but how it is sustained.

  

Want to be a Business owner, make a Business plan

Are you a filmmaker that wants to start your own production company or maybe just an Entrepreneur looking to start or expand a different type of business?

Starting a new business is no easy task; it takes research, marketing, and a good product/service (of course), but most of all you need capital.  Capital is financial assets or the financial value of assets such as cash. That’s where that age old saying comes from “you need money to make money”. 
Capital can be accumulated from a multitude of different sources; crowd funding, savings, or a rich uncle, but the most common ways of getting capital is by business loans or investors. 

How do you get a business loan or attract investors? A GOOD BUSINESS PLAN.
A business plan is a written document that describes in detail how a new business is going to achieve its goal, from marketing expenses to expected revenue. 
A good business plan is a great tool to get the funds you need to help grow your business, but the odds of actually getting a loan or investmentor are not guaranteed, especially if your plan is not good at all. 
What makes a good business plan? I say knowing and understanding what you’re talking about, but lets hear the opinion of an expert.
Dave Lavinsky and Jay Turo are co-founders of growthink.com which is a business plan development site, where a small team of business and entrepreneur specialist help qualifying and up and coming businesses become all they can be, by helping them acquire more capital by constructing custom business plans for their clients. 
Forbes, the wall street journal, business week, and other periodicals endorse Growthink, so they must know what they’re talking about. 

What growthink believes in is the same as other business plan development firms, but what they emphasize are 5 key attributes to a successful business plan:

• The right overall value propositions

-Successful companies only need to do 1 thing really well; offer a product/service that customers really want.

• The right marketing and sales strategy

-Most business plans include merely a cursory marketing and sales plan. Successful companies have, well thought out and comprehensive marketing and sales plans.

• The right business model

-Your business model is more important than your industry.
You must think through all the possible business models. 

• Action plans developed from reverse engineering success

-You need to decide where you’d like to be in 5 years, then reverse engineer it. 

• Are communicated brilliantly

-Strategies are useless if not effectively communicated. You’re business plan is a marketing document. Who are you marketing to? Investors/lenders/employees/partners.

Growthink fees are higher than most other companies and completion time is even longer (7-14 weeks). Growthink s a great company that says to only represent business that already have a customer base or entrepreneurs with a record of success, all so that the odds of getting the capital is increased. The entrepreneurs that demonstrate key indicators of success are more likely to succeed in their book; which is good so to always show off high approval percentages.
There are many other companies that develop business plans, which can be used with banks, venture capitalist, and angel investors. 

There is a well-known angel investor named Bill Payne whom is an entrepreneur and investor that has a side business of reviewing business plans, so that they get his professional critique before you go to a bank or investor. Bill states that entrepreneur’s focus on innovation and product and loose focus on key business plan preparation and organizing a good management team. Entrepreneurs should research their competition, their market, sales channels, and required capital when constructing a business plan, it is what makes any business plan, but important non the less. Bill can review your plan in 1-2 weeks, touching basis with you and Q&A via conference call.  As for management, Bill believes businesses fail after receiving capital mostly because management teams are unable to execute plans of success. That’s when the entrepreneur needs to re-evaluate his team. 

Angel investors are your guardian angel, they come and give you money when banks tell you No- only when they believe in the success of your business, which is what a good business plan can prove to them.  
Getting a Loan is harder than ever because of high interest rates, and so many people filing bankruptcy; they Don’t trust you! But they might trust a written plan of success. 

20th Century Marketing

20th Century Fox studios have pumped out a lot of blockbusters and classics over the years, but what is the secret to their success? Yes talent, but what makes the movie goers want to spend their hard earned cash on a film they know little about?
Good marketing! 
Fox along with other companies have a wide range of campaigns used to get the consumers attention. Trailer, posters, billboards, cast appearances, radio spots, and contest. Yes we know the jist, but Fox studios have been getting a little more creative. examples...
In 2011 there was a new science fiction television show coming out on Fox, about a ravished earth and a dinosaur infested colony; called Terra Nova.

 I love science fiction and I love dinosaurs, so that’s all it took to get me hooked. Fox wanted to make sure they teased enough people that they would either check it out or at least know about the show. Taking advantage of modern media streams, Fox started an official Terra Nova app for mobile devices that allowed people to get updates about the show, info about the worlds in the show, notes from the writers, test to see if you're eligible for the 11th pilgrimage, and enter sweepstakes. Along with other websites on the show, Fox used a curiosity technique, giving people hints of what they had in-store, then making them want to know more.
If you did not see Terra Nova, it was canceled after the first season because Netflix didn’t pick it up as a distributor like they promised(grrr). It was a good show and now it is just archived.



Before it won academy awards, the Film by 20th century Fox, Ang Lee’s “Life of Pi” was marketed in a different way then tradition trailers.  In early 2012 a short clips of  "Life of Pi" was shown in front of 3D showings, in order to get people to see movies like Prometheus (double Marketing), and in order to push another type of brief early trailer.

Fox studios does take pride in their innovative ways of marketing, but sometimes campaigns come back to scratch them on the butt.
In October of 2012, 20th century Fox unveiled a poster for the 2013 film “The Wolverine”. The poster featured a sketch of the title character and posted them at bus stops around the nation. Bad News! More than half of the posters placed at these bus stations have been stolen. Yes they are cool looking and probably easy to take out, but c’mon people. Have you ever heard of fan art! Anyway replacing the posters were extremely costly with the price of material, but most of all paying for the advertising spot with no advertisement in it.

It is said some of the thieves are keeping the posters for themselves (duh!) and many are selling them online for as much as $100. What dummy would pay $100 for a movie poster you can pay $20 for from a movie poster site eventually.

But as I said before, you can have a great flick, but if no one knows about it, then it may be wasted; making another under marketed film like the Oscar film “The Hurt Locker”. Fox is making sure to keep up in the social media market, and utilizing the mobile app market as well, because they know most people are not watching commercials on TV, but the ads online.        

Children of a digital age

The Judd Apatow film “This is 40” is a hilarious film about two parents that realize they are not as young as they were, getting into mischief and arguments that drive their relationship into outrageous situations. The oldest daughter of the couple Sadie, is played by Maude Apatow, the real life daughter of Filmmaker Judd Apatow. Sadie is a 13-year-old girl obsessed with her mobile devices and the television show Lost. During the film Sadie’s parents ask her why doesn’t she put the iPad down and go outside and build a fort with friends? “What am I supposed to do with this fort?” says Sadie sarcastically before she storms off, and that is the point of this blog post.

When I was a younger boy 20 years ago, I couldn’t wait to go outside just to get out the house. If nothing was on television and my homework was done, it was time to make my own fun. Driven by creativity with neighborhood kids or solo, we would build a fort in a tree or on land, making up games to go along with the fort. Water balloon wars, slay the invaders, or what ever, it was something to build and destroy. It wasn't just for boys, girls would have a fort as well, but not call it that or they would become the troublesome invaders trying to get into the boys fort. 

Most adults might say there is something wrong with kids today that don’t want to go outside to play. I don’t think so, its just a different time and different interest. Back in the day we were limited to what we could watch, play, or do; today kids have numerous activities available to them via app or online. Why build a funky fort outside, when you could make a digital kingdom.

I can completely understand where Sadie is coming from when she gets irritated by her parents suggesting she make a fort. Kids today aren’t use to forcing their creative juices to flow, and if your friends are online instead of outside, what’s the point of going outside. They will go to school the next day and say, “hey did you see what they found in the bunker in that episode of lost”, not “hey did you see the swing we made for the fort”.

IPad, iPhone, MacBook, and android devices; sad as it may seem, these are the toys of the future. Kids grow up using and interacting with digital devices, so that’s all they know and accept.

C’mon think about it, you can stream or download TV shows and movies on demand, read a book, play games online with friends and shop, all from the convenience of your devices. why would you put your device down? Exercise, ha! Who wants that, to be a social butterfly, please! That’s what Facebook is for, to take pictures, give me a break, I have a mirror in my bathroom and I’m a master of layers in Photoshop. (Hopefully you sense the sarcasm)  

Technology is taking over; according to Nielsen.com the trend of using mobile devices to multi-task and view entertainment has become so widespread in the U.S that it could be called the norm. Over 50 percent of US homes own a smartphone and over 20 percent own a tablet. 

Times are changing and I'm not saying kids don't outside anymore, if that were true, the government would feel bad about closing public parks to save money, and there wouldn't be so many community activities for the youth.(smirk)

I believe Mobile devices are the best thing to hit the earth since sliced bread, but as with the problem with obesity; people must learn Moderation.  

Redbox pushing your favorites

Redbox, yes you all know the name and seen the Red box in your local retail establishments. What they do is rent the consumer a desired or intriguing video or game; but have you ever noticed any trends or consistencies with redbox content?

Check out how many films in the Redbox catalog have a produced by Summit Entertainment on them. Yes that’s right, in 2009 Summit and Redbox signed a two-year agreement allowing Redbox to distribute Summit new releases, films on catalog, and Straight to DVD's. This contract was made to help increase awareness of Summit films and monopolize on a growing kiosk market. So that’s why there are so many “B” movies in the Redbox catalog; that’s because they probably came from Summit Entertainment. That does not mean Redbox can only rent Summit movies, it just means the majority will be theirs. But now its 2013 and Summit a company that was holding on by a thread and their Twilight Franchise, had sold their company and stock in 2012 for $412.5 million to Lions Gate. Lions Gate stated they are trying to increase their library with popular franchises like, Twilight, and Summit's trying to sell them self off to a bidder while they are still desirable from the success of Twilight. Lions Gate says they will try to duplicate the distribution the value of the Summit hit franchise.

So all that this means is check the Redbox and you will notice what film company you are supporting, with your many trips to the gas station or grocery store.

But wait, your wondering "yeah I see a lot of hits and know faces in movies from Summit and Lions Gate in the big Red box; but what about the other “B” movies?" According to Eric Litynski, the Director of Purchasing/ Content acquisition for Redbox, the company tries to get a wide range of films to appeal to every demographic possible. The films are selected and for the family orientation and popularity at the moment, but the Indy films you may notice in their catalog are for the niche market that there may not be I high volume of quality films; like suspense and horror. So if there are independent filmmakers out there that want to get their product in the big red box, they need to do one of two things. Either cast big Hollywood names specific for the genre or make a really good film that there are a shortage of, like suspense and horror. After your film is complete you must get your film affiliated with a distributor somehow and they will pitch it to the Redbox execs, but your best bet is the distributor that Redbox primarily uses called Video Products Distributor or VPD.

So Redbox helps everybody? From struggling major motion picture companies to up and coming independent filmmakers. But who really reaps the benefits, is the customer who can go around the corner and get a decent flick for a buck.  

A Distribution legend

What do believe is more important, a great production company or a great distributor? Yes you do need a movie in order to distribute, but there are a lot of horrible “B” and Indy movies that are seen by millions of viewers. Millions of viewers mean millions of dollars in revenue, and how is this happening? Distribution!!

A Distribution Company is whom a studio licenses their film or television show rights to, in order for both companies to make money. The distribution company is responsible for screening the film or TV product for theater execs and prospective buyers. The Theaters then leases the films for a select time or engagement; and home entertainment media printing companies make the Blu-rays and DVD’s we watch. There are many different forms of distributing media, but the point is all the same, get the product to the masses so the filmmaker, studio, and distributor can deposit a check.

One of the oldest and well known film companies whose only business involves distribution these days, is Metro-Goldwyn-Mayer or MGMpictures. Because of financial woes, MGM does not partake in the production of film and Television anymore. What keeps MGM alive is their massive library of classics and their copyrights to each one of them; classics such as Gone with the wind, Rocky, and part ownership in the Bond Franchise.

MGM leases their rights to other film studios, allowing them to produce a new film or even re-distribute and old favorite, but all for a nice percentage. Maybe that’s why their mascot is a Lion, king of the copyrights eh. 

MGM may not have the resources or funds to produce their own films, but they do commonly co-finance productions. Sony pictures have been a major partner with MGM pictures, co-financing the last three Bond movies; Casino Royale, Quantum of Solace, and Sky fall. Sony also has an agreement with MGM which allows Sony to distribute MGM films and episodic.

So once again the production company has the camera, but if you want to see the picture, the distributor has the ticket for sale or the price tag on the DVD gift set. Be supportive of your distributing partner, such as movie theaters, legal Hard and digital copies of media. The less support- the higher the prices get. One way or the other your favorite producer or director is going to the bank, with a check written by the distributor. 

Copyrights and Characters, Oh My!

I am not a lawyer and not authorized to give legal advice, I am sharing a collection of information from those who are qualified legal council.

Super Mario, Sonic the Hedgehog, and Mickey Mouse; what do you think of when you visualize each of these names? Nintendo, Sega, and Disney. These characters are so recognizable in relation to their fathering company, that they have basically become trademarks. But for the main part Copyrighted.

Trademark: A registered symbol or word used to represent a company or product.

Copyright: Exclusive rights that are given to the creator of an artistic piece.

So our friendly big eared rodent with the red shorts is the face or may I say body of Disney eh? 

Yes, and fans of Disney usually buy anything with his smiling face on it, bringing in lots of revenue for the conglomerate. So that means if someone not affiliated with Disney in anyway, were to put images of mickey on shirts and started selling, that person could cash in on the cartoon icon as well, right?

No sir, that’s a big no-no, because Mickey and along with any other character representing their company are trademarked and copyrighted. The characters likeness and everything about them, that make others recognize them, have been registered with the PTO (patent and trademark office) and the United States Copyright office, which keep unauthorized people from using them commercially. What if you put a Mickey on a shirt that you drew yourself and changed a few things? 

If someone looks at your character and says “hey that’s mickey” anyway, then you’re still in the realm of copyright infringement buddy!

Then are you even allowed to draw characters for others to admire? Of course my friend, that’s called Fan Art, and fan art is protected by your first amendment right of “Freedom of Expression”. What you can’t do is use your unauthorized version commercially or dilute the value of the trademark (make Disney look bad).

You are also protected by “Fair Use”, which asks? How much of the likeness did you take? And to what extent is your commercial use? If both are little, then you should be ok.

Are there any established characters you can use commercially and legally? Well, why would you want to do that! But if a character has fallen into public domain, then you may have a shot. Most public domain works would be characters that apply to the 1909 Copyright Act, so the 28 year contracted term would be over. BUT NOT SO FAST MR. INFRINGER! Public domain characters may not be as public as you think; most characters may have been brought in another form recently and that version copyrighted. An example is the Warner Bros. Entertainment, Inc. v. X one X productions case. X one X productions wanted to use Wizard of OZ characters commercially from 1939 Wizard of Oz advertisement cut outs, because they said the characters in the L. Frank Baum 1900 published book were free domain. Warner brothers, whom owned the rights to the characters due to the 1939 Judy Garland film, did not agree with X One X.  X one X lost the case in district court because the advertising material with the characters on it used by X one X, were protected by advertisement copyright laws. After X one X took the case to the 8^th circuit court, they were allowed to use the public domain characters from the book, but as long as they do not resemble the Warner Brothers Film characters.    

Dealing with characters and copyrights is a serious business that can get you a fine or even jail time. Everyone has the right to enjoy characters, but only the intellectual property owner has the right to enjoy the money that comes from the character.

IF IT’S YOURS, PROTECT IT!  IF IT’S NOT, PROTECT YOURSELF!