The document provides guidance on creating a business plan for a film project. It discusses the overall structure of a business plan, including a table of contents. It emphasizes that a business plan is meant to validate the business model and explain how the project will earn a profit for investors. It also notes that business plans have legal and regulatory requirements when being used to raise funds.

1. CREATING A BUSINESS PLAN
You have permission for the personal use of the following information.
You may not share this document or its contents.
You may not distribute it by any means, in any form whatsoever,
without the express written permission of the author.
Creating Business Plans © 2012
Norman C. Berns
ProStar Media

2. This is a guideline, a checklist of information you need to create your Business Plan and
financial offering. My name is Norman Berns and we’re going to spend the next three
hours talking about your business plan. A lot about the structure of your plan ‐ the
organization and shape of things. Even a bit about style – how things look and feel. And,
most importantly, about substance and legalities, because fund raising is a tightly
regulated, government‐controlled business.
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3. Let’s start by looking at the overall structure of a Business Plan.
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4. We can start with a Table of Contents. One is included with your documentation. Before
you begin your work, print it out and use it as a guide. Put each item at the top of a blank
page. Then start entering information, bit by bit. There’s no reason to “finish” one section
before moving on to the next. In fact, you’ll probably come across details for one item
while researching another. Fortunately, computers and the Internet make this work
relatively straightforward.
It’s important to keep in mind that this is a general list of contents. You probably won’t
need every item that’s mentioned here. And you may need to include others that happen
to match YOUR specific plan.
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5. Included with your documentation is a Table of Contents for your Business Plan. Before
you begin your work, print it out and use it as a guide. Put each item at the top of a blank
page. Then start entering information, bit by bit. There’s no reason to “finish” one section
before moving on to the next. In fact, you’ll probably come across details for one item
while researching another.
Computers and the Internet make this work relatively straightforward. Still, keep in mind
that you don’t need every item mentioned here. And you may want others that happen to
match YOUR specific plan.
4

6. Included with your documentation is a Table of Contents for your Business Plan. Before
you begin your work, print it out and use it as a guide. Put each item at the top of a blank
page. Then start entering information, bit by bit. There’s no reason to “finish” one section
before moving on to the next. In fact, you’ll probably come across details for one item
while researching another.
Computers and the Internet make this work relatively straightforward. Still, keep in mind
that you don’t need every item mentioned here. And you may want others that happen to
match YOUR specific plan.
5

7. Included with your documentation is a Table of Contents for your Business Plan. Before
you begin your work, print it out and use it as a guide. Put each item at the top of a blank
page. Then start entering information, bit by bit. There’s no reason to “finish” one section
before moving on to the next. In fact, you’ll probably come across details for one item
while researching another.
Computers and the Internet make this work relatively straightforward. Still, keep in mind
that you don’t need every item mentioned here. And you may want others that happen to
match YOUR specific plan.
6

8. Included with your documentation is a Table of Contents for your Business Plan. Before
you begin your work, print it out and use it as a guide. Put each item at the top of a blank
page. Then start entering information, bit by bit. There’s no reason to “finish” one section
before moving on to the next. In fact, you’ll probably come across details for one item
while researching another.
Computers and the Internet make this work relatively straightforward. Still, keep in mind
that you don’t need every item mentioned here. And you may want others that happen to
match YOUR specific plan.
7

9. A business plan describes and analyzes a business. In our case, that’s the process of
turning something – maybe a script or just an idea – into some visual form – maybe a video
or a weblog, a documentary or a feature film…. A business plan outlines the specific
operating plan and the proposed future of your business. It contains the detailed
plans and budgets of how and with whom those objectives are going to
be realized. A well-written business plan is a detailed description or
roadmap of a company’s future.
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10. Before I get into this, let me stress that this is no task for the feint-hearted. It’s extremely
difficult work, takes an egregious amount of your valuable time and requires absolute
honesty and accuracy. There’s no room for hyperbole or speculation.
Because it’s YOUR film, there are many things here that YOU can do on your own. You’re
going to lead this project. But it’s going to take a whole team to complete the Business
Plan. You, plus your lawyer, an accountant and a major number-cruncher to prepare the
income projections. You might find one amazing person to take on many roles, but don’t
count on it.
All the work has to be done and it has to be done correctly. Raising money take a long
time, usually many years. This isn’t a sprint; it’s a marathon.
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11. A Business Plan is just that. A plan for doing business. It doesn’t
become an offering – a legal, financial document – until you ask for
money. But that’s a pretty fine line. Defining that line – getting to the
point where you ask for money – is usually the point of creating a
business plan.
For the most part, a plan to make and sell a widget is much the same as
a plan to make and sell a film. Any kind of film – features, shorts,
industrials, documentaries, TV shows. They may have different
production techniques and different distribution outlets, but they all
share much the same need to assemble a business plan.
Most companies start their search for money by creating a business plan. Plans are an
important part of fund raising, but they are not designed to be investment documents.
Business plans provide general information about the company. It’s not the basis for
accepting an investment.
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12. Business plan aren’t designed for a nickel and dime at a time. You plan might say you’re
looking for $5M, but business plans have no structure to take that money. Business plans
serve an important function. But they’re not made to be investment documents.
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13. So why do we go through all this hard work is…? Any guesses? Anyone
know?
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14. The point is to validate our business model. And explain how we’ll return
a profit to our investors. Even if you don’t want to get rich from your
film, odds are strong that your investors will.
That’s your whole business plan. You’re going to make a product, you’re
going to sell it somehow, you’re going to make money from those sales
and you’re going to return a profit to your investors. That’s IT. We’re
done. Except for a few thousand details. And the method for collecting
that investment
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15. Of course, the documentarians and the educators are howling now. “My endowment,
funder, foundation doesn’t expect to make money on this film….”
“Profit” isn’t always measured in cash equivalents. Consider community outreach,
education, local impact, good-will, training…. All the myriad ways that can make your film
“profitable” (or “valuable”) to your investors. It doesn’t matter if you’re in this for money
or wisdom, you must show your investors a return on their investments. It’s your job to
judge very carefully how each investor defines “profit.”
If you’re a non-profit 501(c)3 organization, your funding company will have very specific
definitions of “profit” for you. If you’re getting private funds for a documentary or
educational film, you’re in the same boat as all of us. You may hope to “do good” with your
film. Your investor may, too. But they also expect some sort of profits to come in.
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16. Can you think of any films that DON’T need a business plan? I’d bet you’ll say
“documentaries.” Right? Sorry, you’re wrong. Okay, they’re not called that, but it’s the
same thing.
Here’s the tiniest part of the requirements for an NEH grant. Look at some key points here.
• Submit a script. (For a documentary? That’s another discussion.)
• Have command of scholarship about the subject.
• Consult with scholars.
• Recruit the production team.
• Extend the educational experience of the audience
• Use new ways to distribute the content
• Deepen public understanding
• Engage the public in learning.
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17. No matter the source, there are fundamental requirements. And the piper must be paid.
In the case of the NEH, both figuratively and literally.
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18. Of course, a BUSINESS PLAN can be anything you want it to be. There are no rules
about how you can represent your company. Until you use that plan to raise money.
Then there are state and federal guidelines and rules.
So if you’re writing a plan to promote your business – not to raise money – you can say
almost anything. Forget the ALMOST. Say whatever you like. If you do plan to raise
money with your plan, be aware that there are many, many deal killers. What would
you think are the biggest?
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19. A BUSINESS PLAN can be anything you want it to be. Until you use that plan to raise
money. Then there are state and federal guidelines and rules. If you’re promoting
your business – not raising money – you can say almost anything. If you do plan to
raise money with your plan, be aware that there are many, many deal killers. What
would you think are the biggest?
1. Most films tend to lose money. If you pick only winning films you’re loading the
dice.
2. Each year foreign acquisition prices are printed in The Hollywood Reporter. The
numbers are accurate, but they don’t mention that independent films rarely see foreign
sales.
3. Rather than touting the wonder of your film, tell your investor how you plan to cost-effectively get it into
the market.
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20. 4. Actors help. Sometimes. I’d bet you’d bet on a film directed by Sidney Lumet starring Philip Seymour
Hoffman , Ethan Hawk, Albert Finney and Marisa Tomei…? Unfortunately, “Before the Devil Knows You’re
Dead” limped away with $7M from the US box office….
5. There may be money-making films that are similar to yours. But for every Titanic ($600M US), there’s also
a Waterworld ($88M), for every Superman I ($134M) there’s a Superman IV ($11M). And your investor needs
to know that in no uncertain terms.
6. If your goals and ideas aren’t grounded in reality, you won’t get the funding you need. And, yes, smart
investors will know the difference.
7. Too many words make it harder to understand your plan, not easier. If something isn’t essential, delete it.
Avoid fillers like “at this point in time” instead of NOW. Avoid redundancies like “foreign imports,” “qualified
experts” or “excess verbiage.”
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21. Our conversation isn’t limited to “standard” movies. I don’t even know what a movie is
these days. There are so many forms.
After all, we don’t limit ourselves to MOVIES anymore. We call them films, but they’re
rarely shot on film these days. Video tape only happens to be the medium of the moment
– and its time seems to be short. What will we call our “creations” now that they’re saved
as strings of ones and zeros on a digital memory card? Digis…?
What are they called if they never see a theatre or TV, but show up on someone’s
cellphone or wristwatch or something we can’t even imagine today? We already call them
Podcasts. What’s next? Webbies and wristies…?
So understand that everything I’m about to explain applies to music videos and
infomercials, educational films and documentaries and informational films and shorts and
clips that are made in any format and seen on any screen.
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22. How in the world will you learn all this? You’re a filmmaker, not an MBA or a
stockbroker. Offering memoranda, minimax, escrow accounts, entity management
fees....
Don’t imagine for a moment that you can do this alone (unless you have that MBA).
Making Business Plans takes a team, much the way making a movie takes a team,
from cinematographers to art directors, from directors to editors. You have your
part – the film, the way the film will be made and sold. Don’t forget the role of
lawyers, accountants and business planners. They don’t have to be filmmakers, but
they have to know business and financial offerings.
I Googled “Business Plan” and got this image (along with 137 million others). I like
the fact that the image deals with teamwork. Take it to heart.
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23. These pages are an example of the
FILM BUSINESS PLAN seminar created
and presented by Norman C. Berns.
.
The full 140 page session - with
extensive support documents - can
be ordered on DVD or as a live
seminar at http://www.reelgrok.com/
film-businessplans-marketingplans-
fundraising.
.
For further information, contact
norman@reelgrok.com

24. For further information on the legal ramifications of preparing Business Plans, it is strongly
suggested that you consult with your attorney. A number of recommended attorneys are
listed in the links on The Budgeting Group and Producers & Directors.
My advisor in preparing this document was the attorney, Paige Gold. She specializes in
start-ups, expansion, employment issues and government regulation. She can be reached
at 3016 Waverly Drive, Suite 214, Los Angeles, CA 90039. 213-507-6456 .
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25. Norman C. Berns is an award-winning producer and DGA director. His three-part documentary series, The
Writing Code, recently aired on PBS. Beginning his career as a stage director, his production work has run
the gamut from features to documentaries, TV series to commercials. He was part of the ad agency team
that produced the internet’s first webisodes, a series of five minute films sponsored by BMW.
A certified Movie Magic instructor, Norman was an early beta tester for Screenplay Systems budgeting and
scheduling programs and was part of the Set Management development team that created ProductionPro
Budget. A columnist for the seminal online publication, WebZine Weekly, Norman has written for The
Directors Guild, Tripod and BTL News. His frequent blogs and reviews can be read online on reelgrok
(www.reelgrok.com) and the NY Times’ Baseline (www.baseline.com).
A consultant to the Roy W. Dean Film & Video Grants, Norman is on the Board of Advisors for People With
Disabilities Broadcasting Corporation and an advisor for Pavaline. He is moderator of The Budgeting Group
and owner of the online film community, reelgrok.. He has taught film production and software for Media
Services, The Directors Guild, Filmmakers Bootcamp and others.
A member of DGA, SAG and Actors Equity, Norman has been creating films and preparing budgets,
schedules and business plans for the past 25 years.
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