Would you like to raise investment capital from friends, family and people who don’t even know you yet?  This article will show you how we accomplished this quickly and efficiently for one of our clients.

Our firm was retained by a Northern California entertainment start up to set up and raise from outside investors up to $1.5 million.  The company had been in business for about one year and had completed their business plan along with the first phase of their product development.  There were three founding executives, each of whom had put in about $175,000 of their own capital.

Our first job was to restructure the company.  Like most small startups the founders had established the business as a Limited Liability Company.  The problem with LLCs is that the owners hold “membership shares” in the company, not stock.  Instead of selling stock we suggested that investors make “Bridge Loans” to the new “C” corporation that could be converted into common stock at a future date.  There is really no good mechanism to do this as an LLC, so we converted the original LLC into a Nevada based “C” corporation.  

Once the company was converted into a “C” corporation all sorts of options opened up for fundraising.  For example, “C” corps may have more than one class of stock.  You can have founder’s shares, common voting shares, common non-voting shares, preferred voting and non-voting as well.  Even the common and preferred shares can be priced differently depending on when the shares are purchased.  Example: “A” round common stock could be priced at $1 per share; and later “B” round common stock could be priced at $2 per share (or more), depending on the overall increased value of the company.  Note: the difference between common and preferred stock is that preferred stock always pays a fixed dividend, which must be paid to the preferred stockholders before any common stock dividend may be paid out.

Upon setting up the initial “C” corporation with 10,000,000 shares, we issued 6,000,000 shares to the three founding executives, plus another 225,000 shares, unevenly divided, among the first 5 employees, depending on their rank and length of employment.  An additional 1,275,000 shares were set aside as an incentive stock pool for new officers and employees.  A block of 1,500,000 shares of the initial stock was set aside for the Bridge Financing warrant holders.  The final 1,000,000 shares were put in reserve for new common stock holders and strategic partners.

Three important documents needed to be created to enable us to move forward:

• Bridge Financing Agreement – This is a seven page memorandum that sets forth all of the terms of the Bridge Loan, including the issue of warrants, valuation, rights, representations and warranties (if any), governing law, assigns, and timing.  The minimum loan amount allowed was $25,000;
• Warrant To Purchase Common Stock – A warrant is a right to convert a loan into common stock and establishes the price that the Bridge Loan can be converted, and when.  In this case, we established that after two years the Bridge Loans could be converted into common stock at the transfer price of $1 per share.  The Bridge Loan terms do not require that the loan holders convert their loans into company stock, but they do establish the mechanism and the timetable to do so;
• Promissory Note – This is the loan document.  In this case, the company agreed to pay the Bridge Loan holders 2% interest only, per annum, on their note for two years. After two years the note could be converted to common stock at the note holder’s discretion, through the exercise of the warrants.  The Note also establishes that “Maker may prepay all or any portion of the principal indebtedness without penalty at any time.” But also that “Maker shall not pay any dividends to its shareholders until all principal and interest on this Note has been paid in full.”

Once all the financing documents were completed, we were ready to meet with investors and accept checks and wire transfers.  My team, which included the three founders, was able to meet with about 36 groups and raised $1,115,000 from 24 investors.  The entire process took about 12 months to complete.  The two single largest investors were invited to join the board of directors as representatives of all the note holders.  As note holders, the investors had voting rights and some “super majority” rights that prevented the founders from making any business altering decisions that the note holders would not approve of (like giving themselves huge raises or changing the fundamental business of the company). 

After two years almost all of the initial 24 warrant holders converted their warrants into common stock.  The value of the initial stock went up from $1 per share to $2.50 per share for later investors. 

We are not saying that this is the only way to raise money for young, start-up companies, but it was an efficient one for these entrepreneurs.  What made this effort successful for this company was the fact that their project was based on a bestselling book by two of the founders, and they had already created a large and ardent following by the time they engaged my firm to do fundraising for them. 

Crowdfunding is becoming so (for want of a better word) crowded, and raising money from institutional investors often costs more and takes longer.  This method allows companies with a good business to raise fairly large amounts of money from investors in a way that benefits everyone.

If you too have a compelling venture and well thought out business plan, then this road map for raising capital may get you on your journey as well. 

Let us know if you need an experienced guide.

In the world of horse racing the handicappers look at how the racehorse has performed over the past season and then match that up with the track record of the jockey to determine if it is a winning combination.  They weigh that against all the other horses and jockeys in the race to determine if it is a good bet.  

When considering what films to make, producers have to make critical choices about selecting the genre, plot and the characters.  Due to marketing and financing considerations, it often comes down to a choice between betting on a genre specific project such as a thriller, scifi, action or horror movie, without any recognizable stars in it, or going with a bankable movie star and/or director.  So, do you bet on the horse (genre+plot+script) or the jockey (highly recognizable actor)? 

Distributors can sometimes establish a market value for genre films before they are completed, thus making the likelihood for pre-sales far greater than ‘execution-dependent’ films.  It is more difficult to assess the audience appeal of execution-dependent films based on the concept alone, as their success is contingent upon a number of unpredictable factors, such as reviews and release timing.  Such films have historically achieved lower pre-sales as the market tends to wait and see the finished product; hence, the need to rely on bankable stars and/or a name director to promote these films at the markets.

Unfortunately, this has also resulted in a glut of low-budget, genre driven movies; so much so that the distributors/foreign sales agents are now starting to reject these projects unless they also have a movie star attached in a lead role.  No longer will Eric Roberts or Gary Busey fit the bill.  An oversupply of low budget films has pushed down demand and allowed the international buyers to be more selective. 

I would have to also add that the person who bets on the horse and jockey also needs to consider what kinds of race they are running.  Is it a steeplechase, quarter horse, or thoroughbred race? Different races call for different kinds of horses and jockeys.  The bottom line is that money can be made in each kind of race, if you know what you're doing.1

Such is film.  The films sold at Cannes are vastly different from those sold at Fantastic Fest. Direct to video horror movies may surpass an Oscar nominee with a small theatrical release in earnings.  An Oscar winner may outpace the summer blockbuster over years of VOD and TV deals.  It's all relative as long as you position yourself well in the race of your choosing.  No matter what race you run, make sure you know what you are getting into.  That way you can increase your chances of winning every time.1

Investors often see genre driven films as low risk, quick turnaround opportunities, but they are also drawn to the higher quality projects with internationally bankable stars and directors with an attractive risk/return profile.  Everything depends on the distribution that the producers can line up.

So, do you bet on the horse or the jockey?  Increasingly, the answer is both.  Just like in horse racing, the handicappers are putting their money down on the combination of the two and comparing that to all the other horses and jockeys in the field.

Today, filmmakers run the risk of making that $250,000 scifi thriller, without finding any sales agent that will take it.  It’s kind of like building a mansion out of cardboard, just because you could do it, does it mean that you should?  That does not mean that a $100 million high concept film starring Johnny Depp and Morgan Freeman is a sure bet either, just look at what a disaster Transcendence was for Warner Bros.  As Mark Lágrimas says, “…money can be made in each kind of race, if you know what you're doing.”

-----------------------------------------------------

1 Contributed by Mark Lágrimas, a former Disney, MGM & CBS film & television analyst.  Now an independent filmmaker with Best Served Cold Productions.

Whether we want to admit it or not film making and film distribution is a competition.  A competition for money, a competition for resources, and a competition for the attention of the public.  Most of us who have been in the trenches convincing investors, cajoling actors and directors, corralling production resources, and coercing distributors to hustle for our films, know that this is a dog-eat-dog, competitive business. 

Winning at the game of filmmaking is something like winning the lottery.  The odds are only slightly better.

The good news is that there is a lot that we can do to improve the odds significantly in your favor.  I don’t like to waste my time, or that of my team, my investors or anyone else, so I like to stack the deck in my favor before ever pitching a project.  By ‘stacking the deck’ I mean lining up all the resources before you talk to your first investor about your film project.

The following is a list of five things that you can do to greatly increase your chance of success:

1.      Get advice from the smartest people that you know in show business.  Talk to film distributors and foreign sales agents first about your concept before you even write the script.  Once you have gotten all of their input on the genre, characters, location and plot, then go talk to other producers, casting, production veterans, screenwriters, and actors before completing your first version of the script.  If you already have a script you need to go through the same process to vet the premise and allow others to shoot holes in your grand design.  Avoid getting feedback from friends and family members who will only tell you what you want to hear. 
Making movies that people want to watch starts with talking to experts.

2.      Once you have vetted your script and polished it to a shine, now build your team.  Unfortunately, most producers pick team members that will (A) Work for free (insert % here), (B) Will not challenge them in the room, and (C) Agree that they (the producer) is, if not God Himself, very near to him.  So what you have ends up looking more like a personality cult than a production company.   Don’t do that.  Choose the most powerful, dynamic and connected people that you can find.  If you have money pay them, if you don’t, elevate them to the same status that you enjoy… and give them the respect that they deserve.  Remember – you, and your project, are only as good as your team.

3.      Bring gravitas to your picture.  Gravitas could be in the form of Martin Scorsese, Tom Hanks, Mark Cuban, Sandra Bullock, Spike Lee, or His Holiness the Dalai Lama – but it better be someone who brings some serious weight to your project.  Because without gravitas you are just another wannabe producer with a script.  Remember – the title of this article is Winning Before You Show Up, not Show Up And Pray For the Best.  Bring enough gravitas to your picture and it gets made.   No one in our business ever turned down a meeting with  JJ Abrams, Stephen Spielberg, Oprah Winfrey or Catherine Zeta Jones. 
The more power you bring to the project the higher your chance of success.

4.      Line up your distribution early.  Wouldn’t you agree that producers with studio output deals get their films green-lit and into production faster than those who do not?  Producers with a domestic (North American) distribution partner, plus P&A money committed to their project also tend to get their movies made.  Producers who have strong foreign sales relationships and can get their films pre-sold at Cannes, AFM, Sundance, Toronto, and EFM/Berlin get their movies financed and into production.  Producers who have none of these things mostly sit around and talk about how they want to make movies.   Distribution deals get movies financed and made. 

5.      Have a reputation for taking care of your investors, your cast, your crew and your distributor.  If your film projects are not getting funded then maybe it is time to look in the mirror and ask if you are a good investment.  A bad reputation in the film industry follows someone around like stink on a skunk.  If making your next movie ever becomes more important than taking care of the people who helped you get here, and believed in you in the past, then maybe it is time to get out of the business and go open a restaurant.
Take care of people on the way up and they will  be there for you now.

Winning Before You Show Up is all about knowing your business, having the right team, bringing gravitas to your project, lining up distribution, and lastly… being the kind of person that others will trust with their money, their time and their talent. 

 In the film industry we are constantly put in the position of having to manage someone else's expectations.  Producers have to manage the expectations of their sometimes pessimistic financial backers; sales agents have to manage the expectations of the often overly optimistic producers; and the publicists, foreign buyers and legions of sub-distributors have to manage the expectations of the fee dependent sales agents. 
 
‘Managing expectations is a vastly underutilized skill, in my opinion. Not everyone does it, but maybe if more did, we could avoid a lot of the day-to-day drama that goes on in every business.’1

Producers have to live, breathe and eat the films that they make; often having to live with their creations from cradle to (hopefully not) the grave.  Epidemic to the profession is a tendency to believe one’s own press.  As a producer you have to believe.  Believe that you will make money for your investors; believe that you will make a good (if not great) film; believe that you can bring the project in on time and on budget; and believe that people will want to watch your masterpiece when it is done.  But a producer has to manage their own expectations for a production, as well as others.

What many producers sometimes fail to understand is this: What the world entertainment markets are willing to pay for a film or television show has very little to do with what the budget was to make it, or how long one labored to get the project made. To the television/cable, online, DVD, and theatrical exhibitors a film/program is just another slot in their schedule.  Most producers and financiers need to manage their own expectations about how long it will take to realize an ROI on their fully finished productions.   
 
“One of the best ways to manage expectations is to make sure you communicate with everyone on a frequent basis. In the early stages of a new project or as a key milestone or deadline approaches, you may want to even over-communicate…  By holding frequent check-ins throughout the course of a project, you also have the chance to provide real-time status updates and manage any delays, risks, or blockers. When you're proactively honest and transparent in your communication, you have room to put a Plan B in place, if needed, or the flexibility of making new decisions as you move toward the finish line. Being honest about a delay is a thousand times better than promising to deliver and then missing your deadline.”1

Distributors and sales agents are a more sanguine lot.  They can afford to be picky and usually will not distribute a film unless they sincerely believe that they can sell it… but even they are always working on a hunch.  They have to anticipate the appetite of the buyers at film markets spread from Los Angeles to Berlin to Hong Kong, often six months to a year in advance.  Who knows what the Australians, Germans or Chinese will be looking for next winter?  What was hot at the last market may be as dead as a doornail the next.  Films and television programming follow the laws of supply and demand just like any other consumable commodity. 

Producers and creatives alike need to be more realistic about their expectations and should conduct proper research prior to greenlighting any project, and not pin all of their 'Hail Mary' hopes on the distributor.  Learn directly from the distributor what foreign buyers are saying in those Cannes and AFM bunkers before you shoot that heartfelt film about a vampire transvestite with Asperger's.  Discover what films are succeeding in the VOD space by talking to the aggregators. Meticulously keep aware of the latest industry trade winds so you're not caught with a genre trend that ended a year ago.  If your direct discussions with a broadcaster or home video connection tell you that cable TV and DVD is a brutal sale these days, don't be afraid to LOWER projections on your film business plan (or even zero a media or territory out where warranted).  You don't have to constrain your originality - just don't back yourself into a financial corner with insanely unachievable expectations. 

While honesty is the best policy…one can be too honest with those dependent on you.  A producer telling the investor that he or she will possibly lose all their money – is usually not going to be productive.  A distributor telling a producer that their film is a derivative pile of horse pucky is probably not a smart move.  A foreign territory movie buyer telling a sales agent that no one in their country gives a damn about a kid in Kansas and his dog… is probably not a good relationship builder.  So, we use discretion, and diplomacy/tact. There are a lot of delicate and blustery egos in the entertainment industry.  Since motion pictures and television programming are consumable entertainment, if we were always, brutally honest with each other, very few of our movies and serial television programs would ever get made. 
 
“A huge piece of managing expectations is the actual expectation, right? You have to be comfortable that the expectations are realistic and achievable. If they're not, you can--and should--push back. The key here is pushing back in a way that balances the organization's needs and the team's abilities. Being open about what can be delivered and what the plan is to bring in the rest can go a long way towards instilling confidence and getting the go-ahead. If you can nail the fine art of pushback, you've won half the battle of managing expectations successfully.”1

Managing expectations is what we must do to get films, documentaries and television programs made, distributed, and seen by an audience.  And managing expectations is all about communications.  As a business consultant to the entertainment industry, I constantly have to assess, interpret and manage the expectations of my clients.  This means that I have to listen carefully to what they are saying and then find the best way to help them achieve their goals.  I can be brutally honest when I have to be, but most often I find that a deft touch works best with the majority of my clients. 

Uncovering the true expectations of the other person or organization is key to meeting their needs.  Sometimes they are unsure, or simply do not know what outcome to expect.  Vague goals such as “make money” or “get on air” or “tell an interesting story” don’t help you very much.  You need to dig deeper to find out what is driving the motivation to make this film, at this budget, with this cast – now.  

Because you can’t very well manage expectations unless you know what they are. 
 
A special thanks to Larry Goebel, Keith Birkfeld and Lise Romanoff in the writing of this article.
1Managing Expectations: The Most Underrated Leadership Skill
 By Janine Popick, March 2014, Inc.

rel·e·vance
noun: The condition of being relevant, or connected with the matter at hand. Meaningful.   from Medieval Latin relevans , from Latin relevāre  to lighten, from re-  + levāre  to raise, relieve

It does not matter whether you entertain the masses with major motion pictures; pump oil out of the ground to fuel our economy; or save people’s lives on the operating table; we are all searching for relevance in this world.  The best and the brightest of us, most of all.

For 26 years I have worked with some of the smartest, most talented and very, very accomplished human beings on the planet.  My firm buys and sells media companies and I have had the fortune to know the men and women who started them, grew them and made them such a success that others wished to own them.  I have been fortunate indeed.

That is why I wanted to write this blog, it is about how each of us is searching for relevance. 

It does not matter if you have a fine home in the hills, drive the latest model luxury car, and have a ski chalet in the mountains… if you are unsure of your relevancy on this planet, you will be discontent.  Accumulating nice things does not give you the satisfaction of feeling accomplished.  More often than not our possessions just make us feel trapped.

Angelina Jolie, a woman who gives away more than one third of her enormous income to the poor, was being interviewed on television recently, and she said; “I am paid a ridiculous amount of money for what I do. Why shouldn’t I give it those less fortunate than me.”  She, the highest paid actress on the planet, is still searching for relevancy in this life. 

Like myself, many of my client’s have never made millions of dollars, but they have built good and stable companies that employ talented, hard working people.  They help creative people reach their potential by bringing their artistic talents to an audience – whether it be on the stage, on film, on the internet/ television, or even between the pages of a book.  These people are the backbone of the communications industry.  They develop, nurture and promote the most talented writers, directors, artists, filmmakers, singers and actors that they can find and risk their money and time so that the world can know their art.

It is an old and noble profession.  We are the impresarios of our age.

Why is it then that so many of my friends and clients, especially those in their late 50’s and 60’s, seem so discontent with their accomplishments?  They have what many would deem “interesting lives”.  They lunch with actors and writers; they strut their stuff on La Croisette in Cannes; they have interesting conversations about creating books, films, music, art and stage plays with people who know how? 

So, what is the source of their malaise?

It all comes back to feeling relevant. Most publishers, record producers, movie makers, playhouse owners and even television executives that I know want, more than anything, to make something important that will last beyond their lifetime.  A lot of that entertainment is basically 'pop culture'.  It is created for a purpose, consumed and quickly forgotten.  Most entertainment companies create pop culture.  Sometimes, if we do it right, even inexpensive pop culture movies, music and literature becomes art.  Think Berry Gordy’s Motown music of the ‘60s, Saturday Night Live, John Carpenter’s Christine or anything from the pen of Stan Lee.  Pop culture can become iconic culture.   

It is that search for relevance that drives even successful pop culture purveyors to strive to make and disseminate better quality, artistic entertainment… they don’t just want to make a buck, they actually want to make a difference.  Touch people’s lives.  Move the world. 

I once asked a real estate developer of storage garages and industrial buildings why his home was so finely ornate, and he answered, “Stephen, I just wanted to build something of quality, not something for the lowest cost per square foot.”  I understood completely.

The search for relevance is the search for meaning in this life.  Our own little corner of immortality.  We are fortunate to have the opportunity to create and promote art, literature, films, music, games and other artistic endeavors.  We actually do get a chance to touch lives and move the world. 

If we do it right.

My firm is all about helping companies build and realize their highest value; whether it is in film, television, music, video games, publishing or online.  As you get ready to go to Cannes I want you to think about what makes your company valuable and consider what you can do to enhance that value as you do your work of buying and selling films.

The single, most important thing that you should think about as you prepare for Cannes is...

What is our brand? 

Many companies go from show to show, building their catalog and selling territories without really giving much thought to their overall company image or “brand”.  But your company needs a brand; it needs to be known for something more than just an eclectic collection of films.  That in fact is what a lot of the foreign sales companies have become:  A mixed assortment of movies and documentaries.  You cannot discern much of a plan or corporate image from their list of titles, accumulated over the years.  Most were picked up because they were priced right and expedient, and the acquisition team knew that they could sell them to a certain number of buyers.  Not much thought was given to how this or that title fits into the overall company “brand” or how a title will enhance the value of the corporation as a whole.  It often gets down to price, terms and sell-ability.  Deal done. 

But that is not the end of the deal.  That title will become part of your company’s long term identity.  You know the phrase “you are what you eat,” well… you are what you sell. 

Building your corporate brand is crucial to the long term successful growth and financial health of your company.  What are you known for?  Why do buyers want the films that you take to market?  When you want to recruit top talent to your team, why do they want to work for your company? 

I started my career at the Walt Disney Company.   Arguably, the most brand conscious corporation in the entertainment industry.  We were always fastidious about building, enhancing and protecting our brand.

You need to do the same. 

Buying and selling films is just as much about personal relationships as it is about marketing entertainment properties.   Often films are picked up from this producer or that one because you sold their last film and may want their next one.  But how does that help your company?  Ten years from now will you look back and be really glad that you acquired and sold that film, or will it just be another brick in the wall?    

Build your brand.  They are not bricks.  Acquire only films that will enhance the overall value of your company and give you a catalog of titles that others would admire and wish they had acquired. 

It does not matter if you have the best collection of creature features, Anime, romantic comedies, rock docs, international spy thrillers… or kid vid.  Be known for something.

A lot of people talk about branding, but few companies in our business are really serious about it.  As you get ready to embark for France, think about your long term objectives and what you want your company to be known for, and do not compromise on that vision.

The independent movie distribution business is in something of a death spiral.  You know the one, where the fighter plane is in a flat spin, hurtling towards the earth.  With hands over our mouths we watch the intrepid pilot struggle with the controls to break out of the spin and regain control over his airplane before it smashes into the ground. 

Yeah, like that.

The death spiral that we are in is not nearly as dramatic, but it is real all the same.  Movie company X makes two films: One a $80,000 slasher film with no name actors, a predictable and derivative plot with lots of blood; the second is a $800,000 lovely, coming of age story, with recognizable actors, and some real production values. Movie production company X gives both films to their distributor.  Distributor takes both to the markets, getting MG’s for many of the major territories.  They generate $100,000 for the crappy little slasher movie and $250,000 for the coming of age story.  Having lost a bundle on the coming of age story, and having made money on the slasher film, which kind of film do you think the filmmaker will opt for next?

Although the decline of revenue for the average indie film has been occurring for awhile, it basically came to a grinding stop overseas in 2013, for the vast majority of recently-produced feature films, which did not have any theatrical exposure. Why? Consumers no longer rent DVDs in any great numbers -- with the exception of Redbox here in the U.S. (and Redbox does not exist overseas.) Kiosks exist in certain foreign territories but not for video rental—only sell through. Unfortunately, unless you have a film which has been released theatrically and/or has a well-known cast, or great audience pre-awareness, very few consumers still purchase hard copies of independent films, unless they’re in the $5 discount bin at Wal-Mart.

I suppose that we are all hoping to be the next Jason Blum. 

Since Blum, 45, hit big with Paranormal Activity in 2007, his "microbudget" model has upended the horror movie business. That film, which Blum discovered and pushed after filmmaker Oren Peli made it for $15,000, grossed $193 million worldwide and has spawned four sequels for Paramount.  Studios, faced with increased pressure to cut bloat and release more profitable films, salivate over the three franchises Blum has launched in the past four years: Insidious (a $1.5 million price tag) grossed $97 million worldwide; Sinister ($3 million) grossed $77.7 million; and The Purge ($3 million) grossed $89.3 million. The Hollywood Reporter 2/27/14

Since those financial successes even Blum and his distribution partner Universal have struggled to find a market for the low budget horror/thrillers he is turning out with regularity. Like Roger Corman, or Ed Wood before him, Blum is a victim of his own success. A success that gets harder and harder to sustain. 

When the overseas film buyers are not paying that much more for good films, as they are for crappy films, how do the producer and sales agent break out of the flat spin, and regain control over their flight? 

Answer: Stop buying bad, meaningless films that just bring the market value down on all films. 

Here’s your dilemma: You’re probably not very proud of the “art” that you have to peddle these days, but, you can’t sell from an empty cart either.  Your distribution company has to acquire films that they can make a profit on.  That brings up another problem.  At the bottom… the commissions are so low as to make it hardly worthwhile.  Even if you’re charging 15% - 25%, on a total buy of $100,000 that does not cover your cost of attending AFM, EFM, Filmart, Cannes and all the other shows that you have to be at to do your job.

The obvious solution for all film distributors is access to more capital. Better capitalization gives distributors the ability to pass on the truly bad films and concentrate on the better ones.  Filmmakers rely on the foreign distributors to be able to raise up to 60% of a film’s production budget from offshore buyers.  But when your new releases look just like everyone else’s, all you get is minimum buys. 

The demarcation line is no longer is it a good movie or a bad movie, it’s “is it commercial”.  A North American theatrical release, even as low as 150 screens, will give any film a big lift overseas.  It gets reviews, it gets press, its gets access to film festivals and more.  Or as one veteran sales agent put it to me, “…since very few genre films are being pre-sold, buyers are waiting to see the final film before making a decision. At this point, they simply do not care what the budget of the film is compared even to obviously smaller budget films in the same genre. As one buyer told me recently, “I don’t care if the producers spent $1,000,000 or $100,000 on the budget of a film. It’s not my problem. If it’s not going to be released theatrically, or have an obvious television sale, one particular film is worth virtually the same to me as another – regardless of the budget.” Simply said, the current marketplace is not rewarding better production values in films – unless they’re released theatrically.”

That is of course the impetus behind so many day-and-date releases in conjunction with Netflix, Redbox, Amazon, Blockbuster and others. It gives your film credibility.  Note however that foreign buyers are now savvy to the game of limited US theatrical releases and will ask how many screens, what the P&A spend was, and what the US audience numbers were. Just because you “four-wall” the film in 5 or 6 cities, that does not a theatrical release make.

I’ve financed films before and I know how hard it is.  There is just no substitution for a great story, backed by a well thought out distribution plan, with P&A money to support it… and that’s what gets films made, into theaters, and into our DVD collections. 

You can’t sustain a restaurant selling bad food, you can’t sustain a retail store selling bad merchandise and you can’t sustain a distribution business selling bad films. Sooner or later the customers will simply stop coming.

Changing Your Trajectory

The changing marketplace for consumer entertainment has left many companies with flat or declining sales, with little prospect of a turnaround.  I’m here to tell you that it doesn’t have to be that way. 

Even though you may be in an area of the business, whether it be production, post-production, or distribution, that has been eroding and you have not been able to keep up with (or afford to invest in) the technological changes affecting your business… there is still time to reverse the trend and pull your company out of the mud.  And, it doesn’t matter whether you are in Hollywood, Houston or Hoboken.

How to effect the BIG BOUNCE.

You need more than just new customers… what you need is a new vision of your business.  A vision of what your company does; a vision of your place in the industry; a vision of who your customers are; a vision of how to attract business, and a vision of what is possible. 

The biggest hurdles that most business owners’ face are their belief that change is not possible and that they can’t get there from here.  There is one thing for certain.  You cannot do it alone. You need a new vision and you need money.  One tends to follow the other.  To change any static property from its state of stasis to a new form, it takes a catalyst.  Whether that is the introduction of another element, heat or cold... a body at rest tends to stay at rest.  Or to quote Newton’s First Law of Motion: a body remains at rest or in motion with a constant velocity unless acted upon by an external force.

There are other people and companies that need your help, and in turn can help you.  They need access to your customers.  They need to put their cash to work.  They need your special know how.  They need to better serve their customers.  Those strategic partnerships and investors in your business can be the catalyst for change that you are looking for.  There is no shortage of money in this world.  There is no shortage of work.  There is no lack of demand for your services.  There is only a shortage of connections.

Collaboration is your key to effecting change at your company.  Upgrade your vision; open up your company to cooperation through strategic alliances; and open up your mind to the possible.  That’s when you will make the Big Bounce.