4 Things Film Investors Look At On Your Business Plan

Updated: Jul 17, 2020

Writing a business plan for your film can be one of the most draining tasks of any film project, but also one of the most necessary ones since it gives you not only the opportunity to think ahead, but gain the support of potential investors. 

Last year at our Film & Media workshop, we invited many qualified film industry professionals that offered their advice on writing good business plans for films. Louise Levison, President of Business Strategies and a financial consultant in the entertainment industry, provided insight on the four areas investors will focus on in your business plan.

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The four things you need in your film's business plan:

  1. The Plot

  2. Market & Audience of your Film 

  3. Risk Factors

  4. Legal Assistance 

The Plot

When pitching your film to a potential investor, tell them what the story is about. Your plot must resonate with the investors’ interests so that they will be more likely to offer financial support. Make sure you detail all the information on the main plot points, including what kind of scenes they may find. If there are any controversial or sensitive topics that your film addresses, make sure you let your investor know. Transparency is key when dealing with your investors so that you can avoid future misunderstandings. 

Market & Audience of your Film

Your investors will want to know if there is a market for this film. In your business plan, detail who your audience is and your plan to target them. Provide facts to back up the need for your film in that particular market and if there are any films with a similar background to yours ("comps"). Use credible sources for numerical data such as the Baseline Studio Systems, now owned by Gracenote, a subsidiary for Nielsen Holdings. Knowing and listing all these facts will not only help you better direct your film but will give your project credibility in the eyes of your investor. 

Risk Factors

As mentioned previously, transparency is key. Let your investor know of anything that could possibly go wrong and how would it affect the financial outcome for them. Be sure to also detail how you are planning on mitigating these risks, showing them the investment opportunity and your plan to pay them back. 

Legal Assistance

This will always play an important role in film or any investments for that matter. Legal assistance is always advisable to protect yourself and your investors. The importance of written and signed documents should never be overlooked, even when making business with close friends or family members. 

Focusing on these areas on your business plan will provide your investor with a big picture on what your project is about and whether or not they would like to invest in it. Although these are areas we have highlighted on your business plan, don’t forget to be as detailed as possible in all other aspects of your plan to keep building on your credibility and find the right investors for your film. 

Additional resources:

Film Business plan template

Other things to include in your film's business plan.

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