1.

0 Executive Summary
The purpose of this business plan is to raise $1,800,000 for the development of a film production
company while showcasing the expected financials and operations over the next three years. The Film
Production Company, Inc. (“the Company”) is a New York based corporation that will provide develop and
distribute films produced by the business to customers in its targeted market. The Company was founded
in 2008 by John Doe.

1.1 Products and Services

As stated above, the Company will be actively engaged in the development and distribution of films
produced from scripts that will be actively purchased by the Company. Once the Company “green lights”
a production, the business will aggressively produce, distribute, and market the film to the general public.
The Company will earn substantial income from the distribution and licensure fees from the initial
theatrical release of productions coupled with ongoing royalties from DVD, Blu-Ray, and merchandising
sales. The third section of the business plan will further describe the services offered by the Film
Production Company.

1.2 The Financing

Mr. Doe is seeking to raise $1.8 million from an investor or group of investor(s). On a preliminary basis,
Mr. Doe intends to sell a 50% interest in the business in exchange for the capital sought in this business
plan. The investor will also receive a seat on the board of directors as well as a regular stream of
dividends from the royalties earned on the films produced and distributed by the Company.

1.3 Mission Statement

To produce quality motion pictures and other media that provide the Company’s audience with enjoyable
entertainment.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
entertainment industry. Through his expertise, he will be able to bring the operations of the business to
profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over
the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation.
Mr. Doe intends to implement marketing campaigns that will effectively target quality screenwriters that
can provide the Company with extensive materials that the Company can produce and distribute as films
to the general public.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

The Film Production Company, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Film Production Company requires $1.8 million of investor funds. Below is a breakdown
of how these funds will be used:
2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the requisite
capital sought in this business plan. The investor will receive a seat on the board of directors and a share
of the ongoing royalties generated by the Company’s productions.

2.4 Management Equity

Once the requisite capital is raised, Mr. Doe will retain a 50% ownership interest in the business.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant
earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on
behalf of the Film Production Company. Based on historical numbers, the business could fetch a sales
premium of up to 10 times earnings if the Company earns substantial royalty income from its previous
produced films.

3.0 Products and Services

Below is a description of the film production and distribution services offered by the Film Production
Company.
3.1 Film Development and Production

The Film Production Company will finance its own media content by purchasing scripts and developing
films for distribution. The business will develop these pictures individually, and will provide all of the
necessary capital for the development of these projects. Upon receiving the Company’s needed capital,
the business will produce one film at a time to develop this business. Management feels it is important to
test the waters of this market as developing media content is a risky business. The Company wants to
ensure that it develops the proper distribution and advertising channels before it heavily engages this
business.

3.2 Licensing of Intellectual Property

As the Company develops its film property portfolio, Management fully intends to license and develop
strategic relationships with publishers that want to participate in license the Company’s database of film. If
the Company’s marketing campaign is successful, the Company will be able to offer license of its
trademarked and copyright protected works to other businesses and as such the fees and licensing
percentages will greatly increase the Company’s profitability.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the film production industry, the customer
profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic market condition in the United States is in recession. This slowdown in the
economy has also greatly impacted real estate sales, which has halted to historical lows. Many
economists expect that this recession will continue until mid-2010, at which point the economy will begin
a prolonged recovery period.

4.2 Industry Analysis

The film and movie production industry is a $20.1 billion dollar per year business. The U.S. Economic
Census estimates that there are approximately 9,000 businesses that operate in this market. Average
annual payrolls exceed $5 billion dollars among 84,000 employees. This trend is expected to continue as
the cost of producing a film has decreased with newer computer and graphics technology (the cost of the
actual film production has decreased, actor’s salaries have increased making the film’s cost higher than in
previous years). The industry has grown at an average annualized rate of 3.4%, which is inline with the
growth of the U.S. economy.

4.3 Customer Profile

As each production will target a different demographic, the Film Production Company will conduct an
extensive demographic and marketing profile before each production is developed and distributed.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to
writing a strong competitive analysis is that you do your research on the local competition. Find out who
your competitors are by searching online directories and searching in your local Yellow Pages. If there
are a number of competitors in the same industry (meaning that it is not feasible to describe each one)
then showcase the number of businesses that compete with you, and why your business will provide
customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Film Production intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business’s developed films among its targeted market. Below is an overview of the
marketing strategies and objectives of the Film Production Company.

5.1 Marketing Objectives

 • Establish a strong presence in targeted domestic film markets.
 • Establish connections with entertainment advertising agencies and marketing firms.
 • Build a large network of financial backers.

5.2 Marketing Strategies

Management intends to use a qualified advertising and marketing firm to help the Company reach its
intended audience for each production. This campaign will include the use of traditional print and media
advertising as well as the Internet. Direct advertising campaigns will be of significant importance to the
Company. Timely coverage of the Film Production Company’s intellectual properties will be further
directed through ongoing press relations, news releases and feature stories targeted at key professional
communities and other media outlets. Publicity activities will be designed to generate ongoing coverage
about the Company in targeted media by providing writers and editors with newsworthy releases,
features, stories, briefs, and visual material for their columns and stories. In depth coverage may also be
obtained about the Company and its films by hosting in-house interviews to be conducted by Mr. John
Doe. For each production, the Company will work closely with its retained marketing firm to ensure
maximum visibility for each production.

5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However, if you have hundreds of
items, condense your product list categorically. This section of the business plan should not span more
than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography about
your work experience, your education, and your skill set. For each owner or key employee, you
should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions
 • The Film Production Company will have an annual revenue growth rate of 16% per year.
 • The Founder will acquire $1.8 million of equity funds to develop the business.


7.2 Sensitivity Analysis

The Company’s revenues are sensitive to the overall condition of the economic climate. Film and
entertainment are luxury items, and in the event of an economic pullback, the Company may experience
a decline in its top line income. However, the business’s operations are scalable, and during times of
economic recession, the Company can scale down production and still enjoy revenue generated from
prior works.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements

7.6 Cash Flow Analysis
7.7 Balance Sheet
.

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis