BUSINESS PLANS: THE BEGINNER'S CRASH COURSE IN ATTRACTING INVESTORS TO YOUR FILM

For most, especially those who don't have a solid track record of making films that make money, or at least break even, a solid business plan is the number one way to attract investors to your film. This five-part series for beginners explores that concept.

Part 2: Creating A Realistic Distribution Strategy

In simple terms, a distribution strategy is just what it sounds like -- it's a strategy to set your film up for eventual distribution.

But many filmmakers don't consider the films distribution until after shooting is complete. This is where many filmmakers go very, very wrong. Not only should you consider distribution before shooting begins, it's my firm belief you should consider distribution before you even begin to present to investors.

Why? Simple. To present effectively to investors, you need to know your film and you need to be honest with them about your film. People usually aren't clamoring to give their money away, happy to feel like they're playing Russian roulette. We all know people tend to be very cautious when it comes to parting with their money. And if you get them to do it, they'll want to know where it's going, what it's being used for and, especially, when they might see it again.

For the filmmaker seeking financing, that means fully evaluating your film and knowing what your end product will be, and most importantly, its realistic place in today's marketplace.

To set a distribution plan in motion, you'll need to start with the following:

• Take an honest look at your film

Say you're bent on raising fifteen million dollars for a film but you have no A-list cast attached. Consider before approaching investors, that without the A-list cast, chances are very, very slim you'll ever make your money back, even with ancillary sales. And if you never make your money back, you'll never be able to pay your investors back. In this scenario, if approached about investing in a 15 million dollar movie, I promise you, investors will ask immediately who's attached to the project. If it's no one ever heard of, or it's someone who they know does not have any box office clout (and a lot of people are savvier to this then you might think) they won't want any part of it. It's just not a sound investment. Okay, so that example was definitely on the extreme side of things, but I used it to illustrate an important point - a realistic evaluation of your film can help avoid losing investors who will see investing in your film as a financial disaster in waiting.

• Set an end goal for the project

If you're looking for a DVD release, you obviously don't need a multi-million dollar budget. You'll never make your money back. But by knowing your end goal for distribution (especially if it's as potentially realistic as a DVD release) from the onset and presenting that to investors, they'll be more confident they'll see their money again. Investors always find a sound, comprehensive distribution strategy far more appealing.

• Put a plan in place for acquiring distribution

When presenting to investors, you should always have a realistic plan in place for acquiring distribution. Again, this means looking at your project, the realities of your project - the cast, the shooting format, the genre, etc. - and considering realistic distribution avenues in advance of presenting to investors. They'll be asking those questions of you and they'll expect you've done your homework. Don't disappoint them. A disappointed prospect is never a good prospect.

A distribution strategy simply shows investors you're a serious filmmaker. You're serious not only about your project, but your serious about acquiring the distribution that will pay them back for taking a chance on your film. And they do want to be paid back.

Remember, ethically raising money can be the difference between a happy investor and a furious investor. And a happy investor is often a future investor. A furious investor? Well, you know the rest…