Think Like an Entrepreneur: How to Be Profitable on a Sub $1 Million Film in the US Market - With a Film Case Study

As an independent filmmaker or producer, you likely start working on a new endeavor for creative reasons—the chance to tell an amazing story, build worlds, create something of cultural value. Yet this is of course not the only element of filmmaking. Like it or not, your independent film is not just a creative endeavor; it’s also a business. You’re sourcing financing and bringing in investors, building a team, and creating a property that will (hopefully) ultimately make money. In this way you’re not just a making a piece of art; you’re also running a business. To operate successfully in the world of independent film and continue to make films that you’re proud of, you need to be able to think like an entrepreneur and understand the dynamics and the relation between financing, distribution and recoupment of film investments.

The business side of films is often especially difficult for filmmakers and creative producers, but it's doable. In fact, there’s a bit of a sweet spot for independent films in the $1MM range and a viable path to profitability for films of this level. The key is to intimately understand how money—both hard money and soft money—flows in and out of the project. Getting a handle on this flow puts you in a powerful position, because not only can you make your current film profitable; but you will also create a business model that you can apply to your future projects, and eventually a portfolio of profitable assets (or films) that will serve as an effective and undeniable calling card as you continue to grow in the industry. This entrepreneurial approach might not be second nature to creatives, but it’s something you can learn and something that will aid you tremendously.

David Zannoni is consultant for Fintage House, the world's most respected company for revenue and rights protection for industry professionals and companies. He serves as the company's representative for the Americas. David negotiates agreements for films and television series and is involved in business development and relationship management specifically in the US, Latin America and Europe. As an international film business specialist David is continuously present to make deals and speak at international film markets, festivals and conferences, including: the Cannes Film Festival, the European Film Market (EFM) in Berlin, the American Film Market (AFM), Ventana Sur, the Bogota Audiovisual Market (BAM), and the Toronto International Film Festival (TIFF), and travels regularly to the United States, the Netherlands, Europe, and all over Latin America. David is intimately familiar with how independent films are financed and made profitable all over the world and will share what he knows exclusively with the Stage 32 community.

David will focus on the US market and walk you through what you need to know to finance your independent film, $1MM or less, and leave profitable. He will begin by explaining what a $1MM or under budget looks like, whether it’s considered a small film or microbudget, and how it compares in the larger worldwide film market. He’ll delve into how to see your film as an asset and how to use this viewpoint to work with investors and provide profit. David will give you the tools to think like an entrepreneur and explain the relationship between financing, distribution, and recoupment of investment. David will then teach you how to take a business approach to a $1MM and under film project. He will discuss debt and equity financing and compare it to soft money, demonstrating both of their impacts on your recoupment. He’ll then go over how to finance your film through bank loans, tax credits, private lenders, equity investors, and family and friends. In doing so, he’ll demonstrate the differences between lenders and investors and demonstrate how to make—and keep—all of your investors happy. He’ll also go over ways to mitigate risks for yourself and your investors.

Plus, David will show a case study of a real $1MM US film to illustrate how a film of this level can be profitable and exactly how the money flows through from beginning to end. He’ll show financing documents and spreadsheets to illustrate the financing structure, the role of the sales agent, and how he navigated the film’s distribution agreement. Through this detailed and practical demonstration, you will leave with strategies and a deep understanding of how to approach your own $1MM film as an entrepreneur and build a finance structure that will leave you and your investors profitable.

Praise for David's Previous Stage 32 Webinars:

"David is incredible and lovely and clearly knows his stuff."

- Cynthia P.

"Eye-opening information. A no-brainer approach that wouldn't be so obvious to the uninitiated."

- Gary O.

"By far, the best class I've seen on the subject."

Kirk K.

"David is a fantastic teacher. And what a voice! I could listen to him all day. More importantly, I learned so very much!"

- Isabella T.