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RoughCuts Productions
In association with
The Saltwater Collective
DOCUMENTARY & WEBSITE
BUSINESS PLAN
~~~
Minds in the Water
November 2007
Contact: Justin Krumb, President
961 Hygeia Ave Encinitas, CA 92024
phone 760-473-4134 & fax 760-635-3981
[email protected]
www.RoughCutsTV.com
The information contained in this business plan is confidential and proprietary to RoughCuts
Productions (the “Company”) and is intended only for the persons to whom it is transmitted by the
Company or its representatives. Any reproduction of this document, in whole or in part, or the
divulgence of any of its contents without the prior written consent of the Company, is prohibited.
This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons
interested in pursuing an investment should contact their professional advisors.
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by RoughCuts
Productions in this business plan is confidential. Therefore, the undersigned reader
agrees not to disclose any of such information without the express written permission
of RoughCuts Productions.
It is hereby acknowledged by the undersigned that the information to be furnished in
this business plan is in all respects confidential in nature (other than such information
which is already in the public domain through other means) and that any disclosure or
use of same by the undersigned may cause serious harm or damage to RoughCuts
Productions.
Upon request, this document is to be immediately returned to RoughCuts Productions.
Signature
Print Name
Date
- ii -
TABLE OF CONTENTS
Confidentiality Agreement.................................................................................................................................. i
EXECUTIVE SUMMARY.....................................................................................................................................1
I.
THE COMPANY .....................................................................................................................................2
1.1
Company Background...................................................................................................................2
1.2
Directors .......................................................................................................................................2
1.3
Outside Consultants & Professional Advisors................................................................................3
1.4
Business History ...........................................................................................................................3
II.
MARKET ANALYSIS.............................................................................................................................3
2.1
Industry Analysis ..........................................................................................................................3
2.2
The Market....................................................................................................................................3
2.3
The Competition ...........................................................................................................................4
III.
THE PROJECT.........................................................................................................................................4
3.1
Synopsis of Script .........................................................................................................................4
3.2
Writers ..........................................................................................................................................4
3.3
Production Crew ...........................................................................................................................5
3.4
Goal ..............................................................................................................................................5
3.5
Rating ...........................................................................................................................................5
IV.
PRODUCTION PLAN............................................................................................................................5
4.1
Development .................................................................................................................................5
4.2
Pre-Production ..............................................................................................................................5
4.3
Production.....................................................................................................................................6
4.4
Post-Production.............................................................................................................................6
V.
DISTRIBUTION PLAN..........................................................................................................................6
5.1
Distribution Pattern .......................................................................................................................6
5.2
Publicity........................................................................................................................................8
5.3
Advertising ...................................................................................................................................8
VI.
MANAGEMENT & MILESTONES......................................................................................................8
6.1
Management Team........................................................................................................................8
6.2
Major Milestones ..........................................................................................................................9
VII.
FINANCIAL PLAN.................................................................................................................................9
7.1
Use of Proceeds.............................................................................................................................9
7.2
Financial Assumptions ................................................................................................................ 10
7.3
Income Projections...................................................................................................................... 11
7.4
Early Negotiations....................................................................................................................... 11
7.5
Future Projects ............................................................................................................................ 11
APPENDIX “A” [support documents].............................................................................................................. 13
ROUGHCUTS PRODUCTIONS
BUSINESS PLAN
EXECUTIVE SUMMARY
Company Background
RoughCuts Productions (the “Company”) is a limited liability corporation incorporated under the State
of California, which has been engaged in the business of film production and distribution for the past
thirteen years.
The Company is managed by a team of three individuals with a total of twenty five years experience in
the film industry, a chief financial officer with thirty years of accounting and administrative experience,
and supported by a host of supporting creative teams with decades of experience in the craft of
filmmaking and documentary television.
Project
“Minds in the Water” a worldwide multimedia awareness campaign which includes a feature-length
documentary film about the journey of traveling professional surfer Dave Rastovich, from an oceanminded admirer to an ocean activist and an interactive visual petition website. MITW is the tenth project
the Company has placed into development.
Opportunity
With successful distribution, revenue opportunities include home video, DVD sales, television contracts,
international theatrical releases, and educational markets. While the film industry is highly speculative, it
is estimated that the project could gross a median figure of $1.6 million among different venues and
products.
Capital Requirements
The Company requires an estimated $600,000 in order to produce and distribute the film and launch and
maintain the visual petition website.
-2-
I.
1.1
THE COMPANY
Company Background
The Company was incorporated on 2/15/04 in 2004. The head office of the Company is located at 961
Hygeia Ave Encinitas, CA 92024.
Roughcuts Productions is the parent company of The Saltwater Collective. The Saltwater Collective is a
group of award-winning artists, filmmakers, designers and athletes that are committed to creating
awareness—through thoughtful, entertaining documentaries and various media—of the imperiled state
of the world’s oceans and cultures. At the same time we seek to explore and highlight possible solutions.
We view each project as a singular event, transmitting its own unique message and feel.
1.2
Directors
The Company’s Board of Directors, which is made up of highly qualified business and industry
professionals/experts, and will be a valuable asset to the Company and instrumental to its development
by assisting our management team in making appropriate decisions and taking the most effective action;
however, they are not responsible for management decisions. The following persons are the current
Board of Directors of the Company:
Justin Krumb
Director/Producer
Justin is the founder and president of RoughCuts Productions (RCP) and a producer-director with a focus
on feature documentary and television production. For well over a decade Krumb has worked on a
variety of documentary and commercial projects in countless countries spanning the globe, ranging in
subject matter from sports documentary and adventure travel to humanitarian and environmental issues.
His television and documentary credits include The ESPN X-games, The Surfer’s Journal, First Hand,
Wave of Compassion and The Next Wave: A Tsunami Relief Story. As a multi-faceted producer, Justin’s
work has been shown on Fox, ESPN, Outdoor Life Network, Fuel TV, Speed Vision, National Geographic
TV and PBS as well as at multiple film festivals including X-Dance Film Festival, San Sebastian
International Film Festival, Hawaiian Ocean Film Festival and Regional Emmy Awards. In addition to
creating RCP, Krumb co-founded the internationally recognized website SurfHistory.com
Justin has worked with such celebrity talent as Hayden Panettiere, Robin Williams, Jack Johnson, Bob
Dole, Lance Armstrong, Esi Morales, “Wingnut”, Trevor Hoffman, Kelly Slater and Tony Hawk.
His work as a Producer/Director/Editor has earned him an Emmy Award for best documentary, an XDance award for best film score, and multiple regional Emmy nominations for directing, editing and
camera work in long form television, documentary’s and PSA’s.
Dav Rastovich
Talent/Co-Producer
As a professional traveling free surfer Dave has embraced a multitude of cultures and seascapes
throughout most of his life. Freed from the constraints of producing contest results Dave actively pursues
his passions and has learned to apply his convictions via the adventure of surfing. His contacts with
dolphins, whales and other sea creatures have lead him to an awareness of the interconnected nature of
all life, and the delicate systems that allow this network of life to exist.
Dave, 27, is currently sponsored by Billabong International and travels the world over half the year as
one of their star athletes, appearing in a select number of magazine, books and film projects each year. In
addition to his extraordinary surfing ability, Dave is also an accomplished filmmaker and musician. His
gamelan beats for Wave of Compassion won the 2006 X-Dance award for sound design.
Film credits include: Wave of Compassion, Sprout, The Next Wave, Blue Horizon (winner of the 2005 XDance film festival) and Life Like Liquid, which he produced and directed in 2006.
-31.3
Outside Consultants & Professional Advisors
The Company’s outside consultants and professional advisors provide tremendous input and support to
enable management to make well-informed, creative and appropriate decisions:
•
•
•
1.4
McDonough & Associates CPA
Coast Law Group, LLC
540 Productions, Marketing Specialists
Business History
Since 2004, the Company has been a steady supplier of written and filmed products to domestic and
foreign distributors.
Wave of Compassion (2004)*
Blue Horizon (2004)*
Kokua (2004)**
Next Wave (2005)***
Life Like Liquid (2005)
*X-Dance Award Winner 2006
**Emmy Award 2005
***Emmy Award 2006
II.
2.1
MARKET ANALYSIS
Industry Analysis
The documentary film industry has changed dramatically over the last 25-30 years. Historically,
independent filmmakers dominated the industry by producing and distributing the majority of
documentaries made in North America. Currently, however, many documentary films are produced and
distributed by entities other than the independents, including mainstream movie production companies.
In addition, the financial structure of the industry is experiencing an important change resulting from the
expansion of television, cable, the Internet and increased popularity of DVDs.
While mainstream companies own their own production studios (equipment, sound stages, postproduction facilities), have national and worldwide distribution, produce and release films with budgets
of millions of dollars, and provide a continuous supply of product to exhibitors, the independent
filmmaker must rely on others to help produce and distribute a documentary film. An independent must
raise funds, which can range well into six and seven figures, to either rent or purchase production
equipment and post-production facilities, to hire the necessary people, and to find distribution outlets.
Because the costs are so high, independents are forced to apply to the public and private sectors to obtain
funding. Since few independent filmmakers produce and distribute documentary films for profit, they
must create vehicles for funding that are consistent with underwriters and sponsors who are looking for
returns other than profits.
The documentary film industry consists of two broad principal activities: (i) production, which includes
development, financing, pre-production, principal photography, and post-production; and (ii)
distribution, which includes advertising, publicizing, licensing, release and exploitation of the film.
2.2
The Market
The average market of a documentary film ranges from screenings at neighborhood theaters to multiplex
theaters in larger urban centers. With constant changes in technology in television, cable, film, and home
entertainment, the market can more easily access documentary films to view. This accessibility extend to
include those who are either unable to attend theaters or would just rather watch films at home.
-4-
The PR the project has generated has already attracted attention from all over the world. The Company
believes it will appeal to a broad audience, both male and female, in the 18 to 54 age range, and of diverse
cultural and philosophical backgrounds.
While documentaries are only a small portion of the total film industry, they have the potential to
generate significant income. However, many pieces have to fall into place for that to happen, and many
documentary films are made to tell a story objectively and accurately, without employing the kind of
gimmicks or promotion that can help create box office success. As Robert Redford once said,
“Documentary films have the power to reveal truth in ways other genres don’t.” But getting that message
out to audiences requires distribution, and it is through distribution that a documentary film gains
revenue potential.
2.3
The Competition
Consumers have many choices for ways to spend their leisure time and dollars. All of these hobbies and
leisure activities compete with films. The major leisure time activities which compete with watching films
are: cable and satellite television, broadcast television, home video and DVD, recorded music, radio,
Internet, reading, and video games.
Recent studies have shown that filmed entertainment comprises over 50% of total media consumption.
This is the segment where a majority of the Company’s product offering falls. In categories where the
Company does not currently plan to offer a product, it will use that medium to generate interest through
publicity and advertising. By offering multiple products based on the documentary, the Company
intends to compete in multiple markets, increasing revenue potential and public awareness of the project.
Feature documentaries are much more than just a means of entertainment; they are also educational. This
increases the potential audience for the project.
The greatest competitive threat to the project would be if another production company also makes a film
based on the subject matter and releases it before or at the same time as our project. This could adversely
affect the ability to secure distribution for some areas. If the media becomes saturated with the subject
through numerous projects being released at or near the same time, it could be difficult to get the kind of
public attention necessary to drive audiences to the theater and to purchase the related products.
The strength of feature documentary films resides in the subject matter and how it is presented. The
production quality of the film will enhance its ability to compete with other movies vying for the
consumer’s time and money. Professional camera, sound, lighting, writing, directing, and production,
along with a compelling story and intriguing characters, will make the film a contender at film festivals
and at the box office. Similarly, attention to such details in the development of the non-film products will
make them competitive in their respective markets.
III.
3.1
THE PROJECT
Synopsis of Script
Minds In The Water documents the journey of traveling professional surfer Dave Rastovich, from an ocean
minded admirer to an ocean activist. Through the charismatic journey of Dave’s life witness an adventure
spanning the globe from Australia and the Galapagos to Tonga, Alaska and Japan. See first hand how one
surfer’s quest to protect dolphins and whales has blossomed into a movement of like minds. The
message: if ocean minded people are to pass on a sustainable culture, then they must become responsible
stewards of their coastal environment.
3.2
Writer
Steve Barilotti - Writer
Over the past decade working as Surfer magazine’s globe roaming editor-at-large, photojournalist Steve
Barilotti has made it his business to document the sport, art, and lore of surfing. A lifelong surfer and
-5fourth-generation Californian, Barilotti’s passion for ocean culture runs deep. His writing has also
appeared in The Perfect Day and the books of renowned surf photographers Art Brewer and Ted
Grambeau and the hugely popular LeRoy Grannis—Birth Of A Culture released by Taschen books in
2007. In last five years “Barlo” has veered into screenwriting, helping produce a handful of surfingrelated documentaries, including the Emmy-award-winning “Kokua” and “Wave of Compassion”.
3.3
Production Crew
Justin Krumb Director / Cinematographer
Steve Barilotti Writer / Production Assistant
Dave Rastovich Pro Athlete / Talent
Hannah Fraser Production Designer
Bali Strikland Cinematographer
3.4
Goal
The Company’s goal in making this film is to create awareness and to educate people about the message:
“If ocean minded people are to pass on a sustainable culture then they must become responsible stewards
of their coastal environment ~ Dave Rastovich.”
3.5
Rating
The film will be rated G, for general audiences. This designation allows all ages to be admitted to theaters
to view the work. The documentary will be protected by: California copyright law. Use of the original
material by other parties may be used only through the granting of rights, in exchange for compensation.
IV.
4.1
PRODUCTION PLAN
Development
Researching the subject matter of a document is crucial. It helps a filmmaker determine whether there is
enough material, and the right kind of material, to make a film. The Company is currently finalizing this
initial stage of production. The remaining development is expected to take twelve months to complete.
During this time, the Executive Producer will obtain funding, oversee the production and line
production, and obtain distribution. A total of 4 Producers oversee production, line producing,
interactive media, and distribution. The Writer writes the story outline, the treatment, the proposal, and
the script (if the Director wants to shoot from a script). The Director works with the EP, the Producers
and the Writer regarding the story outline, treatment and script, the hiring of the crew, and directs the
filming, including editing and distribution.
The people involved in development will complete a project analysis, which includes research, writing
the outline, the treatment, location scouting, and planning the logistics for the production. This requires
formulating the budget, determining what equipment will be used for what scenes and where,
determining the size of the production crew, the length of time for the production, and how long each
member of the crew will be needed.
4.2
Pre-Production
During the pre-production phase, the Cinematographer / Videographer and the crew are hired. The
filmmaker finalizes the budget and the shooting schedule, obtains insurance, establishes locations,
secures studio facilities and stages, and generally prepares for the actual commencement of principal
photographer. This phase has already been completed.
The Executive Producer and the Producers will prepare the budget, set up shooting logistics and the
shooting schedule, prepare appropriate coverage, and begin seeking distribution.
-64.3
Production
This phase consists of the actual filming of the documentary by the Director and the crew. Principal
photography may extend from twelve to sixteen weeks or more, depending upon such factors as budget,
location, weather, and unpredictable complications. At present, we anticipate principal photography
twelve.
Principal photography will include interviews, locations, photos, illustrations, paintings, maps, archive
footage, and action footage. The EP and Producers oversee all aspects of production, including
administration, payroll, and development of interactive media, promotion, and distribution activities.
4.4
Post-Production
The post-production phase encompasses the editing of the film, along with incorporating opticals,
narration, music, sound, and effects. Protective duplicates of the cut negative as well as release prints are
made if the film is shot on celluloid. Post-production is anticipated to extend over six months.
The EP, Producers and the Director will rent an editing suite, have the film developed and transferred to
tape, hire an editor, set the editing schedule, and digitize tapes. They will conduct a paper edit and then
edit the film. This last step includes scanning artwork, recording narration, completing voice-overs and
ADR, recording music, preparing graphics, captioning, and synchronizing sound, foley, opticals and
titles.
Production Timetable
Phase
Development
Pre-Production
Post-Production
Time Required
12 months
12 months
6 months
V.
5.1
Completion Date (est.)
January 08
January 08
September 08
DISTRIBUTION PLAN
Distribution Pattern
The Company intends to secure a distribution pattern that will maximize exposure to the film’s message
and potential returns. Distribution entails the licensing of certain exhibition rights to various territories
and media. It is the option of the distributor to specially tailor the release of the film. Depending on its
appraisal of anticipated audience behavior, the marketing strategies of a distributor often make a
significant difference in the exposure potential of a film. Additionally, having the film entered in film
festivals provides wide exposure, particularly if the film wins a prize.
The Executive Producer and the Producers begin working on distribution when the film is still in
development. Films have an eternal life, and proceeds can be lucrative. The push for evolving and
continuing distribution over the years lends itself to a higher level of earnings. Film distribution is
essentially endless. With the value of the educational scope of the project, the film bears the potential of
being perpetual.
During distribution, pre-sales of certain exhibition rights for the film may be arranged. This would
provide the Company with non-refundable guarantees or advances against future territory and media
licensed proceeds. Occasionally, portions of pre-sale advances are either paid upon execution of the PreSale Agreement or, alternatively, during the course of production.
The filmmakers are currently seeking co-production and distribution partners for the project. Final
distribution strategy will be determined in coordination with those partners. One of the primary
advantages of the film is the ability to appeal to a growing audience of young viewers with an eco-
-7awareness. From surfers and divers to ocean minded cultures and animal lovers, the symbol of a dolphin
or whale invokes a special meaning.
Because the subject matter of the film offers an intriguing perspective on a universal theme and the
cinematic elements of the project are visually stimulating, the film will appeal to both general audience
viewers and more traditional action sports and documentary subject viewers. “Minds in the Water” has
the potential to reach an extraordinarily large viewing audience, making it significantly more appealing
for distribution than a typical documentary or sports-related film.
Overall, the filmmakers envision a four-part distribution plan:
Domestic/International Theatrical
With few exceptions, films play first in theaters throughout the United States and Canada. Theatrical
opening distribution patterns are intended to maximize the theatrical rentals of a film. Success in this
marketplace typically has a strong influence on a film’s exposure in subsequent markets. The Company
plans to target film festivals and limited theatrical release in North America and Australia and Japan.
Initially focusing on key film markets and high-profile film festivals such as AFM, Sundance, Cannes,
Maui, Santa Barbara, Byron and Sydney film festivals.
Worldwide Home Video / DVD
Generally about six months after its theatrical release, a film including Extras and a possible Soundtrack
will be licensed for sale/release on home video and DVD. Industry formulas attempt to predict exposure
and exhibiting life spans so as to optimize the exposure. This pertains to all secondary and ancillary
market licensing rights.
While DVD is the leading format for home viewing, the Company may consider additional release a VHS
format of the film.
Pay Television
Another leading home exhibitor is pay television. This is important in North America, and has gained
importance internationally as well. Films may be licensed to pay television services, then distributed to
homes via cable or broadcast transmission.
Domestic/International Television
Another leading home exhibitor is television. This is important in North America, and international
target markets such as Austral/Asia, and Europe. Films may be licensed to pay television services, then
distributed to homes via cable or broadcast transmission.
Most films are licensed to television networks, including cable, for a specified number of airings over a
specified number of years. In the syndication market, films are licensed to independent and networkaffiliated television stations. A film may return to pay TV after appearing on network in syndication.
The widely expanded cable television market creates an opportunity, as well as a competitive threat to
the Company, since cable TV’s wide offerings could reduce the number of audience members paying for
movies. However, the growth in the industry indicates that this has not happened yet. Instead, the
greater number of channels creates a higher demand for quality programming, increasing the likelihood
that the Company will sell the television and cable rights, getting exposure to at least a fraction of the
millions of households in the United States with basic cable.
Hybrid Format Release
Increasingly, hybrid formats such as streaming and downloadable computer formats, mobile formats and
exclusive HDTV formats ARE becoming viable additions to a traditional distribution strategy. The
filmmakers will seek to leverage these formats by potentially creating short-form “webisodes” of the
content for specialty distribution.
-8Educational Institutions, Libraries & Museums
Distribution to educational institutions, libraries and museums is commonplace for the independent
documentary film. Films are generally distributed via a distribution agreement between the filmmaker
and the distributor with licensing rights belonging to the filmmaker. The length of time for distribution
varies from one year to several years, depending upon the popularity and subject matter of the film.
Typical distribution involves selling the film to multiple institutions in video / DVD format.
Documentary films provide a market venue that far exceeds the classroom and serve to increase
educational returns with those films for the market.
Once the documentary is made and distribution is underway, other rights may be sold as the
opportunities present themselves, including book rights, rights to the music soundtrack and
merchandising rights.
5.2
Publicity
Publicity will be an essential component of the distribution plan. It may even be more effective than
advertising since, unlike paid advertising, audiences often perceive publicity as “news”. Additionally,
publicity is much less expensive than purchasing advertising space and can generate strong word-ofmouth promotion.
The Company will hire a publicist to fully exploit publicity opportunities with independent distributors,
radio stations, TV channels, newspapers, consumer magazines, educational institutions, libraries,
museums, professional associations, the Internet and interactive media. Producers and actors involved in
the film will assist by giving presentations to groups and interviews to the media on the subject of Minds
in the Water.
Specific media targeted include FOX, ABC, NBC, CBS, CNN, Fuel TV, and Turner Broadcasting.
5.3
Advertising
Advertising surrounding the release of the film will supplement the publicity effort. Print advertising and
movie trailers will be most widely used. Other media will be pursued as the budget permits.
VI.
6.1
MANAGEMENT & MILESTONES
Management Team
Justin Krumb, President
Bachelor of Arts degree in, Radio/TV/Film
Justin is the founder and president of RoughCuts Productions (RCP) and a producer-director with a focus
on feature documentary and television production. For well over a decade Krumb has worked on a
variety of documentary and commercial projects in countless countries spanning the globe, ranging in
subject matter from sports documentary and adventure travel to humanitarian and environmental issues.
His television and documentary credits include The ESPN X-games, The Surfer’s Journal, First Hand,
Wave of Compassion and The Next Wave: A Tsunami Relief Story. As a multi-faceted producer, Justin’s
work has been shown on Fox, ESPN, Outdoor Life Network, Fuel TV, Speed Vision, National Geographic
TV and PBS as well as at multiple film festivals including X-Dance Film Festival, San Sebastian
International Film Festival, Hawaiian Ocean Film Festival and Regional Emmy Awards. In addition to
creating RCP, Krumb co-founded the internationally recognized website SurfHistory.com
Dave Rastovich, Director
Professional Athlete
Dave, 27, is currently sponsored by Billabong International and travels the world over half the year as
one of their star athletes, appearing in a select number of magazine, books and film projects each year. In
-9addition to his extraordinary surfing ability, Dave is also an accomplished filmmaker and musician. His
gamelan beats for Wave of Compassion won the 2006 X-Dance award for sound design.
Film credits include: Wave of Compassion, Sprout, The Next Wave, Blue Horizon (winner of the 2005 XDance film festival) and Life Like Liquid, which he produced and directed in 2006.
6.2
Major Milestones
The Company has set several key milestones, which will propel the project forward. The most immediate
goals include financing, staffing, and completion of the trailer and the film.
Milestone
Target Date
Completion of financing
February 2008
Completing
contracts
for
core Complete
management
Completing contracts for key talent
Complete
Completing trailer for use in distribution
September 2008
Completing documentary film
September 2008
Once the filming is completed and the Company has a product to introduce to the market, distribution
goals become the priority.
Milestone
Acceptance into film festival competition
Securing first distribution agreement
Release of film to national audiences
VII.
7.1
Target Date
September 2008
January 2008
November 2008
FINANCIAL PLAN
Use of Proceeds
The film is being made for the following reasons: Minds in the Water mission is a global awareness
campaign dedicated to the conservation of marine mammals and the world’s oceans.. The film’s reward
will ultimately be of greater value than monetary gain. The documentary itself, as well as the distribution
of the film in alternative forms (DVD, VHS, interactive media, etc.) will create a significant awareness of
the events detailed in the film, it will educate a wide audience and create an understanding of the issues
underlying the story.
The Company is seeking $500,000 dollars over the next 1 year to complete this documentary film and get
it into distribution. The following table sets out how management intends to use the funds raised.
Use of Proceeds
Expense Item
Fixed Costs
Producer
Co-Producer
Associate Producer
Associate Producer
Pre-Production
Stock Footage
Equipment
Miscellaneous
Editorial & Finishing
Director / Creative Fees
Insurance
Amount
30,000
30,000
15,000
5,000
5,000
30,000
63,000
40,000
27000
45,000
1,500
- 10 -
Expense Item
Amount
Total Fixed Costs
Variable Costs
Location & Travel
Miscellaneous
Tape, Filmstock, Process, Transfer
Talent Labor
Cinematographer
Animation
Consultants
Researcher
291,500
Publicist / Press Kit
Office Administration
Legal Fees
Accounting Fees
Payroll
Advertising & Promotion
Postage & Shipping
Duplication
3,000
6,000
2,500
1,500
Total Variable Costs
TOTAL COSTS
235,550
527,050
93,250
11,300
30,000
15,000
30,000
10,000
2,000
20,000
1,000
10,000
Financial controls will be conducted by management and by the Company’s accountants, Mc Donough &
Associates CPA.
7.2
Financial Assumptions
The cost estimates and income projects are based on the following assumptions:
Shoot Breakdown:
Australia
Japan
Galapagos
Alaska
Tonga
California
Florida?
Bahamas?
15 shoot days
10 shoot days
10 shoot days
7 shoot days
7 shoot days
7 shoot days
7 shoot days
7 shoot days
Expense:
Producer/Director
Co-Producer / Talent
Associate Producer / Writer
Associate Producer / Designer
30 days @ $1000/day
30 days @ $1000/day
30 days @ $500/day
30 days @ $100/day
Revenues:
- 11 Box Office (film)
Education (film)
Cable & Television
Video / DVD
Merchandising
Soundtrack
7.3
5,000 tickets @ $10/ticket =
2000 videos @ $20/video =
(13) half-hour episodes @ $50,000/ea =
(6) 1 hour episodes @ 100,000/ea =
2009 – 20,000/units @ $10/to distributor =
2010 – 10,000/units @ $10/to distributor =
2011 – 5,000/units @ $10/to distributor =
T-shirts- 5,000/units @ $20 per shirt =
50,000 copies @ $10/copy =
$50,000
$40,000
$650,000
$600,000
$200,000
$100,000
$50,000
$100,000
$500,000
Income Projections
While the non-financial gains from the project are clear, the Company cannot quantitatively project
revenues with any certainty. With approximately 500 films produced and released each year, it is nearly
impossible to predict which ones will capture the audience’s attention and remain in theaters for
significant periods of time.
For purposes of this business plan, management has attempted to estimate possible returns on the
investment. If the Company is successful in producing a quality product and securing distribution
contracts, the following revenues are projected.
SOURCE OF REVENUE
Box Office Revenue (film)
Education Revenue (film)
Cable & Television Rights
Video / DVD Rights
Web revenues from advertising partners
Merchandising Rights
Soundtrack Rights
Total Revenue
Low
$50,000
$20,000
$500,000
$150,000
$50,000
$50,000
$820,000
Expected
$100,000
$40,000
$1,000,000
$350,000
$100,000
$100,000
Better
$150,000
$60,000
$1,200,000
$425,000
$175,000
$150,000
$1,690,000
$2,160,000
The Company can reasonably predict that the funds requested would be sufficient to produce a quality
documentary, true to the vision described in this plan. The budget allocates resources to distribution of
the film where there is opportunity for producing revenue. In the event that the project generates a profit
for the Company, those proceeds will be used to help fund future projects that are consistent with the
Company’s mission.
7.4
Early Negotiations
The Company is currently working with such talent as Hayden Panettiere, Jack Johnson, Ben Harper,
Isabelle Lucas and Kelly Slater who have expressed an interest in taking part in the project and furthering
the MITW cause.
7.5
Future Projects
The Saltwater Collective currently has multiple projects in different stages of development. Below is a
short description of some of our highlighted projects.
The Ragged Edge
There’s exciting, there’s extreme and then there’s the Ragged Edge. It’s the “out there” fringe … where
the adventure is always fresh, nothing is predictable, and the only thing you can count on is the
unexpected.
Join adventure host Conway Bowman for a next generation experience, where sometimes we
venture off the beaten path, and others we find the action right in the shadows of downtown. But every
- 12 time, our angle is true, it’s about adventure and lifestyle. Join us as we revel the next generation of
adventure sportsmen in, “The Ragged Edge”.
- 13 -
APPENDIX “A”
[support documents]