Film Financing

I am a huge movie buff. As an entrepreneur, I love to explore how some film projects get financed. I decided to do some research into the world of film finance. One company I discovered was the Institute for International Film Financing. According to their website:

"The Institute for International Film Financing ("IIFF") is an innovative, independent social-impact organization dedicated to bridging the gap between the worlds of filmmaking and finance. IIFF's one-of-a-kind mission is to prudently expand the scope and appeal of film financing in an economically sustainable manner, for the benefit of all stakeholders including the public at large."

The company was established in 2003 by a former investment banker. They bridge the gap between the worlds of art and finance. They find capital and take on projects they feel will not only be profitable, but a socially viable work of art.

The organization puts alot of emphasis into education. They hold several workshops for potential filmmakers and investors alike. In these seminars topics include understanding and preparing film business plans, traditional and nontraditional financing strategies, effective pitch presentations, and legal documents essential to film financing.

They also offer peer-to-peer support for screenwriters who are looking to sell their scripts. The people at IIFF will look at the script and help the author shop the work to potential studios or buyers. These workshops are in place to make sure that big budget blockbusters aren't the only films getting financed. While the big budget movies yield higher return for studios, the independent film industry helps the art-form or film-making grow.

I hope to someday work in the film industry. More specifically I hope to someday become a producer. One of the main jobs of the producer is finding sources of funding for the project. The IIFF seems like a great resource for independent filmmakers and producers alike who are looking for help getting their projects financed. For more information about them check out their website:

http://www.filmfinancing.org

The Highest Grossing Actor of All Time.

Being a huge fan of the movies industry, at first I was surprised when I found out who the highest grossing actor of all time in U.S. Cinema was. I have asked my friends and family who they thought it was and most of them had some great guesses: Tom Cruise? (nope), George Clooney? (nope), Mel Gibson? (nope), Arnold Schwarzenegger? (nope). And so on, and so on....

Believe it or not, the highest grossing actor in American cinema is Samuel L. Jackson. His movies have total grossed almost 7.5 billion dollars. (Yes that's Billion, with a B.) This may be shocking to some, but if you look at his track record, he has been in some very successful films. Here are some of the highlights:

• Star Wars (Episodes 1-3)
• Jurassic Park
• Pulp Fiction 
• The Incredibles
• Iron Man (I and II)
• Die Hard with a Vengeance
• Unbreakable
• and many many more.

Samuel L. Jackson has become one of the most famous and iconic actors of his time. He has starred in over 100 films and has three big budget blockbusters slotted for next year including the Marvel Super-hero flick The Avengers. 

Mr. Jackson doesn't just act in film. He is currently starring in The Mountaintop on Broadway. When asked about his work ethic, he told CBS: "I grew up in a working class family. When I was a kid, all the adults in my house got up and went to work every day. I assumed that's what grown people do. That's what I do. I just happen to have a very interesting job that's kind of cool."

As a businessman and an actor, Mr. Jackson has become one of the most beloved actors in America. He has done pretty well for himself over the past few years as well, making it on the Forbes Celebrity 100 list making 34 million dollars a year.

For More Information Check out the Following Articles:

http://www.imdb.com/name/nm0000168/

http://www.dailymail.co.uk/tvshowbiz/article-2054485/Samuel-L-Jackson-named-highest-grossing-actor-time-raking-7-42billion.html?ito=feeds-newsxml

http://star-currency.forbes.com/celebrity/samuel-jackson

Business Plan Expert Advice

In my previous post I researched individuals who are considered experts in the field of Business Plans. In this weeks post I will explain how I will use their advice in my own business plan.

Dr. Gartner gave some valuable advice. He said that if you physically write out the business plan, you are more likely to succeed and follow through with it. I took this to heart, I feel that planning is the most important part of starting a business. Unless you have all of your projected financials and plans laid out ahead of time, your setting yourself up for failure.

Dr. Gartner also stressed that a 20-40 page business plan is no longer necessary in the current business market. Investors are looking for concise, clear, and streamlined information. I am going to make sure I don't put any "fluff" into my business plan. I want to be straightforward and display the facts and information necessary for an investor to make a critical financial decision.


Daymond John expressed the importance of developing your company into a brand. Your persona and image will play an important part in consumer decisions. I plan on branding Digital Triggers as a youthful, high-tech, and fun brand. We want our customers to understand that we are the young up and coming experts in the internet marking industry.

Mr. John also warned me about over-estimating my company's worth. He stressed that when seeking funding it is important to be honest and practical with potential investors. If you overvalue your company, an investor will see that you don't have a clear understanding of your business plan. I plan on contacting a financial adviser to help me with my numbers before I go before investors. I want my numbers to be practical and realistic so that I won't scare off any potential business partners.

Overall, researching these business plan experts has provided me with important information and advice for my own personal start-up Digital Triggers.


For More Information, Check out the following articles:

http://www.jiu.edu/people/william-gartner

http://www.activefilings.com/startups/planning-ahead-for-a-successful-new-business-launch/

http://www.portfolio.com/industry-news/advertising-marketing/2010/04/15/daymond-john-on-the-power-of-branding/

http://www.daymondjohn.com/power_journal/carving-out-a-niche/

Business Plan Experts

For this post I will be discussing some of the experts in the field of Business Plans.

William B. Gartner, PhD.

Dr. Gartner is the chairman of Entrepreneurship at the University of South Carolina.  According to JIU.edu, "Dr. Gartner is the leading authority on entrepreneurship, new venture development, and the problems of emerging organizations." (www.liu.com). He is a published author and responsible for many award winning articles. He has taught at such universities as: USC, Georgetown University, University of Virgina, and San Francisco State. He is one of the top advocates for business plans in the country.

Dr. Gartner believes that if you physically write the business plan, your more likely to follow through with it and succeed. "In addition, Gartner’s study indicates that entrepreneurs with business plans conducted more market research. They also created cash flow projections that permitted them to get started with required funding." (Huber, 2011)

One key factor that Gartner stresses is that a 20-40 page business plan is no longer needed. Many entreprenurs put fluff into their business plan beacuse they feel that the longer the document is, the more work they put into it. Gartner says:“investors want to see that an entrepreneur has actually examined the market for a product or service, identified potential customers, assembled a capable team, devised a business model and more”

Daymond John

Daymond John is a complete different story than William Gartner. Mr. John is a self made millionaire who had the understanding how to take a small clothing line and grow it on a national level. Using $100,000 in start-up capital, John turned his clothing line "FUBU" into a 350 million dollar corporation.

According to John "Branding is the most important part of a successful business plan.  The plan should be focused, and the business should be able to be marketed in a way that makes it stand out from all of the other similar businesses." He feels that for a business plan to be successful you need to look at your idea as a brand and separate yourself from your competition. In John's mind, when writing your business plan it is important to think of your idea as a "brand", not just a business. This will attract and impress smart investors.

John believes that one of the best pitfalls in writing a business plan is over-estimating your company's worth. When seeking funding it is important to be honest and practical with potential investors. If you overvalue your company, an investor will see that you don't have a clear understanding of your business plan. 

For More Information, Check out the following articles:

http://www.jiu.edu/people/william-gartner

http://www.activefilings.com/startups/planning-ahead-for-a-successful-new-business-launch/

http://www.portfolio.com/industry-news/advertising-marketing/2010/04/15/daymond-john-on-the-power-of-branding/

http://www.daymondjohn.com/power_journal/carving-out-a-niche/

Facebook and LinkedIn Joint Venture?

There have been a lot of rumors lately of a joint venture between social media giants Facebook and LinkedIn. While many people aren't aware of the details of the venture, it has caused both of their stock prices to jump. LinkedIn especially has seen a steady rise in their stock price since the rumors have surfaced.

Facebook has established itself as the standard for friendly, social, interaction, while LinkedIn is the powerhouse behind professional networking. Both have similarities, you create a profile, add a picture of yourself, add your friends and co-workers.  LinkedIn stands out because it allows you to upload a resume, work experience, and specialties relating to your career aspirations. LinkedIn helps you grow your professional network, find a job, find employees, or find freelance consultants.


I think there are many interesting possibilities when these two companies team up. Right now they target compeletly different demographics. Here are some interesting ways these companies could utilize their individual talents.

• Company Pages: On Facebook, company pages are used for marketing purposes. With added LinkedIn integration they could add more in-depth company information. This could allow them to hire employees, post job listings, accept resumes, and network with other companies. 
• Personal Resumes: Members of Facebook could upload their resume to Facebook and utilize their profile to find a job. This could be a paid-service which could be an additional revenue stream for both networks. 
• Personal Professional Pages: Facebook users could utilize LinkedIn's engine to create a separate professional page. This page could be shared with your business connections, while leaving your personal page for friends and family. You could use this professional page to showcase your resume, portfolio, talents, and skills.
• Company Networks: By adding the company page to the Facebook network, employees of a company could talk, hold meetings, and chat using Facebook's services such as
• Facebook chat
• Facebook Video Chat
• Direct Messages
• Status updates

There are many interesting outcomes that come from Facebook and LinkedIn's joint venture. For more information or updates check you these articles:

http://www.tmcnet.com/topics/articles/217854-rumors-joint-facebooklinked-goings-puts-shine-linked-stock.htm

http://www.skillstorm.com/blog/2011/09/linkedin-facebook-talks-partnership/?utm_source=rss&utm_medium=rss&utm_campaign=linkedin-facebook-talks-partnership


http://www.zdnet.com/blog/facebook/linkedin-stock-surges-on-rumor-of-facebook-partnership/3644

Which Form of Social Media is Right for YOU?

Social media has EXPLODED over the past 5 years. Once a novelty has become one of the most powerful marketing tools available. Social Media marketing has gained an expansive amount of popularity due to its cost effectiveness, ease of use, broad appeal, and mass distribution. It has given power to people with small marketing budgets to send messages to their potential clients no matter how small or niche the industry.

Businesses big and small have jumped on the social media marketing band wagon. Managing an account on every single social network is time consuming and not effective for smaller businesses. It is important to realize which social networks your demographic uses and how to effectively use it. By targeting specific social media networks and ignoring others, you can dedicate your time (and budget) to the most cost-effective marketing channel.

The first thing to consider when choosing which social networks to join is whether or not you are part of a niche industry. If you have a general content than creating a Facebook fan page and a twitter account could suffice. You will be able to target people in your area using Facebook and then redirect them to follow your Twitter account. For niche industries, you may want to promote your business more direct networks such as Digg or Reddit.  If you want to create a professional profile for business to business networking, I highly recommend LinkedIn.

Another important thing to consider is how much content to share and how often. If you want to distribute a lot of content to your followers, you may want to use Digg, RSS feeds, Delicious, Stumble Upon, or your blog. If you plan on giving short updates or holding contests, you will want to take advantage of Twitter's abilities. You should also set up these networks to your smart phone or mobile device so you can send updates to your followers no matter where you go.

There are also many services that can aide in managing these social networks. I would recommend checking out TweetDeck and HootSuite. These services allow you to manage all of your social media sites at the same time along with scheduling updates. You can set timers to when you want your updates to be distributed so that you send out the exact message at the right time, even if you aren't on the computer.

There is no question that social media is a great tool for marketing. I recommend that every business, no matter the size, take advantage of the tools associated with social media. However, it is important to always be aware of change and what is on the horizon. While social media is popular right now, we know technology is changing as we speak.

For more information, check out the following articles:

http://www.problogger.net/archives/2008/04/08/how-to-target-the-right-social-media-sites/

http://traffikd.com/resources/35-must-read-articles-for-social-media-marketers/

http://www.capecodseo.com/social-media-no-brainers/

How to Protect Your Google+ Account

There is a lot of talk lately about internet privacy and how to control who sees the content on your social networks. Many people feel uncomfortable using social networks like Facebook due to privacy concerns. There is a lot of anxiety over where you’re personal information actually goes and who can see it.

Then along came Google+.

Google+ is the hottest new social network to hit the web and for good reason. This new network has vowed to protect users’ privacy and keep privacy settings simple and transparent. Here are the basics to controlling your privacy, who sees your posts and profile, and other various tips for your G+ account.

Edit Your Account Settings
On your Google+ home page, Click on your ‘options’ button in the upper right hand corner of the page, then click ‘Google+ Settings’. Here you can adjust the following:

• Delivery Options
• Control SMS notifications
• Add or change a phone number
• Photo tagging and geo-tagging
• +1 button permissions

Every option is simplified yet thorough, and leaves no question as to what you’re sharing with the rest of the world. If you want to look at your profile through another contact’s point of view, click on the ‘View Profile As…’ search box on your profile page.

Privacy Optimization While Editing Your Profile
While signed in on your Google+ profile page, click the ‘Edit Profile’ button to the right of your name. Not only can you fill in all of your profile information here, you can change who sees it. Click on any section to edit. A window will pop up with a text field. If you click on the ‘Your Circles’ button, you can change who sees that information. With just one click, you can share with the following:

• Anyone on the web
• Extended circles
• Your circles
• Only you
• Customize a personal list

Understanding Circle Privacy
Circles are a great way to keep your contacts organized. Adding different people to different circles creates a perfect way to keep control over what your contacts can see. Family, coworkers, creepers – you can create any type or amount of circles to share only certain information with. All of your circles are private by default too. Essentially, you could have a professional profile and casual profile all under the same user account.

When you add someone to a circle on Google+, that doesn’t necessarily mean you’re in one of their circles. However, if someone adds you to one of their circles, there is no approval process – so make good use of your privacy controls and be conscious of your settings.
In a new age of the internet, it is fundemental to know what your identity is up to in the virtual world. Among any other social network, Google+ is leaps and bounds ahead of any other, leaving you finally feeling safe and secure on the web.


For more information check out the following articles:

http://www.buzzom.com/2011/07/how-to-protect-your-privacy-on-google/

http://www.flyteblog.com/flyte/2011/07/managing-your-google-privacy-using-circles.html

http://betanews.com/2011/08/25/google-forces-facebook-to-tweak-sharing-settings/

The Google+ Explosion

In early 2006 Myspace had more than three-times the number of users than Facebook. In four short years Myspace is almost bankrupt and Facebook now has 750 million users worldwide. Since the social network revolution Google has decided that the time is right to jump on the bandwagon. Taking some of the best elements of Facebook, LinkedIn, and Twitter, and adding some of their own innovation in June 2011 Google+ was launched.

In two short months Google+ has grown to over 25 million users. This comes much to the dismay of Facebook who hoped to go public by the end of the year. This new competitor in such a small market will severely devalue Facebook’s market share. Even Facebook’s CEO has a Google+ account and carries many followers.  Many developers are overjoyed with the emergence of Google+. To develop plug-ins and software to incorporate with the social network Google is only taking a 5 percent royalty from developers, much less than the 30 percent Facebook charges.

While many people see Google+ as “just another social network” there are many technological advances you will find in Google+ that you won’t find in Facebook:

Circles: Google introduces circles their innovative way to separate and manage your friends list. Circles allow you to make sub-groups in your friends list. You could create a circle for your close friends and another for your work friends. This comes in handy when trying to control who can see content you upload.  Maybe you want to throw a work party and only want to invite your work friends, you can simply send the invite to that specific circle.

Hangouts: Hangouts are a way to live-video chat with your friends. You can create a hangout for just one friend or for a whole circle. Multiple Google+ members can live chat in one hangout simultaneously. Imagine you want to watch a football game with a bunch of your buddies who all live in different states. You could create a hangout and all talk and chat about the game live while you watch it.

Sparks: Sparks are a way that Google+ delivers content to you based on your specific interests. You enter terms that you are interested in and Google+ constantly updates you with articles, blogs, and content based off of things you tell it you love or want to know more about. For example, I love baseball so I put Boston Red Sox into my sparks. Every day Google+ will find headlines, game scores, and links about the Red Sox to keep me updated.

As you can see Google+ is shaping itself to be a major competitor in the Social Network industry. It will be very interesting to see what happens when public invites begin this fall.

For more information you can check out these articles:

http://www.vancouversun.com/technology/Google+adds+more+than+million+users+since+June+launch/5288426/story.html

http://webtablab.com/web/6-google-plus-features-that-you-will-find-missing-in-facebook/

http://googleplustip.com/the-best-google-plus-tutorials.html

Entertainment Law Podcasts

For this week's blog I will be discussing and reviewing some of the recent Entertainment Law podcasts I have been following. It is important to be up to date with the legalities of your industry in order to avoid possible litigation.

"Entertainment Law Update (Episode 8)" 
-Gordon Firemark
This podcast discussed some of the recent cases and legal concerns within the entertainment industry. The first case they discussed dealt with the Google Nexus One phone. They discussed whether or not Google should worry about possible intellectual property concerns. There is a book by Phillip K. Dick called "Do Androids Dream of Electric Sheep?"  In the book and the film based off the book "Blade Runner" the term "Nexus" is used. They also talk about how the term "droid" is a trademarked term from Lucas Arts. The term "droid" is used in the "Star Wars" series. They pointed out how Google went to Lucas Arts and licensed the term "droid" so that they would avoid any infringement litigation. So why didn't Google contact the Dick estate about using the term "Nexus". Google feels that people will not confuse their phone with the book, nor the film. "Nexus 6" is the name of a character in the book and film, but considering "Nexus" is a term in the dictionary defined "a robot with human features." They determined that they are not infringing by calling their phone the "Nexus One". With my own business I will be working with social media marketing and branding. It will be important to make sure our clients are aware of possible copyright or trademark infringement issues. If our client chooses to use protected material, our company could be liable for publishing their content online.

 You can listen to the full podcast here: http://www.entertainmentlawupdate.com/2010/01/entertainment-law-update-podcast-episode-8-rights-of-publicity-et-al/


"The Music Law Podcast"
-Mark Quail
This podcast discussed the ins and outs of the current Artist Management Field. The author spoke about the difference between an artist manager and a business manager. He talked about how once an artist starts getting serious cash-flow, one manager isn't enough. You must have an artist manager to handle your day-to-day needs, and a business manager to handle your money and investments. The first legal topic he talked about was "exclusivity". In many artist/manager contracts there will be an exclusivity term. This usually states that during the term on the contract the artist cannot hire anyone else to to the job of the manager. Too many managers can "bog down" a career, so it is important that the contract terms are clearly stated so that the artist and manager are on the same terms of what is expected.

Another term that he discussed "directions". These usually state that "if required, the artist agrees to sign a direction to cause any third parties that owe money to the artist to pay it to the manager." This clause I haven't heard of before. These directions help simplify the artists financials.

My company will be working in live event promotion. In certain cases we will be hiring artists to perform at events. It is important to understand the artist/manager relationship so that we will know how to deal with them. If we have a full understanding of what an artist manager does, we will know what to expect and how to avoid litigation when dealing with artists.

http://itunes.apple.com/us/podcast/the-music-law-podcast/id113835753



"Entertainment Law Update (Episode 22)"
-Gordon Firemark

One of the cases they discussed was about Scooter Braun, Justin Bieber's manager. This case deals with a riot that occurred when Justin Bieber was supposed to make an appearance at a mall in New Jersey. He discussed that the crowd was too wild before Justin had even arrived. They cancelled the event due to the unruly account. Braun used Twitter to notify the crowd that the even had been cancelled. However, the tweet didn't go out for over an hour after the decision was made. Due to the injuries suffered in the crowd, Braun was accused of 2nd degree reckless endangerment. I found this case unique because of the close connection my company has towards social media and live event promotion. As an industry professional I must be aware that these situations exist. When canceling or postponing an event it is important to give notification immediately. By waiting over an hour, Braun put himself in serious trouble. The revolution of social media has allowed professionals to connect with their clients directly and immediately  By not notifying the public in a timely manner, people we forced to be in a dangerous situation longer than they had to.


http://itunes.apple.com/us/podcast/entertainment-law-update-podcast/id313301718

Legal Liabilities Associated with Event Promotion

In the live entertainment industry, there are many legal liabilities. In order to run a successful event, one must be aware of the legal issues they could possibly face.

Liquor Service: There are many safety concerns when it comes to hosting live events. Having a large group of people in a small confined space can be dangerous, especially when alcohol is served. With Florida’s liquor license laws, it is very easy to find yourself in legal trouble. Many bars, venues, and restaurants, in Orlando have lost their liquor license due to serving to minors or over-serving customers. These type of laws are called “Dram Shop Acts.” They exist to protect the public from the poor choices of intoxicated people. I researched the Florida Division of Alcoholic Beverages and Tobacco. The site has great insight into the Laws and Regulations of Alcohol in Florida.
(http://www.myfloridalicense.com/dbpr/abt/resources/alcohol_resources.html)

Pyrotechnics: In today’s live entertainment market, having pyrotechnics at a concert or event is the norm. There are strict laws and codes that monitor the use of such items. These laws are primarily for the safety of people at the venue. These controlled explosions fall under strict liability. When these guidelines are not correctly followed, tragedy can occur, leading to lengthy litigation. I researched an incident in Rhode Island where pyrotechnics were used at a concert. The pyrotechnics were not supposed to be used and resulted in a fire, which killed 39 people. It is important to be knowledgeable and careful when allowing pyrotechnics to be used at your live event venue.

(http://transcripts.cnn.com/TRANSCRIPTS/0302/21/bn.09.html)

Contracts:When booking artists for live venues, there are many contracts that are signed. Each individual event should have a contract that should be read and executed diligently. Both parties agree to the contract terms and if the terms are not carried out, legal litigation is likely. As an event promoter It is important that I understand every aspect of the contracts I sign, even if that involves having my lawyer look them over. This will help me avoid legal troubles. I found the following site, which provides not only examples of contacts, but printable sample contracts which can be used by business professionals. (http://www.printablecontracts.com/)

Ideo: Using Market Research to Innovate

Recently I discovered the company IDEO. IDEO is a company that prides itself in being innovative and groundbreaking. They are hired as consultants to perform two tasks. 1. To do the market research to discover exactly what the consumer wants. 2. To design a product based on that research. When developing and launching a new product line, being creative is the key. Companies like IDEO have mastered the art of creative design.


From their president Tim Brown: “Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” 


I found the creative process that IDEO uses to be brilliant. When working, they separate themselves into small workgroups which each focuses on a single aspect of the design process. They assign a group leader and begin an open discussion about what they are trying to design. Each group builds off the work of the previous group to create a unified product. 


I read about them re-inventing the way we think about work desks. They saw the classic school desk to be obsolete. They went into schools and examined not only how desks were being used, but how the children were learning. They realized that the desks were heavy, unpractical, and immobile.


They split up into their small work groups, each focusing on a single design aspect. In the end they came up with the "node chair."

"The final product, dubbed the Node chair, has received praise for promoting student collaboration, allowing educators to reconfigure classrooms to fit different teaching styles, and enabling institutions to save money by making spaces more flexible and accommodating for varied uses." -http://www.ideo.com/work/node-chair/


The chair allows students to store their belongings, move freely about the classroom, adjust their posture based on what is going on in class, and move the writing surface 360 degrees based on their needs.


The product was an immediate success. The company had over 500,000 pre-sale orders at $399 a unit.


I believe that the creative process that IDEO has utilized could be adapted into any form of design. It streamlines the efforts of many into specific tasks and allows the participants imagination to soar. 

ESPN College Game Day Shoot at Full Sail

Had a BLAST today at the ESPN College Game Day shoot at Full Sail!! It was a great experience to see how ESPN handles an event this size. I got to goof off with all the mascots, meet some cheerleaders, and even appeared in the shoot! All in all, a great way to spend the afternoon!

Drew King Interview (Negotiation and Deal Making)

Drew King is a Professional Surfer, BMX, and Motocross rider from Ewa Beach, Hawaii. Besides being a multi-faceted athlete, Drew is a businessman and a philanthropist. He has used his athletic talents, charisma, and popularity to raise thousands of dollars for charities. Recently, he rode a BMX bike over 150 miles to raise money for autism awareness. 


"I really want to help other people’s lives in the best way I can and if I have the means to do so why not help someone else. I’ve been really fortunate in my life and I want others to feel the same thing when I wake up,” -Drew King


Due to his achievements and talents, Drew has gained many sponsorships over the years. I interviewed Drew about how he and his agent negotiated his contracts.


"When getting a sponsorship my agent and I set up what contests I go to and how much money I get per contest. I get paid based on where I place in the contest." 


Drew negotiates how many contests he will participate in, how much he gets paid for travel, and which contests he will participate in. With his latest contract, his sponsor LOST wanted him to participate in twelve contests this year. Drew only wanted to participate in the three biggest events that year. Through negotiation they worked towards a mutual benefit:


"It came down to the fact that there are so many contests a year. I'm a full time college student. I'm not going to participate in a small contest that won't give me enough exposure. I will even turn down some events that will pay me more, in exchange for ones that will give more media exposure." -Drew King

Drew agreed to surf at 5 events that year and only events that were hand picked by himself.

When he was negotiating with the shoe company DC, they wanted him to ride certain contests and relocate to California. Drew wanted to be able to stay in school and ride any contest he wanted. While DC was one of the biggest shoe sponsorships available, he knew that he had LOST and Rockstar in his back pocket, so he turned down their offer. The other sponsorship offers Drew had were his BATNA in the negotiation.

Instead of DC, Drew with with OSRIS for his shoe sponsor. They were willing to let him surf any event he wanted and we'rent pressuring him to relocate. Their offer gave Drew less money and exposure, but it gave him the autonomy he was looking for. Drew's sponsors also allow him to branch out and participate in any sport he wishes. Whether it be surfing, BMX, MX, rally cars, or skateboarding, Drew is always participating in something. He loves the freedom to participate in what he wants which is why he chose the sponsors he did.

In conclusion, I received an immense amount of insight from interviewing Drew. I learned first hand how negotiation and deal making is used in professional sports. When Drew is negotiating his deals with his sponsors he practices many of the tools we have talked about in our class discussions. 

http://www.lostenterprises.com/

http://www.dcshoes.com/

http://www.osirisshoes.com/

http://www.hercampus.com/school/umaine/campus-celebrity-drew-king

http://www.fatbmx.com/modules/news/article.php?storyid=8338

Success in the Night Club Industry

I have been working on a business plan for starting my own live entertainment venue. The location will serve as a full bar and host a variety of national musical acts. When working on this project I have discovered just how profitable this industry is. I discovered that the average drink at a bar is based off a 300% price mark-up, and according to the Distilled Spirits Council: "The distilled spirits industry generates around $100 billion in U.S. economic activity annually,"


According to Entrepreneur.com: "Successful new bars can be in the black within the first six months, and they can go on to recover their initial investment within three to five years."


However, like any new business, many bars fail. There are many reasons a nightclub can fail including, poor location, lack of capital to keep business going, and the owner having lack of knowledge about the business. Entrepreneur.com says that "you have to look at yourself in the mirror and decide if your the type of person who can run a bar."


Both of my grandfathers owned restaurants when I was growing up. Ever since us grandchildren could walk, we were busing tables, washing dishes, serving water, and greeting guests. This industry is in my blood. Another thing that will help is the fact that I am a night-owl. I am the most productive after midnight and have no problem working late hours. I am young, single, and don't plan on starting a family any time soon. This lends itself to being able to commit long and late hours to my business. 


I have been a musician my whole life. I have played live concerts and attended shows for the past 10 years. I know how to run a concert and I know what types of concerts are profitable. I feel that with this business I am combining my passion for nightlife, music, and money. After thinking hard and long, I believe that I am the type of person that can succeed in this industry. 

While my youth could be a huge advantage, it could also become a disadvantage. I am not nieve enough to think I know everything about the nightclub industry. When seeking an investor for my business, I plan to seek out someone who has succeeded in the hospitality industry, more specifically the restaurant or bar industry. They will not only be able to provide me with capital, but hopefully act as a business partner and mentor. 




http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article41460.html

Small Business Finance

When starting a new business financing is key. As a young entrepreneur, I lack much of the capital to start my own business. I have begun to research some of the ways to obtain start-up capital for a small business. The first step is to decide how much money your business requires. This can be done using multiple financial worksheets. During this phase you should determine the costs of: 


1. Administrative and General expenses (Salaries, benefits, taxes, rent, insurance, ect.)
2. Your gross and net income. 
3. Required startup capital.
4. Your assets. 


Almost 50% of new businesses fail due to lack of planning. If you plan your financials for the first few years of operation, you are more likely to get the startup capital you need and profit. When researching how to obtain startup capital for my business I came across a few different options. The first option is applying for a bank loan. A bank loan is entirely based on your credit, so as a young entrepreneur it can be tough to get approved for enough capital. I have decided that in addition to a bank loan, I will seek out further funding through capital investors such as the Winter Park Angels. 


From their website: "Winter Park Angels is a group of accredited investors who provide equity capital to early-stage entrepreneurial companies located in Florida. Our members are entrepreneurs and successful business leaders who have founded and built some of the nation's best companies. We have a burning desire to help others succeed. We accomplish this by mentoring and coaching those entrepreneurs in whose businesses we invest; we serve on their boards, provide contacts and assist with strategic planning." 


I discovered that the Angel's normally invest $25,000 to $250,000 individually, or up to $2 million as a group. They offer their capital seeking a return 10 times their investment. On they're site they offer online submission for business plans, however I will seek a one-on-one meeting for my proposal. Having the Winter Park Angels invest in my dreams will not only provide the capital I need for my startup, but it will also obtain a business partner. This relationship will help obtain further capital if needed and I will have a successful lender on my side. 

NETWORK NIGHT CLUB BSB BLOG 2

When looking to start a new business it is important to find your niche. Once you've realized what your going to do, who is going to use it, and how you are going to deliver it, you can beging to build a professional network. The main way to do this is by finding a trade or professional association based around your industry. 


I am looking into opening up a nightclub in downtown Orlando called NETWORK. I began to research possible suitors for a professional network. I stumbled upon the Florida Restaurant and Lodging association.

From their website:

"The Florida Restaurant & Lodging Association is among the most influential trade associations in Florida. The association was established in 1946 to represent the restaurant industry. Since that time, the scope of FRLA’s representation has expanded to include the entire hospitality industry including lodging establishments, restaurants and thousands of suppliers to the industry. The association counts among its members some of the largest businesses in each of these categories."

You can read the full article here

The organization has a division dealing with nightclubs, including those who don't serve food. From researching their site I discovered that the FRLA represents:

• A 57 Billion dollar industry.
• 20% of Florida's entire economy
• 3.4 Billion dollars in sales tax revenue
• More than 900,000 employees (Florida's Largest)

It goes on to say that members of the FRLA average 2-4 times higher profit margins than non-members. From those statistics it is easy to see why I would want to align myself with the FRLA Orlando chapter. Luckily they have a Join Now section of their website. It has a printable application that you can mail to their home office.

I Checked the Central Florida Chapter's site and found that:

"The Central Florida Chapter of the FRLA hosts a monthly networking dinner on the 2^nd Wednesday of each month. Registration opens at 6:30 p.m. with dinner starting at 7:30 p.m. The monthly dinners are an excellent networking opportunity to meet and greet the area’s top hospitality professionals. "

Once a member I will attend the monthly dinners to begin networking and building my professional circle. This will help me build my brand, team with successful venues, promote events, and meet possible business partners.

Business Storytelling with J.J. Abrams

I recently discovered the website for TED. TED is a conference where the biggest and brightest thinkers in Technology, Entertainment, and Design come together. They have their own opportunity to give an 18-minute presentation about anything they want to share. Many of the speakers use this time to tell the audience what is their main inspiration for success. They hope to share their stories and inspire others to explore, create, and believe. The main tagline for TED's brand is "Ideas Worth Spreading."

I took some time to watch some of the TED videos and got a great chance to listen to the message of some of the people who inspire me. The first video I watched was the presentation by J.J. Abrams. Abrams is a television and film producer, director, and writer. His claims to fame include LOST, Fringe, Cloverfield, Star Trek (2010), and Mission:Impossible 3.

Abrams was an amazing public speaker. He has mastered the art of storytelling and selling himself. He uses humor at the right times while also being sincere. This talent helps the audience connect with him and helps build trust. After the first few moments of the video I was hooked in. The main concept of his story was the "Mystery Box." He brought out a a big box with a question mark on it and shared the story of how he came to possess it. The box represents not only his grandfathers positive influence, but the power of mystery. Abrams is the modern-master of mystery and science-fiction. The box is a metaphor for how he creates content. He feels that what is witheld from the audience is more interesting that what is right in front of their faces.

As a long-time fan of Abrams and an amateur film maker, I was strongly inspired by watching his TED presentation. Abrams not only shares the same ideas as far as storytelling, but he displays the public speaking talents I wish to learn. He uses a free-flowing strategy in telling his story. He makes it seem like we are having a one-on-one conversation, even though he is giving a formal presentation.

When starting a business or trying to get a job, selling yourself is as important as selling your product. Abrams sold himself to the audience and showed us that he is genuine. By the end of the conference I felt like Abrams' goal was make films specifically for me. My hope is to someday be able to convey myself is the same manner as a businessman as Abrams. I hope that by telling my personal brand story, I will gain peoples trust and strong business relationships.

If you want to see the Abrams TED speech you can access it from clicking here.



http://www.ted.com/talks/lang/eng/j_j_abrams_mystery_box.html

http://www.imdb.com/name/nm0009190/bio

"The Hobbit" Films are Back on Track

On January, 26th Peter Jackson was admitted to the hospital with a perforated ulcer, a very serious ailment.  It seemed that another wrench was thrown into the production of the long awaited "Hobbit" films. However, it was recently announced that Peter Jackson has been released and medically cleared to continue work on the motion pictures. 


The following statement from Jackson has been recently released. You can see the full article here.


"We take casting very seriously on every film we make, and we couldn't be more delighted with the group of wonderful actors we have gathered here," he wrote. "Those of you who are familiar with 'The Hobbit' will know the importance of the comradeship between Bilbo and each of his 13 dwarf adventurers. I couldn't be more excited about working with these actors, and the others soon to join us. I'm feeling these movies are going to be something very special." 


This is great news to the thousands of movie-goers who are looking forward to being taken back to Middle-Earth. Ever since the success of the "Lord of the Rings" franchise, fans have been crying out for the production of "The Hobbit". Much of the cast has already signed on to do the film, however financial and creative direction have derailed its production. At first there was the disagreement between New Line and Peter Jackson. When the "Lord of the Rings" films were being made no one believed they would be as successful as they ended up being. New Line had a contract with Peter Jackson over the money from the DVD distribution of the films. Jackson felt he was entitled to much more of the profit from the films than he received and filed suit against the production company. It was shortly announced that Peter Jackson was banned from working with New Line.


The project was soon bought by Warner Bros. Peter Jackson said he would write the script and executive produce the project, but didn't want to tackle directing the picture. It was announced that Guillermo Del Torro ("Pan's Labyrinth", "Hellboy") would direct the picture, but due to the excessive amounts of delays and creative issues, Del Torro also backed out. I personally thought that if Jackson wasn't going to direct, than Del Torro was a perfect substitute. They are two of the most creative directors in Hollywood today and I was excited that they were getting the opportunity to collaborate. 


Finally after 5 years of speculation, delays, and lawsuits, Peter Jackson announced that he would direct the picture. The story is to be broken up into two parts but filmed simultaneously, the first of wich will be released in December 2012 and the second December 2013. As a film-buff I am cannot wait for the release of "The Hobbit". From a team-management perspective, it will be interesting to see if the production of the film can be pulled off in such a short time. They are scheduled to begin filming in just over a month and the first picture is to be released in less than two-years. It took almost more than 3 years to film the "Lord of the Rings" pictures and with considerably less problems going into production. 


Below is a recently released picture of the cast:

http://www.shockya.com/news/2011/02/11/the-hobbit-part-1-press-conference-coverage/


http://www.imdb.com/title/tt0903624/


http://www.worstpreviews.com/headline.php?id=20631

Coachella Festival Sells Out in Less Than a Week

For the first time since its creation in 1999, The Coachella Music Festival has sold out of tickets in less than one week. The over the top music festival has been growing in popularity over the years and appears to be the current generations "Woodstock."


The first concert held at Coachella was held in 1993, where Pearl Jam played in front over over 25,000 fans. Over the years it has developed into the biggest music festival in America, topping Bonnaroo and Lollapalooza.


According to Rolling Stone: "this year's festival sold at a much faster pace than the previous year. Whereas 51,000 tickets to this year's event had been sold by Monday, only 11,000 tickets were sold in the same timeframe in 2010." 

For the full Rolling Stone article click here.


I believe that there are two main reasons for the success of this years Coachella Festival. One is the current economy. Many fans aren't willing to pay high ticket prices to see their favorite bands play over the course of the year. Instead, they are waiting until summer festivals where they can see many acts for a single ticket price. The other reason for this years amazing ticket sales is the remarkable line-up. The headliners are a "who's-who" of todays modern music industry. This years line0-up includes The Kings of Leon, Jay-Z, Kanye West, The Arcade Fire, Mumford & Sons, The Black Keys, and a reunion of Duran Duran. For the full-lineup click here.


The three-day festival is set to take place April 15th-17th. They are expecting over 50,000 fans to be in attendance. Those fans will be camping overnight in temperatures that reach over 100 degrees during the day. From an project management prospective this is a huge endeavor. There is an immense amount of planning and preparation for an event as big as this to be successful. There needs to be on-sight facilities to deal with food, water, and sanitation. There is over 50 different bands flying in over the weekend to play over the three day period, and there must be adequate staff to deal with security and operations. The scope of the event is huge, it will be interesting to see how it is handled and how it will affect future music festivals.


http://www.rollingstone.com/music/news/why-coachella-sold-out-in-less-than-a-week-20110127


http://www.coachella.com/


Here is a short film about last year's Coachella Festival. It shows some of the size and scope of the actual event.