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The Company

To open a business is easy; to keep it open is difficult.

CHINESE PROVERB

Starting is Easy

To start a business, all you have to do is choose a name and have a phone; ergo, you are in business. To be successful, though, a business involves much more. A company, according to the American College Dictionary, is “a number of people united for a joint action a band, party, or troop of people.” The lone screenwriter is an island of self-absorption; the filmmaker is king—long live the king! When she becomes the producer or director, though, she is running a business.

Running a business embodies a totally different set of skills. It is a special kind of collaboration in which dictatorship does not work. For a business to run successfully, everyone must agree on its purpose, direction, and method of operation. This goal requires a lot of planning and communication.

In the first edition of this book, I recounted my first seminar, in which I started the day with a discourse on “Common Blunders in Business Planning.” At the break, my assistant overheard someone say, “What is all this esoteric nonsense? We came here to find out where the investors are.” To make my meaning clear, I started each full-day seminar by putting a list of companies on the board. I asked the seminar participants to tell me what these companies had in common. After attempts by several attendees, one observant person finally recognized that they all had declared Chapter 11 (bankruptcy with reorganization of the business) or Chapter 7

(bankruptcy with liquidation of the business), or shut the doors in some other way. Here is a more recent list:

• Fine Line Features
• Senator Entertainment (Germany)
• Artisan Entertainment
• Propaganda Films
• Madstone Films
• Fireworks Entertainment
• Renaissance Films (United Kingdom)
• United International Pictures (UIP)
• Kinowelt Medien (Germany)
• FilmFour Ltd.
• Wincheter Entertainment (United Kingdom)
• Element X (United Kingdom)

Note: Some of these companies may be in business again due to financial restructuring or new owners.

The first reaction from independent producers was that these companies were all big and that somehow their size contributed to their downfall. In reality, the reason companies—whether big or small—fail is the same in either case: lack of planning. Anyone can have bad luck. Part of planning, however, is looking at the future result of current decisions. In doing this, you can build in ways of dealing with bad luck and other problems. Granted, some crises are beyond your control. A bank failure or the bankruptcy of a distributor, for example, is such an outside event. But careful planning can help you anticipate even these external occurrences.

The business plan diagrams a path for you to follow. Along the way, there may be forks in the road and new paths to take; flexibility in adjusting to such changing conditions is the key. On the other hand, taking every highway and byway that you see might take you in circles. In that case, you will never get a project completed and in the theaters. A balance is needed, therefore, between flexibility and rigidity. Planning provides this balance.

Know Yourself First

When asked what they want to do, many filmmakers (or entrepreneurs of any stripe) reply either “I want to make money” or “I want to make films.” There is nothing intrinsically wrong with either answer, but there are more questions to be considered. For example, what is the nature of the films you will make? What are you willing to do for money? And, ultimately, who are you?

Before characterizing your company for yourself or anyone else, make sure that you really know yourself. For example, one filmmaker told me that she intended to live and work in Georgia; she would make her films there and seek all money there. For her, this goal was nonnegotiable. This position may seem rigid to some people, but you have to know the lines you are not willing to cross.

Goals 101

Having and keeping a clear vision is important; it is as easy or as hard as you want to make it. Ensuring that you understand what you are truly about is the first step. A full course in Goals 101 would be too long to include here, but we can quickly review the basic principles with a minimum of academic jargon.

Setting goals merely means clearly stating your main purpose. Objectives are often shorter-term accomplishments aimed at helping you meet your main goal. For example, writing this book was my ultimate goal; teaching university classes was a short-term objective to help me reach my goal. I felt that the best way to establish credibility for a book contract was by teaching at UCLA. From the beginning, I knew that the pay would be low compared to consulting and other work; however, over the short term, the book was more important. Teaching at UCLA, then, became a greater priority than making lots of money.

The business and personal aspects of your life may mesh quite well, but any conflicts between the two need to be reconciled at the beginning. Otherwise, those conflicts may interfere with your success in one or both areas. Covert agendas are sometimes good to use with competitors, but fooling yourself is downright dangerous.

Formulating Your Goals

Formulating your goals may seem complicated, but it involves just two simple but essential steps:

1. Take a meeting with yourself at the start. (In Los Angeles and New York, everyone “does lunch.”) Think about your plans, look at them, dream about them; then set out to test them against reality.
2. Write your plans down. Entrepreneurs love to declare that they can keep everything in their heads and do not have to write anything down. Big mistake! If your ideas are so clear, it will take you only a few minutes to commit them to paper. Anything you cannot explain clearly and concisely to yourself will not be clear to someone else. Writing down your goals allows you to see the target you are trying to hit. Then you can establish intermediate objectives or a realistic plan to accomplish these goals.

A word about money is in order. John D. Rockefeller said, “Mere money-making was never my goal”; other successful executives have made similar statements. Many talk shows have brought together groups of entrepreneurs to find out what motivates them. They almost always identify making the product, negotiating the deal, or some other activity as their main motivation; the money followed when they did the things they liked. Do something that you enjoy, that you are passionate about, and that you are good at; then the money, according to many popular books, will follow.

Whether or not you become rich, I cannot stress too often that filmmaking is not an easy business. Be sure that it is the filmmaking that draws you—not just the tinsel, glitter, and high revenue prospects.

Personal Goals versus Business Goals

Finding fulfillment is an elusive goal. To start, you must list and prioritize your goals. Unless you know where you are heading, you will be severely hampered in making decisions as you walk down your path. People have both business and personal goals, so it is crucial to look at both categories.

First, take a look at your personal goals to make sure that you do not inadvertently overlook something you want. Your personal goals are your private desires, your plans about your lifestyle, your dreams that will bring a feeling of satisfaction outside of work. Can you identify your personal goals? What is important to you? Is it family? Church? Riding horses in Montana? Consider the pursuits and activities that you find meaningful. Decide which are important enough to leave time for outside of pursuing your

business.

If the idea of personal objectives still perplexes you, take some time to think about it. Being passionate about films is one thing; having nothing else in your life is something else. Once you can identify your personal goals, continue on.

List your personal goals on a piece of paper, not in your head; writing in the margins of this book is permitted. Describe as many or as few goals as you want, as long as you have at least one. Here are some examples to help you get started:

1. Improve my standard of living
2. Live in Albuquerque, New Mexico
3. Work out with a fitness trainer on a regular basis
4. Spend time with my family

Now identify your filmmaking (i.e., business) goals. Again, make a list, using the following examples as a guide:

1. Make inspirational films
2. Make low-budget action/adventure films
3. Win an Academy Award
4. Create a distribution company in four years

On another piece of paper, list both the personal goals and the business goals side by side; then rank them in order, with “1” representing the most important to you. Only you can set these priorities; there is no right or wrong way to do it. Once you have made the two lists, compare them. What conflicts do you see? How can you reconcile them? Accomplish this task, and you will be ready to write the story of your business.

Getting it All Together

Putting together the story (or script) of your company is like making a pitch to a studio or writing a TV Guide logline, only longer. You want to convince an unknown someone of the following: (1) you know exactly what you are going to do; (2) you are creating a marketable product; and (3) you have the ability to carry it off. Essentially, you are presenting the basic “plot” of your company.

The difference is that a script provides conflicts and resolutions as plot points. By completing the previous writing exercise, you should have resolved any conflicts. “Just the facts, ma’am,” as Sergeant Joe Friday would say.

Remember what your teacher taught you in high school English: who, what, when, where, why, and how. These questions are your guidelines for formatting the Company section of your business plan. Before you go any farther, ponder these questions:

• Why are you making films?
• Who are you?
• What films or other projects will you make?
• When will you get this show on the road?
• Where are your markets?
• How are you going to accomplish everything?

Note that the standard order is changed a bit. The why needs to come at the beginning to set the scene for the rest of the story.

Why?—The Opening Pitch

Now that you have listed your personal and business goals, you can identify the underlying aim of your company, known in corporate circles as the “mission statement.” This statement describes your company’s (even if you are making one film, you are a company) reasons for existence to you, your partners and managers, your employees, and, most of all, your money sources. It allows those marching forward with you to know whether you are all marching to the same drummer.

A major reason for company failure is lack of agreement on where the company is headed. A company is always a group project; there is far too much to accomplish for one person to do everything. The important thing is to ensure that company personnel do not go off in three or four different directions. Many companies that fail do so because of lack of focus; your company does not have to be one of them.

Do you have a specific philosophy? What do you want to do? Make the greatest films ever made? Make children’s films? Make educational videos? Clearly define your philosophy for yourself and others. As long as people can identify with where you are heading, they will not get lost along the way.

When your philosophy or major goal is down on paper, stand aside and take an objective look. Does this sound doable to you? Would it sound reasonable if someone else presented it to you? Most of all, would you take money out of your own pocket for it?

By the way, in writing up this description, you are not required to incorporate all your goals for the world to see. Your personal goals are yours alone—unless they affect the company significantly. Suppose, for example, that you are active in animal rights organizations. For that reason, you are adamant that no animals ever appear in your films. Everyone has the right to know about this dictum. It may affect scripts that have even innocuous animal scenes. Investors need to know about any major restrictions on your projects.

I am often approached by producers who have strong feelings about the source of investment money (how it was earned) or about certain countries to which they refuse to distribute their films. These countries always end up being major markets, so this credo strongly affects the company’s potential revenue. Distributors do not like to give up lucrative markets, and investors do not like to give up potential profits. You have a right to your principles; just let people know what they are.

This brings us to a brief discussion about honesty. What if you intend to make, say, environmental films, but fear that you will lose potential investors by being explicit? Should you keep your true plans to yourself? Should you claim to be making some other type of film, such as action/adventure? This question has come up in seminars and classes repeatedly. In one class, the following conversation took place:

STUDENT: If I tell them that I’m going to make environmental films, they won’t give me the money.

L.L.: What are you going to tell them?

STUDENT: I won’t tell them what kind of films I plan to make.

L.L.: You have to tell them something. No one is going to buy a pig in a poke.

STUDENT: I’ll tell them that I’m going to make action films. Those always sell well.

L.L.: Then you would be lying to your own investors.

STUDENT: So? The idea is to get the money, isn’t it?

L.L.: If lying doesn’t bother you, how about fraud? The best case scenario is that they will take their money back. At the very worst, you can be liable for criminal penalties.

STUDENT: So?

You may think that I invented this conversation to make a point. I wish that I had. Unfortunately, it is a true story. Is it surprising that, at the same time, the university offered an ethics course, and no one signed up for it? My job is not to lecture anyone, although it is tempting. Your moral values are your own. Suffice it to say that fraud is not a good offense to commit, and most investors do not respond well to it.

Who?

By this time, you ought to know who you are, both personally and professionally. Now you can use the mission statement to define your company. Start the Company section of your business plan with a short statement that introduces the company. Give its history, ownership structure, and details of origin. Include the following in the statement:

1. Type of company: public or privately held, sole proprietor, partnership (general or limited), corporation (type), state and city origin
2. Names of principal owners (silent and/or active partners), officers

A beginning statement might be something like this:

AAA Productions is a newly formed California corporation whose officers are ___, ___, and ___. Our principal purpose is the development and production of Hispanic-themed films as well as the employment of Hispanic actors in primary roles. Over the next four years, the Company plans to produce three independently financed feature films. During recent years, the movie market has become more open to stories about ethnic groups. Films with Hispanic themes have led the way and proved that there is a market. We feel that the time is right and that the window of opportunity is open for low- to medium-budgeted motion pictures.

Not only has the writer said what films the company intends to make, but he has also identified a specific goal that is both professional and personal. The company’s “principal purpose” describes its mission statement. It is closely tied to the personal beliefs and desires of members of the company. To make it more complete, the writer might also define what size budget he considers to be “low” or “medium.”

What?

Mysteries do not work, except in scripts. The readers of your business plan want a straightforward summary of your intentions. Saying that you will make films or videos without a discussion of content is not enough. What type of projects do you plan to do? In the Company section of the business plan, include a short recap of the film(s) you have planned. You will explain the individual projects in more detail later in the Product section. You should summarize all the areas and industries that your plan covers, such as the following:

1. Films
2. Budgets
3. Type of functions (development, production, distribution) that you will be involved in

Rationality must intercede here. What you want to do and what you are most likely to get done may be two different things. In one of the pile of business plans from outside sources at my office, for example, a group stated that it planned to make 10 to 12 feature films a year with average budgets between $8 and $15 million. This undertaking is laudable for a major studio, but it may be questionable for even a large independent production company because of the quantity of resources—both money and people—involved. For this brand-new company, it was a foolish goal. No one in the company had ever made a film before. Even if someone had, consider the effort. The films would require more than $100 million in production costs alone in the first year, not to say anything about finding the staff, cast, and crew to make them. Is this an investment that you would view as “reasonable” for your hard-earned money?

Of course, people beat the odds every day. If entrepreneurs believed in the word “impossible,” there would be no progress in the world. Nevertheless, you should weigh the scope of your venture against the experience of the people involved in it. If no one in your company has ever made a film, the odds are against your getting money for high budgets and multiple films per year. Aiming to produce one low-budget film in the first year makes the odds of receiving funding a little better.

Experience producing or directing television programs, commercials, documentaries, music videos, and industrials is better than no experience at all; however, feature films are different in terms of time and budget. Being circumspect about the size of the feature budget in relation to your experience not only will impress investors but also will keep you from overextending your abilities.

With a one-film plan, you need only look ahead three years (one for production, two more for revenue return). If you are starting a multifilm company, however, you must consider where your company will be five years hence. Analyze everything you plan to be doing over that time. If you plan to go into book publishing in year four (I’m not recommending it), that goal needs to be part of your plan. Even plans to sell the company in five years must be mentioned. All of this is part of your projected bottom line. Although you may not know all the specifics, the size, scope, and type of your planned projects need to be stated.

Even if your company has been in business for a long time or if the principals have considerable experience, never assume that readers have an intimate knowledge of your business. If your genre is the Western, for example, you might write something like this:

We plan to produce Western films that are similar to Dances with Wolves, except that the budgets will be under $5 million. Since there has not been a successful low-budget Western for several years, we feel that the genre is due to make a comeback.

Treating the Indians as the heroes that they often were will attract a rich aficionado of American history to fund the film. Put in a line or two about the current status of Westerns (e.g., Lone Star takes place in the West, but is it a Western?) and show that some financially unsuccessful films might have done better with lower budgets.

Do not go into exhaustive detail. You will do that later. Remember that it is important in this document to keep the malarkey factor to a minimum. That does not mean that you cannot put in a little positive public relations, but leave your press clippings for the Appendix.

When?

In describing your project or company, you may have already stated how and when you began functioning as a company. You may have a great deal more to say, however. The majority of companies run by independent filmmakers are start-ups. If your company has only just begun, there may be a limited amount of information to provide. Be clear about the current situation, whatever it is. You may still be someone else’s employee, for example.

But be sure that you really are in business or ready to launch. Go ahead and file forms that may be necessary for your type of company, print business cards, and have an address (even if it is your home or a post office box).

Starting Steps

You have already taken the first step of starting a business— translating the entrepreneur’s vision into a concrete plan of action. Next comes the practical process of actually setting up shop. You must create all those minutiae that say to prospective investors, “These people are really a going concern.” Note the following checklist:

• Define the job descriptions of the production team.
• Determine the location and cost of offices.
• Have your stationery and business cards printed.
• Set up phones and a fax machine for easy communication.
• Arrange for professional guidance from an attorney and an accountant.
• Introduce yourself to your banker and set up a checking account.

A more important step is choosing your legal form of business. There is no one form that is best for everyone. When making this decision, consult with your attorney or accountant. The most common forms of business are the following:

1. A partnership is a business with two or more co-owners. It can be established with a fictitious business name.
2. A corporation is a separate entity apart from its owners. To establish a corporation, you must file papers with the state and pay an incorporation fee. The business’s assets and liabilities are separate from those of its owners. For this reason, many people keep copyrights under their own names. Then, if the corporation goes kaput, you still own the films, the company name, whatever.
3. A limited liability company (LLC) is a form of partnership operating agreement that you register with your state. It is currently used for many film companies as the general operating agreement; however, it should not be confused with an offering, also called an LLC, which is the agreement with your investors (see Chapter 9).
4. A sole proprietorship is owned by one person. It is easy to initiate and faces little regulation. The individual owner has all the control but all the responsibility as well. It is the normal state of doing business for consultants and others who mostly work alone.

If the formation of your business is dependent on raising money, be clear about this. Just be sure that you will be willing and in the position to give full attention to the company upon receipt of the money. It is critical to show some preparation (this business plan is an example) before seeking investors.

Suppose you own a company that has had problems in the past. Don’t be coy. Obviously, you need other people’s money for some reason. Most investors will insist on full disclosure. They need to know the depth of the problems to overcome. If you have leftover equity owners from a previous incarnation or have imprudently spent money on cars, confess now. In the business plan, the sin of omission is as serious as the sin of commission.

You may find yourself in another situation. What if the company was in some other line of business before you bought it? The name is established, but the business has not yet functioned as an entertainment entity. On the other hand, you may have bought an operating film company that has been unsuccessful. Both circumstances add assets and credibility to your company. However, do not attempt to give the impression that the company was anything other than it actually was, or that it has made more money than it actually has.

Do not be afraid to state the facts. If a company made garbage cans before you bought it, say so. Investors want to know what they are getting into. Besides, being candid has its own rewards.

People with money tend to know other people with money. Even if one prospect is not interested, his friend may be. So do not be afraid to tell him something he may not like. Eventually, he will find out anyway, and you will lose not only an investor, but also the chance for him to recommend you to someone else. It is a small world, and the investing community is even smaller. Once you start getting a negative rap, the word spreads quickly.

Where?

Potential investors want to know where you are going to sell your products and services. Although “worldwide” is a good thought, you should be more specific. If you are making your first independent film, it is not likely to have a $25-million budget. (If it does, please reconsider; your company is not Fox Searchlight yet.)

There are many different things to choose from when starting a film company. Some people want to make television movies, cable movies, or direct-to-DVD videos or even create their own distribution division. This may get complicated if you plan to produce more than one type of product and have different selling philosophies for each. Remember that the Company section is an introductory statement, not a thesis. A short summary, such as the following one, is all you need.

The company’s objectives are to:

1. Develop scripts with outside writers
2. Produce theatrical films with budgets from $1 to $5 million
3. Explore overseas co-production and co-financing potential for the company
4. Create our own distribution division

How?

Up to this point, you have essentially outlined everything your company proposes to accomplish. In the rest of the business plan, you will describe each step in detail. Chapter 3, “The Films,” is a continuation of the what. It is an in-depth study of each of your projects. Chapters 4 through 10 describe the how. This is the central plot of your business plan. How do you fit into the industry? How will you identify your place in the market? How do distribution and financing work, and how will you pursue each one?

Management and Organization

Conclude the Company section of your business plan with a brief description of your production team and its key members. This means writing just a paragraph or two for each. Save the six- or seven-page résumés for the Appendix. How much of the organization you describe depends on the strength of the management team.

Maybe you’ll be lucky and have a well-known former studio executive as part of your company. Perhaps your executives have business expertise in some industry other than film. Film track records are important, but business experience in other industries also counts. If no one in your company has ever made a film, find someone who has and sign that person up. If you have no one currently, describe the job position and make the commitment to have it filled by the time your financing arrives.

Following is an example of a company with some entertainment experience:

The primary strength of any company is its management team. XXX’s two principals have extensive business and entertainment industry experience. Simply Marvelous is Executive Producer. Most recently, she has worked with MNY Co. in both acquisitions and production. Among the films that she was responsible for are Cat Cries at Sunset, Phantom of La Loggia, and Dreaded Consultants IV. Marvelous will have overall responsibility for the company’s operations and will serve as Executive Producer on all films.

Freda Financial, Chief Financial Officer, brings to XXX varied business and entertainment experience, including five years’ experience in motion picture finance with the Add’Em Up accounting firm. Previously, Financial worked in corporate planning for the health-care industry.

If you have a writer-director who has no feature film experience, you might write something like this:

Self Consumed will be writing and directing our first two films. Consumed has directed commercials for 15 years. In addition, he has done promotions for the Big Time cable system. Last year he directed the romantic comedy short film Louise Loves. It was well received at several film festivals and won the critics’ award at the Mainline Film Festival. His fifth feature screenplay is in development at Crazed Consultant Films.

Make these descriptions long enough to include the essential information, but the less important details should go elsewhere. For example, Mr. Consumed’s commercials and the companies for whom he worked can be listed on a résumé in the Appendix. For the sake of your reader’s sanity, however, do not create a 10-page listing of all of a director’s commercials, even in the Appendix.

Catch-22 Experience

What do you do when no one in the company has any experience? Tread very carefully. My advice is to attach someone who does. Why would any investor believe that you can make a film with no previous experience and no help?

The amount of skill expected is related to the budget as well as the genre of the planned film. Suppose you have decided to make a $10-million film for your first venture. You have written a script and have partnered with people with financial or retail backgrounds, but no direct knowledge of or experience with film. Would you take $10 million out of your own pocket for this?

In certain circumstances, you can use the ploy of discussing below-the-line attachments of merit. Some clients of mine, for example, happened to have an Academy Award-nominated cinematographer or an Emmy-winning composer committed to their projects. It was to their benefit to include this type of experience in the production team descriptions.

Be careful how you do this, though. You want to avoid making the production of your films look like a committee effort. One wannabe producer came to me with a plan for a first movie, with himself as executive producer. He planned to start with a $20-million film and felt that running the computer system at a production company was appropriate film experience. His explanation read as follows:

So and So has 25 years’ experience working with computer systems, 10 of them at X & X Production Company. So and So is the producer and has an experienced crew ready to work with him. These technicians have a combined experience of 105 years in the film business. If So and So has any questions, they will be able to help him.

This is a dangerous trap. The expectation that your inexperience will be covered by other people working in various crew positions may backfire. The old saying, “A camel is a horse designed by a committee,” is applicable here. The producer is the manager of the business and must make the final decisions; therefore, the person in this position must have knowledge on which to draw. Investors expect to see people in charge who have more than a vague idea of what they are doing. When describing their experience, some people elaborate on the truth to a fault. When applying for a job of any kind, it is frequently tempting to stretch your bio a bit, if not to make it up out of whole cloth. Think carefully before you do this. Filmmakers often put their most creative efforts into writing the management summaries.

Compare the following real biography to the “elaborated” version that follows:

Real biography

Leonard Levison has worked as an assistant to the associate producer on The Bell Rings. Before that, Levison was a production associate on four films at Gotham Studios. He began his film career as gopher at the studio.

“Elaborated” business plan version

Leonard Levison produced the film The Bell Rings. Prior to this project, he produced four films at Gotham Studios. He began his film career as a co-producer on various films.

“Exaggeration,” you say? “Harmless public relations puffery,” you add? This overstatement is similar to the inflated income some people put down on a home loan application. You might assume that this is just the way things are done, but this action can come back to haunt you. A Los Angeles entertainment attorney told me about a court case in which the fictional management biographies of the filmmakers were the investor’s sole reason for suing. He said that he “bet on people” and only read the management portion of the Company section of the business plan.

Try to be objective about the film company that you are creating. It is less likely that an investor will give money to totally inexperienced filmmakers than to a group with a track record. No situation, as I have said, is impossible. The safer you can make the downside (chance of losing money) for the investors, the likelier it is that they will write you a check. No matter how emotionally involved an individual investor might be in the project, there is usually an objective, green-eyeshade type sitting nearby, trying to make your plan fit her idea of a “reasonable” investment.

A Word about Partnerships

In forming a company to make either a single film or many, you may want to take on one or more partners. The usual makeup is two or three people who co-own a company and work full-time in it. Each one is personally liable for the others. It is quite common for good friends to become partners. Because of the relationships involved, however, many people doing business with friends often do not take the same care that they would take with total strangers. No matter what the affinity with one another, agreements between people must be made and contracts signed. How many dear friends have you had at one time or another to whom you no longer speak?

A good partnership requires the presence of two contradictory elements. First, you and your partners must be very much alike so that your goals and objectives mesh. On the other hand, you must be very unlike and complementary in terms of expertise. Often, one partner is more cautious and the other more adventurous. Whether to form a partnership can be a difficult decision. As in many other situations, the best step is to list on paper the advantages and disadvantages of a partnership and see how it works out.

The following are examples of such lists. First, the advantages of entering into a partnership:

1. I will have a measure of safety because it takes two to make any decision.
2. I will avoid the unremitting and lonely responsibility of doing everything by myself.
3. I will have a highly motivated co-worker, because she will share in the profits.
4. I will have knowledge and experience available to me that is different from my own.
5. I will have someone to share crises with.

Here are some reasons not to enter into a partnership:

1. My share of the profits will be a lot less.
2. I will not have total control.
3. I will have to share recognition at the Academy Awards.
4. My partner’s poor judgment could hurt me and the film.

Less is More

The Company section of your business plan not only summarizes the essential facts about your company, but also is an introduction to the rest of the business plan. It should be short and to the point. Prospective investors want to know the basics, which will be described in exhaustive detail throughout the rest of your proposal. Many readers of this book’s previous editions have told me that the phrase that was most important in writing their own plans was “less is more.”