But while there are vast resources available to help tackle the task, most books, websites, and templates take a generic approach in helping entrepreneurs transcribe their visions onto paper. The truth is, however, that writing a generic business plan won't do you much good. What you need to create is a business plan that is tailored to the challenges and opportunities that exist specifically for your business. In this case, we reached out to entrepreneurs and experts alike for some tips on how and what you—the would-be founder of a marketing firm—should be focusing on as you go about crafting your business plan.
The reputation and proven ability of Shalimar Films and their management team plays a key role in securing these pre-sale distribution agreements from major distributors.
Shalimar Films focuses on marketing their products through the largest and best suited distributors in the industry. These distributors not only have the advantage of substantial capital resources for funding promotion and advertising campaigns, but also have the ability to obtain better positioning and shelf space in catalogs and retail outlets.
Distribution Shalimar Films will only produce programs that have received a solid pre-sale commitment through a signed licensing or distribution contract with a major label, studio, or distributor.
A licensing contract commits the distributor to the marketing, distribution and sale of a specific series of programs being produced by the Company. A typical licensing contract warranties that the distributor will provide and pay for all packaging, duplication, warehousing, marketing, advertising, sales, shipping, collection, returns and all other costs related to the marketing, distribution, and sale of programs produced by Shalimar Films.
Under this licensing contract, a percentage of all gross sales, referred to as a royalty payment, is earned by the Company.
A licensing contract offers several advantages to the smaller independent producer, especially when a program is targeted to a large demographic audience or has widespread audience appeal.
A major distributor has the ability to roll out a program on a national basis and feed the pipeline far more effectively and quickly than an independent producer. They also have the ability to promote, on a very large scale, consumer and trade awareness for the program.
Additionally, certain classes of trade such as Rack Jobbers, Distribution Outlets, and larger Retailers are better served by a major label, studio or distributor. When a program is projected to have major potential and widespread appeal, a licensing contract is the preferred method of distribution used by the Company.
In some cases, when it makes economic sense, Shalimar Films will sign a distribution agreement rather than a licensing contract.
A distribution agreement tends to yield a much higher profit margin for the Company. The downside is that these agreements do not always provide the same level of marketing and sales support as a licensing contract.
However this is not always the case and in some situations this approach is more viable than a licensing contract. Another case where distribution agreements are economically viable is when a program or genre is targeted to a specific class of trade.
Certain accounts such as Catalogs, Direct to Consumer Marketing companies and certain Retailers are logical clients for direct sales by the Company. This approach requires a small but highly experienced inside sales staff and a promotional budget to market the programming effectively.
Shalimar Films will be hiring such a staff to sell certain products on a distribution basis to these accounts. For example, as part of a licensing deal with Sunshine Videos, Inc.
This series of programs will generate royalty income for the company under an existing licensing contract with these distributors. Production is already underway and most of the preparation and pre-production work has already been completed by the Company.
In another example, as part of a distribution deal with Pentrex Publishing, Shalimar Films produce several "Train Trax" video programs also scheduled for release and worldwide distribution in Shalimar Films has consistently received favorable reviews for their products from national, regional, and local media such as Entertainment Weekly, Video Business, Video Librarian, Billboard Magazine, The Dolans'—Straight Talk on Your Money, Inventor's Digest, Entrepreneur Magazine, Knight Ridder Newspaper Syndicate, and Newsday.
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