In the last Desert Wind Films' Ask the Expert we looked at how the real estate business and the film business are similar.  However, many people talk about the film business in completely different terms than a building.  Part of this may have been fostered by the image of the movie business as being a business of hustlers and the entourages of the creative types, whereas the real estate business has a very staid image.  While the film industry is undeniably one of the "creative" industries, the process that a film undergoes to become a bankable property is almost as rigid as that to create a high-profile building.

In this article, we'll discuss the six major steps in the life of a film property, as well as what a typical production schedule might look like.  We'll be discussing one of the Desert Wind Films projects, Possum Trot Cloggers, and using it to explore some of the intricacies of the creation of a bankable film project.  It should be noted that, like most industries, these production timetables are not etched in stone, and it shouldn't be assumed that this accurately reflects the status or actual production planning of Possum Trot Cloggers.

Without further ado, let's take a look at the six steps.

1. Script Development is where the writer, producers and director combine their visions for the film and do any research and re-writing necessary to get the final shooting script in order. Often the initial budgeting is also done.  In the case of Possum Trot Cloggers, the first leg of this journey, Script Development, is already complete and the film is ready to start pre-production immediately upon capitalization. This is due to a full development process that was paid for by New Line Cinemas before their option on the film ran out. This participation by a well-known company is known as a value add.

2. Green Light is the moment when the financing for the film hits the film’s bank account.  This is the big moment in the production of a film, much like the point when a rollercoaster hits the top of the first big hill.  Much like a rollercoaster, after this, stopping production on a film gets more and more difficult.  Famed executive and producer Peter Guber referred to this moment as "the big Mo," when momentum forward is much stronger than the pull back.

3. Pre-Production is the time when the actual planning of the film takes place.  Physical production, i.e. shooting the movie, is prepared, including the final budget, casting, location scouting, story boarding, hiring all crew, obtaining all shooting permits, etc.  This step usually lasts right up until the actual start of physical production.

4. Physical Production is the biggest step in the creation of a film.  It is when the movie is filmed, and the capital expended to create the product that will eventually go to market.  This length of this step can vary widely, with a smaller movie like Possum Trot Cloggers averaging between a month and six weeks of physical production, and a famous Hollywood blockbuster like Lord of the Rings undergoing production for more than five years.

5. Post-Production is an extremely important step, and one of the most pivotal.  Comparing it to the real estate industry, if physical production is the gathering of materials, post-production is the actual assembling of the building.  This time is when the film is edited and any special effects or music is perfected.

6. Distribution is the moment when a film product goes out on the market.  All the previous steps have allowed the film to hit the theatres, video stores, televisions, I-Pods, cell phones, etc.  This step is where the property begins making money in perpetuity.

One mistake that many filmmakers make is to underestimate the length of time necessary for the proper creation of their film.  This misestimation is often, unfortunately, passed on to the investor community.  While any timetable is subject to changes and extensions, the following is a tentative timetable for the benefit of any investor (or filmmaker) interested in better understanding the time involved in producing a motion picture. This These are obviously not firm commitments, but are anticipated time periods and may change if certain aspects of the production change.

With this basic schedule in mind, investors should be able to be savvier when talking with filmmakers or producers about how long their projects will take to complete.

In the next Ask the Expert, we'll discuss the 20 Most Profitable Movies of all time and dissect the elements in those films that lead to their spectacular success.