Here’s Why You Don’t Need A Business Manager
“I think I hear my beeper. Listen I gotta split. I’ll have your people call my people.”
- THE MUPPETS TAKE MANHATTAN written by Frank Oz and Tom Patchett & Jay Tarses, directed by Frank Oz
(4 mins)
I used to be a Business Manager. I’m familiar with that side of the industry. I still speak with Entertainment Industry people all the time. We enjoy talking about creative projects that are being worked on, who's involved in the production, the cast, etc. That’s fun! But what I find really fascinating these days is when we discuss the business side of show business.
The “Business of Show” comes in many different forms. I don’t deal with contract negotiations or weekly minimums. But I’m often asked about incorporating oneself, taxes, investments, and other personal finance situations. Usually I get the call from a working screenwriter or director who wants to incorporate themselves because they feel they’re in the position to do it now. I’m the one who brings up a Business Manager.
Some people think they need a Business Manager for the same reason they think they need their own S-Corp: they saw someone else do it. Usually the other person is someone with more success or in a higher position.
If you’re doing things because you saw someone else do them, then maybe you need to rethink your decisions in life. I’m concerned for you. What else are you doing simply because you saw someone else doing it?
YOUR PEOPLES
I have a theory. I don’t know if I can prove this, but it seems plausible. Celebrities have been known to publicly acknowledge their representatives. This includes Business Managers. I can just imagine young people in the industry thinking to themselves that one day they want to be like this certain celebrity. Being this celebrity means having reps like an agent, manager, lawyer, and Business Manager. There seems to be a certain cache if you have a Business Manager.
It’s also about having a team in your corner that makes it seem like you’ve “made it.” Writers, actors, and directors equate having people with being successful. In the brilliant 1984 hit “The Muppets Take Manhattan” Kermit says, “I’ll have your people call my people.” That’s hilarious. But the comedic term is grounded in some pretentious truth. The idea of having “people” means you have high-powered negotiators making moves on your behalf. That’s success!
WHAT WOULD YOU SAY… YA DO HERE?
Business Managers mainly focus on managing the day-to-day business affairs of high-net-worth individuals and celebrities. Read that sentence again. High-Net-Worth Individuals and Celebrities. Shonda Rhimes probably needs a Business Manager. There’s a lot going on in Shonda’s life. She has many businesses other than writing, showrunning, and producing.
Do you have multiple businesses? Business managers will often take care of bill payments, oversee payroll for your staff, and manage other daily financial tasks. Are you traveling so often that you’d be willing to give up thousands, or tens-of-thousands, of dollars to have someone schedule your flight and pay your bills? I’m guessing the answer is no. But this is the main job of a Business Manager.
WHO’S WATCHING THE WATCHMEN?
There is no oversight for Business Managers. As a Financial Planner, I have to answer to either State or Federal regulators. As of the posting of this blog, my firm is being audited by the state of California. This is good! This government agency is there to protect you, as a citizen of California. They have to make sure that I am operating above the law and performing the appropriate work that is necessary for my clients. Business Managers have no such agency. They can act as they see fit.
To become a Business Manager does not require a degree or certification. If you’re concerned about investments, for example, they are not allowed to handle your stocks, bonds, or other securities without specific licenses. They shouldn’t be giving certain financial advice, either, unless they have the appropriate designations. But these degrees, certifications, and designations are not required by any government agency in order to be a Business Manager. One can simply make a business card and call himself a Business Manager. It’s that easy.
FINAL SCENE
Whenever a writer or director comes to me because they want their own S-Corp, I always start by asking if there are others in the room who have S-Corps and, therefore, they need one too. The answer has always been yes. It’s the same logic when it comes to Business Managers. If you’re in a room on one of Shonda Rhimes’ shows, and Shonda Rhimes has a Business Manager, you will not be like Shonda Rhimes by getting yourself a Business Manager. I’m sorry to break this to you.
The chances of you needing a Business Manager are incredibly slim. In fact, if you’re reading this blog, I’m going to say that you do not need one. If your situation is complex enough where you’re not sure, you can schedule a complimentary meeting with me HERE. I’ll answer any questions you have.
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