LEAVING a well-paid job to start up a business in a sector about which you know very little would not seem like a wise move. But when the person making that move is a determined 26-year-old with an aggressive approach to business and a strong sense of self-belief, the chances of things working out are better than most.

Simon Franks is the founder of Redbus, a company that produces and distributes films. Its library contains hits such as Maybe Baby, The Mothman Prophecies and Jeepers Creepers, the supernatural thriller. It also co-produced the international hit Bend it Like Beckham.

In the five years since the company was launched from a room in Mr Franks’s home in Hampstead, North London, it has seen phenomenal growth and is now one of the UK’s fastest-growing companies. It has made the former bond trader a rich man, but watching his business blossom into one of the best-known names in UK film distribution is far more exciting than the financial rewards that he has reaped, he says.

“ Looking back, I am still amazed at how we went from being run in my home to this huge operation in only six years,” he says. “But we simply aimed high.”

Redbus focuses on comedy, horror and supernatural films and is targeted at the 15 to 35 age group. However, it had unlikely beginnings.

After leaving his trading job, Mr Franks knew only that he wanted to become an entrepreneur, and he picked on film distribution simply because it looked like an exciting field.

Without any expertise in that area, he devoured as much reading material as he could. “I read anything I could get my hands on. And when I read about people who I thought would be helpful, I got on the phone and talked to them or arranged to meet them,” he explains.

Armed with the knowledge that he picked up, he sketched out a business plan. But that received a vote of no-confidence from the banks, which all turned him down, forcing him and his business partner, Zygi Kamasa, to turn to friends to raise £1.5 million of start-up capital.

Coming from outside the film sector has been one of his biggest advantages, Mr Franks maintains. “Most people in film distribution are creative types, who are in it for the love of the work but do not necessarily have commercial and business experience,” he says.
“ I had been to business school, had worked in the City, and knew that I could bring a business professionalism and discipline to the company that would make Redbus stand out from its competitors.”

Such astute commercial sense is vital, he says, in a business where there are big ups and downs in the income stream.

The company had a shaky start: “I was naive about how much money was needed to run a business like this.” And if it had not been for several big hits early on, the company would have gone bust.

But in 1999 he hit the jackpot when, scouring for films, he caught a sneak glance at a couple of scenes from Maybe Baby, then in post-production. He sensed that it would be a success and immediately bought the distribution rights.

“ We were competing against Universal Studios but, while their people have lots of bureaucracy to contend with, we could just make a snap decision and grab the rights immediately. That’s where being small is a big advantage.”

Soon after that he snapped up the rights to The Gift, which turned out to be another huge box-office success. “I read the script and saw the cast list, which included Keanu Reeves, and knew we had to have it.”

Aside from the cost of buying up the distribution rights for each film, the company also has to spend millions on marketing if it wants to see a healthy return on its investment. “Sometimes, ensuring a good return means marketing a bad film well,” he explains.

The firm now has 75 films in its library. About nine of those, Mr Franks admits, have lost money, but significantly, the biggest loss that it has had to weather so far has been £1 million, while profits on a number of films have amounted to several million pounds.

In 2001, with the distribution business thriving, Mr Franks had enough capital to expand into production. He and the company began to read scripts and produce films themselves.

Any scripts that he thinks have potential are handed to a development team, a group of writers and editors who tinker, cut and alter the script until the material is ready for filming. Buying in the experienced people to do those jobs has played a big part in the company’s success.

In 2000, when Polygram, the company behind such hit films as Four Weddings and a Funeral, was acquired by Universal Studios, he was quick to snap up its talent, hiring 80 per cent of the management and staff of Polygram’s former UK operation.

It was a big risk, but one that paid off. “The combined annual salary for all the Polygram staff we hired amounted to almost our entire capital,” he admits. “Had we not had a hit, we would have been in big difficulties.”

Today, the firm, which is 70 per cent owned by Mr Franks (his business partner owns the other 30 per cent), has other film-related subsidiaries, with Video Island, an online video rental business, among its newest ventures.

The economic downturn that has plagued many businesses has been a blessing for Redbus, he says. “I have been able to get lots of corporate financiers on board at reasonable salaries,” he explains.

His own youthfulness has also been an advantage. “At 32, I am a lot younger than most of my competitors, so I have a natural instinct for what films appeal to young people,” he says. He and his business partner always make the final decisions on which films Redbus will take on.
So far, he does not have any plans to sell the company. “Watching it grow is far too much fun,” he says.