When it comes to the practical aspects of filmmaking, which range from camera selection to mastering editing systems, independent film producers seem prepared to rise to every challenge. But tell one of those folks they have to come up with a business plan and find investors to aid their film and you’ll find most searching for a stage door to exit. Why? Because if indie producers liked asking permission to do something or taking orders from others . . . they would be working for studios. Nevertheless, writing a business plan is actually a skill that Kia Jam since a good plan and friendly investors translates into more income and also the capacity to make better films.
The most important thing to comprehend about a business plan is it, alone, won’t allow you to get the funding you need. Your small business plan will be the solid, practical, nuts and bolts overview that will support your in person and phone presentations.
How will you write your own business plan?
One good way to start your small business plan is to calculate your production budget. To do this you need to break up your script and determine the number of shooting days and locations your film will be needing. This will show you the amount of crew members you may require, and allow you to obtain a good feeling for props and special effects. Costing these factors out, then adding editing and post production, taxes, legal fees, financing fees and insurance costs should provide you with a good estimate of the production budget.
Should you don’t learn how to do this, you should spend thousands of dollars roughly to employ a line producer. CRAIGLIST in Los Angeles might be a great starting point. Line producers are wonderful at wearing down scripts and producing budgets. Actually, you might like to have multiple line producers create schedules and budgets to your film. Comparing their estimates provides you with a wise idea of methods accurate your budgets are and could give you good insight into how to reduce costs or improve quality. Line producers also learn how to maximize rebates and tax credits.
If all this appears like an unnecessary expense, keep in mind that a great line producer with lots of credits is really a key necessity for your film to get financing. Whenever you create a feature you usually need to have a completion bond, and to obtain one you’ll need a good line producer. Completion bond companies know that a great line producer will guarantee the film is finished. Line producers can also connect you to good directors, cinematographers, editors along with other crew.
Once you have a spending budget and schedule, you are ready to publish a review of the development team. As producer, your bio should come first. If you do not have lots of film credits for your name, showcase your other successes. Expertise in management, marketing and sales are very attractive in new film producers. You need to provide information on the director, line producer, as well as other key members of the production team.
Once you complete the development overview, start work on the talent section of your small business plan. Start with listing the actors you need to work with, then contacting their agents to learn what their weekly rate is. In case you are uncomfortable accomplishing this, make contact with an entertainment lawyer who works together with film producers and possess them make the calls. The few hundred dollars you may spend will likely be well invested. Note, there is no need to have letters of intent for such people so that you can mention them within your strategic business plan. Just indicate that these are the actors you intend to approach. For optimum results list multiple actors for each of the key roles. Provide pictures of actors inside your business plan because many investors can’t recognize actors by their name.
Make sure that your actors have credits that film and TV distributors will see attractive. IMDBPRO and BOXOFFICEMOJO can help you find out what films actors and actresses have appeared in and just how much those films earned in theaters. There are numerous websites which can give a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on Google. Not all films are offered on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
When you might have done all the research required to select actors, you need to discover it very easy to start writing financial forecasts that specify exactly how much films comparable to yours produced in the theater as well as in DVD sales both in america and domestically. This will take into account most of your film’s value. Note that US Domestic theatrical sales are often not really a significant source of revenue for your producer if you deal with traditional distributors. Actually they cost money. However even a limited theatrical release does increase the need for your film since it increases the sum you get from licensing and DVD sales. Why? As the domestic theatrical release and related marketing effectively presells the film to some broad audience.
Inside your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable television and broadband licensing and take into account any product placement fees you could receive. You should also provide estimates of money rebates or tax credits you could receive from states like New Mexico and Michigan which may make up 15% to 40% of the production budget. Done properly, with adequate research, you will be able to prove your product will break even in a worst scenario making a good profit in average conditions.
Next, provide an overview of exactly how much financing you require and exactly how investors will be repaid. You should note that most investors expect that any revenues received through the production company will repay their investment and they can get 50% of the additional revenues the film earns. But you will find really no hard and fast rules within this matter. The deal is different from project to project.
Once you have these factors written, put in a synopsis, storyboards and then any more information that explains the important facets of the project.
The last bit of the company plan you may write will be the executive summary. It reviews the elements inside your business strategy with special attention presented to its most favorable aspects.
Once your business strategy is finished, you happen to be well prepared to pitch your project. You should be able to comfortably illustrate to almost any one why it is going to earn money. And that is the real worth of your own business plan. You nkavxd it to backup your pitches. Its value is in convincing a monetary partner that you have performed your homework on a project he wants to invest in.
Before you begin contacting potential investors or distribute your company plan, you ought to have a talk with your attorney regarding how you need to handle investment. If you are going to market shares inside your production company, you need to pay to possess your attorney develop a Product Placement Memorandum. This is not the only way to accept money for your film. But it is a common way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or if the funding you receive is a loan with a guaranteed rate of return as opposed to an investment, you could only need a business plan to support your pitches.
If this type of sounds like a lot of work, it really is. But a majority of filmmakers are quite confident with effort if they understand its value. As being a producer, you need a solid business strategy as much as your investor does. People produce feature films and documentaries 365 days a year worldwide. They can make money. So can you.