With regards to the practical aspects of filmmaking, ranging from camera selection to mastering editing systems, independent film producers seem prepared to rise to every challenge. But tell one of these folks they have to come up with a business plan and find investors to aid their film and you’ll find most trying to find a stage door to exit. Why? As if indie producers liked asking permission to do something or taking orders from others . . . they would work for studios. Nevertheless, writing your own business plan is a skill that vimeo.com because 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 enable you to get the funding you require. Your business plan will be the solid, practical, nuts and bolts overview that can back up your in person and phone presentations.
How will you write a business plan?
One great way to start your company plan would be to calculate your production budget. To achieve this you need to break up your script and figure out the amount of shooting days and locations your film will be needing. This will tell you the amount of crew members you will require, and let you get a good feeling for props and effects. Costing these elements out, then adding editing and post production, taxes, legal fees, financing fees and insurance costs should offer you a good estimate of the production budget.
Should you don’t know how to do this, you need to spend one thousand dollars or so to use a line producer. CRAIGLIST in L . A . may be a great starting point. Line producers are excellent at wearing down scripts and producing budgets. In fact, you might like to have multiple line producers create schedules and budgets for your film. Comparing their estimates provides you with a wise idea of methods accurate your budgets are and may give you good understanding of how you can spend less or improve quality. Line producers also understand how to maximize rebates and tax credits.
If this appears like an unnecessary expense, understand that a great line producer with a lot of credits is actually a key requirement for your film to have financing. Once you create a feature you typically need a completion bond, as well as acquire one you’ll need a good line producer. Completion bond companies realize that an excellent line producer will make sure the film is completed. Line producers may also connect one to good directors, cinematographers, editors as well as other crew.
After you have a financial budget and schedule, you are ready to create a review of the development team. As producer, your bio should come first. If you do not have a lot of film credits to your name, showcase your other successes. Expertise in management, marketing and sales are extremely attractive in new film producers. You should also provide information on the director, line producer, along with other key members of the development team.
When you complete the development overview, start work on the talent portion of your company plan. Begin by listing the actors you need to work with, then contacting their agents to find out what their weekly rate is. Should you be uncomfortable carrying this out, make contact with an entertainment lawyer who works together with film producers and have them create the calls. The few hundred dollars you spend will likely be well invested. Note, you do not have to get letters of intent for these people so that you can mention them in your strategic business plan. Just indicate that these are the actors you plan to approach. For the best results list multiple actors for each one of the key roles. Provide pictures of actors within your business plan because many investors can’t recognize actors by their name.
Ensure your actors have credits that film and TV distributors will find attractive. IMDBPRO and BOXOFFICEMOJO will help you learn what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are many websites which may offer a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on yahoo. Its not all films are sold on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
By the time you might have done each of the research needed to select actors, you should find it easy to start writing financial forecasts that specify just how much films comparable to yours produced in the theater and then in DVD sales both in america and domestically. This may take into account much of your film’s value. Note that US Domestic theatrical sales are often not a significant supply of revenue for the producer if you deal with traditional distributors. Actually they cost money. However also a limited theatrical release does increase the value of your film as it increases the amount you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to some broad audience.
In your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable tv and broadband licensing and take into account any product placement fees you might receive. You should also provide estimates of money rebates or tax credits you might receive from states like New Mexico and Michigan which can account for 15% to 40% of the production budget. Done properly, with adequate research, you should be able to prove your product or service will break even in a worst scenario making a good profit in average conditions.
Next, provide a review of exactly how much financing you will need and how investors is going to be repaid. It is important to be aware that most investors expect that any revenues received by the production company will repay their investment and they will get 50% for any additional revenues the film earns. But you will find really no definite rules in this particular matter. The offer differs from project to project.
Once you have these elements written, give a synopsis, storyboards and then any further information that explains the most important elements of the project.
The final part of the organization plan you will write is definitely the executive summary. It reviews the elements within your business strategy with special attention presented to its most favorable aspects.
When your business strategy is completed, you might be prepared to pitch any project. You will be able to comfortably convey to almost any one why it can generate income. And that is certainly the true value of your own business plan. You nkavxd it to backup your pitches. Its value is within convincing a financial partner that you have done your research over a project he wants to buy.
Prior to starting contacting potential investors or distribute your small business plan, you ought to have a chat with your attorney regarding how you want to handle investment. If you are intending to promote shares inside your production company, you should pay to get your attorney create a Product Placement Memorandum. This is not the only method to accept money to your film. However it is a common way.
In case your financial partner is an “active investor” who plays the role of executive producer, or if the funding you obtain is really a loan using a guaranteed rate of return instead of a smart investment, you could only need your own business plan to support your pitches.
If the looks like a lot of work, it really is. But many filmmakers are usually at ease with hard work as long as they understand its value. Being a producer, you need a solid business strategy as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They make money. So can you.