In terms of the practical aspects of filmmaking, starting 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? 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 vimeo because a good plan and friendly investors translates into more income and also the capacity to make better films.
It is important to know about your own business plan is it, alone, won’t enable you to get the funding you need. Your company plan could be the solid, practical, nuts and bolts overview that can support your one on one and phone presentations.
How will you write a business plan?
One easy way to start your small business plan would be to calculate your production budget. To get this done you will have to breakdown your script and determine the amount of shooting days and locations your film will need. This will tell you how many crew members you may require, and let you get a better feeling for props and effects. Costing these elements out, then adding editing and post production, taxes, legal fees, financing fees and insurance fees should give you a good estimate from the production budget.
In the event you don’t know how to do all this, you need to spend a thousand dollars roughly to hire a line producer. CRAIGLIST in La might be a great starting point. Line producers are wonderful at deteriorating scripts and producing budgets. In reality, you might want to have multiple line producers create schedules and budgets for the film. Comparing their estimates will give you a good idea of methods accurate your budgets are and may offer you good advice about how to spend less or improve quality. Line producers also know how to maximize rebates and tax credits.
If this may seem like an unnecessary expense, understand that a great line producer with plenty of credits is actually a key necessity for your film to get financing. When you generate a feature you typically require a completion bond, and to get one you’ll need to have a good line producer. Completion bond companies know that an excellent line producer will make sure the film is finished. Line producers may also connect you to good directors, cinematographers, editors as well as other crew.
When you have a budget and schedule, you are prepared to create a review of the development team. As producer, your bio should come first. Unless you have a lot of film credits in 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, along with other key individuals the development team.
When you complete the production overview, start work on the talent part of your small business plan. Begin by listing the actors you would like to assist, then contacting their agents to learn what their weekly rate is. If you are uncomfortable carrying this out, make contact with an entertainment lawyer who works with film producers and have them have the calls. The few hundred dollars you would spend will be well invested. Note, you do not have to obtain letters of intent for these particular people in order to mention them in your business plan. Just indicate that these are the actors you plan to approach. For the best results list multiple actors for each of the key roles. Provide pictures of actors in your strategic business plan because many investors can’t recognize actors by their name.
Ensure that your actors have credits that film and television distributors will find attractive. IMDBPRO and BOXOFFICEMOJO can help you learn what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are numerous websites which can offer a DVD sales chart showing weekly, monthly and annual sales figures. Just search 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.
Once you might have done all of the research needed to select actors, you need to discover it simple to start writing financial forecasts that specify how much films comparable to yours made in the theater as well as in DVD sales both in the US and domestically. This can account for most of your film’s value. Remember that US Domestic theatrical sales are often not really a significant supply of revenue for that producer if you deal with traditional distributors. In fact they cost money. However even a limited theatrical release does increase the value of your film since it increases the sum you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to a broad audience.
In your sales forecasts be sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and make up any product placement fees you may receive. You must also provide estimates of cash rebates or tax credits you could receive from states like New Mexico and Michigan which might take into account 15% to 40% of the production budget. Performed correctly, with adequate research, you should be able to prove your product or service will break even in a worst scenario and create a good profit in average conditions.
Next, provide a review of how much financing you need and how investors is going to be repaid. You should be aware that most investors expect that any revenues received from the production company will repay their investment and they can get 50% of any additional revenues the film earns. But you can find really no hard and fast rules in this matter. The sale differs from project to project.
After you have these components written, give a synopsis, storyboards and any more information that explains the important elements of the project.
The last part of the organization plan you may write will be the executive summary. It reviews the elements within your business plan with special attention provided to its most favorable aspects.
When your strategic business plan is completed, you happen to be ready to pitch any project. You will be able to comfortably convey to almost anyone why it is going to earn money. And that is the actual worth of your own business plan. You nkavxd it to back up your pitches. Its value is at convincing a financial partner that you really did your homework on the project he wants to purchase.
Before you start contacting potential investors or distribute your company plan, you need to have a talk to your attorney about how exactly you need to handle investment. If you are intending to sell shares in 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 the film. However it is a typical way.
If your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is really a loan using a guaranteed rate of return instead of an investment, you may only need your own business plan to aid your pitches.
If the sounds like a lot of work, it really is. But a majority of filmmakers are usually comfortable with effort if they understand its value. As a producer, you require a solid business plan as much as your investor does. People produce feature films and documentaries 365 days a year worldwide. They can make money. You can too.