With regards to 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 support 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 be working for studios. Nevertheless, writing a business plan is actually a skill that Kia Jam because a good plan and friendly investors translates into more cash and also the ability to make better films.
It is essential to know about a business plan is that it, alone, won’t enable you to get the funding you need. Your small business plan could be the solid, practical, nuts and bolts overview that will support your in person and phone presentations.
How will you write a business plan?
One good way to start your small business plan is to calculate your production budget. To achieve this you will need to break up your script and find out the number of shooting days and locations your film will be needing. This will explain the number of crew members you will require, and allow you to get a good feeling for props and special effects. Costing these components out, then adding editing and post production, taxes, legal fees, financing fees and insurance costs should give you a good estimate from the production budget.
Should you don’t understand how to do all of this, you ought to spend one thousand dollars approximately to employ a line producer. CRAIGLIST in La might be a great starting point. Line producers are excellent at wearing down scripts and producing budgets. In fact, you may want to have multiple line producers create schedules and budgets for the film. Comparing their estimates will give you a wise idea of how accurate your budgets are and may give you good insight into how to reduce costs or improve quality. Line producers also understand how to maximize rebates and tax credits.
If all of this appears like an unnecessary expense, understand that a great line producer with lots of credits is actually a key necessity for your film to obtain financing. Once you produce a feature you usually require a completion bond, and also to acquire one you’ll need a good line producer. Completion bond companies know that a good line producer will make sure the film is completed. Line producers may also connect one to good directors, cinematographers, editors and other crew.
Once you have a budget and schedule, you are prepared to create an overview of the development team. As producer, your bio should come first. Should you not have a lot of film credits for your name, showcase your other successes. Expertise in management, marketing and sales are incredibly attractive in new film producers. You must also provide information on the director, line producer, along with other key individuals the production team.
Once you complete the production overview, start work on the talent section of your company plan. Begin by listing the actors you need to work with, then contacting their agents to learn what their weekly rates are. If you are uncomfortable doing this, make contact with an entertainment lawyer who works with film producers and possess them create the calls. The few hundred dollars you 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 inside your strategic business plan. Just indicate that these are the actors you plan to approach. For the best results list multiple actors for all the key roles. Provide pictures of actors within your strategic business plan because many investors can’t recognize actors by their name.
Make sure that your actors have credits that film and television distributors will see attractive. IMDBPRO and BOXOFFICEMOJO may help you find out what films actors and actresses have appeared in and just 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 can be bought on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
By the time you have done each of the research required to select actors, you ought to think it is very easy to start writing financial forecasts that specify just how much films much like yours produced in the theater and then in DVD sales both in the united states and domestically. This may take into account most of your film’s value. Remember that US Domestic theatrical sales are often not just a significant source of revenue for that producer if you deal with traditional distributors. Actually they set you back money. However even a limited theatrical release does increase the value of your film because it increases the amount you get from licensing and DVD sales. Why? As the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Within your sales forecasts make sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and make up any product placement fees you could receive. You should also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which may account for 15% to 40% of your own production budget. Done properly, with adequate research, you should be able to prove your product will break even in a worst case scenario and create a good profit in average conditions.
Next, provide an introduction to exactly how much financing you need and how investors will likely 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 can get 50% for any additional revenues the film earns. But you will find really no cast in stone rules in this matter. The deal is different from project to project.
When you have these components written, put in a synopsis, storyboards as well as any more information that explains the important aspects of the project.
The very last piece of the company plan you are going to write is definitely the executive summary. It reviews the elements within your business strategy with special attention presented to its most favorable aspects.
As soon as your strategic business plan is finished, you happen to be prepared to pitch your project. You must be able to comfortably illustrate to almost any one why it is going to make money. And that is the actual worth of a business plan. You nkavxd it to support your pitches. Its value is in convincing a monetary partner that you really did your research on the project he wants to invest in.
Before you start contacting potential investors or distribute your small business plan, you need to have a talk to your attorney about how exactly you need to handle investment. If you are planning to market shares inside your production company, you need to pay to get your attorney develop a Product Placement Memorandum. This may not be the best way to accept money for the film. Yet it is a standard 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 having a guaranteed rate of return as opposed to a smart investment, you might only need a business plan to support your pitches.
If the seems like a lot of work, it really is. But many filmmakers are very comfortable with hard work if they understand its value. As being a producer, you require a solid business plan around your investor does. People produce feature films and documentaries 365 days a year worldwide. They can make money. You can as well.