With regards to the practical aspects of filmmaking, which range from camera selection to mastering editing systems, independent film producers seem ready to rise to every challenge. But tell one of these folks they have to come up with a business plan and find investors to back up 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 work for studios. Nevertheless, writing your own business plan is a skill that Kia Jam just because a good plan and friendly investors translates into more income and also the ability to make better films.
The most important thing to know about a business plan is that it, alone, won’t get you the funding you will need. Your business plan would be the solid, practical, nuts and bolts overview which will back up your face to face and phone presentations.
How will you write a business plan?
One good way to start your business plan would be to calculate your production budget. To get this done you need to break up your script and find out the amount of shooting days and locations your film will require. This will show you how many crew members you will require, and let you get a good feeling for props and special effects. Costing these elements out, then adding editing and post production, taxes, legal fees, financing fees and insurance fees should offer you a good estimate from the production budget.
In the event you don’t learn how to do all of this, you ought to spend one thousand dollars roughly to hire a line producer. CRAIGLIST in Los Angeles can be a great starting point. Line producers are wonderful at breaking down scripts and producing budgets. Actually, you may want to have multiple line producers create schedules and budgets for the film. Comparing their estimates provides you with a great idea of how accurate your budgets are and could give you good advice about the best way to spend less or improve quality. Line producers also learn how to maximize rebates and tax credits.
If all this seems like an unnecessary expense, understand that a good line producer with lots of credits is actually a key necessity for your film to have financing. Whenever you generate a feature you usually require a completion bond, and to obtain one you’ll require a good line producer. Completion bond companies realize that an excellent line producer will ensure the film is finished. Line producers could also connect you to definitely good directors, cinematographers, editors as well as other crew.
After you have a financial budget and schedule, you are ready to publish an overview of the development team. As producer, your bio should come first. Unless you have plenty of film credits in your name, showcase your other successes. Knowledge of management, marketing and sales are incredibly attractive in new film producers. You need to provide information on the director, line producer, and other key members of the development team.
When you complete the development overview, start work on the talent section of your company plan. Start with listing the actors you would like to assist, then contacting their agents to learn what their weekly rate is. In case you are uncomfortable accomplishing this, contact an entertainment lawyer who works jointly with film producers and have them have the calls. The few hundred dollars you spend is going to be well invested. Note, you do not have to obtain letters of intent for these people in order to mention them in your business strategy. Just indicate that they are the actors you plan to approach. For the best results list multiple actors for all the key roles. Provide pictures of actors inside your strategic business plan because many investors can’t recognize actors by their name.
Ensure your actors have credits that film and TV distributors will discover attractive. IMDBPRO and BOXOFFICEMOJO will help you learn what films actors and actresses have appeared in and how much those films earned in theaters. There are lots of websites which can provide a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on the search engines. Not every films can be bought on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
When you might have done all of the research needed to select actors, you should think it is very easy to start writing financial forecasts that specify how much films comparable to yours made in the theater and in DVD sales both in america and domestically. This will make up much of your film’s value. Note that US Domestic theatrical sales are usually not 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 need for your film because 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 your broad audience.
Within your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable television and broadband licensing and account for any product placement fees you might receive. You need to provide estimates of cash rebates or tax credits you may receive from states like New Mexico and Michigan which might account for 15% to 40% of your own production budget. Performed correctly, with adequate research, you will be able to prove your products or services will break even in a worst case scenario and make a good profit in average conditions.
Next, provide an overview of how much financing you require and just how investors will likely be repaid. It is important to note that most investors expect that any revenues received by the production company will repay their investment and they will get 50% of any additional revenues the film earns. But you will find really no hard and fast rules in this matter. The sale varies from project to project.
When you have these factors written, add a synopsis, storyboards and then any additional information that explains the most important facets of the project.
The last bit of the business plan you will write is definitely the executive summary. It reviews the weather inside your strategic business plan with special attention provided to its most favorable aspects.
As soon as your strategic business plan is completed, you might be prepared to pitch your project. You will be able to comfortably convey to almost anyone why it is going to generate income. And that is the actual price of your own business plan. You nkavxd it to support your pitches. Its value is within convincing a monetary partner that you did your research on a project he wants to buy.
Before you start contacting potential investors or distribute your company plan, you ought to have a talk with your attorney regarding how you would like to handle investment. If you are intending to market shares within your production company, you have to pay to get your attorney develop a Product Placement Memorandum. This may not be the only method to accept money for your film. However it is a standard way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or if the funding you obtain is a loan using a guaranteed rate of return instead of a good investment, you might only need a business plan to support your pitches.
If this seems like plenty of work, it is. But a majority of filmmakers are very confident with effort as long as they understand its value. As being a producer, you need a solid strategic business plan just as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They make money. You can too.