When it comes 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 support 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 a business plan is a skill that KJamMedia just because a good plan and friendly investors translates into more money and also the capacity to make better films.
It is essential to comprehend about a business plan is it, alone, won’t enable you to get the funding you require. Your company plan could be the solid, practical, nuts and bolts overview which will back up your face to face and phone presentations.
How will you write your own business plan?
One good way to start your business plan is to calculate your production budget. To get this done you will have to break up your script and determine how many shooting days and locations your film will need. This will show you the number of crew members you are going to require, and allow you to 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 offer you a good estimate in the production budget.
If you don’t know how to do all of this, you ought to spend thousands of dollars or so to employ a line producer. CRAIGLIST in Los Angeles may be a great starting point. Line producers are great at deteriorating scripts and producing budgets. In fact, you might want to have multiple line producers create schedules and budgets to your film. Comparing their estimates provides you with a great idea of methods accurate your budgets are and could give you good advice about the best way 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, remember that an excellent line producer with plenty of credits is really a key necessity for your film to have financing. Once you produce a feature you typically require a completion bond, as well as acquire one you’ll need to have a good line producer. Completion bond companies understand that a great line producer will ensure the film is finished. Line producers can also connect you to definitely good directors, cinematographers, editors as well as other crew.
Once you have a budget and schedule, you are ready to publish a review of the production team. As producer, your bio should come first. Should you not have lots 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 members of the development team.
When you complete the development overview, start work on the talent section 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. In case you are uncomfortable doing this, make contact with an entertainment lawyer who works jointly with film producers and also have them make 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 such people in order to mention them inside your business plan. Just indicate that they are the actors you intend to approach. For best results list multiple actors for each of the key roles. Provide pictures of actors within 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 find attractive. IMDBPRO and BOXOFFICEMOJO will help you find out what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are numerous websites which may give a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on the search engines. Not all films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
Once you have done all the research required to select actors, you ought to think it is easy to start writing financial forecasts that specify how much films comparable to yours produced in the theater as well as in DVD sales both in america and domestically. This will make up most of your film’s value. Be aware that US Domestic theatrical sales are often not really a significant way to obtain revenue for that producer if you work with traditional distributors. In fact they cost money. However also a limited theatrical release does increase the value of your film since it increases the total amount you get from licensing and DVD sales. Why? Since the domestic theatrical release and related marketing effectively presells the film to your broad audience.
In your sales forecasts be sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you could receive. You need to provide estimates of cash rebates or tax credits you might receive from states like New Mexico and Michigan which may account for 15% to 40% of your production budget. Performed correctly, with adequate research, you must 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 overview of exactly how much financing you require and just how investors will likely be repaid. It is essential to remember that most investors expect that any revenues received by the production company will repay their investment and they will get 50% of the additional revenues the film earns. But you will find really no definite rules in this particular matter. The deal differs from project to project.
When you have these factors written, add a synopsis, storyboards and any more information that explains the most important aspects of the project.
The very last piece of the company plan you will write is the executive summary. It reviews the elements in your business plan with special attention provided to its most favorable aspects.
When your business plan is completed, you are well prepared to pitch your project. You will be able to comfortably explain to just about anyone why it will 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 financial partner that you will have done your homework on a project he wants to invest in.
Before you begin contacting potential investors or distribute your company plan, you should have a talk with your attorney about how exactly you would like to handle investment. If you are planning to sell shares inside your production company, you should pay to have your attorney create a Product Placement Memorandum. This may not be the only method to accept money to your film. But it is a standard way.
Should your financial partner is surely an “active investor” who plays the role of executive producer, or if perhaps the funding you obtain is actually a loan with a guaranteed rate of return instead of an investment, you might only need a business plan to support your pitches.
If this type of seems like a lot of work, it is. But most filmmakers are very at ease with effort as long as they understand its value. As a producer, you want a solid business plan as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They make money. You can as well.