In case your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is a loan with a guaranteed rate of return as opposed to an investment, you may only need a business plan to aid your pitches.
If this type of sounds like plenty of work, it is actually. But a majority of filmmakers are very comfortable with hard work if they understand its value. As being a producer, you require a solid strategic business plan around your investor does. People produce feature films and documentaries 365 days annually worldwide. They create money. So can you.
Make sure that your actors have credits that film and TV distributors will see 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 many websites which may give a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on Google. Not every films are sold on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
When you have done all of the research required to select actors, you ought to find it easy to start writing financial forecasts that specify how much films much like yours produced in the Kia Jam and in DVD sales both in america and domestically. This may make up much of your film’s value. Note that US Domestic theatrical sales are usually not just a significant supply of revenue for that producer if you work with traditional distributors. In fact they cost you money. However a limited theatrical release does increase the price of your film as it increases the total 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.
Inside 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 should also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which can account for 15% to 40% of the production budget. Done correctly, with adequate research, you should be able to prove your product will break even in a worst scenario and make a good profit in average conditions.
Next, provide a review of how much financing you require and exactly how investors is going to be repaid. It is important to note that most investors expect that any revenues received through the production company will repay their investment and they can get 50% of the additional revenues the film earns. But you will find really no cast in stone rules in this particular matter. The sale doysmo from project to project.
When you have these factors written, add a synopsis, storyboards as well as any further information that explains the most important facets of the project. The very last piece of the company plan you may write is definitely the executive summary. It reviews the elements inside your business strategy with special attention given to its most favorable aspects.
Once your strategic business plan is finished, you might be well prepared to pitch any project. You must be able to comfortably explain to just about anyone why it will generate income. And that is the true price of a business plan. You utilize it to backup your pitches. Its value is in convincing a monetary partner that you have done your research on a project he wants to invest in.
Before you start contacting potential investors or distribute your small business plan, you need to have a talk with your attorney regarding how you would like to handle investment. If you are intending to promote shares inside your production company, you need to pay to have your attorney create a Product Placement Memorandum. This is not the best way to accept money for the film. Yet it is a common way.