When it comes to the practical aspects of filmmaking, starting 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 searching for 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 actually a skill that Kia Jam because a good plan and friendly investors translates into more cash and the ability to make better films.
It is essential to understand about a business plan is it, alone, won’t get you the funding you will need. Your business plan could be the solid, practical, nuts and bolts overview which will backup your one on one and phone presentations.
How do you write a business plan?
One easy way to start your company plan would be to calculate your production budget. To do this you need to break down your script and figure out the amount of shooting days and locations your film will be needing. This will tell you the amount of crew members you are going to require, and allow you to get a better feeling for props and 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 of the production budget.
If you don’t learn how to do all this, you should spend one thousand dollars or so to hire a line producer. CRAIGLIST in La might be a great starting point. Line producers are great at breaking down scripts and producing budgets. In reality, you might like to have multiple line producers create schedules and budgets for the film. Comparing their estimates provides you with a wise idea of methods accurate your budgets are and may offer you good understanding of how you can spend less or improve quality. Line producers also understand how to maximize rebates and tax credits.
If all this seems like an unnecessary expense, remember that an excellent line producer with a lot of credits is really a key requirement for your film to have financing. Whenever you generate a feature you usually need to have 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 could also connect you to good directors, cinematographers, editors along with other crew.
After you have a spending budget and schedule, you are ready to write an overview of the development team. As producer, your bio should come first. Should you not have plenty of film credits to your name, showcase your other successes. Knowledge of management, marketing and sales are very attractive in new film producers. You must also provide information on the director, line producer, as well as other key people in the development team.
When you complete the development overview, start work on the talent portion of your company plan. Begin by listing the actors you want to assist, then contacting their agents to learn what their weekly rate is. Should you be uncomfortable carrying this out, make contact with an entertainment lawyer who works jointly with film producers and also have them have the calls. The few hundred dollars you would spend will be well invested. Note, there is no need to get letters of intent for these people so that you can mention them in your business strategy. Just indicate that they are the actors you plan to approach. For optimum results list multiple actors for all the key roles. Provide pictures of actors inside your 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 lots of websites which could provide a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on the search engines. Its not all films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
When you might have done all the research needed to select actors, you need to discover it easy to start writing financial forecasts that specify exactly how much films comparable to yours manufactured in the theater and then in DVD sales both in the united states and domestically. This will take into account 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 reality they cost you money. However also a limited theatrical release does increase the value of your film since 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.
In your sales forecasts make sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and make up any product placement fees you may receive. You should also provide estimates of cash rebates or tax credits you may receive from states like New Mexico and Michigan which can account for 15% to 40% of your own production budget. Done properly, with adequate research, you must be able to prove your product will break even in a worst scenario and create a good profit in average conditions.
Next, provide an introduction to just how much financing you need and exactly how investors will be repaid. You should 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 cast in stone rules within this matter. The offer is different from project to project.
After you have these factors written, give a synopsis, storyboards and any further information that explains the most important elements of the project.
The last bit of the organization plan you may write is the executive summary. It reviews the weather inside your business strategy with special attention given to its most favorable aspects.
When your strategic business plan is finished, you might be ready to pitch your project. You must be able to comfortably explain to just about anyone why it will earn money. And that is the true price of your own business plan. You nkavxd it to back up your pitches. Its value is within convincing an economic partner that you did your homework on a project he wants to purchase.
Prior to starting contacting potential investors or distribute your small business plan, you need to have a talk to your attorney about how exactly 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 to your film. But it is a typical way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or if perhaps the funding you get is really a loan having a guaranteed rate of return as opposed to an investment, you could only need a business plan to aid your pitches.
If this type of seems like a lot of work, it really is. But many filmmakers are very at ease with hard work if they understand its value. As a producer, you need a solid business strategy just as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They can make money. You can as well.