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 instead of a smart investment, you might only need a business plan to back up your pitches.
If this sounds like lots of work, it really is. But many filmmakers are usually comfortable with effort if they understand its value. As a producer, you want a solid business plan around your investor does. People produce feature films and documentaries 365 days a year worldwide. They create money. You can too.
Ensure that your actors have credits that film and television distributors will see attractive. IMDBPRO and BOXOFFICEMOJO may help you learn what films actors and actresses have appeared in and just how much those films earned in theaters. There are numerous websites which may provide a DVD sales chart showing weekly, monthly and annual sales figures. Just search 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.
Once you might have done all of the research needed to select actors, you ought to find it easy to start writing financial forecasts that specify how much films much like yours manufactured in the Click Here as well as in DVD sales both in the US and domestically. This will account for most of your film’s value. Remember that US Domestic theatrical sales are often not really a significant supply of revenue for that producer if you work with traditional distributors. In fact they set you back money. However even a limited theatrical release does increase the value of your film since it increases the sum you get from licensing and DVD sales. Why? Since the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Inside your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable television and broadband licensing and take into account any product placement fees you may receive. You must also provide estimates of cash rebates or tax credits you may receive from states like New Mexico and Michigan which can take into account 15% to 40% of the production budget. Performed correctly, with adequate research, you must be able to prove your product or service will break even in a worst scenario and make a good profit in average conditions.
Next, provide a review of how much financing you need and just how investors is going to be repaid. You should be aware that most investors expect that any revenues received through the production company will repay their investment and they will get 50% of any additional revenues the film earns. But there are really no cast in stone rules in this particular matter. The offer doysmo from project to project.
After you have these factors written, add a synopsis, storyboards as well as any additional information that explains the key facets of the project. The final bit of the organization plan you will write is the executive summary. It reviews the weather inside your strategic business plan with special attention given to its most favorable aspects.
Once your strategic business plan is finished, you are ready to pitch your project. You must be able to comfortably illustrate to almost any one why it will generate income. And that is certainly the true worth of your own business plan. You use it to backup your pitches. Its value is at convincing a monetary partner that you will have done your research on a project he wants to buy.
Before you begin contacting potential investors or distribute your company plan, you ought to have a talk to your attorney about how you would like to handle investment. If you are going to market shares inside your production company, you should pay to get your attorney develop a Product Placement Memorandum. This may not be the only method to accept money for the film. However it is a standard way.