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 aid 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 be working for studios. Nevertheless, writing a business plan is actually a skill that Kia Jam since a good plan and friendly investors translates into more income as well as the capacity to make better films.
The most important thing to comprehend about your own business plan is that it, alone, won’t allow you to get the funding you need. Your business plan would be the solid, practical, nuts and bolts overview that can back up your one on one and phone presentations.
How can you write your own business plan?
One great way to start your company plan would be to calculate your production budget. To do this you will have to break down your script and figure out the amount of shooting days and locations your film will be needing. This will tell you how many crew members you may 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 costs should provide you with a good estimate from the production budget.
Should you don’t understand how to do this, you should spend one thousand dollars or so to use a line producer. CRAIGLIST in L . A . might be a great starting point. Line producers are great at breaking down scripts and producing budgets. In reality, you might want to have multiple line producers create schedules and budgets to your film. Comparing their estimates will give you a good idea of methods accurate your budgets are and could give you good advice about how you can reduce costs or improve quality. Line producers also know how to maximize rebates and tax credits.
If all this seems like an unnecessary expense, remember that a great line producer with a lot of credits is really a key requirement for your film to get financing. Whenever you create a feature you usually need to have a completion bond, and to get 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 one to good directors, cinematographers, editors along with other crew.
When you have a spending budget and schedule, you are prepared to create an introduction to the development team. As producer, your bio should come first. Should you not have lots of film credits to your name, showcase your other successes. Expertise in management, marketing and sales are incredibly attractive in new film producers. You should also provide information on the director, line producer, as well as other key members of the development team.
When you complete the production overview, start work on the talent portion of your company plan. Begin by listing the actors you want to work together with, then contacting their agents to learn what their weekly rates are. If you are uncomfortable accomplishing this, make contact with an entertainment lawyer who works together with film producers and also have them have the calls. The few hundred dollars you may spend will be well invested. Note, there is no need to obtain letters of intent for these particular people in order to mention them in your strategic business plan. Just indicate that they are the actors you plan to approach. For the best results list multiple actors for each one of the key roles. Provide pictures of actors inside your business plan because many investors can’t recognize actors by their name.
Ensure your actors have credits that film and television distributors will find attractive. IMDBPRO and BOXOFFICEMOJO can 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 can provide a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on Google. Not all films can be bought on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
When you have done each of the research necessary to select actors, you need to think it is simple to start writing financial forecasts that specify how much films comparable to yours produced in the theater and then in DVD sales both in the united states and domestically. This may account for the majority of your film’s value. Remember that US Domestic theatrical sales are generally not really a significant source of revenue for your 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 as it increases the amount 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 be sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you might receive. You must also provide estimates of money rebates or tax credits you could receive from states like New Mexico and Michigan which can make up 15% to 40% of your own production budget. Done correctly, with adequate research, you will be able to prove your product will break even in a worst case scenario making a good profit in average conditions.
Next, provide an overview of exactly how much financing you need and exactly how investors will likely be repaid. You should remember that most investors expect that any revenues received by 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 definite rules in this particular matter. The sale is different from project to project.
After you have these components written, add a synopsis, storyboards as well as any further information that explains the most important aspects of the project.
The final bit of the organization plan you will write will be the executive summary. It reviews the elements within your business strategy with special attention presented to its most favorable aspects.
As soon as your strategic business plan is finished, you might be well prepared to pitch any project. You should be able to comfortably explain to just about anyone why it is going to generate income. And that is the true price of your own business plan. You nkavxd it to support your pitches. Its value is in convincing a financial partner that you have performed your research on the project he wants to purchase.
Before you start contacting potential investors or distribute your company plan, you ought to have a talk to your attorney about how exactly you would like to handle investment. If you are intending to market shares in your production company, you need to pay to possess your attorney develop a Product Placement Memorandum. This is simply not the only method to accept money for your film. Yet it is a common way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or if perhaps the funding you receive is a loan with a guaranteed rate of return rather than a good investment, you might only need your own business plan to support your pitches.
If this seems like plenty of work, it really is. But a majority of filmmakers are usually at ease with hard work as long as they understand its value. As a producer, you want 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. So can you.