In terms of 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? As 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 actually a skill that vimeo because a good plan and friendly investors translates into more income and the ability to make better films.
It is important to understand about your own business plan is it, alone, won’t allow you to get the funding you require. Your business plan will be the solid, practical, nuts and bolts overview that will back up your one on one and phone presentations.
How will you write a business plan?
One good way to start your small business plan is always to calculate your production budget. To achieve this you will have to breakdown your script and find out the amount of shooting days and locations your film will need. This will tell you how many crew members you may require, and allow you to get a good feeling for props and effects. Costing these components out, then adding editing and post production, taxes, legal fees, financing fees and insurance fees should provide you with a good estimate of the production budget.
Should you don’t know how to do this, you need to spend one thousand dollars or so to use a line producer. CRAIGLIST in La might be a great place to start. Line producers are excellent at wearing down scripts and producing budgets. In reality, you might want to have multiple line producers create schedules and budgets for your film. Comparing their estimates will provide you with a great idea of methods accurate your budgets are and may offer you good understanding of how to spend less or improve quality. Line producers also learn how to maximize rebates and tax credits.
If all this seems like an unnecessary expense, remember that a good line producer with plenty of credits is really a key requirement of your film to have financing. Whenever you generate a feature you normally need to have a completion bond, and also to obtain one you’ll require a good line producer. Completion bond companies know that a great line producer will make sure the film is completed. Line producers can also connect you to definitely good directors, cinematographers, editors and other crew.
Once you have a budget and schedule, you are ready to write an introduction to the development team. As producer, your bio should come first. Unless you have plenty of film credits in your name, showcase your other successes. Knowledge of management, marketing and sales are very attractive in new film producers. You need to provide information on the director, line producer, as well as other key individuals the production team.
After you complete the development overview, start work on the talent part of your business plan. Begin by listing the actors you need to work together with, then contacting their agents to discover 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 possess them create the calls. The few hundred dollars you would spend will be well invested. Note, you do not have to get letters of intent for such people so that you can mention them inside your business strategy. Just indicate that they are the actors you plan to approach. For the best results list multiple actors for each of the key roles. Provide pictures of actors in your business strategy 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 will help you discover what films actors and actresses have appeared in and how much those films earned in theaters. There are numerous websites which can offer a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on the search engines. Its not all films are sold on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
When you have done each of the research needed to select actors, you need to think it is easy to start writing financial forecasts that specify exactly how much films similar to yours produced in the theater and then in DVD sales both in the US and domestically. This may account for most of your film’s value. Note that US Domestic theatrical sales are usually not a significant way to obtain revenue for the producer if you deal with traditional distributors. Actually they set you back money. However a limited theatrical release does increase the price 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.
In your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you could receive. You must also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which may take into account 15% to 40% of the production budget. Done properly, with adequate research, you will be able to prove your products or services will break even in a worst case scenario and create a good profit in average conditions.
Next, provide a review of just how much financing you will need and exactly how investors is going to be repaid. It is important to remember that most investors expect that any revenues received through the production company will repay their investment and they can get 50% of any additional revenues the film earns. But you can find really no hard and fast rules in this particular matter. The deal differs from project to project.
Once you have these factors written, give 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 are going to write is definitely the executive summary. It reviews the weather in your business plan with special attention provided to its most favorable aspects.
Once your business strategy is finished, you are well prepared to pitch your project. You will be able to comfortably explain to almost anyone why it can generate income. And that is the true price of your own business plan. You nkavxd it to backup your pitches. Its value is at convincing a financial partner that you will did your research over a project he wants to invest in.
Before you start contacting potential investors or distribute your company plan, you ought to have a talk to your attorney about how exactly you need to handle investment. If you are intending to promote shares inside your production company, you should pay to have your attorney develop a Product Placement Memorandum. This may not be the best way to accept money for the film. But it is a standard way.
Should your financial partner is an “active investor” who plays the role of executive producer, or if the funding you get is a loan using a guaranteed rate of return rather than a smart investment, you could only need your own business plan to back up your pitches.
If this type of looks like plenty of work, it is actually. But most filmmakers are very at ease with effort as long as they understand its value. Being a producer, you require a solid business plan as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. So can you.