With regards to the practical aspects of filmmaking, starting from camera selection to mastering editing systems, independent film producers seem prepared 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 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 ability to make better films.
The most important thing to comprehend about a business plan is that it, alone, won’t get you the funding you need. Your company plan could be the solid, practical, nuts and bolts overview which will backup your in person and phone presentations.
How do you write a business plan?
One easy way to start your small business plan is to calculate your production budget. To achieve this you will have to break down your script and find out the number of shooting days and locations your film will require. This will explain the number of crew members you may require, and allow you to get a good feeling for props and special effects. Costing these factors out, then adding editing and post production, taxes, legal fees, financing fees and insurance fees should offer you a good estimate in the production budget.
If you don’t learn how to do all this, you need to spend thousands of dollars roughly to hire a line producer. CRAIGLIST in L . A . may be a great place to start. Line producers are excellent at wearing down scripts and producing budgets. Actually, you might want to have multiple line producers create schedules and budgets for the film. Comparing their estimates will provide you with a good idea of methods accurate your budgets are and may give you good advice about how to reduce costs or improve quality. Line producers also know how to maximize rebates and tax credits.
If this appears like an unnecessary expense, keep in mind that a good line producer with lots of credits is really a key necessity for your film to have financing. Whenever you create a feature you usually need a completion bond, and also to obtain one you’ll need a good line producer. Completion bond companies know that an excellent line producer will make sure the film is completed. Line producers can also connect you to good directors, cinematographers, editors as well as other crew.
When you have a financial budget and schedule, you are ready to create a review of the production team. As producer, your bio should come first. Unless you have lots of film credits for your name, showcase your other successes. Expertise in 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 members of the production team.
After you complete the production overview, start work on the talent part of your small business plan. Begin by listing the actors you need to work together with, then contacting their agents to find out what their weekly rate is. In case you are uncomfortable doing this, make contact with an entertainment lawyer who works together with film producers and also have 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 these particular people in order to mention them in your strategic business plan. Just indicate that they are the actors you intend to approach. For optimum results list multiple actors for all the key roles. Provide pictures of actors within your business plan because many investors can’t recognize actors by their name.
Ensure that your actors have credits that film and television distributors will discover 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 offer a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “DVD Sales Numbers” on Google. Not every films are offered on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
Once you have done all the research needed to select actors, you need to think it is very easy to start writing financial forecasts that specify just how much films comparable to yours made in the theater and then in DVD sales both in the united states and domestically. This can take into account most of your film’s value. Note that US Domestic theatrical sales are often not a significant way to obtain revenue for the 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? Because the domestic theatrical release and related marketing effectively presells the film to your broad audience.
Inside 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 may receive. You should 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 the production budget. Performed correctly, with adequate research, you must be able to prove your products or services will break even in a worst scenario and make a good profit in average conditions.
Next, provide a review of exactly 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 from 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 within this matter. The sale is different from project to project.
Once you have these components written, give a synopsis, storyboards and any more information that explains the most important facets of the project.
The last part of the organization plan you may write will be the executive summary. It reviews the weather within your strategic business plan with special attention presented to its most favorable aspects.
Once your business plan is completed, you are ready to pitch any project. You will be able to comfortably explain to almost anyone why it is going to generate income. And that is the true worth of a business plan. You nkavxd it to backup your pitches. Its value is at convincing a monetary partner that you will did your research over a project he wants to buy.
Before you begin contacting potential investors or distribute your small business plan, you need to have a chat with your attorney about how you need to handle investment. If you are planning to promote shares in your production company, you should pay to get your attorney produce a Product Placement Memorandum. This is simply not the only way to accept money to your film. Yet it is a typical way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or maybe the funding you receive is a loan using a guaranteed rate of return as opposed to an investment, you might only need your own business plan to back up your pitches.
If this seems like lots of work, it really is. But most filmmakers are quite confident with hard work as long as they understand its value. Being a producer, you need a solid business plan as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They create money. You can as well.