When it comes to the practical aspects of filmmaking, which range from camera selection to mastering editing systems, independent film producers seem prepared to rise to every challenge. But tell one of those 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 your own business plan is a skill that KJamMedia because a good plan and friendly investors translates into more cash and the capacity to make better films.
It is important to know about your own business plan is that 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 face to face and phone presentations.
How will you write a business plan?
One good way to start your business plan is always to calculate your production budget. To do this you will need to break down your script and determine the number of shooting days and locations your film will require. This will explain the number of crew members you are going to require, and allow you to obtain 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 fees should provide you with a good estimate from the production budget.
In the event you don’t know how to do this, you need to spend thousands of dollars or so to hire a line producer. CRAIGLIST in L . A . might be a great starting point. Line producers are excellent at deteriorating 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 wise idea of methods accurate your budgets are and may offer you good insight into how you can cut costs or improve quality. Line producers also learn how to maximize rebates and tax credits.
If this may seem like an unnecessary expense, keep in mind that a good line producer with plenty of credits is actually a key necessity for your film to obtain financing. Whenever you produce a feature you usually need to have a completion bond, as well as acquire one you’ll need a good line producer. Completion bond companies realize that an excellent line producer will guarantee the film is completed. Line producers could also connect you to good directors, cinematographers, editors and other crew.
After you have a financial budget and schedule, you are prepared to create an overview of the production team. As producer, your bio should come first. Should you not have lots 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, and other key members of the production team.
When you complete the production overview, start work on the talent part of your small business plan. Start with listing the actors you would like to assist, then contacting their agents to find out what their weekly rates are. If you are uncomfortable doing this, make contact with an entertainment lawyer who works with film producers and have them have the calls. The few hundred dollars you may spend will likely be well invested. Note, you do not have to get letters of intent for these people to be able to mention them within your business plan. Just indicate that these are the actors you plan to approach. For optimum results list multiple actors for each of the key roles. Provide pictures of actors inside your business plan because many investors can’t recognize actors by their name.
Ensure that your actors have credits that film and TV distributors will see attractive. IMDBPRO and BOXOFFICEMOJO will help you learn what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are many websites which could 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 can be bought on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
By the time you may 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 made in the theater and then in DVD sales both in the US and domestically. This can make up much of your film’s value. Remember that US Domestic theatrical sales are often not just a significant supply of revenue for that producer if you work with traditional distributors. Actually they cost money. However 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 some 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 could receive. You need to provide estimates of cash rebates or tax credits you may receive from states like New Mexico and Michigan which might make up 15% to 40% of your production budget. Done properly, with adequate research, you must be able to prove your product 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 require and just how investors will be repaid. It is essential to remember 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 within this matter. The sale varies from project to project.
Once you have these components written, give a synopsis, storyboards and then any more information that explains the key facets of the project.
The final part of the company plan you may write is definitely the executive summary. It reviews the elements in your strategic business plan with special attention presented to its most favorable aspects.
As soon as your business strategy is finished, you are well prepared to pitch any project. You must be able to comfortably illustrate to almost anyone why it will generate income. And that is certainly the true worth of your own business plan. You nkavxd it to backup your pitches. Its value is in convincing an economic partner that you really have performed your research on a project he wants to invest in.
Prior to starting contacting potential investors or distribute your company plan, you should have a chat with your attorney about how exactly you want to handle investment. If you are planning to market shares inside your production company, you have to pay to possess your attorney create a Product Placement Memorandum. This is simply not the best way to accept money to your film. However it is a standard way.
Should your financial partner is definitely an “active investor” who plays the role of executive producer, or maybe the funding you get is a loan having a guaranteed rate of return rather than 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 a majority of filmmakers are very at ease with effort if 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 per year worldwide. They create money. So can you.