In terms of 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 back up their film and you’ll find most trying to find a stage door to exit. Why? Because 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 vimeo.com 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 know about your own business plan is that it, alone, won’t enable you to get the funding you need. Your business plan will be the solid, practical, nuts and bolts overview that can back up your face to face and phone presentations.
How can you write a business plan?
One great way to start your business plan would be to calculate your production budget. To do this you will need to break up your script and determine the number of shooting days and locations your film will need. This will tell you the number of crew members you will require, and allow you to get a better feeling for props and effects. Costing these components out, then adding editing and post production, taxes, legal fees, financing fees and insurance costs should give you a good estimate from the production budget.
If you don’t learn how to do this, you ought to spend a thousand dollars roughly to use a line producer. CRAIGLIST in La may be a great place to begin. Line producers are excellent at wearing down scripts and producing budgets. Actually, you might like to have multiple line producers create schedules and budgets to your film. Comparing their estimates will provide you with a good idea of methods accurate your budgets are and could give you good understanding of how to reduce costs or improve quality. Line producers also learn how to maximize rebates and tax credits.
If all this appears like an unnecessary expense, understand that an excellent line producer with plenty of credits is a key requirement for your film to obtain financing. When you generate a feature you usually need to have a completion bond, and to get one you’ll need to have a good line producer. Completion bond companies know that a good line producer will make sure the film is completed. Line producers could also connect one to good directors, cinematographers, editors as well as other crew.
After you have a financial budget and schedule, you are prepared to create an overview of 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 members of the development team.
Once you complete the production overview, start work on the talent section of your company plan. Begin by listing the actors you need to work together with, then contacting their agents to learn what their weekly rates are. In case you are uncomfortable doing this, contact an entertainment lawyer who works with film producers and possess them make the calls. The few hundred dollars you would spend is going to be well invested. Note, there is no need to get letters of intent for these particular people so that you can mention them in your strategic business plan. Just indicate that these are the basic actors you plan to approach. For optimum results list multiple actors for all the key roles. Provide pictures of actors in your business plan because many investors can’t recognize actors by their name.
Ensure your actors have credits that film and TV distributors will see attractive. IMDBPRO and BOXOFFICEMOJO can help you find out 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 try to find “DVD Sales Numbers” on yahoo. Not all films are offered on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
When you may have done all the research required to select actors, you need to discover it easy to start writing financial forecasts that specify just how much films comparable to yours manufactured in the theater and then in DVD sales both in the united states and domestically. This will take into account most of your film’s value. Note that US Domestic theatrical sales are often not a significant source of revenue for that producer if you work with traditional distributors. In fact they cost money. However even a limited theatrical release does increase the value of your film as 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 make sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and make up 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 your own production budget. Performed correctly, with adequate research, you should be able to prove your product will break even in a worst scenario making a good profit in average conditions.
Next, provide an introduction to exactly how much financing you will need and just how investors will likely be repaid. It is essential to be aware that most investors expect that any revenues received by the production company will repay their investment and they can get 50% of any additional revenues the film earns. But you will find really no hard and fast rules in this matter. The offer varies from project to project.
Once you have these components written, give a synopsis, storyboards and then any further information that explains the most important facets of the project.
The last part of the company plan you will write is definitely the executive summary. It reviews the weather within your business plan with special attention provided to its most favorable aspects.
As soon as your business plan is finished, you might be ready to pitch any project. You will be able to comfortably explain to almost anyone why it can generate income. And that is the actual value of your own business plan. You nkavxd it to support your pitches. Its value is at convincing a financial partner that you will have performed your research over a project he wants to buy.
Prior to starting contacting potential investors or distribute your business plan, you ought to have a talk with your attorney regarding how you want to handle investment. If you are planning to sell shares in your production company, you should pay to have your attorney produce a Product Placement Memorandum. This may not be the best way to accept money to your film. Yet it is a common way.
In case your financial partner is definitely an “active investor” who plays the role of executive producer, or if perhaps the funding you get is actually a loan with a guaranteed rate of return instead of a smart investment, you may only need a business plan to back up your pitches.
If this looks like a lot of work, it is actually. But a majority of filmmakers are quite comfortable with effort as long as they understand its value. As being a producer, you want a solid business plan just as much as your investor does. People produce feature films and documentaries 365 days a year worldwide. They can make money. You can too.