With regards to the practical aspects of filmmaking, ranging from camera selection to mastering editing systems, independent film producers seem ready to rise to every challenge. But tell one of those folks they have to come up with a business plan and find investors to support their film and you’ll find most looking 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 your own business plan is actually a skill that vimeo.com just because a good plan and friendly investors translates into more cash and the capacity to make better films.
It is important to understand about a business plan is that it, alone, won’t get you the funding you will need. Your small business plan will be the solid, practical, nuts and bolts overview that will support your face to face and phone presentations.
How can you write your own business plan?
One great way to start your business plan is to calculate your production budget. To do this you will have to breakdown your script and figure out how many shooting days and locations your film will be needing. This will explain how many crew members you will require, and let you get a better 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 give you a good estimate of the production budget.
Should you don’t understand how to do all this, you should spend one thousand dollars roughly to employ a line producer. CRAIGLIST in L . A . can be a great starting point. Line producers are great at wearing down scripts and producing budgets. In fact, you may want to have multiple line producers create schedules and budgets to your film. Comparing their estimates will provide you with a wise idea of methods accurate your budgets are and may give you good advice about how you can spend less or improve quality. Line producers also learn how to maximize rebates and tax credits.
If this may seem like an unnecessary expense, understand that an excellent line producer with a lot of credits is really a key necessity for your film to have financing. Whenever you produce a feature you normally need to have a completion bond, as well as obtain one you’ll need a good line producer. Completion bond companies know that an excellent line producer will guarantee the film is finished. Line producers may also connect you to good directors, cinematographers, editors and other crew.
After you have a financial budget and schedule, you are prepared to publish a review of the production team. As producer, your bio should come first. If you do not have lots of film credits to 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, along with other key individuals the development team.
When you complete the development overview, start work on the talent section of your small business plan. Begin by listing the actors you want to assist, then contacting their agents to discover what their weekly rate is. Should you be uncomfortable accomplishing this, contact an entertainment lawyer who works with film producers and possess them make the calls. The few hundred dollars you spend is going to be well invested. Note, there is no need to have letters of intent for these people to be able to mention them within your strategic business plan. Just indicate that they are the actors you intend to approach. For the best results list multiple actors for each of the key roles. Provide pictures of actors within your strategic business plan because many investors can’t recognize actors by their name.
Ensure that your actors have credits that film and TV distributors will find attractive. IMDBPRO and BOXOFFICEMOJO may help you discover what films actors and actresses have appeared in and how much those films earned in theaters. There are lots of websites which could offer a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on yahoo. Not every films can be bought on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
When you might have done all the research necessary to select actors, you ought to find it very easy to start writing financial forecasts that specify how much films comparable to yours made in the theater and then in DVD sales both in america and domestically. This may take into account most of your film’s value. Remember that US Domestic theatrical sales are often not really a significant way to obtain revenue for the producer if you work with traditional distributors. In fact they cost you money. However also a limited theatrical release does increase the price of your film because 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 your broad audience.
Within your sales forecasts be sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and make up any product placement fees you could receive. You should also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which may make up 15% to 40% of your own production budget. Done correctly, with adequate research, you must be able to prove your products or services will break even in a worst case scenario and make a good profit in average conditions.
Next, provide a review of just how much financing you need and how investors will be repaid. It is essential to remember that most investors expect that any revenues received from the production company will repay their investment and they can get 50% of any additional revenues the film earns. But there are really no cast in stone rules in this particular matter. The sale varies from project to project.
Once you have these components written, give a synopsis, storyboards and any additional information that explains the most important facets of the project.
The last part of the organization plan you will write is the executive summary. It reviews the weather inside your business plan with special attention presented to its most favorable aspects.
When your business strategy is finished, you happen to be ready to pitch any project. You should be able to comfortably convey to almost anyone why it can earn money. And that is certainly the real worth of a business plan. You nkavxd it to backup your pitches. Its value is at convincing a monetary partner that you will have done your homework on the project he wants to invest in.
Before you start contacting potential investors or distribute your company plan, you need to have a talk with your attorney about how you want to handle investment. If you are planning to sell shares inside your production company, you need to pay to get your attorney develop a Product Placement Memorandum. This is not the only way to accept money to your film. However it is a common way.
If your financial partner is an “active investor” who plays the role of executive producer, or if the funding you get is actually a loan with a guaranteed rate of return rather than a good investment, you could only need your own business plan to back up your pitches.
If the seems like plenty of work, it really is. But most filmmakers are very confident with hard work if they understand its value. Being a producer, you require a solid strategic business plan just as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They make money. You can as well.