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 these 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 a business plan is actually a skill that vimeo since a good plan and friendly investors translates into more money and also the capacity to make better films.
It is essential to understand about a business plan is that it, alone, won’t enable you to get the funding you need. Your company plan could be the solid, practical, nuts and bolts overview that will backup your face to face and phone presentations.
How can you write your own business plan?
One easy way to start your business plan would be to calculate your production budget. To do this you will have to break down your script and find out the amount of shooting days and locations your film will need. This will show you the amount of crew members you are going to require, and let you obtain a good 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 know how to do all of this, you should spend one thousand dollars roughly to hire a line producer. CRAIGLIST in La might be a great place to start. Line producers are excellent at breaking down scripts and producing budgets. Actually, you might want to have multiple line producers create schedules and budgets to your film. Comparing their estimates will provide you with a great idea of methods accurate your budgets are and may offer you good advice about the best way to spend less or improve quality. Line producers also understand how to maximize rebates and tax credits.
If all this may seem like an unnecessary expense, understand that an excellent line producer with a lot of credits is a key requirement for your film to have financing. Whenever you create a feature you typically need to have a completion bond, as well as acquire one you’ll need to have a good line producer. Completion bond companies understand that a good line producer will ensure the film is finished. Line producers may also connect you to definitely good directors, cinematographers, editors along with other crew.
Once you have a budget and schedule, you are prepared to publish an introduction to the production team. As producer, your bio should come first. Unless you have a lot of film credits in your name, showcase your other successes. Knowledge of management, marketing and sales are incredibly 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.
Once you complete the production overview, start work on the talent portion of your small business plan. Start with listing the actors you want to assist, then contacting their agents to discover what their weekly rate is. In case you are uncomfortable accomplishing this, contact an entertainment lawyer who works jointly with film producers and possess 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 such people so that you can mention them inside your business plan. Just indicate that they are the actors you intend to approach. For the best results list multiple actors for all the key roles. Provide pictures of actors within 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 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 could offer a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on yahoo. Not every films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
By the time you might have done each of the research necessary to select actors, you need to find it simple to start writing financial forecasts that specify exactly how much films similar to yours manufactured in the theater and then in DVD sales both in america and domestically. This may take into account much of your film’s value. Remember that US Domestic theatrical sales are generally not really a significant source of revenue for that producer if you deal with traditional distributors. Actually they cost money. However a limited theatrical release does increase the price of your film as 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.
Within your sales forecasts be sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you might receive. You must also provide estimates of cash rebates or tax credits you could receive from states like New Mexico and Michigan which might take into account 15% to 40% of your own 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 making a good profit in average conditions.
Next, provide an overview of exactly how much financing you need and exactly how investors will likely be repaid. You should remember 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 there are really no cast in stone rules in this particular matter. The sale differs from project to project.
After you have these elements written, add a synopsis, storyboards as well as any further information that explains the key facets of the project.
The very last piece of the business plan you are going to write will be the executive summary. It reviews the weather in your business plan with special attention provided to its most favorable aspects.
When your business strategy is completed, you might be ready to pitch any project. You must be able to comfortably illustrate to just about anyone why it is going to generate income. And that is certainly the actual worth of a business plan. You nkavxd it to back up your pitches. Its value is at convincing an economic partner that you will have performed your research over a project he wants to purchase.
Prior to starting contacting potential investors or distribute your business plan, you should have a talk with your attorney regarding how you want to handle investment. If you are intending to sell shares inside your production company, you have to pay to have your attorney create a Product Placement Memorandum. This is not the only method to accept money for your film. But it is a standard way.
If your financial partner is surely an “active investor” who plays the role of executive producer, or maybe the funding you obtain is really a loan with a guaranteed rate of return rather than a good investment, you might only need a business plan to support your pitches.
If this looks like plenty of work, it is. But a majority of filmmakers are usually confident with work as long as they understand its value. Being a producer, you need a solid business strategy as much as your investor does. People produce feature films and documentaries 365 days a year worldwide. They make money. So can you.