When it comes 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? As if indie producers liked asking permission to do something or taking orders from others . . . they would work for studios. Nevertheless, writing a business plan is a skill that KJamMedia since a good plan and friendly investors translates into more money as well as the ability to make better films.
The most important thing to understand about a business plan is it, alone, won’t get you the funding you need. Your small business plan would be the solid, practical, nuts and bolts overview which will back up your in person and phone presentations.
How can you write your own business plan?
One good way to start your business plan is always to calculate your production budget. To get this done you will need to break up your script and find out the amount of shooting days and locations your film will need. This will tell you the number of crew members you will require, and let you 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 provide you with a good estimate in the production budget.
In the event you don’t learn how to do all of this, you need to spend thousands of dollars or so to hire a line producer. CRAIGLIST in Los Angeles might be a great place to begin. Line producers are wonderful at wearing down scripts and producing budgets. In reality, you might like to have multiple line producers create schedules and budgets for your film. Comparing their estimates will provide you with a good idea of how accurate your budgets are and may offer you good insight into how you can spend less or improve quality. Line producers also learn how to maximize rebates and tax credits.
If all of this may seem like an unnecessary expense, keep in mind that a good line producer with a lot of credits is actually a key requirement of your film to get financing. When you create a feature you typically need to have a completion bond, and to obtain one you’ll need to have a good line producer. Completion bond companies realize that a great line producer will make sure the film is finished. Line producers could also connect you to definitely good directors, cinematographers, editors and other crew.
Once you have a spending budget and schedule, you are ready to write an introduction to the development team. As producer, your bio should come first. Unless you have plenty of film credits to your name, showcase your other successes. Expertise in management, marketing and sales are incredibly attractive in new film producers. You need to provide information on the director, line producer, and other key people in the development team.
When you complete the development overview, start work on the talent part of your business plan. Start by listing the actors you would like to work together with, then contacting their agents to find out what their weekly rate is. Should you be uncomfortable accomplishing this, make contact with an entertainment lawyer who works with film producers and have them make the calls. The few hundred dollars you may spend will be well invested. Note, you do not have to have letters of intent for these people to be able to mention them within your business strategy. Just indicate that these are the basic actors you intend to approach. For optimum results list multiple actors for each one of 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 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 numerous websites which can provide a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “DVD Sales Numbers” on the search engines. Not all films are sold on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
By the time you might have done all of the research necessary to select actors, you need to discover it easy to start writing financial forecasts that specify exactly how much films much like yours made in the theater and then in DVD sales both in the US and domestically. This may take into account the majority of your film’s value. Remember that US Domestic theatrical sales are generally not really a significant supply of 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 need for your film because it increases the total 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 make sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you could receive. You must also provide estimates of money rebates or tax credits you could receive from states like New Mexico and Michigan which can take into account 15% to 40% of the production budget. Done correctly, with adequate research, you should be able to prove your product or service will break even in a worst scenario making a good profit in average conditions.
Next, provide an overview of how much financing you need and exactly how investors is going to be repaid. It is essential to note that most investors expect that any revenues received through the production company will repay their investment and they will get 50% for any additional revenues the film earns. But you will find really no cast in stone rules within this matter. The offer 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 final part of the company plan you may write will be the executive summary. It reviews the weather within your business strategy with special attention provided to its most favorable aspects.
When your business plan is completed, you might be prepared to pitch any project. You will be able to comfortably convey to almost anyone why it can generate income. And that is certainly the real value of your own business plan. You nkavxd it to backup your pitches. Its value is at convincing an economic partner that you did your research on the project he wants to buy.
Before you begin 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 going to sell shares within your production company, you need to pay to possess your attorney create a Product Placement Memorandum. This may not be the only method to accept money to your film. However it is a standard way.
If your financial partner is an “active investor” who plays the role of executive producer, or maybe the funding you get is really a loan using a guaranteed rate of return as opposed to a good investment, you might only need a business plan to aid your pitches.
If this looks like plenty of work, it really is. But a majority of filmmakers are very confident with work if they understand its value. As a producer, you want a solid business plan just as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They create money. You can too.