Should your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is a loan with a guaranteed rate of return as opposed to an investment, you might only need a business plan to aid your pitches.
If this type of seems like lots of work, it is. But many filmmakers are very at ease with hard work if they understand its value. Being a producer, you need a solid strategic business plan just as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. You can as well.
Make sure that your actors have credits that film and television distributors will see attractive. IMDBPRO and BOXOFFICEMOJO may help you discover what films actors and actresses have appeared in and just how much those films earned in theaters. There are lots of websites which can give a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “DVD Sales Numbers” on the search engines. 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 may have done all of the research necessary to select actors, you ought to discover it simple to start writing financial forecasts that specify just how much films similar to yours made in the Kia and in DVD sales both in the US and domestically. This can take into account most of your film’s value. Note that US Domestic theatrical sales are generally not really a significant way to obtain revenue for your producer if you work with traditional distributors. In fact they cost money. However also a limited theatrical release does increase the need for your film since it increases the total amount you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Within your sales forecasts make sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and account for any product placement fees you might receive. You should also provide estimates of cash rebates or tax credits you might receive from states like New Mexico and Michigan which might take into account 15% to 40% of the production budget. Performed correctly, with adequate research, you will 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 will need and how investors is going to be repaid. It is important to remember that most investors expect that any revenues received from 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 in this particular matter. The deal doysmo from project to project.
When you have these elements written, add a synopsis, storyboards and any more information that explains the most important elements of the project. The very last piece of the organization plan you will write is definitely the executive summary. It reviews the weather inside your strategic business plan with special attention presented to its most favorable aspects.
As soon as your business plan is finished, you might be prepared to pitch any project. You will be able to comfortably explain to just about anyone why it is going to make money. And that is certainly the real value of your own business plan. You make use of it to backup your pitches. Its value is at convincing a financial partner that you will did your research on the project he wants to purchase.
Before you begin contacting potential investors or distribute your small business plan, you should have a talk to your attorney about how exactly you need to handle investment. If you are intending to market shares in your production company, you need to pay to have your attorney produce a Product Placement Memorandum. This may not be the best way to accept money to your film. But it is a typical way.