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 rather than a smart investment, you may only need a business plan to back up your pitches.
If this type of seems like lots of work, it really is. But a majority of filmmakers are quite comfortable with hard work as long as they understand its value. As a producer, you need a solid business plan as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They can make money. You can as well.
Ensure your actors have credits that film and television distributors will find attractive. IMDBPRO and BOXOFFICEMOJO can help you learn what films actors and actresses have appeared in and just how much those films earned in theaters. There are many websites which can give a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on the search engines. Its not all films can be bought on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
By the time you have done all of the research necessary to select actors, you need to think it is simple to start writing financial forecasts that specify exactly how much films much like yours made in the Kia Jam and then in DVD sales both in america and domestically. This can account for much of your film’s value. Note that US Domestic theatrical sales are often not a significant way to obtain revenue for that producer if you work with traditional distributors. Actually they set you back money. However a limited theatrical release does increase the price of your film as it increases the amount you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to your broad audience.
Within your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable television and broadband licensing and make up any product placement fees you might receive. You need to 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 will be able to prove your product or service will break even in a worst scenario and create a good profit in average conditions.
Next, provide a review of exactly how much financing you need and how investors is going to be repaid. It is important to be aware that most investors expect that any revenues received by the production company will repay their investment and they will get 50% of any additional revenues the film earns. But you can find really no cast in stone rules within this matter. The sale doysmo from project to project.
Once you have these elements written, put in a synopsis, storyboards and any additional information that explains the key aspects of the project. The final piece of the business plan you may write will be the executive summary. It reviews the elements within your business plan with special attention presented to its most favorable aspects.
As soon as your business plan is finished, you happen to be prepared to pitch any project. You must be able to comfortably explain to almost anyone why it can earn money. And that is certainly the actual value of your own business plan. You use it to back up your pitches. Its value is at convincing an economic partner that you really have done your research over a project he wants to invest in.
Before you begin contacting potential investors or distribute your small business plan, you should have a talk to your attorney about how you would like to handle investment. If you are planning to promote shares inside your production company, you should pay to possess your attorney create a Product Placement Memorandum. This may not be the best way to accept money for the film. Yet it is a common way.