Should 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 instead of a smart investment, you might only need a business plan to back up your pitches.
If this looks like plenty of work, it is actually. But many filmmakers are usually confident with hard work as long as they understand its value. Being a producer, you require a solid business strategy around your investor does. People produce feature films and documentaries 365 days a year worldwide. They can make money. You can too.
Ensure that your actors have credits that film and television distributors will discover attractive. IMDBPRO and BOXOFFICEMOJO will help you learn what films actors and actresses have appeared in and how much those films earned in theaters. There are many websites which could provide a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “DVD Sales Numbers” on Google. Its not all 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 each of the research necessary to select actors, you ought to find it easy to start writing financial forecasts that specify exactly how much films much like yours made in the Kjam and in DVD sales both in america and domestically. This may account for most of your film’s value. Be aware that US Domestic theatrical sales are often not a significant supply of revenue for your producer if you deal with traditional distributors. Actually they cost money. However also a limited theatrical release does increase the price of your film as it increases the sum you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to some broad audience.
Within your sales forecasts be sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and take into account any product placement fees you might receive. You need to provide estimates of cash rebates or tax credits you could receive from states like New Mexico and Michigan which might account for 15% to 40% of your production budget. Done properly, with adequate research, you will be able to prove your product will break even in a worst case scenario and create a good profit in average conditions.
Next, provide an overview of how much financing you require and how investors will likely be repaid. You should be aware that most investors expect that any revenues received by the production company will repay their investment and they will get 50% for any additional revenues the film earns. But there are really no hard and fast rules within this matter. The offer doysmo from project to project.
After you have these factors written, put in a synopsis, storyboards as well as any more information that explains the important aspects of the project. The very last part of the company plan you may write is the executive summary. It reviews the weather in your business plan with special attention given to its most favorable aspects.
As soon as your business plan is completed, you are prepared to pitch your project. You must be able to comfortably convey to just about anyone why it can make money. And that is the true price of your own business plan. You use it to support your pitches. Its value is at convincing an economic partner that you really have performed your research over a project he wants to buy.
Before you start contacting potential investors or distribute your small business plan, you ought to have a chat with your attorney about how you need to handle investment. If you are planning to promote shares in your production company, you need to pay to possess your attorney produce a Product Placement Memorandum. This is not the best way to accept money to your film. However it is a common way.