If 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 an investment, you might only need a business plan to support your pitches.
If this type of seems like lots of work, it is. But most filmmakers are very comfortable with work if they understand its value. As a producer, you require a solid business plan as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They create money. You can too.
Ensure that 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 just 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 search for “DVD Sales Numbers” on yahoo. Not all films are offered on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
By the time you might have done all the research necessary to select actors, you ought to think it is simple to start writing financial forecasts that specify exactly how much films similar to yours manufactured in the Click Here and in DVD sales both in the united states and domestically. This will account for most of your film’s value. Remember that US Domestic theatrical sales are often not really a significant source of revenue for that producer if you deal with traditional distributors. Actually they set you back money. However a limited theatrical release does increase the price of your film because it increases the amount you get from licensing and DVD sales. Why? Since the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Inside your sales forecasts be sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and take into account any product placement fees you might receive. You should also provide estimates of cash rebates or tax credits you may receive from states like New Mexico and Michigan which may account for 15% to 40% of your production budget. Done correctly, with adequate research, you should be able to prove your products or services will break even in a worst case scenario and create a good profit in average conditions.
Next, provide an overview of exactly how much financing you need and just how investors will be repaid. It is important to note that most investors expect that any revenues received from the production company will repay their investment and they can get 50% for any additional revenues the film earns. But there are really no definite rules in this particular matter. The sale doysmo from project to project.
Once you have these factors written, add a synopsis, storyboards as well as any more information that explains the most important facets of the project. The very last part of the organization plan you may write is the executive summary. It reviews the elements in your business strategy with special attention provided to its most favorable aspects.
When your business strategy is completed, you happen to be well prepared to pitch any project. You should be able to comfortably convey to just about anyone why it is going to earn money. And that is certainly the true value of your own business plan. You make use of it to back up your pitches. Its value is at convincing a financial partner that you have performed your research on a project he wants to buy.
Prior to starting contacting potential investors or distribute your business plan, you ought to have a chat with your attorney about how you would like to handle investment. If you are intending to promote shares in your production company, you need to pay to get your attorney produce a Product Placement Memorandum. This is not the best way to accept money for your film. However it is a typical way.