Should your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is actually a loan with a guaranteed rate of return rather than a smart investment, you may only need a business plan to aid your pitches.
If this type of seems like lots of work, it is. But most filmmakers are very comfortable with effort as long as they understand its value. As a producer, you need a solid business plan around your investor does. People produce feature films and documentaries 365 days a year worldwide. They create money. You can as well.
Ensure that your actors have credits that film and television distributors will see attractive. IMDBPRO and BOXOFFICEMOJO may help you learn what films actors and actresses have appeared in and how much those films earned in theaters. There are many websites which can provide a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on yahoo. Not all films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
Once you may have done each of the research needed to select actors, you ought to find it very easy to start writing financial forecasts that specify how much films much like yours made in the Kia Jam and in DVD sales both in america and domestically. This can make up the majority of your film’s value. Note that US Domestic theatrical sales are often not just a significant way to obtain revenue for your producer if you deal with traditional distributors. Actually they cost money. However also a limited theatrical release does increase the need for your film because it increases the sum 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 make up any product placement fees you may receive. You must also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which might make up 15% to 40% of your own production budget. Performed correctly, with adequate research, you must be able to prove your product or service will break even in a worst case scenario making a good profit in average conditions.
Next, provide an introduction to just how much financing you will need and just how investors will be repaid. It is important to note that most investors expect that any revenues received through the production company will repay their investment and they will get 50% of any additional revenues the film earns. But there are really no hard and fast rules in this particular matter. The sale doysmo from project to project.
After you have these factors written, give a synopsis, storyboards as well as any further information that explains the most important aspects of the project. The last piece of the organization plan you will write is the executive summary. It reviews the weather inside your business strategy with special attention given to its most favorable aspects.
As soon as your business plan is completed, you might be ready to pitch any project. You must be able to comfortably explain to just about anyone why it will make money. And that is certainly the true value of your own business plan. You make use of it to support your pitches. Its value is in convincing an economic partner that you will have performed your research on a project he wants to invest in.
Before you begin contacting potential investors or distribute your business plan, you should have a chat with your attorney about how you need to handle investment. If you are going to promote shares in your production company, you have to pay to get your attorney develop a Product Placement Memorandum. This is simply not the only way to accept money to your film. But it is a typical way.