In case 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 good investment, you may only need a business plan to aid your pitches.
If the seems like plenty of work, it is. But many filmmakers are very at ease with effort as long as they understand its value. As a producer, you want a solid business strategy as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. So can you.
Ensure your actors have credits that film and television distributors will discover attractive. IMDBPRO and BOXOFFICEMOJO may help you find out what films actors and actresses have appeared in and just how much those films earned in theaters. There are many websites which may offer a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on Google. Not all films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
Once you might have done all the research needed to select actors, you ought to think it is simple to start writing financial forecasts that specify how much films comparable to yours produced in the Kjam and in DVD sales both in america and domestically. This can take into account much of your film’s value. Note that US Domestic theatrical sales are often not really a significant source of revenue for the producer if you work with traditional distributors. In fact they set you back money. However even a limited theatrical release does increase the price of 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 your broad audience.
Within your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable tv and broadband licensing and make up any product placement fees you could receive. You must also provide estimates of cash rebates or tax credits you might receive from states like New Mexico and Michigan which might make up 15% to 40% of your production budget. Done correctly, with adequate research, you must be able to prove your product will break even in a worst scenario and make a good profit in average conditions.
Next, provide an introduction to exactly how much financing you will need and how investors will likely 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 can get 50% of the additional revenues the film earns. But you can find really no cast in stone rules in this matter. The deal doysmo from project to project.
Once you have these components written, put in a synopsis, storyboards and then any additional information that explains the key aspects of the project. The final part of the organization plan you are going to write is the executive summary. It reviews the weather in your strategic business plan with special attention provided to its most favorable aspects.
When your business plan is finished, you might be well prepared to pitch any project. You will be able to comfortably convey to almost any one why it can generate income. And that is certainly the actual price of your own business plan. You make use of it to back up your pitches. Its value is at convincing a monetary partner that you did your homework on a project he wants to purchase.
Prior to starting contacting potential investors or distribute your company plan, you ought to have a talk to your attorney regarding how you want to handle investment. If you are planning to sell shares in your production company, you have to pay to get your attorney create a Product Placement Memorandum. This is simply not the only way to accept money for the film. However it is a typical way.