In case 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 as opposed to a smart investment, you might only need a business plan to back up your pitches.
If the looks like plenty of work, it is actually. But most filmmakers are usually comfortable with effort as long as they understand its value. Being a producer, you need a solid business plan as much as 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 will help you discover what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are lots of 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 might have done all of the research necessary to select actors, you need to think it is easy to start writing financial forecasts that specify just how much films similar to yours manufactured in the Kia and in DVD sales both in the US and domestically. This will account for much of your film’s value. Remember that US Domestic theatrical sales are usually not just a significant supply of revenue for the producer if you work with traditional distributors. In reality they cost money. However also a limited theatrical release does increase the price of your film because it increases the amount you get from licensing and DVD sales. Why? As the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Inside your sales forecasts make sure to add reasonable estimates for Pay Per View, cable television and broadband licensing and take into account any product placement fees you could receive. You need to provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which may account for 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 case scenario making a good profit in average conditions.
Next, provide a review of exactly how much financing you will need and exactly how investors will 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% for 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, add a synopsis, storyboards and then any additional information that explains the most important elements of the project. The very last piece of the organization plan you will write will be the executive summary. It reviews the weather inside your business plan with special attention given to its most favorable aspects.
When your business plan is completed, you might be ready to pitch your project. You will be able to comfortably illustrate to almost anyone why it is going to earn money. And that is the actual value of a business plan. You utilize it to back up your pitches. Its value is within convincing a financial partner that you really did your research on a project he wants to buy.
Before you begin contacting potential investors or distribute your company plan, you need to have a talk with your attorney about how you need to handle investment. If you are planning to promote shares inside your production company, you have to pay to have your attorney develop a Product Placement Memorandum. This is simply not the best way to accept money for the film. Yet it is a typical way.