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 may only need a business plan to aid your pitches.
If this type of sounds like a lot of work, it is actually. But a majority of filmmakers are usually comfortable with work as long as they understand its value. As being a producer, you want a solid strategic business plan just as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They make money. You can too.
Ensure that your actors have credits that film and television distributors will see attractive. IMDBPRO and BOXOFFICEMOJO may 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 could offer a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on Google. Not all films are sold on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
Once you have done all of the research required to select actors, you ought to think it is very easy to start writing financial forecasts that specify how much films similar to yours made in the Kia and then in DVD sales both in the US and domestically. This can take into account the majority of your film’s value. Be aware that US Domestic theatrical sales are usually not a significant way to obtain revenue for that producer if you work with traditional distributors. In fact they set you back money. However a limited theatrical release does increase the need for your film because it increases the sum you get from licensing and DVD sales. Why? As the domestic theatrical release and related marketing effectively presells the film to some broad audience.
Inside your sales forecasts make sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and make up 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 might account for 15% to 40% of your 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 and make a good profit in average conditions.
Next, provide an overview of how much financing you need and how investors will be repaid. It is important to note that most investors expect that any revenues received by the production company will repay their investment and they can get 50% for any additional revenues the film earns. But you can find really no definite rules within this matter. The sale doysmo from project to project.
After you have these elements written, add a synopsis, storyboards and any additional information that explains the most important facets of the project. The last part of the business plan you will write is the executive summary. It reviews the elements inside your strategic business plan with special attention provided to its most favorable aspects.
Once your strategic business plan is completed, you might be ready to pitch any project. You will be able to comfortably explain to almost anyone why it will generate income. And that is the real worth of a business plan. You utilize it to support your pitches. Its value is in convincing a monetary partner that you will have performed your research over a project he wants to buy.
Prior to starting contacting potential investors or distribute your small business plan, you ought to have a talk to your attorney regarding how you want to handle investment. If you are planning to sell shares inside your production company, you need to pay to get your attorney develop a Product Placement Memorandum. This is not the only way to accept money to your film. However it is a typical way.