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 rather than an investment, you might only need a business plan to support your pitches.
If the sounds like plenty of work, it is. But most filmmakers are very at ease with work if they understand its value. Being a producer, you need a solid business plan around your investor does. People produce feature films and documentaries 365 days annually worldwide. They make money. You can too.
Ensure your actors have credits that film and television distributors will discover 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 lots of websites which could offer a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “DVD Sales Numbers” on the search engines. Its not all films are offered on the basis of “name actor” involvement, but it really does make getting investors and distribution easier.
By the time 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 exactly how much films much like yours made in the Click Here as well as in DVD sales both in america and domestically. This can account for most of your film’s value. Remember that US Domestic theatrical sales are often not a significant supply of revenue for the producer if you deal with traditional distributors. In reality they cost money. However also a limited theatrical release does increase the need for your film since 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 television and broadband licensing and account for any product placement fees you might receive. You must also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which can take into account 15% to 40% of the production budget. Done correctly, with adequate research, you must be able to prove your product or service will break even in a worst scenario making a good profit in average conditions.
Next, provide a review of how much financing you require and exactly how investors will likely be repaid. You should remember that most investors expect that any revenues received from the production company will repay their investment and they can get 50% of any additional revenues the film earns. But you can find really no hard and fast rules in this matter. The sale doysmo from project to project.
After you have these factors written, put in a synopsis, storyboards and any additional information that explains the key elements of the project. The very last part of the business plan you will write is definitely the executive summary. It reviews the elements in your business strategy with special attention presented to its most favorable aspects.
Once your strategic business plan is finished, you happen to be prepared to pitch any project. You must be able to comfortably illustrate to almost anyone why it will make money. And that is the true value of your own business plan. You use it to back up your pitches. Its value is at convincing a financial partner that you did your homework on a project he wants to invest in.
Before you begin contacting potential investors or distribute your company plan, you need to have a talk to your attorney regarding how you would like to handle investment. If you are intending to promote shares inside your production company, you should pay to get your attorney produce a Product Placement Memorandum. This may not be the only way to accept money for your film. Yet it is a typical way.