In case your financial partner is an “active investor” who plays the role of executive producer, or if the funding you get is a loan with a guaranteed rate of return rather than an investment, you may only need a business plan to back up your pitches.
If this looks like plenty of work, it really is. But most filmmakers are usually at ease with hard work as long as they understand its value. As a producer, you need a solid strategic business plan around your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. You can too.
Ensure that your actors have credits that film and television distributors will discover attractive. IMDBPRO and BOXOFFICEMOJO will help you learn 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 the search engines. Not every films can be bought on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
Once you might have done all of the research necessary to select actors, you ought to think it is easy to start writing financial forecasts that specify just how much films much like yours produced in the Click Here as well as in DVD sales both in america and domestically. This will take into account the majority of your film’s value. Be aware that US Domestic theatrical sales are often not a significant supply of revenue for the producer if you work with traditional distributors. Actually they cost you money. However also a limited theatrical release does increase the need for your film since it increases the amount you get from licensing and DVD sales. Why? Because the domestic theatrical release and related marketing effectively presells the film to a broad audience.
Within your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you may receive. You need to provide estimates of money rebates or tax credits you could receive from states like New Mexico and Michigan which might take into account 15% to 40% of the production budget. Done correctly, with adequate research, you should be able to prove your product or service will break even in a worst case scenario and create a good profit in average conditions.
Next, provide an overview of how much financing you require and how investors is going to be repaid. You should be aware that most investors expect that any revenues received through the production company will repay their investment and they will get 50% for any additional revenues the film earns. But you will find really no cast in stone rules in this particular matter. The sale doysmo from project to project.
When you have these components written, put in a synopsis, storyboards as well as any more information that explains the most important elements of the project. The last part of the organization plan you are going to write is the executive summary. It reviews the weather within your strategic business plan with special attention given to its most favorable aspects.
Once your business strategy is finished, you might be well prepared to pitch any project. You will be able to comfortably illustrate to almost any one why it can earn money. And that is the real worth of a business plan. You make use of it to support your pitches. Its value is at convincing an economic partner that you really have performed your research on the project he wants to purchase.
Before you begin contacting potential investors or distribute your business plan, you ought to have a chat with your attorney regarding how you would like to handle investment. If you are going to promote shares in your production company, you have to pay to get your attorney create a Product Placement Memorandum. This is not the best way to accept money for your film. Yet it is a common way.