Should your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is actually a loan with a guaranteed rate of return instead of a good investment, you might only need a business plan to aid your pitches.
If this type of looks like lots of work, it is actually. But a majority of filmmakers are very confident with work if they understand its value. As being a producer, you need a solid business plan as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They can make money. You can too.
Ensure that your actors have credits that film and TV distributors will find attractive. IMDBPRO and BOXOFFICEMOJO can help you learn what films actors and actresses have appeared in and how much those films earned in theaters. There are lots of websites which can offer a DVD sales chart showing weekly, monthly and annual sales figures. Just look for “DVD Sales Numbers” on yahoo. Not every films can be bought on the basis of “name actor” involvement, however it does make getting investors and distribution easier.
By the time you might have done all of the research needed to select actors, you need to find it simple to start writing financial forecasts that specify how much films similar to yours manufactured in the Click Here and in DVD sales both in the united states 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 source of revenue for the producer if you work with traditional distributors. In reality they cost you money. However also a limited theatrical release does increase the value 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 some broad audience.
Inside your sales forecasts be sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and account for any product placement fees you could receive. You must also provide estimates of money rebates or tax credits you may receive from states like New Mexico and Michigan which might make up 15% to 40% of your production budget. Done properly, with adequate research, you should be able to prove your products or services will break even in a worst scenario and create a good profit in average conditions.
Next, provide an introduction to just how much financing you need and just how investors is going to be repaid. It is essential 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 cast in stone rules in this particular matter. The deal doysmo from project to project.
Once you have these components written, give a synopsis, storyboards and then any further information that explains the key aspects of the project. The last part of the company plan you will write is the executive summary. It reviews the elements in your business strategy with special attention provided to its most favorable aspects.
When your business plan is completed, you happen to be prepared to pitch your project. You should be able to comfortably convey to almost any one why it is going to make money. And that is certainly the real value of a business plan. You use it to backup your pitches. Its value is at convincing a financial partner that you really did your homework on the project he wants to invest in.
Prior to starting contacting potential investors or distribute your company plan, you should have a talk to your attorney regarding how you need to handle investment. If you are going to market shares in your production company, you need to pay to have your attorney develop a Product Placement Memorandum. This may not be the only method to accept money for your film. However it is a typical way.