If your financial partner is an “active investor” who plays the role of executive producer, or if the funding you receive is a loan with a guaranteed rate of return as opposed to a good investment, you may only need a business plan to aid your pitches.
If this sounds like a lot of work, it is actually. But many filmmakers are quite at ease with work as long as they understand its value. As being a producer, you want a solid business plan as much as your investor does. People produce feature films and documentaries 365 days annually worldwide. They create money. So can you.
Ensure 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 just 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 try to find “DVD Sales Numbers” on yahoo. Not every films are sold 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 needed to select actors, you should discover it easy to start writing financial forecasts that specify exactly how much films much like yours manufactured in the kjammedia.com and then in DVD sales both in the united states and domestically. This may make up the majority of your film’s value. Note that US Domestic theatrical sales are usually not just a significant source of revenue for that producer if you deal with traditional distributors. Actually they set you back money. However even a limited theatrical release does increase the price of your film because it increases the sum you get from licensing and DVD sales. Why? Since the domestic theatrical release and related marketing effectively presells the film to some broad audience.
In your sales forecasts ensure that you add reasonable estimates for Pay Per View, cable tv and broadband licensing and take into account any product placement fees you may receive. You must also provide estimates of money rebates or tax credits you could receive from states like New Mexico and Michigan which can make up 15% to 40% of the production budget. Done properly, with adequate research, you will 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 a review of exactly how much financing you require and just how investors will be repaid. It is essential to note that most investors expect that any revenues received from the production company will repay their investment and they can get 50% of the additional revenues the film earns. But you will find really no definite rules within this matter. The deal doysmo from project to project.
After you have these components written, put in a synopsis, storyboards as well as any additional information that explains the most important facets of the project. The last part of the organization plan you may write is definitely the executive summary. It reviews the elements within your business plan with special attention presented to its most favorable aspects.
As soon as your business plan is completed, you might be ready to pitch any project. You should be able to comfortably illustrate to just about anyone why it is going to earn money. And that is certainly the actual price of a business plan. You utilize it to backup your pitches. Its value is at convincing a monetary partner that you will have performed your research over a project he wants to buy.
Before you begin contacting potential investors or distribute your small business plan, you should have a talk to your attorney about how you would like to handle investment. If you are planning to sell shares within your production company, you have to pay to possess your attorney create a Product Placement Memorandum. This is not the best way to accept money for your film. However it is a standard way.