Should 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 as opposed to a good investment, you may only need a business plan to aid your pitches.
If this seems like lots of work, it really is. But many filmmakers are quite confident with effort if they understand its value. As a producer, you want a solid business strategy around your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. So can you.
Make sure that your actors have credits that film and TV distributors will see attractive. IMDBPRO and BOXOFFICEMOJO can help you learn what films actors and actresses have appeared in and just how much those films earned in theaters. There are numerous websites which may provide a DVD sales chart showing weekly, monthly and annual sales figures. Just search 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 needed to select actors, you ought to find it very easy to start writing financial forecasts that specify just how much films comparable to yours produced in the kjammedia.com as well as in DVD sales both in america and domestically. This can account for much of your film’s value. Remember that US Domestic theatrical sales are generally not just a significant way to obtain revenue for the producer if you work with traditional distributors. In reality they cost money. However even a limited theatrical release does increase the need for your film because it increases the total amount you get from licensing and DVD sales. Why? Since 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 television and broadband licensing and make up any product placement fees you may receive. You need to provide estimates of money rebates or tax credits you might receive from states like New Mexico and Michigan which might account for 15% to 40% of your production budget. Done correctly, with adequate research, you must be able to prove your product will break even in a worst scenario and make a good profit in average conditions.
Next, provide an introduction to how much financing you require and just 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 the additional revenues the film earns. But you can find really no definite rules in this matter. The offer doysmo from project to project.
Once you have these factors written, add a synopsis, storyboards and then any further information that explains the key elements of the project. The final part of the business plan you are going to write is the executive summary. It reviews the weather within your business plan with special attention given to its most favorable aspects.
When your strategic business plan is finished, you are well prepared to pitch your project. You should be able to comfortably convey to just about anyone why it is going to make money. And that is certainly the true value of your own business plan. You make use of it to back up your pitches. Its value is in convincing an economic partner that you will did your homework on a project he wants to invest in.
Before you begin contacting potential investors or distribute your small business plan, you need to have a chat with your attorney about how you would like to handle investment. If you are going to promote shares in your production company, you have to pay to possess your attorney create a Product Placement Memorandum. This is simply not the best way to accept money to your film. But it is a typical way.