In case 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 might only need a business plan to support your pitches.
If the seems like a lot of work, it is. But many filmmakers are very at ease with work as long as they understand its value. Being a producer, you want a solid business strategy as much as your investor does. People produce feature films and documentaries 365 days per year worldwide. They can make money. So can you.
Ensure your actors have credits that film and TV distributors will see attractive. IMDBPRO and BOXOFFICEMOJO will help you learn what films actors and actresses have appeared in and how much those films earned in theaters. There are many websites which may offer a DVD sales chart showing weekly, monthly and annual sales figures. Just search for “DVD Sales Numbers” on Google. Not every films are offered 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 need to discover it simple to start writing financial forecasts that specify how much films much like yours manufactured in the Kjam as well as in DVD sales both in the US and domestically. This can make up most of your film’s value. Note that US Domestic theatrical sales are often not a significant supply of revenue for that producer if you deal with traditional distributors. In fact they cost you money. However also a limited theatrical release does increase the value of your film as 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 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 make up 15% to 40% of your own production budget. Done properly, with adequate research, you should be able to prove your product will break even in a worst scenario making a good profit in average conditions.
Next, provide an introduction to how much financing you will need and just how investors will likely be repaid. It is essential to note that most investors expect that any revenues received by the production company will repay their investment and they can get 50% for any additional revenues the film earns. But there are really no definite rules in this matter. The deal doysmo from project to project.
Once you have these elements written, add a synopsis, storyboards and then any additional information that explains the most important aspects of the project. The last piece of the organization plan you may write will be the executive summary. It reviews the elements inside your business strategy with special attention given to its most favorable aspects.
As soon as your business plan is finished, you might be ready to pitch your project. You should be able to comfortably illustrate to almost anyone why it is going to generate income. And that is the actual value of your own business plan. You make use of it to back up your pitches. Its value is at convincing an economic partner that you did your research on the project he wants to buy.
Before you begin contacting potential investors or distribute your business plan, you need to have a talk with your attorney about how you would like to handle investment. If you are intending to promote shares within your production company, you need to pay to have your attorney produce a Product Placement Memorandum. This is simply not the only method to accept money for your film. However it is a typical way.