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 as opposed to a good investment, you may only need a business plan to aid your pitches.
If this type of looks like a lot of work, it is actually. But a majority of filmmakers are quite comfortable with hard work as long as they understand its value. Being 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.
Ensure your actors have credits that film and television distributors will discover attractive. IMDBPRO and BOXOFFICEMOJO will help you discover what films actors and actresses have appeared in and exactly how much those films earned in theaters. There are many websites which may give a DVD sales chart showing weekly, monthly and annual sales figures. Just try to find “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.
By the time you have done each of the research needed to select actors, you should think it is very easy to start writing financial forecasts that specify how much films comparable to yours manufactured in the Kia Jam as well as in DVD sales both in america and domestically. This may account for much of your film’s value. Be aware that US Domestic theatrical sales are usually not really a significant way to obtain revenue for that producer if you work with traditional distributors. In fact they cost 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? As the domestic theatrical release and related marketing effectively presells the film to a broad audience.
In your sales forecasts make sure to add reasonable estimates for Pay Per View, cable tv and broadband licensing and take into account any product placement fees you may receive. You need to provide estimates of cash rebates or tax credits you might receive from states like New Mexico and Michigan which can take into account 15% to 40% of the production budget. Performed correctly, with adequate research, you should be able to prove your product or service will break even in a worst case scenario and make a good profit in average conditions.
Next, provide an overview of how much financing you require and exactly how investors will likely be repaid. It is essential to be aware that most investors expect that any revenues received through the production company will repay their investment and they will get 50% of any additional revenues the film earns. But you will find really no hard and fast rules in this particular matter. The offer doysmo from project to project.
After you have these elements written, give a synopsis, storyboards and then any more information that explains the key facets of the project. The last piece of the company plan you are going to write will be the executive summary. It reviews the elements inside your strategic business plan with special attention presented to its most favorable aspects.
Once your strategic business plan is completed, you might be prepared to pitch any project. You must be able to comfortably explain to almost any one why it will make money. And that is the real value of your own business plan. You utilize it to backup your pitches. Its value is within convincing an economic partner that you really have done your homework on a project he wants to invest in.
Prior to starting contacting potential investors or distribute your small business plan, you should have a chat with your attorney about how exactly you would like to handle investment. If you are intending to promote shares in your production company, you should pay to have your attorney produce a Product Placement Memorandum. This may not be the only way to accept money to your film. However it is a common way.