| When it comes to the practical aspects of filmmaking, | | | | actors and actresses have appeared in and how |
| ranging from camera selection to mastering editing | | | | much those films earned in theaters. There are many |
| systems, independent film producers seem ready to | | | | websites which can provide a DVD sales chart |
| rise to every challenge. But tell one of these folks they | | | | showing weekly, monthly and annual sales figures. Just |
| have to come up with a business plan and find | | | | look for "DVD Sales Numbers" on Google. Not all films |
| investors to support their film and you'll find most | | | | are sold on the basis of "name actor" involvement, but |
| looking for a stage door to exit. Why? Because if indie | | | | it really does make getting investors and distribution |
| producers liked asking permission to do something or | | | | easier. |
| taking orders from others . . . they would be working | | | | By the time you have done all the research required to |
| for studios. Nevertheless, writing a business plan is a | | | | select actors, you should find it simple to start writing |
| skill that smart filmmakers master because a good | | | | financial forecasts that specify how much films similar |
| plan and friendly investors translates into more money | | | | to yours made in the theater and in DVD sales both in |
| and the capacity to make better films. | | | | the US and domestically. This will account for most of |
| The most important thing to understand about a | | | | your film's value. Note that US Domestic theatrical |
| business plan is that it, alone, won't get you the funding | | | | sales are usually not a significant source of revenue |
| you need. Your business plan will be the solid, practical, | | | | for the producer if you work with traditional distributors. |
| nuts and bolts overview that will back up your face to | | | | In fact they cost you money. However even a limited |
| face and phone presentations. | | | | theatrical release does increase the value of your film |
| How do you write a business plan? | | | | because it increases the amount you get from |
| One easy way to start your business plan is to | | | | licensing and DVD sales. Why? Because the domestic |
| calculate your production budget. To do this you will | | | | theatrical release and related marketing effectively |
| need to break down your script and determine how | | | | presells the film to a broad audience. |
| many shooting days and locations your film will need. | | | | In your sales forecasts make sure to add reasonable |
| This will tell you how many crew members you will | | | | estimates for Pay Per View, cable television and |
| require, and let you get a good feeling for props and | | | | broadband licensing and account for any product |
| special effects. Costing these elements out, then | | | | placement fees you may receive. You should also |
| adding editing and post production, taxes, legal fees, | | | | provide estimates of cash rebates or tax credits you |
| financing fees and insurance costs should give you a | | | | may receive from states like New Mexico and |
| good estimate of the production budget. | | | | Michigan which may account for 15% to 40% of your |
| If you don't know how to do all this, you should spend | | | | production budget. Done correctly, with adequate |
| a thousand dollars or so to hire a line producer. | | | | research, you should be able to prove your product will |
| CRAIGLIST in Los Angeles may be a great place to | | | | break even in a worst case scenario and make a |
| start. Line producers are great at breaking down | | | | good profit in average conditions. |
| scripts and producing budgets. In fact, you may want | | | | Next, provide an overview of how much financing you |
| to have multiple line producers create schedules and | | | | need and how investors will be repaid. It is important to |
| budgets for your film. Comparing their estimates will | | | | note that most investors expect that any revenues |
| give you a good idea of how accurate your budgets | | | | received by the production company will repay their |
| are and may give you good insight into how to cut | | | | investment and they will get 50% of any additional |
| costs or improve quality. Line producers also know | | | | revenues the film earns. But there are really no hard |
| how to maximize rebates and tax credits. | | | | and fast rules in this matter. The deal varies from |
| If all this seems like an unnecessary expense, | | | | project to project. |
| remember that a good line producer with lots of | | | | Once you have these elements written, add a |
| credits is a key requirement for your film to get | | | | synopsis, storyboards and any additional information |
| financing. When you produce a feature you usually | | | | that explains the important aspects of the project. |
| need a completion bond, and to get one you'll need a | | | | The last piece of the business plan you will write is the |
| good line producer. Completion bond companies know | | | | executive summary. It reviews the elements in your |
| that a good line producer will ensure the film is finished. | | | | business plan with special attention given to its most |
| Line producers can also connect you to good | | | | favorable aspects. |
| directors, cinematographers, editors and other crew. | | | | Once your business plan is finished, you are well |
| Once you have a budget and schedule, you are ready | | | | prepared to pitch your project. You should be able to |
| to write an overview of the production team. As | | | | comfortably explain to almost anyone why it will make |
| producer, your bio should come first. If you do not have | | | | money. And that is the real value of a business plan. |
| a lot of film credits to your name, showcase your | | | | You use it to back up your pitches. Its value is in |
| other successes. Expertise in management, marketing | | | | convincing a financial partner that you really have done |
| and sales are very attractive in new film producers. | | | | your homework on a project he wants to invest in. |
| You should also provide information on the director, line | | | | Before you start contacting potential investors or |
| producer, and other key members of the production | | | | distribute your business plan, you should have a chat |
| team. | | | | with your attorney about how you want to handle |
| After you complete the production overview, start | | | | investment. If you are going to sell shares in your |
| work on the talent section of your business plan. Start | | | | production company, you need to pay to have your |
| by listing the actors you want to work with, then | | | | attorney create a Product Placement Memorandum. |
| contacting their agents to find out what their weekly | | | | This is not the only way to accept money for your film. |
| rate is. If you are uncomfortable doing this, contact an | | | | But it is a common way. |
| entertainment lawyer who works with film producers | | | | If your financial partner is an "active investor" who |
| and have them make the calls. The few hundred | | | | plays the role of executive producer, or if the funding |
| dollars you spend will be well invested. Note, you do | | | | you receive is a loan with a guaranteed rate of return |
| not have to get letters of intent for these people in | | | | rather than an investment, you may only need a |
| order to mention them in your business plan. Just | | | | business plan to support your pitches. |
| indicate that these are the actors you plan to | | | | If this sounds like a lot of work, it is. But most |
| approach. For best results list multiple actors for each | | | | filmmakers are quite comfortable with hard work as |
| of the key roles. Provide pictures of actors in your | | | | long as they understand its value. As a producer, you |
| business plan because many investors can't recognize | | | | need a solid business plan as much as your investor |
| actors by their name. | | | | does. People produce feature films and documentaries |
| Ensure that your actors have credits that film and TV | | | | 365 days a year worldwide. They make money. So |
| distributors will find attractive. IMDBPRO and | | | | can you. |
| BOXOFFICEMOJO can help you find out what films | | | | |