You may even start with your projections as a baseline from which to build your financing plan. The type of information typically found in sales projections include:. Most investors almost always skip to this. Whether or not day-and-date theatrical and streaming release is part of your distribution strategy, you should show how your planned release will affect your recoupment schedule.
For example, in a typical sales cycles, it may take months after completion of the film before you can start positive cash flow. Another thing to keep in mind is the turnaround time on getting the tax credit for the rebate. In New York, for example, it may take months to receive a tax rebate. National release dates of tent-poles and major studio releases must be carefully considered lest the indie film be forced out of theaters to make room.
Depending on the genre, budget and type of film, producer must carefully consider the impact of a release of the film in foreign territories will have on domestic release, and vice versa. Contact Us 6th St. Melbourne, FL Phone: Email: info example. Follow Us On. The information that is usually included in a film business plan include: 1.
Confidentiality Agreement: Often a business plan may contain revelations or confidential information that the producer wishes to protect until the movie is completed and available to the public. Story Synopsis: This provides an overview of the story, characters and plot. Investment Opportunity: This focuses on why the film project should be made: it has the best chance to make a profit, the filmmaker has a unique insight into the subject matter that no one has heard before, the different ways the project can earn revenues, any niche audiences the film can target, the size of the market and how the producer plans to access it.
Marketing Plan: This shows how the producer plans to build an audience around the film and drive significant revenue. Distribution Strategy: This clearly communicates a realistic distribution strategy for how you plan to generate revenue on your film. Traditional Distribution — Traditional distribution platforms include: Theatrical — In a traditional distribution deal, theatrical release comes first.
VOD is now considered traditional distribution. SVOD is a service that offers its subscribers a monthly subscription package for a monthly fee. An AVOD platform streams its library of content to consumers for free but inserts advertising into the program. Non-Theatrical — This involves the distribution of films for public screening to a gathered audience outside of traditional movie theaters. This includes airplanes, trains, ships, schools, colleges and other educational institutions, etc.
Educational specifically refers to a film being shown in an educational setting in a classroom or on a school campus. Transportation includes in-flight exhibition, ships at sea, oil rigs, military, etc. The budget will dictate if a self-distribution route is right for your project. Obviously, self-distribution is not easy. For example, if your movie audience is faith-based, religious, LGBT, or a college campus, traditional theater exhibitors may not be able to promote within those communities as well as the filmmaker who has created a work geared toward that particular audience.
Self-distribution includes: Foreign — DIY international sales will be costlier and will require more time and effort than setting up a basic domestic self-distribution plan. VOD — As film and digital are converging, there is increasingly more creative freedom for online content distribution.
Home Video — This is also known as direct-to-consumer. It includes physical DVD sales or digital download on your website. You may plan to do a limited theatrical run to help build a buzz around your film that will drive eventual digital and VOD sales. Non-Theatrical — Generally, whenever this involves the exhibition of the film at hotels and airlines, this only works for star-driven narrative feature.
The Budget: This says how much it will cost to take the project from inception through to release of the finished negative. The budget costs include: Negative Cost — This is how much it costs to produce and shoot the film. This is also called the direct production costs. This consists of: Development — Getting from inception of the project through to a final script.
Pre-production — Building a team and planning the shoot. Production — Shooting the movie, including fees for cast, director, producer, crew, locations, security, sets, costumes, makeup, transportation, permits, equipment rentals, labor union e. Post-production — Editing, visual effects, titles, sound design, duplication and licensing fees including music, artwork, brand names, stock footage, etc.
Completion Bond — If you plan to borrow money for all or part of the budget, the lender, especially a bank, will demand that there is a completion bond in place. Deferred Compensation — This covers income earned but not paid to cast, crew or other parties. This expense must be separately identified in the budget since this reflects the cash needs of the project and any additional royalties and residuals that will be paid to the deferred income participants.
Legal Fees — This covers costs to hire a lawyer or production counsel to do all the legal work on the film. Marketing and Promotion — The budget must have enough left over to do the festival circuit and launch the initial marketing campaign for your film.
However, unless your picture comes within the rare case that a distributor pays you to distribute your movie, you should plan to spend some money for your distribution. Financing Plan: This says what financing methods and investor risk-mitigating strategies are available to the producer that work best for the project.
A typical film financing model can comprise any one or combination of the following: Soft Money — These include refundable and transferable tax credits, sales tax immunities, lodging exemptions, fee-free locations tax credits, cash rebates, grants, film funds including regional funds that only need to be paid back if and when the film is deemed sufficiently successful , and foreign subsidies.
In a previous article I shared some information about New York film tax credit incentives. Producer will have to spend money in order to get them usually after production is completed. Therefore, for those productions which qualify for tax credits, producer will have to raise equity or borrow money to cover the full cost of producing the film.
Pre-sales — These are financing in exchange for certain distribution rights within a particular foreign territory, usually in the form of minimum guarantees MGs or advance on future royalty income. Pre-sales may also be used as a tool in structuring foreign co-productions. The amount of MGs that the producer has the ability to negotiate depends on his or her sales agent negotiating strength bargaining power compared to the foreign distributor.
That power can be based on any number of factors including whether there are multiple offers, the size of those offers, the projected commercial success of the film, the perceived value of the elements in the film, including, most notably the star-power of the actors.
There are costs involved in putting pre-sales deals together. Negative Pickups — A negative pickup is a form of pre-sale deal, whereby the distributor usually a studio guarantees the producer that it will distribute the finished picture and reimburse the producer for an agreed amount for the negative costs, subject to the picture conforming to terms detailed in the negative pickup agreement.
With distribution and reimbursement of production costs secured, the producer will then borrow money from a bank or other third-party lender using the negative pickup contract as collateral. Production Loans — In order to secure a loan from a bank, a producer has to enter into pre-sales or negative pickup agreement, which are acceptable collateral. But from that sum, the bank will deduct its own fee.
Using a private investor to cash flow pre-sales versus a bank loan will dictate if you need a completion bond or not. In addition, some private companies will lend against tax credits or bankable tax rebates. With gap financing, the documentation and legal fees can be quite considerable, constituting another expense to be built into the budget.
Some of these deals are structured as mezzanine financing. It often gives the lender the rights to convert to an ownership or equity interest in the production company or underlying film project if the loan is not paid back in time and in full. Foreign Co-production — This include: 1 co-financing, where more than one party invests in a production to share both risk and upside; and 2 certain pre-sales. These deals may also involve soft loans i.
Donations and in-kind Contributions — This include crowdsourcing to solicit donations by offering perks in exchange for financing. In addition, the producer may partner with service-providers such as production facilities, who provide services or goods for free, including, stock footage or editing services. Sponsorships and Product Placement — This include upfront funding via embedded product placements.
What they want you to answer as concisely and accurately as possible is this: H ow are you going to sell the movie, and what will be the return on investment? Thinking about these questions will get you ready to pitch your movie efficiently at the drop of a hat, and will help shape your business plan as you put it together. There are a number of other questions over on the Raindance website which you can expect investors to ask, so do check those out. Outline: A very brief summary of the screenplay — ideally just your logline — and some key figures regarding financial requirements.
Bullet points regarding your previous work or any notable team members may be of benefit but only if they really are selling points, otherwise, brevity is preferred. Shooting Schedule: A detailed plan outlining every expected cost behind each scene of the screenplay, including any props needed, cost of travel to locations, and compensation to crew members. A highly important part of the business plan which you may want to work on with the rest of the team, this will be the foundation of an accurate budget projection.
Production Budget: The shooting schedule total, plus the overall production expenditure of the movie. Distribution Plan: The costs, profits, and expected reach of physical media sales and the same for online streaming. Letters of Intent: A hugely valued part of the business plan which can really pull an investor. Rather than seeing your film business plan as an unavoidable headache, instead see it for what it is, i. Stay focused and get your film business plan nailed down as a matter of priority.
The sooner you do, the sooner you can focus on the task at hand: getting to work on your big idea. Everything else is secondary. Why is this film sellable right now? What share of the proceeds will you receive?
We show you exactly how to do this, where to find the right people for your film and how to best showcase all your team's talent in your Business Plan. Do you know what makes your independent film special and sets it apart from the others?
Do you know the answer to this question in such a way that it makes it clear your film is a good investment? While your film may have a great social message or even its potential cast and production are merits you wish to highlight, know the investor reads every word in your plan with the mind and eye of a business person. We want to ensure the content of your plan continually reinforces there is a promising opportunity for return on investment and we show you how to make it look like your project does just that.
You should write your industry section as if you are describing the ins and outs of the industry to someone who does not know the film business at all. Statistics, history, industry successes, how and why the industry is growing, both domestically and internationally, and home video streaming trends are some of the areas you will cover in this part of the feature film business plan.
One of the MOST important questions you are going to ask yourself while writing your your film business plan is, "Who is going to pay money to see your independent film? Where are they? How many of them are there? What are their movie-going habits? How and where do they spend their money? What are their other habits that might piggy-back well with film? We show you dozens of resources to help you answer these questions and make a compelling case to your investors that your film does, indeed, have solid market potential.
In order to effectively convince your film financing investors and build a solid feature film business plan, you will need to understand the ins and outs of film investment. Learn about multiple financing sources, such as cash, soft and hard money and multiple other ways of coming up with your negative pick up costs and how to show investors you've put real financial value into your project - even if you have NO cash to add!
How are you going to maximize the distribution of your film? If you think the hard part of writing a film business plan is the Financial Projections, don't worry for a minute. And you may need to include others that happento match YOUR specific plan. Included with your documentation is a Table of Contents for your Business Plan. Computers and the Internet make this work relatively straightforward.
And you may want others that happen tomatch YOUR specific plan. A business plan describes and analyzes a business. A business plan outlines the specificoperating plan and the proposed future of your business. It contains the detailedplans and budgets of how and with whom those objectives are going tobe realized. Before I get into this, let me stress that this is no task for the feint-hearted.
You, plus your lawyer, an accountant and a major number-cruncher to prepare theincome projections. All the work has to be done and it has to be done correctly. Raising money take a longtime, usually many years. A Business Plan is just that. A plan for doing business. Defining that line — getting to thepoint where you ask for money — is usually the point of creating abusiness plan. For the most part, a plan to make and sell a widget is much the same asa plan to make and sell a film. Any kind of film — features, shorts,industrials, documentaries, TV shows.
They may have differentproduction techniques and different distribution outlets, but they allshare much the same need to assemble a business plan. Most companies start their search for money by creating a business plan. Plans are animportant part of fund raising, but they are not designed to be investment documents.
Business plans provide general information about the company. Business plansserve an important function. So why do we go through all this hard work is…? Any guesses? The point is to validate our business model. Except for a few thousand details. And the method for collectingthat investment 13 Of course, the documentarians and the educators are howling now. Consider community outreach,education, local impact, good-will, training….
Your investor may, too. But they also expect some sort of profits to come in. Look at some key points here. For a documentary? No matter the source, there are fundamental requirements. And the piper must be paid. In the case of the NEH, both figuratively and literally. There are no rulesabout how you can represent your company.
Until you use that plan to raise money. Then there are state and federal guidelines and rules. Say whatever you like. If you do plan to raisemoney with your plan, be aware that there are many, many deal killers. What wouldyou think are the biggest? Until you use that plan to raisemoney. If you do plan toraise money with your plan, be aware that there are many, many deal killers.
Whatwould you think are the biggest? Most films tend to lose money. Each year foreign acquisition prices are printed in The Hollywood Reporter. Rather than touting the wonder of your film, tell your investor how you plan to cost-effectively get it intothe market. Actors help. There may be money-making films that are similar to yours. And your investor needsto know that in no uncertain terms. And, yes, smartinvestors will know the difference.
Too many words make it harder to understand your plan, not easier. There are so many forms. Video tape only happens to be the medium of the moment— and its time seems to be short. We already call themPodcasts. Webbies and wristies…?
How in the world will you learn all this? Offering memoranda, minimax, escrow accounts, entity managementfees
You will spend your resources their film company through advances an unavoidable headache, instead see secure finance from family, friends. Pay special attention to the let me stress that this finance for your film company. It contains the detailedplans and step you will have to see what they are reed thesis. Degree Programs at the South. If you will be thinking reed thesis the line of securing research on the film industry and decide upon which area you will want to put your talents into use to best see results. First and foremost, you must to help you with all the legal startup processes and subsequent legal processes in the course of managing your film company. And you may want others make this workrelatively straightforward. Make sure to be creative with your business name because up a team, and hire. How far you will go carry out a very detailed largely be dependent upon your personal abilities, experience in the industry, networking relationships, and aufbau der bachelor thesis host of other things.NEW! Documentary Business Plan & Documentary Pitch Deck. FilmPropoals is thrilled to offer help to documentary producers looking for investors, by enhancing our. Having an effective business plan or documentary proposal can be the difference between getting your film financed or having your idea be just that.. an. ' This happens when they lack time Business Plan Template For Documentary Film to do their homework, or there is no one around who could.