If you are seeking capital for film production, it is likely that you will need a professional business plan with financial projections to clearly outline your monetization strategy. Revenue from product placements, sponsorships, and ticket sales should all clearly demonstrate how the investors will receive an adequate return on investment. Pro Business Plans has worked with many film companies; the following article outlines how they are structured and what is to be included.
A custom business plan for film production should focus on communicating several key points that outline the potential of the investment. These include the production team for the project, key sponsors and product placement opportunities, the target demographics, and a forecast of ticket sales. Most films generate very high initial demand levels, followed by a quick decrease in demand and market saturation. Therefore, investors are primarily concerned with the sales of the first one to eight weeks of the film. If the business plan is for a grant , it should emphasize the cause the grant supports.
The production section of a film business plan is designed to communicate what the film is about, the background of the team, and why it is being produced. If the film business plan is for a grant, this may include an explanation of how it supports a specific cause. For instance, a film about human rights awareness may focus on how the production of the film will serve the purpose of the cause. A reputable film producer may leverage his/her background to request financing for another profitable production. This section should also include an explanation of the forecasted budget and resources required in order to make the film a success.
OThe marketing section of a film business plan is designed to present a clear outline of how and where the film will be promoted. This may include film festivals, strategic partnerships, and sponsorships. Some larger films may also invest in the creation of websites, social media promotional, and even mass advertising. The important factor to consider is how much it costs to acquire a film viewer relative to the amount of revenue received from their business.
Many films are unprofitable, so any investor will be especially cautious when reviewing the financials of your film business plan. Financial projections should be based upon a combination of the sales of similar firms, existing contracts for sponsorship or product placement, and the estimated production budget. Most investors will at least want to see a three to five-year profit and loss statement, but providing a more detailed breakdown during the first twelve months will probably be especially important in the case of a film. In some cases, additional financial metrics will be requested such as the break-even analysis to determine how many ticket sales need to be generated in order to recover from an investment.
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