Business Plan for Film Questions

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derek smith

Lets say your Screenplay is complete and you begin to develop your 'Business Plan' for the Film, in order to bring to investors....Few Questions

1) Should you make contact with Distributors before going to Investors, to get an idea of Theatrical release, advertisement etc costs, to include in the Business Plan

2) Do you show evidence of what you expect the film to make upon its release??
 
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1). Typically yes. Investors often ask if distribution and/or pre-sales is in place. It's part of the the evaluation/mitigation of risk process.

2). Projections? Yes. It's part of virtually every successful business plan.

It does also depend on what kind of budget you're talking. I've assumed you're looking for a rather significant amount of money requiring professional investors.
 
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Sweetie said:
1). Typically yes. Investors often ask if distribution and/or pre-sales is in place. It's part of the the evaluation/mitigation of risk process.

2). Projections? Yes. It's part of virtually every successful business plan.

It does also depend on what kind of budget you're talking. I've assumed you're looking for a rather significant amount of money requiring professional investors.
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budget is in the 500k-£1million range....Sweetie, when you replied 'Investors often ask if distribution and/or pre-sales is in place', would this be something, where brining in a Sales Agent would be beneficial?
 
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It depends... From everything I've heard, 500k to 1mil is a difficult budget range to work in. It's a lot of money on one hand, though not enough to play with the big boys, though you're still expected to have named talent attached, which is often outside your budget.

A sales agent can (some can) help you with both pre-sales and sales estimates for foreign sales. They can also help you determine your best course of action in your decision making for attachments. With the right package, good sales agents can get the pre-sales from the right people, along with production incentives, can help you get gap finance, which can help reduce your investment requirements. Pre-Sales can also help convince investors with proof of concept. If very little of this makes sense to you, it may be a good idea to considerably lower down your budget. There are a lot more intricacies than these basics to film finance.

The issue you're going to need to solve is the chicken and the egg issue.
 
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