The fun part of your pre-production process is over and now is the time to focus on the business aspect. And make no mistake about it: as fun and rewarding as it is to make a movie, it’s a business. Your prospective investor is excited to be part of the film industry; however, their main objective is to recoup every penny they invested in their production with a substantial profit on top. And it’s your job to show them that you will.
The cover: Simple and straightforward. If you have a .png of your script title written in a font that characterizes the theme / genre / mood you want to convey, boldly sprinkle it at the top. If you have formed an LLC for your production, in the next line of your title write in capital letters “(THE TITLE OF YOUR SCRIPT) THE FILM LIMITED LIABILITY COMPANY”. On the next line, write “A company established specifically for the financing of the feature film (the title of your script). On the third line, put your company number. Not having an LLC is not necessarily a deal breaker, but it adds credibility. to its production.
The content page: It will list each section of your prospect on this page along with the page number where it is located. Keep in mind that you will be reviewing and editing your prospectus, so make sure the page numbers are correct as the text moves forward and backward on page breaks. The best way to check is to create a PDF of the presentation document and confirm that everything matches.
The artwork page: If you have the DVD cover or full sheet illustration (movie poster), please insert an image on this page. You can also insert a photo of the cast in the closet.
Your introduction: This is your speech. Do this on two pages, expressing your passion for the project without exaggeration (for example: “This will be the best horror movie ever made in film history !!!”) Tell your investor why you believe in this project, why it is unique and why it will be successful. Don’t go into details of the plot; that comes later. Here’s an introductory paragraph I wrote for a prospect that you can modify and borrow:
Making traditional films is often a frustrating process for both large studios and small production companies like (production company). Fortunately, for the micro-budget film producer seeking public funding, the road less traveled is the road to success. Once funding is secured, a major hurdle for our production company is removed, freeing us up to focus on the artistic side of the film business and ultimately allowing us to create a worthy product for distribution and sale.
Risk Summary: Remind your investor up front that you will do everything you can to make this production a success, but there is no guarantee that you will ever make a profit.
Summary of principles: Write a short biography of each person responsible for your production with a photo of their face. This could just be you. Insert any relevant links that contribute to your credibility, such as your IMDb profile.
Narrative biographies: List all members of the production team with a quick one-line bio, relevant links, and their film credits.
Business structure: If you have an LLC, you must indicate that you are looking for an active investor in a member-managed limited liability company. In an ideal world, you would have a passive investor who hands you a pile of green and lets you run with it, but in the real world, most people like to participate in how their money is spent. If you state that you are looking for a passive investor in your prospect, you will face a lot of red tape and the SEC will fall like a hammer if you don’t follow protocol exactly. The main selling point of the LLC is that all members are protected from liability for acts and debts. If you don’t have an LLC, write a short paragraph outlining the business contract and attach a copy to the bottom of your PDF prospectus marked “Appendix A”.
Synopsis movie: Write a half-page synopsis of your feature film. Make it vibrant, really sell your story. Your investor must love the concept if he is going to pay the dough.
Script rights: Simply say: “(Production Company) has sole control and exclusive ownership of the script (script title) and any and all rights associated with that script. Enter your WGAw registration number followed by” Writers Guild of America , West. “Include registrants full name.
Market snapshot: You’ll have to do a bit of research here. If you are writing a prospectus, you should have a budget with a pretty good idea of how much this production is going to cost. Look for other movies in the same genre as your script that have roughly the same budget and have made significant profits. List each of them with a brief description of the movie, the production budget, and the earnings to date. The more referenced, the better. Remember, your investor wants to make money and this is your chance to show him that it has happened and that it will happen again if you fork out the money.
Investor tax incentive: This is your KO. The American Jobs Creation Act of 2004 became law, creating a tax incentive expressly applicable to feature films: 181 of the Internal Revenue Code. This incentive was created to combat “runaway film” projects – productions intended to be released in the United States but filmed in other countries. Section 181 allows 100% cancellation of all audiovisual work done in the US Bottom line: your investor can get all of their investment money back the next time they file their taxes. Pretty sweet, and definitely a selling point for you.
Marketing plan: Sure, we made a movie … now what are we going to do with it? The fact that you have looked for an investor means that you have probably looked for negative deals with dealers and found it unpleasant. If you have a good business head and / or marketing background, explain your strategy for distributing and selling your film. Otherwise, you will have to set aside at least 50% of your production budget, hand it over to a marketing company, and have it take care of that purpose. Regardless, a portion of the money you request should go towards marketing the finished product.
Budget: Okay, your investor is excited. Now it hits them with the hard numbers. Write a short paragraph stating the dollar figure you need and that the budget is available for review (trust me, they will review it thoroughly …).
Rentals: List all the specific filming locations so your investor has a good idea of the logistics involved in production.
Calendar: Here is an example:
Development: Two months (completed)
Pre-production: three months (current status)
Production: forty-five days
Postproduction: Three months
Sales and income: You are not using a distributor, which means that you will produce the DVDs yourself. There are many DVD manufacturing companies online that will create both your DVD and its case at reasonable prices. Break down the manufacturing cost and set your price. Price is crucial: set it too high and it won’t move units; set it too low and you will move units, but it will destroy your profit margin and disconnect your investor.
Writing a feature film prospect isn’t easy, but it’s necessary, and if you do it right, you’ve just given more than 99% of the other filmmakers vying for the same cash pool a boost.