Most independent filmmakers do not research and utilize realistic sales projections when developing their Business Plan, or worse, they do not use sales projections at all. This is a huge mistake. Sales projections for your film project are absolutely necessary so you can properly budget your project, raise the necessary financing, and ensure your chances of paying your investors back.
When you are developing a set of projections, the following should be considered:
Keep in mind there are many variables which will determine the price distributors will pay for your film at any given time (including, but not limited to: market trends, comparables, genre, subject matter, actors, producers, or directors involved in the project, if it did well at festivals, commercial viability, etc).
Include distribution costs you expect to incur. These will vary with the level of revenue included in the projections and will be different for each distribution channel. You will also need to develop a cash flow projection, a cash break even, and a net profit break even analysis. These can be included in your business plan.
Author: Jack Heape, Originally Published March 4, 2009
About the Author
Jack Heape is a native of Columbia, South Carolina. He attended school in North Carolina, where he was active in the arts, performing in numerous theater, dance, and TV productions. Jack received his BS degree in Economics from Excelsior College, and graduated with honors with a Masters in Project Management from the University of Arkansas. After graduation from school, Jack entered the US Navy, where he served in various capacities, in particularly as Supply Officer on various nuclear submarines stationed in Charleston, SC. Currently the Executive Director of the Carolina Film Factory, a 501c(3) corporation, Jack is also the general partner for Hobo Productions, LLC. Jack has over 20 years of experience in Marketing, Advertising, and Public Relations. Directing Highlights Dollar Girl (2007) Six Degrees of Desperation (2007) Saving Maggie (2008) In production Producer Highlights Final Reckoning (2006) Dollar Girl (2007) Six Degrees of Desperation (2007) Saving Maggie (2008) E-motion (2009) Preproduction Ruby (2009) Preproduction
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