Why a Film Budget for Film Finance is Important

A film budget for film finance helps you get into production Understanding why a film budget for film finance is important in dealing with film financiers, investors, and distributors is fundamental to the entertainment industry. Knowing the true cost to make your film, movie, or tv series can dramatically help to advance your project into production. Investors need a film budget to finance a production. This knowledge can be very helpful for yourself and for those to whom you present your project. Produced by Jack Binder | FilmBudget.com Founder It is important to know for yourself what is the real cost of the film budget for film finance to actually produce your movie. Knowing the film budget level and costs of all of the elements involved in a production provides you with a greater understanding of the production. Know the total cost and the details behind the totals Film budgeting explains how a movie will be produced, not only the complete cost of production. The overall number is informative for yourself and others, however having a film budget created by a professional line producer who is experienced in the film budgeting process provides a filmmaker with a roadmap to the production. Film budgets are detailed and specifically calculated to demonstrate the spending involved for all departments of film crew and materials. A film budget helps you to communicate financials with people who will help you get your film made Knowing the actual cost to produce a film is helpful for: Development – How much will a screenplay, director, producers cost to pay? A movie budget explains these expenses in addition to the cost of hiring an attorney, company formation, and additional start-up costs. Casting – How much will actors salaries amount to? How many days and weeks of work will be required for each actor and what should their pay rate be for the level of production? How much will a casting director, their staff, and expenses be? Film Financing – How much will a film financier be required to invest?  What is the hard equity investment needed to commence production? This number is reduced by film tax credits, international sales, and potential debt contributions yet is ascertained by determining the needs of the production based upon the screenplay or teleplay. Production – What are the actual items involved in the expenditure on the picture? What should a director of photography and their crew be paid? How many days will the shoot be, and each film crew member be needed for? Film financiers, distributors, and investors Film financiers, distributors, and investors use your film budget to make decisions. -Does the film and the level of investment fit into their finance model? Whom you approach for financing and distribution will be determined by this. -Does the movie fit within their perceived market value of the production? -Does the budget level fit within their acquisitions parameters (for distributors?) Film tax credits, film tax incentives, grants The actual cost of production must be known to calculate the contribution from film tax credits, production incentives, or grants which may be available to the production. The calculation of this finance element impacts the entire value chain of the film financing model and needs to be precise. This is how a film budget helps you to obtain film finance to get your movie made. Your budget informs not only yourself, but your target audience. Lastly, a film finance plan derived from the film budget generates the answers for stakeholders involved to the basic financial question: What is the equity requirement?   What is the market for the film?  What are the restrictions financially to returns and profits? What is an investor looking for besides an amazing project? Investors want to know these three things:  How much will it cost? How will I get my money back? What is the potential for profit? It is incumbent upon a filmmaker to have the answers to these questions at the ready for putting your package together and pitching it to finance sources. Visit FilmBudget.com for a free consultation.

Jack Binder is a Hollywood & London based Major Studio and indie film and television producer. Click here for Jack Binder Producer Credits Binder is the founder of filmbudget.com since 1997 creating bankable film budget and schedule packages, film finance plans, and producer consultancy packages for film finance and production. Contact Jack Binder to discuss your production.