You are an independent film producer. You have a enterprise strategy, a terrific script, a excellent spending plan, and reasonable profits projections. You have talked to distributors, ran some forged names by them and they think you have a distributable movie. What’s upcoming? You have to have to increase the money!
Probably the most typical concern regarding funding is how do you go about acquiring traders? Reply: You discover the persons who have the money and you do this by the networking of contacts.
Initially off, who has the money? Know what the 24 greatest paid professions are in the US? (2006 US Bureau of Labor Studies)
one. Surgeon — $181,850
two. Anesthesiologist — $174,610
3. OB/GYN — $174,610
4. Oral and maxillofacial surgeon — $169,600
5. Internist — $156,790
6. Prosthodontist — $156,710
7. Orthodontist — $153,240
eight. Psychiatrist — $151,380
nine. Chief Executive Officer — $140,880
ten. Engineering Manager — $140,210
11. Pediatrician — $140,000
12. Spouse and children or basic practitioner — $137,980
thirteen. Medical professional/surgeon, all other — $137,100
fourteen. Airline Pilot — $134,090
fifteen. Dentist — $132,660
16. Podiatrist — $111,one hundred thirty
17. Law firm — $110,590
18. Dentist, any other expert — $106,040
19. Air Traffic Controller — $100,430
20. Laptop and Information and facts Units Manager — $100,110
21. Marketing and advertising Manager — $100,020
22. Pure Sciences Manager — $ninety seven,560
23. Revenue Manager — $96,950
24. Astronomer — $96,780
Certainly, these professions are dominated by the healthcare discipline. So let’s concentrate on people professions then as our original pool of traders. But in this article is your problem Health professionals and Dentists in particular are notoriously difficult to arrive at. They are unbelievably chaotic and are secured by the most intense receptionists on the world. So skip the healthcare fellas you think? No, mainly because all of these specialists are chaotic. That’s how they obtained to be the place they are they perform difficult and extended hrs. So how do you get their consideration? The 3 following details will assist you.
One, and this is very, very, vital you HAVE to have a referral. An individual they know whose name you can use to get your foot in the door. You get that name by networking. Persons you personally know. They personally might not have any money, but who do THEY know that might have funds to make investments? And the chain commences, url by url. You know A, who is aware B, who is aware C, who is aware D. So when you call and test to get your foot in the door, you have a referral name. “DR. X, I have spoken recently (or played golfing with, or fulfilled with, etc.) with Dr. Y (or Mr. Z) and he advised that I get hold of you.” By utilizing this method you are not just one more no one, seeking to steal cherished time.
Secondly, the most vital issue usually will come down to your present. The only way to get medical doctors or any other really paid specialist to fork out consideration to you – allow by yourself reply – is to deliver them with a very powerful price proposition, prove why they should speak to you, give them an incentive to fulfill with you, and a powerful explanation why they have to have to act now .
Use the federal and point out incentives film output incentives. By coupling the federal tax incentive (Segment 181) with an particular person states output incentive, you can recuperate up to seventy five% of your traders money prior to distribution! For instance, if you filmed in Michigan, they have a forty% output incentive (can go up to forty two% based on the place in the point out you film). Pair that with an investor who is at a 35% federal tax rate (anyone who tends to make a taxable income of around $357,seven-hundred) and what you have is an rapid return of seventy six% prior to even the initially sale is created. A lot more realistically, say you could assure a fifty three% return, mainly because point out incentives of twenty five% are more typical as are lessen marginal tax rates (federal tax rate of 28% at an average altered gross income of $83,900).
This is an investment that will give your specialist a 50-70% return on their investment in the initially yr! They will not feel you when you notify them this amount (we are going to talk about this in product #3). So what do you present, what is the incentive for them to act now? The federal incentive is presently established to expire the conclude of this yr (2009)! That’s correct. They have to have to get on board mainly because there is no assure that the incentive will be extended one more yr.
And 3rd, you have to have to legitimize what you are stating to your prospect. Anyone can assure high returns, so you have to have to prove to them that what you are telling them is correct. Get an accountant, superior still a CPA, to compose you a white paper on the tax strengths of film investments. Or you compose it. Have them indicator it. By acquiring a tax specialist legitimize your claim of a high original ROI (return on investment) you have included immensely to your credibility. Have a chart created up listing the expected return supplied a specified investment and marginal tax rate.
one. Focus on your investor pool (really paid specialists)
two. Community your contacts
3. Get hold of referrals
4. Present an remarkable present and why they have to have to act now
5. Increase credibility to your presentation