Who says startups are only for tech-based ideas? These days, even creatives are beginning to open their own film and production companies. If you’re full of creative ideas but short of the money bring them to fruition, here’s a few ways you can finance your own production company.
Write a Business Plan
Before you even think of financing options, you need to write a comprehensive business plan. This should include an executive summary, mission statement, marketing strategy and your ideas about financing. Even if you’re not sure about every point included, still put your thoughts on paper. You can always go back and fill in the blanks.
Take Out a Loan
Probably one of the easiest ways to get your film or production company off the ground is with a business loan. You should shop around and compare the loan terms and interest rates from several lenders prior to accepting the first offer. You may also want to look into a revolving line of credit, which in essence is still a loan. However, unlike traditional loans, the money you pay back becomes available for use again.
You should also compare the rates between a traditional bank loan and those from private lenders. Everyone’s financial picture is different, so what looks good on paper might not be the best solution for you. Since the business loan will go toward funding everything your company needs, you might not have enough left over to cover other necessary expenses. You can look into taking out personal loans to help pay the actors you hire, paying freelance makeup artists and funding any additional equipment you may need.
Crowdfunding Websites
You can also create a crowdfunding campaign. This works by creating a campaign about your project. You should tell your company’s story and your goals. There are a variety of websites you can post your campaign on, including Kickstarter. In the same way that you can hop online to catch up on TV shows your missed, or news stories you are behind on, crowdfunding allows your investors to hop on the platform to get updates and information about your progress. Most people also offer backers something in return, like a percentage of the profit.
It’s a good idea to weigh the pros and cons of this funding method prior to getting started. The last thing you need to obtain funding and not turn a profit. You’ll then have to dig into your own pocket to pay back the investors.
Enter a Partnership
You might also want to consider becoming partners with someone who has the money to help launch your company. They can play an active role in the day-to-day processes, or they can be a silent partner. If all goes well, you can always buy them out and become a sole proprietor.
Market Yourself
Even if you’re just starting out, you need to market yourself and your company. Invest in a high-quality website that also tells your story. Focus on the type of films you want to make or produce to attract the right type of visitor. You can also create social media accounts and market yourself there for free.
Grants
In addition to loans, you can also apply for a grant. There are a lot of grants you can choose from, which includes nonprofit, merit-based and government funded. It’s important to note that most grants do require applicants meet specific criteria. Some must only sponsor filmmakers who create documentaries. Other types of grants may be exclusively for women or minorities. You will have to comply with the terms and possibly attend an interview as well.
