10 Tips EVERY Indie Producer Should Know…How Many Are in Your Toolbox?
Hello, fellow filmmakers! As a seasoned expert in film production accounting (with over 15 years of experience), I'm thrilled to share some invaluable finance tips to empower you on your indie filmmaking journey. Budgeting and financial management are the cornerstones of any successful film project, and with the right approach, you can turn your creative vision into reality without breaking the bank. In this comprehensive guide, I'll walk you through essential finance tips, along with a list of helpful resources to support you in navigating the financial aspects of filmmaking. Let's dive in!
Oh, look! I used BlueWillow to create my own AI image. How fancy am I, embracing new technology??
1. Start with a Detailed Budget:
The journey to a successful film project begins with a well-thought-out budget. Take the time to outline all the expenses, from pre-production to post-production, and allocate funds wisely. A clear budget will be your financial roadmap, helping you stay on track throughout the filmmaking process.
2. Embrace Technology:
In the digital age, technology is your ally. Utilize accounting software tailored for filmmakers to streamline financial tasks and maintain organized records. From budget tracking to expense management, these tools will save you time and enhance efficiency.
3. Negotiate Fair Compensation:
When assembling your cast and crew, negotiate compensation that aligns with your budget constraints. Be open and transparent about your financial limitations, and you may find many talented individuals that are passionate about collaborating within your means.
As a producer, I would be remiss if I did not give this piece of advice: you and your crew are not at odds. Saving $5 just so you “feel like” you negotiated a rate is meaningless. When producing lower-budget indies, try paying your crew at Tiered MFN levels. This will often help your crew (and yourself really!) feel better about *less-than-stellar* rates. People will talk about their rates, and this will prevent large discrepancies that can cause bad feelings down the road.
Negotiation can feel like a game of chess with the wrong producer.
4. Invest in Insurance:
Protect your investment and project by obtaining the right insurance coverage. From liability insurance to equipment coverage, adequate insurance protects you and your team from unexpected risks.
This is especially important if your lead actor is your film’s biggest draw. Getting them insured is important; in the unfortunate event something bad happens and an actor is injured, your film could be F****D!
(In Illinois I recommend: Johnsonese Brokerage and Lisa Monde with Beyer Insurance. In CA Taylor & Taylor.)
5. Embrace Sustainable Practices:
Being eco-conscious isn't just a trend—it's an ethical choice. Embrace sustainable practices in your filmmaking process to save on resources and minimize waste. Not only does this positively impact the environment, but it also resonates with conscious audiences and potential sponsors.
Another unintended consequence, (but my favorite), is that you have a digital paper trail in case there are issues. If you happen to misplace physical paperwork, most platforms like Docusign and HelloSign keep your contracts for the life of your subscription. Its a worthwhile investment!
(I recommend Docusign personally. I just LOVE them.)
6. Tap into Local Support:
Your local community can be a valuable source of support and resources. Reach out to local businesses, organizations, and film commissions for potential in-kind contributions or discounts that can stretch your budget further.
Depending on the subject matter of your film, you can also apply for a Fiscal Sponsorship. This will allow you to receive tax-deductible contributions toward the financing of your film.
(I have used and/or heard great things about these places that offer Fiscal Sponsorships: Fractured Atlas, IFA, and The Field. )
7. Leverage Crowdfunding:
Crowdfunding platforms have transformed the indie filmmaking landscape. Engage with your audience, share your vision, and offer exciting perks to backers. Crowdfunding not only raises funds but also builds a dedicated community around your project.
(On a personal note: I am not the biggest fan of crowdfunding. Especially with the strikes going on in our industry, taking money from other filmmakers leaves me feeling…weird. That being said, I fully understand it’s not going anywhere. Just make sure to follow through with your rewards/incentives - many young filmmakers make the mistake of not following through on these. This is not a good look for the first people “investing” in your project!)
8. Embrace Smart Marketing:
Invest in targeted marketing efforts to promote your film effectively. Digital marketing allows you to reach your target audience without breaking the bank. Engage in strategic social media campaigns and explore partnerships to maximize your film's exposure.
In today’s climate creating some type of buzz is important; try to organize a table read, and get a “name” actor to read for it. Create fun videos on Social Media that tell people about your film. Identify potential investors and advertise on the sites or media they engage in. Partner with another company so the reach of your marketing is wider.
A smart marketing image! Yay
9. Collaborate with Brands:
Product placements and brand partnerships can provide additional financial support for your film. Collaborate with brands that align with your project's values, and explore opportunities for mutually beneficial partnerships.
In my experience, money is hard to get without large-name talent or a proven track record. However, deals with clothing companies, food/beverage brands and other “brand deals” are MUCH easier to acquire and can often “pay for themselves.” For example, let’s say drinking alcohol is portrayed in your movie, and you have many scenes featuring characters enjoying a beer. To have your Art team create a fake beer company, they’ll need to design a logo, package & label said beer, as well as go through legal clearances to ensure this beer company (& it’s logo) doesn’t already exist somewhere. This is many hours of a designer’s time getting an approved logo, having proofs designed for all the places the label will be used, sourcing vendors to handle the printing…blah, blah, blah! Already writing that was more work than obtaining a brand deal can take!
Keep in mind, partnering with most brands (such as alcohol or cigarette companies specifically) will not want their product featured in a negative light. You will have to use discretion on when its best to spend the time/efforts into designing your own vs. teaming up with an existing brand.
In addition, you WILL need a lawyer to secure these partnership deals - as you should already have one operating under your film, this shouldn’t be an issue. Rather, another step you should be accounting for should your team want to proceed!
10. Keep Detailed Financial Records:
Mastering detailed financial records with specialized film production accounting software is essential for filmmakers. Start by choosing software tailored to the industry's needs, offering features like budgeting and expense tracking. For small films I recommend Quickbooks Online; for large ones Greenslate.
Track expenses diligently in real time to be sure you’re staying within budget. Maintain transparency during team negotiations and protect your project with the right insurance coverage. Comply with tax obligations and generate real-time reports for financial insights. Learn from past records to improve future projects. Train your team in using the software for a cohesive workflow. Regularly review and update records to ensure financial success.
Resources:
1. Film Budget Template: Download free budget templates from StudioBinder (www.studiobinder.com/templates/film-budget-template) to get started with your budget planning.
2. Accounting/Budgeting Software: Explore accounting software like Movie Magic Budgeting (www.ep.com/software/movie-magic-budgeting) specifically designed for film production. I personally think Showbiz (another budgeting software, often used for AICP budgets) is the best: (https://www.mediaservices.com/showbiz-software/showbiz-budgeting/)
3. Crowdfunding Platforms: Check out Kickstarter (www.kickstarter.com) and Indiegogo (www.indiegogo.com) to launch your crowdfunding campaign.
4. Sustainable Filmmaking Guide: Green Film Shooting offers a comprehensive guide (www.greenfilmshooting.net/guide) to implementing sustainable practices in your film production.
Congratulations, aspiring indie filmmakers! Armed with these top finance tips and valuable resources, you're now equipped to confidently navigate filmmaking's financial challenges. Remember, financial savvy is a powerful tool that enables you to bring your creative vision to life while maintaining fiscal responsibility. Stay passionate, resourceful, and diligent, and let your filmmaking dreams soar to new heights.
Happy filming!
The content provided in this blog post is for informational purposes only and is not intended as legal, accounting, tax, investment, financial, or other advice. The information should not be relied upon for any individual or business decision-making purposes. The views expressed in this post do not necessarily represent the views or opinions of Reel AP LLC. Reel AP, LLC does not warrant the accuracy, completeness, or reliability of the information provided. Readers are encouraged to seek advice from a professional before making any decisions based on the content of this post.