Finance Guide

Abhishek Agarwal asked:




Finance is a very important and crucial part of film making. While many people pull you here and there explaining about this vast topic, where as they are all beating behind the bushes, here are some real facts about film making finances.

Every film maker at some point in his career is supposed to make a choice between a hobby and a profession – that is whether you choose film making as a full time career or just a mere hobby. The key to the answer lies in their ability to finance or fund their own projects.

Film making, as we all know involves a lot of money in indeed, most oft the film makers focus on their current project, not the future ones. Hence in order to become a film maker, it is immensely important to understand the professionalism involved in film making, and the mechanisms of film investment.

In this regard many people claim to be Mr. Know-It-All, but as a matter of fact, this is not any toddlers’ job. Such people often try to take advantage of your ignorance in the field.

We suggest you to contact a legitimate company who are equipped with the right knowledge and have some experience in the field of film making. But, like all other services and products, there are so many consultancy firms out there. On what basis do you choose or reject one? Here are some basic facts that you must understand:

1. The fake or some average companies would merely try to grab your money away with high dreams and no results.

2. The legitimate and quality organizations would never promise you any investors. They would rather assist you with a list of the potential investors and help you win over them.

3. Whether your project gets an investor or not is matter that is decided by several factors like the subject of your project, the market scenario, your individual potential and its portrayal, and for those who believe, luck.

4. The legitimate consultants understand that there is no fun stealing away those few dollars paid for consultancy that any producer could afford conveniently.

5. The genuine financial consultants at times do not even charge the percentage of the funds you have earmarked for the project. They charge you their fees but ultimately aim towards the success of your project and its effective distribution.

6. They must help you evaluate the accumulated interest levied on the money you have borrowed during production.

7. They would also guide you through a well planned financial end of your project.

The toughest part of this business comes in to the scene when you have to convince a financial consultant of a legitimate producer to get involved in your project. You must find an investor who trusts you and your project well enough in order to invest in such high-risk, that is film making. For this you must step in to the shoes of an investor and evaluate as to what would be his/her investing criteria.

There are some essential basics of film investing. These are:

1. Usually, a film investor contributes around 50% of the total cost of the film. Film producer bares the remaining 50%.

2. 30-40% is quite enough to make the film. This would totally depend on your convincing power to bring forth the end users to become a part of your plan.

3. The investor would always want that the budget of the film project is as low as possible.

4. Foreign sales must cover at least 50%.

5. An investment worth $5 million is should be enough to allow the investor to buy several films.

As getting a film financed through investors is not an easy nut to crack, the independent film makers must consider the film making grants. Those who are passionate about this art and are in love with this profession, have a real scope of getting these grants. Just log on to internet and key in ‘film making grants’ and you shall get to know about several funders who are all willing to help such budding talents. All you need is to believe in your project. But make sure to gain enough knowledge about each grant as there are several types of grants that define different criteria for each.

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Asset Protection Guide:

The strange and sometimes puzzling evolutions in the business world ask for more and more secure methods of protecting the client’s assets. In spite of all popular articles claiming the right to be taken into consideration, asset protection strategies depend on individual perceptions. Each person involved in a business is supposed to choose his own means to protect his assets. His decision is crucial but it can be changed by several factors. First element which enters the system of asset protection strategies is considered to be the counselor. He can be a lawyer or not. His position is not really important. Most important fact about a counselor is to understand his client’s business and to be able to offer the appropriate advice. He is the most significant element which decides upon asset protection strategies. A counselor must be well informed about all law changes so he can direct his client in the right way. If the relation between two of them respects the basic principles of communication then results are fortunate. Each counselor has to know everything about his client’s business as long as he is supposed to guide him towards financial success. However each person owning a business has the right to decide on his future movements. Even if a counselor does try to influence him the final move depends on the client’s dynamic character.

A business man might be misguided by his private counselor. Applying asset protection strategies means playing with the law system. This is not about violating basic principles. Most of all is about discovering original ways which might give someone the chance to take advantage in certain situations. For example the principle of LLC might prove extremely operative. But if there are not any experienced persons behind the business master then he would probably miss this hint. The asset protection strategies system is quite sinuous and requires a capable person who is able to explain the basic rules.

People involved in a business might take this fact as a childish game and enjoy playing till the end. First of all, people are supposed to think about asset protection strategies. If taken into consideration right from the beginning then things are really simple. So the business man will enjoy his position being already protected against all possible dangers. If his counselor prescribes him the appropriate asset protection strategies then he does not have to worry about future success. From now on procedures are not so complicated. They remain exhausting but they are pleasant in a way. They are pleasant because they prove their efficiency. They are no longer insecure means of gaining money. Taking real advantage of the asset protection strategies means finding all the possible ways towards financial success. No one should miss this valuable tip of the presence of the counselor. Once a business is getting stronger and stronger, its owner must thing about all opportunities to protect his money. Of course that a counselor would always come with additional information but the final decisions belongs to the client. He is the only person who can decide upon asset protection strategies. He can say if certain strategies are compatible with his expectations. A counselor might always suggest something but if his client does not want to respect the plan then the deal is violated. There are no formal procedures to punish such a decision. The business man might be right. He knows his business. Maybe the counselor is wrong. There are numerous possible situations. But a good counselor would always be able to offer a good advice. So asset protection strategies might be best suggested only by a counselor.