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uestions about budgeting a project feasibly?



The profitability and salability of most projects are directly related to the production costs in relation to the marketplace. Today's film finance structures rely on realistic budgeting as one of the important elements to reduce risks and optimize profits. 

While a script and the related story may demand a certain budget to be realized as a top-quality production - which is essential for buyers and distributors to acquire a film - the budget must also correspond with what these buyers and distributors can afford to pay today.

The times when networks, streamers, and studios spent billions in content acquisitions have changed. Today, the recoupment of such costs is important for most of these buyers and distributors. This means that content creators and producers are tasked with establishing a budget that can generate enough distribution revenues to be recouped and also allows for profit.

The steps to creating a feasible budget include:

  • Working on the script and adjusting the page count, eliminating characters with similar traits, reducing scenes to keep only those that carry the story forward, reducing/choosing multipurpose locations to reduce the shooting schedule

  • Negotiate deferments with talent and service providers

  • Adjust visual and special effects

  • Establish a lean delivery element schedule

Budgets should be discussed with sales agents and distributors to confirm projected revenues in support of the estimated production costs.

Investors would ideally confirm the feasibility of a budget and its coverage through projected distributing revenues provided by bankable sales agents and/or distributors.

Are you looking to establish a feasible budget for your project and need guidance?

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