Why a Professional Movie Budget by a Line Producer is a Film Finance Requirement

 

Why is a professional movie budget by a line producer a film finance requirement?

For anyone living under a rock the last few years it should be extremely evident that the financial world was rocked, stirred and shaken.  As it begins to recover certain truths have emerged:

 

1. Scrutiny – Finance sources are under more pressure than ever to engage in more intense scrutiny of investments than ever before.

2. Risk Aversion – Capital markets have adopted a new risk aversion that makes the past laughable and seemingly like wild party days.

3. Return on Investment (ROI) – Investors were smacked over the last four years.  They want, rather need to see a strong return on investment.

 

For these three main reasons alone the intensity of the importance of a movie budget created by a professional line producer is critical.  Film financing today demands a fresh look at the markets for film distribution and correspondingly the true cost of the film budget associated with the expenditure of their funding.  A movie budget must be created with experience, be detailed, accurate and created by a veteran producer with extensive experience analyzing every aspect of the production.  No formulas, templates, sample film budget or software program can inject the knowledge of a production manager scrutinizing every detail, parameter, contingency and aspect of the movie budget that investors would expect them to have undertaken.

Filmmakers should be prepared, invest in themselves and present their investors and lenders with qualified, professional film budgets for analysis.  Shortcuts most often lead to dead ends.

 

Jack Binder

Producer

FilmBudget.com

Why is a movie budget from a line producer critical for film finance?