Advice wanted for putting together profit-share production
Thu, 1 June 2006, 06:20 pmandreamccannon6 posts in thread
Advice wanted for putting together profit-share production
Thu, 1 June 2006, 06:20 pmI'm after advice on how to put together a company to produce a profit-share production. I have a play that I want to produce and a role in that play that I want to play. I only have a few huindred dollars I can invest myself, though, so would need other people to be involved and invest in the project. How should I get these people together? Is it OK to say that I'm looking for a director, oh and by the way, you need to invest in the prduction? I've only ever been involved as an actor before, so really have no idea where to start - help me, please!
co-ops
Sun, 4 June 2006, 11:34 pmYou need to produce a total budget, with every cost itemized.This will give you a dollar amount which is your 'cash cost'.There are often percentage costs like royalties.You divide the 'cash cost' by 1-royalties[e.g..1] which will give you a 'break even' figure.You then express every cost,wages,publicity, etc as a percentage of the 'break even'.The costs such as wages can be taken up as a percentage by the participants and you invite investors to buy the percentage to cover the costs which have to be paid in cash.It is a good 'litmus test' of the show if it appeals to investors.I suggest that you limit investors to around $1000 each so that there is a limited liability.At the end of the show everyone gets a percentage of the gross.Using this method is fair to everyone involved.