There are two ways to budget your movie. The first, which is known as the traditional manner in which all movies are budgeted, is Bottom Up budgeting. It’s the least effective way to budget a movie, but most everyone does it.
Bottom Up budgeting is where you start from ground zero with no idea what your movie is going to cost. Then you identify all the people, jobs, things you think you need, and at the end you’ll have the amount that will cost. There is software out there, which can help you down this path. See this example of a traditional budget Top Sheet.
When using this software, you’ll scour an endless list of job titles, finding out there are jobs you never knew about, but that you must need, now that you’re thinking of them. Yes, a Script Supervisor would be great. $100 per day is a bit much so you plop in $20 per day. Then you’ll go to the next job, plop in a new amount, and so on. At the end of the list, the software will tally up all the jobs and expenses you typed in, and voila: you see the budget for you movie. In this case, your movie will cost over $240,000.
But then you’re faced with the reality of trying to raise a quarter of a million dollars. Which, if you can do it, great, by all means, have at it! But, chances are in this economy it simply isn’t going to happen. You might raise half that, or even less… but a quarter million?
I prefer to budget a movie using a Top Down approach. This is where you start with an amount and deduct items you know you can afford, and do away with the items you can’t or don’t need.
Let’s say we believe we can raise $60,000 to produce the movie. Or, let’s say we have already raised $60,000 and we’re not sure that’s enough. I’m here to tell you it’s more than enough, and here’s how you’ll do it.
First, identify the items you must have. Not things you think you need. You don’t need a Script Supervisor. Anybody on your crew can do it – since the job is required only when cameras are rolling. If you’re making a horror film that requires visual effects, or special effects make-up, those items are mandatory. So, write those down and subtract their cost (let’s say $7,500). Now you only have $52,500 remaining in your budget.
Next up, fifteen people on the cast and crew. Let’s say you’ll shoot for two weeks and pay everyone $50 per day. Subtract $10,500. Now you only have $42,000 remaining. Can you get those people to work for deferred? If so, you can add $10,500 back into your budget. Need to fly them to the set? Subtract those costs, or see if you can use airline miles and add those costs back in.
Hopefully you get where I’m going with this. I’m thinking about expenses as if I were using a debit card. Not a credit card.
I understand the general public would rather use a credit card instead of a debit card. The traps of “buy now, figure out how to pay for it later” are easy to fall into. But those people are usually in debt.
By handling your budget in the Top Down approach; you’ll know exactly how much money you have and can make realistic decisions on what you can afford. And what you can’t. Which will keep your movie on budget, and you won’t waste a cent.