The Film and Television Production Incentives aims to develop the film industry and attract film-makers to South Africa. The grant is calculated as a percentage of the local production expenses and varies between 25% and 35%. Applications have to be submitted before the start of primary shooting.
The following programmes are offered:
•SA film production and co-production – This is aimed at South African film producers. The rebate is calculated as 35% of QSAPE.
•SA Emerging Black Film-makers – A grant of up to 50% on the Qualifying South African Production Expenditure (QSAPE) is offered. The costs for the purchase of key production equipment may qualify once-off under the programme, to a maximum cost-sharing incentive of R2 million.
The business plan is an essential element of the early planning stage of the business. Whether you are planning to start a new business venture, expand your business, or purchase an existing one, a business plan is of great use. Our developments are used regularly to create a vision, secure funding, secure non-repayable business grants, attract team members and/or manage the business.
Elements of a coherent Film and Television Production Incentives Business Plan include:
•Legal entity: The executive summary should include copies of all registration documents, the income tax, and VAT certificates of the business.
•Shareholders and management: Add detailed CV’s of all directors, members, and key persons to motivate that management has the necessary experience to manage the operational, administrative, human resources, marketing, and financial aspects of the business. A Broad-Based Black Economic Empowerment (BBBEE) rating and organogram must be included.
•Capital expenditure: Include copies of recent quotations for land and buildings, vehicles, equipment, and soft assets.
•Development: A copy of the development and layout is required, as well as, a detailed bill of the infrastructure required, with recent quotations for all material costs. The key staff involved in the development and a transfer of skills plan needs to be described.
•Staffing: This section defines the cost to company of all salary, waged, part-time, and contract employees (historical and going forward). It should be ensured that all salaries are preferably market-related and not below the minimum wage guidelines for the industry. Outline the process for identifying and hiring new staff.
•Marketing analysis: Projected turnover levels should be based on secured contracts, letters of intent, and/or detailed market research. Include copies of these documents and/or write-ups of the research conducted. Draw up and implement a general and specific marketing strategy to articulate how the business will attract market share and achieve the projected turnover levels.
Areas that the market research focuses on include:
-Competitive edge of the business;
-Demand and supply;
-Future developments (technological, new market entrants, alternate products, etc);
-Contracts with clients;
-Letters of intent from potential clients;
-Other networks and potential relationships that might have been created; and
– Business premises.
•For acquisitions: Obtain the past three years’ historical financial statements and the latest management accounts for the current year. The valuation will be based on the Discounted Cash Flow Method (its income-generating potential, based on historical and projected future performance), and not necessarily the value of the assets.
•Financial projections: Comprises of eight documents namely; the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule and fixed asset schedule with ratios, graphs, and calculations.
•Annexures: Statutory information needed by funders in an application (contact DTC for the complete list).
At DTC, we understand the complexities of the requirements and criteria for custom and accurate business plans. Whether you are using the document to raise funding and/or non-repayable business grants, we guide you through the process and provide access to our extensive network of funders in South Africa.
Contact us for more information and assistance with your Film and Television Production Incentives Business Plan