Even with the perfect script and cast ready, it’ll be hard to tell your story without the proper funds to back it up. For first-time filmmakers, navigating these uncharted waters can be quite a challenge. There’s simply too much room for error, but it is possible to avoid them with a level head and a sprinkle of practicality.
Here are some of the most common mistakes moviemakers can make on their budgets and how you can avoid them.
1. Underestimating the Costs
Producing an indie film can come with all the expenses any regular movie has, such as production, acting cast and more. However, the only difference is that their expenses fall within a low-budget range, since talents understand there’s a lack of financial support from a major studio.
To avoid underestimating costs, set a realistic estimate that covers everything. Nowadays, new filmmakers can make a movie with a budget of $10,000 to $25,000, though some are scaling up to $1 million.
For actual film expenses, you’re looking at above-the-line costs like production and below-the-line costs like equipment. You also have to pay for postproduction, marketing, distribution and more.
2. Overinvesting In Your Project
While you don’t want to underestimate the costs, you don’t want to overinvest too much in your film, either. There have been many exemplary indie movies born from a humble budget. For instance, The Blair Witch Project had a budget of only $35,000 before it grossed $248.3 million.
Try to focus on having a solid budget that’s neither too low or too high. You can still have a bit of leeway in case of unforeseen upcharges or increased rates, but avoid overextending yourself and your film’s funds.
At the end of the day, the goal is to create and produce a film that will introduce a new perspective and touches people’s hearts in all kinds of ways. You don’t need to go overboard with your money to accomplish that.
3. Misallocating Money for Production Phases
It’s a common misconception that filmmakers equally split their budget across all phases of the project. Certain factors can cost much more than others. For example, one case study found that an indie film dedicated only 11% of its budget to above-the-line expenses like production, postproduction and other miscellaneous costs.
Purchasing a script and storytelling rights costs money. The cast, supporting artists and production staff also have to be paid, alongside their travel and accommodation expenses. There’s also insurance, publicity and distribution.
Steer clear of misallocation by collating the expenses and recognizing where you’re willing to invest or cut costs. The sooner filmmakers figure out their priorities, the more comprehensive the budget will feel.
4. Covering the “Small” Expenses
When you’re writing up your budget, it may seem too large at first. Some filmmakers may resort to covering expenses like travel or meals for the cast and crew out of pocket. However, the reality is that these costs can add up and strain any regular person’s wallet.
Charge what you can to the production funds, whether it’s gas for your vehicle or ingredients for the food. If you want to reduce the total budget, consider other cost-saving tactics like carpooling or choosing a closer location.
5. Not Recording Your Spending
It’s much more common not to keep track of your spending, and that’s true for 56% of Americans nowadays. Unfortunately, as a filmmaker, having no records can create plenty of problems when it’s time to check whether you’re staying on budget or overspending.
Keep tabs on every dollar spent on the film. Take a screenshot of each receipt and record the amount spent and the reason. You can go the old-fashioned way and write it down in a notebook, but you can also create digital notes or try out a financial management app.
6. Not Having a Contingency Fund
Say there was a sudden storm on the day you were supposed to shoot, or you lost equipment. These unfortunate circumstances can happen when you least expect them, and it’s vital that you’re ready to pay for the costs associated with them.
Try to allocate enough money for an emergency fund. You can have the total built into the budget from the get-go, or practice contributing consistently every week or month to reach the ideal amount in increments.
7. Disregarding the Schedule
Given the budget, you might treat cast and crew allocations as a lump sum. However, the reality is that the industry compensates more on an hourly or daily basis because of the impact that each person makes during that time. You could be over- or under-budgeting if you don’t understand the schedule and effort you’re demanding of them.
Try to get the average for each role to see whether you’re paying fairly. The median pay for actors is $23.33 per hour in 2024.
8. Overestimating the Revenue
Amateur filmmakers look at an indie budget and believe that they’re going to make every single cent back. While it’s good to be optimistic, some may come up short on income and be unable to pay their crew and suppliers.
Again, it’s important to craft a realistic budget. Base it on the amount of money you’re willing to lose in order to create art instead of relying on festival wins and ticket sales.
9. Taking On Personal Risks
Many indie filmmakers pay for their movies out of pocket. However, for your own personal sake, avoid high risks and going into debt for one film. Don’t let it be the reason why you can never produce another movie ever again.
There are many other ways you can ease your own burden, such as exploring filmmaking grants or crowdfunding. On Kickstarter, over four out of 10 projects hit their funding goals.
Make an Accurate Film Budget
Building a film budget can be nerve-wracking, especially if it’s for your first movie. However, you simply have to be practical in the middle of planning and be prepared for contingencies in advance. With the right numbers, you can share your story without the pressure of losing funds.
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