"For prospective investors to evaluate your films completely, they need to know the size of the budget. Again, we have two types of films: those with complete scripts and those that are just a gleam in the producer's eye. When real scripts exist, real budgets should exist also.

To save money, many filmmakers pass a tuning fork over their script and say, "One million dollars." Do not just make up a figure. Anyone who contemplates financing your film will take this number seriously. So should you.

Many independent films have been delayed because the money ran out during either principal photography or postproduction. The investors have said, "You told me $800,000, so that is all you are getting." Studios often have reserves for a certain amount of budget overruns; equity investors do not.

Some filmmakers develop only the two top sheets of the budget--this is just one step ahead of the tuning fork method--and figure out the complete cost later. Do it now to save explanations later. Estimating the cost of the general categories (cast, location, wardrobe, and so on) can be very dangerous, no matter how experienced you are. Break down the script (production managers are good at this job), and calculate the entire amount..."

September's Budget Tip