The basics of a Broadway budget consist of the following THREE primary parts:

1. Production Budget (what it takes to get to opening night)
2. Operating Budget (what it takes to keep the show open each week)
3. Recoupment Chart (how long it takes you to recoup, based on the percentage of the seats that are occupied)

If you’re an investor or considering becoming an investor, this is what you should expect to see in your documents.

Additionally, you may receive a:

• Price Scale/Gross Potential (what you can earn each week if you sell every seat at whatever prices you set)
• Royalty % Breakdown (what %s of weekly profit are paid to the creative team)

If you are the Producer of a show, there is another financial document that should be your bible . . . but you may not get it unless you ask for it.

That’s a CASH FLOW statement.

This document details when you need the money that you’re spending in that Production budget on a monthly or weekly basis.  Because if a Broadway show costs $20mm . . . you don’t need $20mm two years before.  You need a much smaller amount to get going, and then it increases when you do a workshop, or out-of-town, then slows before you get to Broadway, then speeds up like a Nascar driver on a straightaway.  But even as you get closer to opening . . . you don’t need your opening night party payments until, well, closer to opening night, etc, etc.  

A Cash Flow statement helps you manage not only how your money is spent . . . (and these days, sitting on money can make you money if it’s in the right money market account) . . . but it helps you manage your RAISE.

Remember when I said you don’t need $20mm two years out?  That means you don’t need to raise that amount two years out.  Just like anything else, your raise ROLLS.  

Cash flows are often left out of financial documents.  And they shouldn’t be . . . especially if you’re an emerging producer.

If you don’t get one . . . ask for one.  I’ve seen too many people not raise the amount of money they needed . . . not because they couldn’t . . . because they didn’t know the money needed to be raised when it needed to be raised.

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If you’re a theatermaker with a show trying to get produced on Broadway or beyond, and you’re ready to invest in your own success…there are just a small had full of spots available spots to work with me directly as part of my private mastermind program. Click here to learn more.