As stated before, this is probably one of the MOST IMPORTANT steps in getting a show produced. You will always need money! People will need to be paid. Things will need to be bought. Bribes Rental fees will need to be paid.
One of the producers primary responsibilities will be obtaining money and budgeting it so that there will be enough to put the show on. How a producer obtains money for the show varies from production to production. Listed below are some of the more common methods employed by producers
For large scale productions where there is a good chance of making money back. Investors are a good source of money. Keep in mind though that investors are expecting to make money back. You will have to pay them a portion of your profits (including what they paid to invest in your show) Investors should only be used in large scale productions where there is a high chance for them to regain their money.
In smaller scale productions a private donation can be obtained from any source willing to give to the cause. If you are attached to a nonprofit theater you can offer a tax break incentive to those who want to give private donations. Some theaters will have a wall to thank there donors that include a mention of how much they gave to the theater.
Used to good effect fundraising can help get money for the production. What type of fundraising and how effective it is depends on the producers. You may have to put some money out in order to get materials to fundraise so the risk should be calculated.
One of the best ways to raise money. A program is usually given to each member of the audience upon seeing the show. Convincing a local business to buy a small ad space in the program can be very profitable to both them and you.
While there are other methods of getting money. These are the most common ones used in theater.