Come up with a simple but unique idea. You want something familiar, but with a twist. For a low-budget film to stand out, it has to have something special and different. Develop your idea further and write the actual script. This will take some time, but if you stay focused on it and commit to the project, you'll find it's actually a fun process. If you're really terrible at writing, you can hire someone to write your idea for you, or simply look for already-written scripts and pick one that you'd like to produce (after you pay the writer for his work). Break down the script, then budget it out. Figure out how this movie is getting paid for. Do you have a large savings account you plan on using? Do you have investors lined up? If you need investors, put together a film-proposal package. Include a synopsis of the film, the budget breakdown and a letter of intent expressing why you want to make this movie and what you plan on doing with it, as well as a proposed investor's return (what your benefactors can expect in return for their investment). If the investors don't pan out, there are always loans, product-placement sponsorships and other ways of securing funding.
Set up auditions and have actors read for the roles in the script. Conduct callbacks with your favorites and then select your cast. Have each cast member sign a contract stating his agreed-upon compensation and approximate work days. Then secure locations for your movie. Once you these issues are taken care of, it's time to plan the shooting schedule. Use scheduling software to help you get the most shots out of one location in one day, to avoid paying more than you have to. Hire a full crew. Since yours is a low-budget picture, you might consider recruiting from a local film school. Students often want experience, and will work for a title credit and a copy of the film.
Design all your special effects. Decide what you want to see, then figure out how you're going to make that happen. Draw everything out on paper or put it in storyboard form. This will ensure that you don't do more work than necessary or spend too much on a simple effect or shot.
Make sugar glass for breaking-glass effects. Mix 1 part liquid glucose with 2 parts water and 3-1/2 parts sugar. Stir over medium heat until throughly mixed together. Pour into a mold to create the window, vase, cup or other glass item that will be breaking.
Make fake blood. Stir together 1 part water with 3 parts corn syrup, then add in red food coloring. To create oozing, "wet" blood, add some chocolate syrup into the mixture; this will create a realistic brown tone in the blood. To thicken the mixture to resemble, dried blood add in 1 or 2 tbsp. of corn starch. This will create blood clots or clumps.
Use eyeliner, eye shadow and lipstick to create gouges and cuts on the skin. Start with the outline of the wound, penciling in the lines with a brown eyeliner. Then fill in the center with a red lipstick. Cover with finishing powder. After that, add discoloration to the edges with brown, green and light purple eye shadow. To create a "just-wounded" look, apply a thin layer of clear lip balm or Vaseline.
Hire specialists for other special effects as needed. Again, film students may be your best bet, as they are willing to work for free and many can create some pretty amazing effects.
Shoot your film. When all the footage you need is in the can, begin postproduction and add in any computer-animated special effects you may have planned. Edit the film completely, adding music and credits. Show it to your friends, family and complete strangers. Get their feedback. If needed, make changes, re-edit the film or re-shoot scenes. Create your final copy and start promoting it. Enter it into film festivals and try to get local theaters to screen it. Good luck!