Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $800 |
Stationery etc. | $800 |
Marketing materials and Advertising | $1,200 |
Insurance (8 months) | $1,400 |
Rent (8 months) | $2,700 |
Counter/kitchen retrofit | $2,000 |
Sound and Projection Equipment | $500 |
Theatre repairs | $12,000 |
Other | $500 |
Total Start-up Expenses | $21,900 |
Start-up Assets | |
Cash Required | $12,400 |
Start-up Inventory | $700 |
Other Current Assets | $0 |
Long-term Assets | $10,000 |
Total Assets | $23,100 |
Total Requirements | $45,000 |
The Falls River Theatre will provide comfortable seating for its customers to view high quality, second run movies. The theatre’s management will be aided in movie selection by being able to see how movies have fared in their initial run, especially those that have shown success in the theatre’s two target markets: families and young adults. With two theatres in which to show movies, both markets can be targeted at the same time with minimal cannibalization.
A variety of quality, reasonably priced snack items and beverages will keep customers satisfied during their movie experience. The founders understand that the entire experience can be jeopardized by poor customer service and will seek to hire only the most customer service oriented personnel.
The Falls River Theatre is located in downtown Falls River, the shopping and entertainment center of town. This provides easy access for every resident of Falls River and a viable entertainment option any night of the week. The local business community has shown great support for a theatre since it would keep residents, and their spending dollars, in the community instead of one of the surrounding communities. A typical family (there are about 2,300 on Falls River) can expect to save approximately $48 for a night out at the movies by coming to a local theatre. This savings, along with quality movie selection, should keep people coming back regularly.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Family | 4% | 8,000 | 8,320 | 8,653 | 8,999 | 9,359 | 4.00% |
Young adult | 4% | 4,000 | 4,160 | 4,326 | 4,499 | 4,679 | 4.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 4.00% | 12,000 | 12,480 | 12,979 | 13,498 | 14,038 | 4.00% |
The Falls River community has been in need of a local movie house since the closure of its only theatre eleven years ago. With the closest movie complex located 45 miles away, movie goers options are limited – either a round trip drive of over 90 miles or in home rentals. For people who enjoy the big screen, neither offers a satisfying experience. The Falls River Theatre can satisfy those needs with quality movies in a comfortable, old-style movie theatre.
These two market segments, families and young adults, are targeted specifically because they comprise the two largest segments of Falls River’s population. The Falls River Theatre is determined to be a community-oriented business and seeks to serve as much of the population as possible. With a small college in town, there is an ample student market, consumers who often have limited transportation options.
The strategy is simple: provide fair-priced, quality entertainment close to home for the two markets that comprise the bulk of Falls River’s population.
Falls River Theatre has a distinct competitive edge in that it is the only movie theatre within 45 miles of Falls River. There are no plans at this time to build a theatre complex in the town and, since the theatre will occupy the town’s only building capable of effectively housing a theatre, there is limited direct competition. Competition will come mainly from several multi-plex theatres located in Madison, the closest being 45 miles from Falls River.
To ensure that Falls River residents are pleased with the products offered, the theatre will rely on the expertise of Samantha, who has seven years of successful theatre management experience. Since she began managing the theatre in Madison ticket sales have grown at a consistent 4% annually. This is in part due to her skills in movie selection and her emphasis on customer service. Once the theatre is up and running, her time will be devoted to movie selection, staff hiring and supervision, theatre marketing, and ordering for the snack bar.
Samantha has also developed strong relationships with several movie booking agents serving the Wisconsin area and has already negotiated an agreement. The agreement has the booking agents collecting 60% of the first year’s admission revenues. Each year after that the percentage will be reduced by 1.5% through year 5 when it stabilizes at 54%.
Steve has strong construction skills and is considered a craftsman by his peers. Initially his talents will be used to restore the theatre from its current state of slight disrepair into the town’s main attraction for evening entertainment. Once the restoration is complete, Steve will transition into a part-time role, maintaining the facility and equipment, working the counter and ticket booth, and eventually, ordering concession items.
Falls River is a small enough town that word gets around quickly. We anticipate that a buzz will be created once the renovations begin. Excitement will build as the grand opening approaches. To encourage that excitement, we will have a countdown to opening on the building’s marquee. Concurrently, advertisements in both the local newspaper and the college’s daily will promote the opening with coupons for free items from the snack bar. Since a large share of profits will come from concessions, we want to let people know about our tasty snacks. Finally, we will use our website to keep our customers, especially the more web salvy college students, updated on the movie selection, which will change every two weeks.
The Falls River Theatre will appeal to two segments of the market:
The main sales strategy is to provide recent successful movie releases that appeal to both audiences. With two theatres, we will be able to target both segments simultaneously.
Ticket prices will be $5 for adults and $3 for children under 12.
Sales will increase among both target segments as word spreads around town and to the surrounding communities. The increase in concession sales reflects the increased attendance. Concession sales are based on an average of $2.50 spent per ticket purchase.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Family movies | $86,661 | $129,992 | $194,988 |
Young adult movies | $30,331 | $45,497 | $68,246 |
Concessions | $70,196 | $105,293 | $157,940 |
Total Sales | $187,188 | $280,782 | $421,173 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Movies | $70,196 | $105,293 | $157,940 |
Concessions | $21,059 | $31,588 | $47,382 |
Subtotal Direct Cost of Sales | $91,254 | $136,881 | $205,322 |
Steve will begin the theatre’s restoration in mid-January. Samantha will still be working with the theatre in Madison but will be able to contribute as-needed. Steve’s work will start inside, repairing and upgrading the facility as necessary. The main theatre’s balcony needs reinforcement. Repairs and upgrades to the concession area are also necessary. Painting will put the finishing touches on the interior of the structure. Finally, the interior should be fully restored by mid-March, once the upholstery repairs are finished.
By that time Samantha will have more time to begin work on the website, marketing materials and film selection. The weather should be turning better which will allow Steve to move outdoors to work on the front of the building. Minor repairs are needed on the marquee. A fresh coat of paint will prepare the building for customers. Samantha will also order any equipment for the concession area (some equipment is already in place and is useable), begin the hiring process and start the marketing. Finally, Steve will install the projection equipment and prepare for the grand opening.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Repairs and painting of interior | 1/18/2003 | 2/15/2003 | $11,000 | Steve | Marketing |
Reupholstering theatre furniture | 2/25/2003 | 3/15/2003 | $5,000 | Steve | Marketing |
Website design | 3/20/2003 | 3/25/2003 | $0 | Samantha | Marketing |
Marketing materials design | 3/20/2003 | 3/25/2003 | $0 | Samantha | Web |
Repairs and painting of exterior | 3/20/2003 | 3/25/2003 | $6,000 | Steve | Web |
Set up projection equipment | 3/28/2003 | 4/2/2003 | $15,000 | Steve | Department |
Film selection and scheduling | 3/28/2003 | 4/2/2003 | $250 | Samantha | Department |
Concession equipment ordering | 4/5/2003 | 4/10/2003 | $4,000 | Samantha | Department |
Staff hiring and scheduling | 4/5/2003 | 4/15/2003 | $200 | Samantha | Department |
Initial marketing | 4/5/2003 | 4/20/2003 | $500 | Samantha | Department |
Grand opening | 4/20/2003 | 4/20/2003 | $1,000 | Both | Department |
Totals | $42,950 |
The website will be very simple. Its main purpose is to communicate to our customers what movies are showing at what times with links to each movie’s website and reviews. The design will feature an image of the theatre along with the a list of current movies and those that are coming soon and will be small enough to quickly load on most home computers. Since the movies will change every other week, maintenance should be fairly straight-forward. Arrangements have been made with both the local and college newspapers for links to our web site from theirs.
The website address will be printed on tickets and it will be prominently placed on advertisements that we will run in the local paper.
Development requirements are minimal, since the site will only be a few pages. The site will be built by a local website development firm. Once it has been created, the founders will be responsible for updating it with the latest movie listing each week. It is expected that this will take no longer than 1 -2 hours each week.
Steve’s main responsibility will be to manage and execute the theatre’s restoration. Once that task is complete and the theatre is open for business, Steve will manage the maintenance of the building and work part-time in customer service (selling concessions) and ordering.
We believe that the key to customer service is happy employees. We will invest in a good team by compensating our part-time employees fairly.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Samantha Farmer | $33,600 | $35,280 | $37,044 |
Steve Brinksman | $35,200 | $36,960 | $38,808 |
Customer Service (4 part-time employees) | $9,350 | $9,818 | $10,308 |
Other | $0 | $0 | $0 |
Total People | 6 | 6 | 6 |
Total Payroll | $78,150 | $82,058 | $86,160 |
The following sections outline the financial analysis for Falls River Theatre.
The following shows the important General Assumptions for Falls River Theatre.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The following Break-even Analysis shows the monthly break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $23,758 |
Assumptions: | |
Average Percent Variable Cost | 49% |
Estimated Monthly Fixed Cost | $12,176 |
The following table and charts show the Projected Profit and Loss for Falls River Theatre.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $187,188 | $280,782 | $421,173 |
Direct Cost of Sales | $91,254 | $136,881 | $205,322 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $91,254 | $136,881 | $205,322 |
Gross Margin | $95,934 | $143,901 | $215,851 |
Gross Margin % | 51.25% | 51.25% | 51.25% |
Expenses | |||
Payroll | $78,150 | $82,058 | $86,160 |
Sales and Marketing and Other Expenses | $3,300 | $0 | $400 |
Depreciation | $1,992 | $0 | $0 |
Rent | $10,800 | $0 | $900 |
Utilities | $30,000 | $0 | $2,750 |
Insurance | $10,150 | $0 | $1,100 |
Payroll Taxes | $11,723 | $0 | $1,138 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $146,115 | $82,058 | $92,448 |
Profit Before Interest and Taxes | ($50,181) | $61,843 | $123,403 |
EBITDA | ($48,189) | $61,843 | $123,403 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $18,553 | $37,021 |
Net Profit | ($50,181) | $43,290 | $86,382 |
Net Profit/Sales | -26.81% | 15.42% | 20.51% |
The two founders will be the sole investors. Samantha Farmer and Steve Brinksman will invest, both in early January.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $187,188 | $280,782 | $421,173 |
Subtotal Cash from Operations | $187,188 | $280,782 | $421,173 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $60,000 | $0 | $0 |
Subtotal Cash Received | $247,188 | $280,782 | $421,173 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $78,150 | $82,058 | $86,160 |
Bill Payments | $152,553 | $178,262 | $256,786 |
Subtotal Spent on Operations | $230,703 | $260,320 | $342,946 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $230,703 | $260,320 | $342,946 |
Net Cash Flow | $16,485 | $20,462 | $78,227 |
Cash Balance | $28,885 | $49,347 | $127,574 |
The following table illustrates Falls River Theatre’s Projected Balance Sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $28,885 | $49,347 | $127,574 |
Inventory | $21,681 | $32,521 | $48,782 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $50,565 | $81,868 | $176,356 |
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $1,992 | $1,992 | $1,992 |
Total Long-term Assets | $8,008 | $8,008 | $8,008 |
Total Assets | $58,573 | $89,876 | $184,364 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $25,654 | $13,666 | $21,772 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $25,654 | $13,666 | $21,772 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $25,654 | $13,666 | $21,772 |
Paid-in Capital | $105,000 | $105,000 | $105,000 |
Retained Earnings | ($21,900) | ($72,081) | ($28,790) |
Earnings | ($50,181) | $43,290 | $86,382 |
Total Capital | $32,919 | $76,210 | $162,592 |
Total Liabilities and Capital | $58,573 | $89,876 | $184,364 |
Net Worth | $32,919 | $76,210 | $162,592 |
Business ratios for the years of this plan are shown below. Industry profile ratios are based on the Standard Industrial Classification (SIC) code 7832, [motion picture theatres, except drive-ins].
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 50.00% | 50.00% | 4.18% |
Percent of Total Assets | ||||
Inventory | 37.01% | 36.18% | 26.46% | 0.54% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 27.25% |
Total Current Assets | 86.33% | 91.09% | 95.66% | 32.96% |
Long-term Assets | 13.67% | 8.91% | 4.34% | 67.04% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 43.80% | 15.21% | 11.81% | 23.77% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 30.06% |
Total Liabilities | 43.80% | 15.21% | 11.81% | 53.83% |
Net Worth | 56.20% | 84.79% | 88.19% | 46.17% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 51.25% | 51.25% | 51.25% | 100.00% |
Selling, General & Administrative Expenses | 76.99% | 0.00% | 40.59% | 76.64% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 3.12% |
Profit Before Interest and Taxes | -26.81% | 22.03% | 29.30% | 2.78% |
Main Ratios | ||||
Current | 1.97 | 5.99 | 8.10 | 0.93 |
Quick | 1.13 | 3.61 | 5.86 | 0.63 |
Total Debt to Total Assets | 43.80% | 15.21% | 11.81% | 2.70% |
Pre-tax Return on Net Worth | -152.43% | 81.15% | 75.90% | 61.15% |
Pre-tax Return on Assets | -85.67% | 68.81% | 66.93% | 6.94% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -26.81% | 15.42% | 20.51% | n.a |
Return on Equity | -152.43% | 56.80% | 53.13% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.40 | 5.05 | 5.05 | n.a |
Accounts Payable Turnover | 6.95 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 43 | 24 | n.a |
Total Asset Turnover | 3.20 | 3.12 | 2.28 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.78 | 0.18 | 0.13 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $24,911 | $68,202 | $154,584 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.31 | 0.32 | 0.44 | n.a |
Current Debt/Total Assets | 44% | 15% | 12% | n.a |
Acid Test | 1.13 | 3.61 | 5.86 | n.a |
Sales/Net Worth | 5.69 | 3.68 | 2.59 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Family movies | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,000 | $16,640 | $17,306 | $17,998 | $18,718 |
Young adult movies | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $5,600 | $5,824 | $6,057 | $6,299 | $6,551 |
Concessions | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $12,960 | $13,478 | $14,018 | $14,578 | $15,161 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $34,560 | $35,942 | $37,380 | $38,875 | $40,430 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Movies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $12,960 | $13,478 | $14,018 | $14,578 | $15,161 | |
Concessions | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $3,888 | $4,044 | $4,205 | $4,373 | $4,548 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,848 | $17,522 | $18,223 | $18,952 | $19,710 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Samantha Farmer | 0% | $1,600 | $1,600 | $1,600 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 |
Steve Brinksman | 0% | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $2,400 | $2,400 | $2,400 | $2,400 |
Customer Service (4 part-time employees) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $850 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 4 | 6 | 6 | 6 | 6 | 6 | |
Total Payroll | $4,800 | $4,800 | $4,800 | $6,400 | $6,400 | $6,400 | $7,250 | $8,100 | $7,300 | $7,300 | $7,300 | $7,300 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $34,560 | $35,942 | $37,380 | $38,875 | $40,430 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,848 | $17,522 | $18,223 | $18,952 | $19,710 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,848 | $17,522 | $18,223 | $18,952 | $19,710 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $17,712 | $18,420 | $19,157 | $19,924 | $20,721 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 51.25% | 51.25% | 51.25% | 51.25% | 51.25% | |
Expenses | |||||||||||||
Payroll | $4,800 | $4,800 | $4,800 | $6,400 | $6,400 | $6,400 | $7,250 | $8,100 | $7,300 | $7,300 | $7,300 | $7,300 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $600 | $1,100 | $400 | $400 | $400 | $400 | |
Depreciation | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
Rent | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | |
Utilities | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Insurance | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $850 | $1,100 | $1,100 | $1,100 | $1,100 | |
Payroll Taxes | 15% | $720 | $720 | $720 | $960 | $960 | $960 | $1,088 | $1,215 | $1,095 | $1,095 | $1,095 | $1,095 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $9,786 | $9,786 | $9,786 | $11,626 | $11,626 | $11,626 | $13,204 | $14,831 | $13,461 | $13,461 | $13,461 | $13,461 | |
Profit Before Interest and Taxes | ($9,786) | ($9,786) | ($9,786) | ($11,626) | ($11,626) | ($11,626) | ($13,204) | $2,881 | $4,959 | $5,696 | $6,463 | $7,260 | |
EBITDA | ($9,620) | ($9,620) | ($9,620) | ($11,460) | ($11,460) | ($11,460) | ($13,038) | $3,047 | $5,125 | $5,862 | $6,629 | $7,426 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($9,786) | ($9,786) | ($9,786) | ($11,626) | ($11,626) | ($11,626) | ($13,204) | $2,881 | $4,959 | $5,696 | $6,463 | $7,260 | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 8.34% | 13.80% | 15.24% | 16.62% | 17.96% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $34,560 | $35,942 | $37,380 | $38,875 | $40,430 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $34,560 | $35,942 | $37,380 | $38,875 | $40,430 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $60,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $60,000 | $0 | $0 | $0 | $0 | $0 | $0 | $34,560 | $35,942 | $37,380 | $38,875 | $40,430 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $4,800 | $4,800 | $4,800 | $6,400 | $6,400 | $6,400 | $7,250 | $8,100 | $7,300 | $7,300 | $7,300 | $7,300 | |
Bill Payments | $161 | $4,820 | $4,820 | $4,828 | $5,060 | $5,060 | $5,084 | $6,969 | $40,680 | $24,283 | $25,014 | $25,775 | |
Subtotal Spent on Operations | $4,961 | $9,620 | $9,620 | $11,228 | $11,460 | $11,460 | $12,334 | $15,069 | $47,980 | $31,583 | $32,314 | $33,075 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,961 | $9,620 | $9,620 | $11,228 | $11,460 | $11,460 | $12,334 | $15,069 | $47,980 | $31,583 | $32,314 | $33,075 | |
Net Cash Flow | $55,039 | ($9,620) | ($9,620) | ($11,228) | ($11,460) | ($11,460) | ($12,334) | $19,491 | ($12,037) | $5,798 | $6,561 | $7,355 | |
Cash Balance | $67,439 | $57,819 | $48,199 | $36,971 | $25,511 | $14,051 | $1,717 | $21,208 | $9,170 | $14,968 | $21,529 | $28,885 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $12,400 | $67,439 | $57,819 | $48,199 | $36,971 | $25,511 | $14,051 | $1,717 | $21,208 | $9,170 | $14,968 | $21,529 | $28,885 |
Inventory | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $18,533 | $19,274 | $20,045 | $20,847 | $21,681 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $13,100 | $68,139 | $58,519 | $48,899 | $37,671 | $26,211 | $14,751 | $2,417 | $39,740 | $28,445 | $35,013 | $42,376 | $50,565 |
Long-term Assets | |||||||||||||
Long-term Assets | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $0 | $166 | $332 | $498 | $664 | $830 | $996 | $1,162 | $1,328 | $1,494 | $1,660 | $1,826 | $1,992 |
Total Long-term Assets | $10,000 | $9,834 | $9,668 | $9,502 | $9,336 | $9,170 | $9,004 | $8,838 | $8,672 | $8,506 | $8,340 | $8,174 | $8,008 |
Total Assets | $23,100 | $77,973 | $68,187 | $58,401 | $47,007 | $35,381 | $23,755 | $11,255 | $48,412 | $36,951 | $43,353 | $50,550 | $58,573 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $4,659 | $4,659 | $4,659 | $4,891 | $4,891 | $4,891 | $5,595 | $39,871 | $23,450 | $24,156 | $24,890 | $25,654 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $4,659 | $4,659 | $4,659 | $4,891 | $4,891 | $4,891 | $5,595 | $39,871 | $23,450 | $24,156 | $24,890 | $25,654 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $4,659 | $4,659 | $4,659 | $4,891 | $4,891 | $4,891 | $5,595 | $39,871 | $23,450 | $24,156 | $24,890 | $25,654 |
Paid-in Capital | $45,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 | $105,000 |
Retained Earnings | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) | ($21,900) |
Earnings | $0 | ($9,786) | ($19,572) | ($29,358) | ($40,984) | ($52,610) | ($64,236) | ($77,440) | ($74,559) | ($69,599) | ($63,903) | ($57,440) | ($50,181) |
Total Capital | $23,100 | $73,314 | $63,528 | $53,742 | $42,116 | $30,490 | $18,864 | $5,661 | $8,542 | $13,501 | $19,197 | $25,660 | $32,919 |
Total Liabilities and Capital | $23,100 | $77,973 | $68,187 | $58,401 | $47,007 | $35,381 | $23,755 | $11,255 | $48,412 | $36,951 | $43,353 | $50,550 | $58,573 |
Net Worth | $23,100 | $73,314 | $63,528 | $53,742 | $42,116 | $30,490 | $18,864 | $5,660 | $8,542 | $13,501 | $19,197 | $25,660 | $32,919 |
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Published Mar.20, 2019
Updated Apr.23, 2024
By: Jakub Babkins
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Table of Content
A movie theater is a business in which you make contact with the film distributors, buy their movies and play them on a big screen for your audience in a comfortable and enjoyable environment. This business requires continuous serious work, money and time investment, resulting in the production of huge profit.
If you are looking for a complete guide on how to open a movie theater , thoroughly read this sample business plan for movie theater including financial and marketing analysis, written for a movie theater startup named, ‘The Arena’.
2.1 the business.
The Arena will be a registered and insured movie theater company located in El Paso, Texas. Business will be owned by a husband and wife, Zac Martin and Enna Martin. All type of movies such as second run and first released will be played in The Arena.
To open a movie theater and run it successfully, one should either have strong management skills or should hire an efficient manager. From the distribution of tickets to the proper seating of the audience in the hall, it’s all about management.
Zac will be responsible for upgrading the building, managing finances of the business, and supervision. However, Enna will manage stuff like the selection of the movie, hiring staff, theater marketing, and snacks. For managing day to day tasks efficiently they have decided to hire a general manager to help them run the business.
After a busy and a hectic day, everyone resorts to some entertainment place to spend their evenings. So every young and adult, child and old living near to our theater will fall into the category of our customers.
The company aims at balancing the startup costs by earned profits within just three months of the launch and generate huge profits afterward by providing the best film, best food, and best drink all in one seat.
3.1 company owner.
Zac and Enna, a husband and wife who were previously acting as managers in a multiplex company, will be the owners of The Arena. They both are graduates in management regarding domains from the same university and are skilled in their respective domains.
After a three-year valuable experience in management, Zac and Enna have decided to start a movie theater of their own to serve the audience in the best way they have explored and of course to avail the opportunity of running their own company.
Zac and Enna will work in coordination with each other, however, they have decided to have a clear work division to avoid any sort of mismanagement. The Arena will be a movie theater comprising of four movie halls with a capacity of at least 250 people in each hall.
A building which previously was a marriage hall, will be restored to its fullest glory and upgraded to fulfill a theater requirement. And lastly, highly customer care-oriented staff will be hired for undertaking day to day chores.
The detailed start-up requirements as included in The Arena’s movie theater business plan is given here:
Legal | $55,300 |
Consultants | $0 |
Insurance | $32,750 |
Rent | $32,500 |
Research and Development | $32,750 |
Expensed Equipment | $32,750 |
Signs | $1,250 |
TOTAL START-UP EXPENSES | $187,300 |
Start-up Assets | $0 |
Cash Required | $332,500 |
Start-up Inventory | $32,625 |
Other Current Assets | $232,500 |
Long-term Assets | $235,000 |
TOTAL ASSETS | $121,875 |
Total Requirements | $245,000 |
$0 | |
START-UP FUNDING | $273,125 |
Start-up Expenses to Fund | $11,875 |
Start-up Assets to Fund | $15,000 |
TOTAL FUNDING REQUIRED | $0 |
Assets | $23,125 |
Non-cash Assets from Start-up | $18,750 |
Cash Requirements from Start-up | $0 |
Additional Cash Raised | $18,750 |
Cash Balance on Starting Date | $21,875 |
TOTAL ASSETS | $0 |
Liabilities and Capital | $0 |
Liabilities | $0 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
TOTAL LIABILITIES | $0 |
Capital | $0 |
Planned Investment | $0 |
Investor 1 | $332,500 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
TOTAL PLANNED INVESTMENT | $695,000 |
Loss at Start-up (Start-up Expenses) | $313,125 |
TOTAL CAPITAL | $251,875 |
TOTAL CAPITAL AND LIABILITIES | $251,875 |
To provide the services in a way you actually want to provide, you need to map their implementation even before researching on how to run a movie theater busines . Knowing the importance of preplanning Zac and Enna have enlisted their services with a little detail in their business plan for a movie theater as given here:
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After you have decided to run a movie theater business , the next step is to do its accurate and detailed marketing analysis. Before opening a movie theater , you have to make sure whether you are selecting the convenient location or not. Or whether you have to opt for a drive in theater business plan or a movie theater business plan for an auditorium. In either case, this sample on starting a movie theater business plan will be a great help for you.
Despite a large competition, movie theater business has been growing since the past few years by the annual growth rate of 3.1 percent and is expected to follow even a faster growth rate in the future. According to IBISWorld, movie theaters have generated a revenue of $18 billion in 2018, employing more than 155,400 people in the United States.
The business has its scope around the year in any climate or in any economic conditions, indicating that you won’t be at loss provided that you plan it successfully.
Before thinking about how to start your own movie theater business , you must be very clear about who will be your audience. Zac and Enna had divided their customers into three groups to focus on the demands of each group separately as given here:
5.2.1 Families: As The Arena will mainly be a second run released movie theater so its main target group will be the families who want a light entertainment within a walking distance or a short drive from their homes. People who seek family-oriented entertainment experience usually don’t care about watching a movie on the very first run. They just want quality and inexpensive entertainment.
5.2.2 Young & Adults: The second category which we look up as our customers will be the young and adults who want entertainment for a slight break in their daily routines, or as a good chance to enjoy with their friends and mates.
5.2.3 Children & Teens: The children and teens who want to have experience of watching movies in the cinemas like the other members of their families will also be our target customers. We’ll play our collection of animated and children movies for them.
The detailed market analysis of our potential customers is given in the following table:
Potential Customers | Growth | ||||||
Families | 32% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% |
Young & Adults | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% |
Children & Teens | 20% | 12,867 | 14,433 | 15,999 | 17,565 | 19,131 | 15.32% |
Total | 100% | 46,634 | 60,121 | 76,217 | 88,854 | 106,108 | 9.54% |
In the initial stages, we’ll price our tickets and snacks a little less than our competitors to get introduced to a wide audience. However, the prices may vary depending on the seat allocated and the price of movies.
After identifying the market trends, the market demand, and the potential customers of the startup, the next thing to cater in movie theater business plan is to develop a strategy to attract those customers toward us.
In all out research about how to start a cinema theater , Zac and Enna have thoroughly analyzed the market and the competitive edges they have to come up with, also given here for your help if you are formulating your home theater business plan .
Our biggest competitive advantage is that we are starting our business in an excellent locality in El Paso, as rest of the cinemas are very far from us, and several people would prefer to have a good entertainment near to their homes and offices. We’ll have excellent management, comforting environment, and good quality snacks to serve our customers.
Lastly, we have come up with a competitive edge which most of the others in the same business lacks. We will develop a website for our theater not for just looking at the schedule of movies but also for buying tickets and making reservations through online payment. We will make a poll every week, in which people could vote for the movie they want to see, the movie with the largest votes will be shown on every Sunday.
Sales strategy is the plan of how you will introduce your new business to your target customers. Considering the importance of advertisements, Zac and Enna had also included advertisements’ costs in their movie theater startup costs .
To advertise ourselves:
Considering our competitive advantages, our lower rates, and the quality of our services, our sales pattern is expected to increase with years. Our sales forecast on a yearly basis are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table:
In your movie theater business plan selection, distribution of tickets, proper seating arrangements and selling of delicious snacks have great importance. What’s more important is the dedicated and customer care oriented staff which will ensure the smooth running of your business for you.
Zac and Enna have decided to initially hire the following people for the startup:
To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.
The following table shows the forecasted data about employees and their salaries for the next three years.
Accountants | $85,000 | $95,000 | $105,000 |
Sales Executives | $152,000 | $159,000 | $166,000 |
Assistants | $240,000 | $270,000 | $300,000 |
Cleaners | $210,000 | $240,000 | $270,000 |
Inventory Manager | $50,000 | $54,000 | $57,000 |
Front Desk Officer | $41,000 | $50,000 | $54,000 |
Security Officers | $145,000 | $152,000 | $159,000 |
Total Salaries | $260,000 | $294,000 | $327,000 |
After you have decided each and everything about your business, the last step is to estimate start up cost for a movie theater and make a detailed financial plan. Your financial plan should depict how much does it cost to open a movie theater, what are your investment group for business plan , how you will be able to balance your investments with the earned profits and much more.
The detailed financial plan for The Arena is given here for a rough estimate.
8.2 brake-even analysis.
8.3.1 profit monthly.
8.6 business ratios.
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The popularity of theater remains intact for the immersive entertainment experience it offers. It is indeed a rewarding business if it continues to evolve with emerging trends.
Anyone can start a theater but it takes a visioned entrepreneur to turn it into a lucrative business opportunity. A detailed business plan can help you get started, raise funds and stay profitable.
Need help writing a business plan for your theater? You’re at the right place. Our theater business plan template will help you get started.
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Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!
Writing a theater business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:
An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.
Here are a few key components to include in your executive summary:
Start your executive summary by briefly introducing your business to your readers.
Theater services:.
Highlight the theater services you offer your clients. The USPs and differentiators you offer are always a plus.
Financial highlights:, call to action:.
Ensure your executive summary is clear, concise, easy to understand, and jargon-free.
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The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:
Describe your business in this section by providing all the basic information:
Describe what kind of theater you run and the name of it. You may specialize in one of the following theaters:
Business history:.
If you’re an established theater service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.
The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.
Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
Describe your market size and growth potential and whether you will target a niche or a much broader market.
Market trends:.
Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
Here are a few tips for writing the market analysis section of your theater business plan:
The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:
Mention the theater services your business will offer. This list may include services like,
Mention the food and beverages you will offer at your theater. The list may include,
: This section should explain how you maintain quality standards and consistently provide the highest quality service.
In short, this section of your theater plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.
Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:
Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
Marketing strategies:, sales strategies:, customer retention:.
Overall, this section of your movie theater business plan should focus on customer acquisition and retention.
Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your theater, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.
The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:
Operational process:, equipment & machinery:.
Include the list of equipment and machinery required for the theater, such as screens, audio-visual technology, accessibility equipment, cleaning and maintenance equipment, etc.
Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.
The management team section provides an overview of your theater’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.
Key managers:.
Introduce your management and key members of your team, and explain their roles and responsibilities.
Compensation plan:, advisors/consultants:.
Mentioning advisors or consultants in your business plans adds credibility to your business idea.
This section should describe the key personnel for your theater services, highlighting how you have the perfect team to succeed.
Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:
Cash flow statement:, balance sheet:, break-even point:.
Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.
The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.
Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.
Remember, the appendix section of your theater business plan should only include relevant and important information supporting your plan’s main content.
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This sample theater business plan will provide an idea for writing a successful theater plan, including all the essential components of your business.
After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our theater business plan pdf .
Frequently asked questions, why do you need a theater business plan.
A business plan is an essential tool for anyone looking to start or run a successful theater business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.
Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your theater company.
There are several ways to get funding for your theater business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:
Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.
The level of detail of the financial projections of your theater business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.
Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.
The following are the key components your theater business plan must include:
Indeed. A well-crafted theater business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.
So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.
Marketing strategy is a key component of your theater business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!
Here are a few pointers to help you understand the importance of having an impactful marketing strategy:
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their movie theaters. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a movie theater business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
A business plan provides a snapshot of your movie theater as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
If you’re looking to start a movie theater, or grow your existing theater, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your movie theater in order to improve your chances of success. Your movie theater business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a movie theater are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a movie theater. Personal savings and bank loans are the most common funding paths for movie theaters.
How to write a business plan for a movie theater.
If you want to start a theater or expand your current one, you need a business plan. In the following movie theater business plan template, we detail what you should include in your own business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of movie theater facility you are operating and the status. For example, are you a startup, do you have a movie theater that you would like to grow, or are you operating a chain of movie theaters?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the movie theater industry. Discuss the type of movie theater you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of movie theater company you are operating.
For example, you might operate one of the following types of movie theaters:
In addition to explaining the type of movie theater you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
In your industry analysis, you need to provide an overview of the movie theater industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section:
The customer analysis section must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: families, university students, young professionals, budget-conscious moviegoers, and people with a higher education or interest in art.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of business you operate. Clearly, families would respond to different marketing promotions than young professionals or university students, for example.
Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most movie theaters primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other movie theaters.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes online streaming services and video rental retailers. You need to mention such competition as well.
With regards to direct competition, you want to describe the other movie theaters with which you compete. Most likely, your direct competitors will be movie theaters located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a movie theater business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of movie theater company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to screening films, will you provide concessions, alcoholic beverages (where legal) or arcade games?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your movie theater company. Document your location and mention how the location will impact your success. For example, is your movie theatre business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your movie theater marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your theater, including selling tickets, taking tickets, cleaning theaters, operating film screenings.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 100,000th ticket, or when you hope to reach $X in revenue. It could also be when you expect to expand your movie theater company to a new city.
To demonstrate your movie theater’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing movie theaters. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing theaters or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you sell 3,000 tickets per day or per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your movie theater, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a movie theater:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your theater location lease or timetables for movies you are screening.
Putting together a business plan for your movie theater is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the movie theater industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful movie theater.
What is the easiest way to complete my movie theater business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Movie Theater Business Plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of movie theater business you are operating and the status; for example, are you a startup, do you have a movie theater business that you would like to grow, or are you operating a chain of movie theater businesses?
Don’t you wish there was a faster, easier way to finish your Movie Theater business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to hire someone to write a business plan for you from Growthink’s team.
Written by Dave Lavinsky
You’ve come to the right place to create your Movie Theater business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Movie Theater businesses.
Below is a template to help you create each section of your Movie Theater business plan.
Business overview.
Cinema Escape offers the residents of Wichita, Kansas a temporary escape from their daily grind with the magic of cinema. Our new movie theater has five enormous screens that will showcase a wide range of movies, including blockbusters and indie films. We will offer a diverse list of film options to cater to the diverse interests of the community of Wichita. Our goal is to ensure that every customer who walks through our doors has the best cinema experience possible.
Cinema Escape is run by Christine Ismay, a former movie theater manager and MBA graduate from the University of Kansas. She has loved cinema her whole life but always hated the corporate feel of most national chain movie theaters. She has been committed to starting her own movie theater for several years and finally has the plans and support to make her dream a reality. Her combination of experience and education will ensure that our movie theater succeeds in the local market.
Cinema Escape offers five screens that will show several movies throughout each day. We will offer a diverse mix of movies, from major blockbusters to local indie films. Cinema Escape will also offer several snacks and refreshments for customers to enjoy while they watch these films.
Cinema Escape will target movie lovers of all ages and genders. We aim to offer a wide selection of movies so that everyone will be enticed to visit our establishment. Though our customer base will be determined by which movies are available each week, we expect most of our customers will include families and young adults.
Cinema Escape is founded and run by Christine Ismay. Christine Ismay is a graduate of the University of Kansas with a Master’s in Business Administration. In addition to her education, Christine worked for several years as a movie theater manager at a local competitor. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun and profitable operation will help her quickly attract customers and employees to Cinema Escape.
Cinema Escape will be able to achieve success by offering the following competitive advantages:
Cinema Escape is seeking $450,000 in debt financing to launch its movie theater. The funding will be dedicated to leasing and building out the space, purchasing equipment and supplies, marketing expenses, working capital, and three months of overhead costs. The breakout of the funding is below:
The following graph below outlines the pro forma financial projections for Cinema Escape.
Who is cinema escape.
Cinema Escape offers its customers a chance to escape from the daily grind of modern life by providing them with the ultimate cinema experience. Our cinema has five large screens that show a diverse selection of movies seven days a week. Our movie selection will include the biggest blockbusters as well as lesser-known indie films. We will show a wide variety of genres, including children’s films, romances, dramas, and sci-fi.
Customers can purchase a variety of snacks to consume while they watch a movie on one of our screens. These refreshments include typical movie theater fare such as popcorn, nachos, sodas, and water. Our customers will also enjoy comfortable seating, interacting with friendly and professional staff, and a family-friendly atmosphere.
Cinema Escape is owned and operated by Christine Ismay, a former movie theater manager and MBA graduate from the University of Kansas. Christine is a dedicated leader with the ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation. These skills will help her quickly attract customers and employees to her new movie theater.
Since its incorporation, Cinema Escape has achieved the following milestones:
Cinema Escape will showcase a wide selection of movies across its five screens. These will include major blockbusters as well as lesser-known indie films. Nearly every genre is welcome at Cinema Escape, including children’s films, dramas, romances, action movies, and sci-fi films.
We will also have a wide selection of refreshments for our customers. This will include popcorn, nachos, hot dogs, sodas, water, and other non-alcoholic drinks. We will also sell merchandise that will display our company logo and artwork pertaining to popular films.
According to Global Market Insights, the movie theater industry in the United States was valued at $63 billion in 2022. The industry is bouncing back from the pandemic years and is expected to grow at a CAGR of 4.9% from now until 2032. Despite the negative outlook that the industry had just a few years ago, the movie theater industry is doing well, with strong growth and enormous profits expected over the next decade.
The main sources of revenue for industry operators are ticket sales, followed by food and beverage sales, as well as merchandise sales. Market drivers include an increase in disposable income as well as increased marketing efforts by the movie industry at large. Movie theater industry operators can maintain a competitive advantage by providing competitive pricing, extended hours, or unique refreshment and merchandise options the competition does not offer.
Demographic profile of target market, customer segmentation.
Cinema Escape will primarily target the following customer profiles:
Direct and indirect competitors.
Cinema Escape will compete with other companies with similar business profiles. A description of each competitor is below.
Regal Cinemas is one the largest and most diverse movie theaters in the country, boasting over 6,000 screens across 500 theaters. Customers nationwide can always count on Regal to show the best and most popular modern films in cinema as well as unique and lesser-known films and special events. Regal also has a great selection of refreshments and offers an appealing membership program that helps customers snag deals and save money. Regal’s best offer is its unlimited pass, which allows customers to see as many movies as they want in a given year.
Established in 1984, Cinemark is another major competitor in the movie theater market, operating nearly 6,000 screens across over 500 theaters. It is one of the top three largest movie theaters in the United States and is the largest theater chain in Brazil. Cinemark offers a great selection of movies at all of its theaters as well as rewarding and affordable membership plans. Customers particularly enjoy their movie club, which offers discounts on movie tickets, refreshments, and merchandise.
AMC Theaters has the largest share of theaters across the U.S. Headquartered in our home state of Kansas, AMC has a major presence and is consistently some of the most visited theaters in the area. AMC offers incredible refreshments, premium movies, great membership programs, and tons of great merchandise to keep customers coming back. As such, we expect that AMC will be our toughest competition to beat.
Cinema Escape will be able to offer the following advantages over the competition:
Brand & value proposition.
Cinema Escape will offer a unique value proposition to its customers:
The promotions strategy for Cinema Escape is as follows:
Word of Mouth/Referrals
Christine Ismay has built up an extensive list of contacts over the years by providing exceptional service to her customers. Once Christine advised them she was leaving her employer to open her own movie theater, many customers expressed interest in coming to Cinema Escape and spreading the word about the new location to their friends and families.
Print Advertising
Cinema Escape will invest in professionally designed print ads to display in programs or flyers and to put in magazines, newspapers, and direct mailers.
Website/SEO Marketing
Cinema Escape will employ an in-house marketing manager to design and maintain the company website. The website will be well organized, informative, and list all the services the movie theater will offer. The marketing manager will also manage Cinema Escape’s website presence with SEO marketing tactics so that when someone types in the Google or Bing search engine “Wichita movie theater” or “movie theater near me,” Cinema Escape will be listed at the top of the search results.
Social Media Marketing
The company will create social media accounts on multiple platforms, including Facebook, Instagram, TikTok, and YouTube. The marketing manager will manage the accounts and maintain an active presence to promote the theater.
The pricing of Cinema Escape will be moderate so that our customers can afford to have a fun outing at the movie theater. This pricing model will apply to our tickets as well as our refreshments and merchandise.
The following will be the operations plan for Cinema Escape. Operation Functions:
Cinema Escape will have the following milestones completed in the next six months.
Cinema Escape is founded and run by Christine Ismay. Christine Ismay is a graduate of the University of Kansas with a Master’s in Business Administration. In addition to her education, Christine also worked for several years as a movie theater manager at a local competitor. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun and profitable operation will help her quickly attract customers and employees to Cinema Escape.
Though Christine has never run a company of her own, she has considerable experience in the industry and knows how to run the general operations of a local movie theater. She is in the process of hiring staff who will help her manage the marketing, accounting, and administrative aspects of the business.
Key revenue & costs.
The revenue drivers for Cinema Escape include movie ticket sales as well as the sales of our refreshments and merchandise.
The cost drivers will include the overhead costs, the cost of the equipment and supplies, marketing expenses, and labor expenses.
Key assumptions.
The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
What is a movie theater business plan.
A movie theater business plan is a plan to start and/or grow your movie theater business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Movie Theater business plan using our Movie Theater Business Plan Template here .
There are a number of different kinds of movie theater businesses , some examples include: First-Run Movie Theater, Discount Movie Theater, and Art House Theater.
Movie Theater businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a movie theater business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Movie Theater Business Plan - The first step in starting a business is to create a detailed movie theater business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your movie theater business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your movie theater business is in compliance with local laws.
3. Register Your Movie Theater Business - Once you have chosen a legal structure, the next step is to register your movie theater business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your movie theater business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Movie Theater Equipment & Supplies - In order to start your movie theater business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your movie theater business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful movie theater business:
By henry sheykin, resources on movie theater.
Welcome to our blog post on how to write a business plan for a movie theater! In today's rapidly growing movie theater industry , it's crucial to have a well-thought-out plan in order to create a successful and thriving business. According to recent statistics, the global movie theater market is projected to reach a value of $50.1 billion by 2026, with a compound annual growth rate (CAGR) of 6.7% from 2021 to 2026.
Now, let's delve into the nine essential steps to craft a comprehensive business plan for your movie theater. From conducting market research and defining your target audience to securing funding and establishing legal requirements, each step plays a vital role in ensuring the longevity and profitability of your venture.
Conducting market research is the first step towards understanding the dynamics of the movie theater industry, identifying potential customers, and determining the demand for various movie genres and experiences.
Next, it's crucial to define your target audience and location . Analyze your local community and demographics to tailor your movie offerings and amenities to the preferences and needs of your target market.
Assessing the competition is essential to understand the existing movie theaters in your area, their strengths and weaknesses, and strategize ways to differentiate your theater by offering a unique and memorable viewing experience.
Determining the type of movie theater you want to develop is an important decision that will shape your business model and offerings. Consider factors such as the number of screens, seating capacity, and special amenities like 3D screens.
A robust financial plan should be developed to outline the initial investment required, projected revenue and expenses, and profitability. This will provide a solid foundation for securing funding or investment from potential stakeholders.
Creating a detailed marketing strategy is crucial to effectively promote your movie theater and attract customers. Identify the most effective channels to reach your target audience and develop enticing promotions and loyalty programs.
In order to bring your business plan to fruition, it's important to secure funding or investment . Explore various financing options and present a compelling case to potential investors that highlights the unique value proposition of your movie theater.
Identifying potential suppliers and vendors for your concessions and required equipment ensures a seamless operation. Consider partnering with reputable suppliers to provide quality snacks and beverages.
Lastly, it's essential to establish legal requirements and permits to ensure compliance with local regulations. This includes obtaining the necessary licenses and permits for operating a movie theater and adhering to safety and copyright practices.
By following these nine steps and tailoring them to your specific business requirements, you'll be well on your way to developing a successful and thriving movie theater that offers customers a convenient and enjoyable viewing experience. Stay tuned for more insightful articles to help you navigate the world of entrepreneurship!
Market research is a crucial step in developing a successful business plan for a movie theater. It allows you to gather important information about your potential customers, their preferences, and the local market. By understanding your target audience and analyzing the demand for movie theaters in your chosen location, you can make informed decisions to differentiate your theater and attract more patrons.
By conducting thorough market research, you can gather the necessary data to shape your business plan and make informed decisions. It allows you to identify opportunities and mitigate potential risks before investing time and resources into your movie theater venture.
| Movie Theater Financial Model Get Template |
Defining the target audience and selecting a suitable location are crucial steps in writing a business plan for a movie theater. By understanding the needs and preferences of your potential customers, you can tailor your offerings and marketing efforts to attract and retain their patronage. Additionally, choosing the right location can significantly impact the success of your theater, as it can determine the accessibility and convenience for your target audience.
When defining the target audience for your movie theater, consider factors such as demographic characteristics, movie preferences, and viewing habits . Are you targeting families with young children, young adults, or seniors? Will your theater cater to cinephiles who enjoy independent or foreign films, or are you aiming to attract a wider audience with a mix of blockbusters and classics? Understanding your target audience will help you curate a movie selection and create an experience that resonates with their interests.
Next, evaluate potential locations based on their proximity to your target audience and the competitive landscape . Consider areas with high foot traffic, such as shopping centers or urban areas, that are easily accessible by public transportation and have ample parking facilities. Additionally, assess the presence of competing movie theaters in the vicinity and their offerings. Choosing a location with high demand and limited competition can give you a competitive edge and increase the chances of success for your theater.
One of the crucial steps in writing a business plan for a movie theater is to assess the competition in the market. By understanding the existing theaters and their offerings, you can identify opportunities to differentiate your business and attract customers.
Start by researching the competitors in your target location. Look for theaters that are similar in size, offering similar types of movies, and catering to a similar target audience. This will give you an idea of the direct competition you will face.
Analyze the strengths and weaknesses of your competitors. Take note of what they do well and where they may be lacking. This will help you identify areas where you can offer a unique experience or fill a gap in the market.
Based on your assessment of the competition, outline your unique selling proposition , the factors that will set your movie theater apart from the others. This could include offering a wider selection of movies, providing better customer service, or creating a more comfortable viewing environment.
By thoroughly assessing the competition, you can gain valuable insights and develop a competitive advantage for your movie theater business.
When determining the type of movie theater to develop, it's important to consider the preferences and interests of your target audience. This will help guide the selection of movies and amenities that will attract and retain customers. Key factors to consider include:
Developing a robust financial plan is crucial for the success of your movie theater business. It will not only help you estimate the initial investment required but also forecast the potential revenue and expenses associated with running the theater. By carefully considering various financial aspects, you can ensure that your business remains profitable in the long run.
1. Estimate the initial investment:
Start by estimating the initial investment required to open the movie theater. This includes costs such as purchasing or leasing a suitable location, acquiring state-of-the-art equipment and technology, renovating the space to meet cinema standards, and setting up a concession stand. Consider seeking professional advice or consulting with experienced theater owners to get an accurate estimate.
2. Forecast revenue and expenses:
Create a detailed financial projection that estimates your revenue and expenses. Consider factors such as ticket sales, concession sales, advertising revenue, and loyalty program memberships. Additionally, account for operational costs, including rent, utilities, wages, maintenance, and marketing expenses. Be conservative in your revenue estimates and ensure your expenses are realistic.
3. Set pricing and ticket strategies:
Determine an appropriate pricing strategy for your movie theater. Consider factors such as ticket prices, concession pricing, discounts for special screenings or loyalty program members, and pricing for premium experiences like 3D movies. Analyze your target audience and the local market to strike a balance between competitive pricing and profitability.
4. Secure financing:
Once you have estimated your initial investment and projected revenue and expenses, you need to secure financing to fund your movie theater venture. Research various funding options, such as bank loans, private investors, or government grants, and choose the one that aligns with your financial needs and goals. Prepare a compelling business plan and financial proposal to present to potential investors or lenders.
Developing a robust financial plan requires careful consideration of various factors that can have a significant impact on the financial success of your movie theater business. By estimating initial investments, forecasting revenue and expenses, setting pricing strategies, and securing appropriate financing, you'll be well-prepared to navigate the financial aspects of running a theater and set yourself up for long-term profitability.
Creating a detailed marketing strategy for your movie theater is essential to attract customers and ensure the success of your business. A well-thought-out marketing plan will help you reach your target audience, increase brand awareness, and drive ticket sales. Here are some important steps to consider when developing your marketing strategy:
1. Define Your Target Audience: Start by identifying your target audience, such as families, young adults, or cinephiles. Understanding their demographics, preferences, and behavior will help you tailor your marketing efforts effectively.
2. Identify Unique Selling Points: Determine what sets your movie theater apart from the competition. Highlight unique features, such as comfortable seating, cutting-edge technology, or an extensive range of movie genres, to attract customers.
3. Establish Branding and Positioning: Develop a strong brand identity for your movie theater that reflects your values and appeals to your target audience. Position your theater as a go-to destination for enjoyable and immersive movie experiences.
4. Utilize Online Marketing: Leverage digital platforms to promote your movie theater. Create a user-friendly website that showcases upcoming movies, showtimes, and ticket purchasing options. Engage with customers through social media platforms and run targeted online advertising campaigns.
5. Implement Traditional Marketing Tactics: Don't overlook traditional marketing methods such as print advertising, billboards, and local partnerships. Consider distributing flyers or brochures in nearby businesses or community centers to increase awareness.
6. Develop Partnerships: Collaborate with local businesses or organizations to cross-promote and reach a wider audience. Offer joint promotions or discounts for customers who visit both your theater and a partnered establishment.
7. Offer Special Promotions and Events: Create excitement and attract customers by offering special promotions, such as discounted tickets on certain days or loyalty programs. Additionally, organize events like themed movie nights or exclusive screenings to encourage customer engagement.
By creating a well-defined marketing strategy, you can effectively showcase your movie theater's unique features and attract a loyal customer base. Remember to regularly evaluate your marketing efforts and adapt to changing market trends to stay ahead of the competition.
Securing funding or investment is a crucial step in starting a movie theater business. It allows you to acquire the necessary capital to cover expenses such as leasing or purchasing a space, purchasing equipment, hiring staff, and marketing the theater. Here are some important considerations when it comes to securing funding or investment:
When establishing a movie theater business, it's crucial to identify potential suppliers and vendors who can provide the necessary equipment, concessions, and other essential products. Finding reliable and high-quality suppliers is essential to ensure smooth operations and customer satisfaction. Here are some important steps to follow when identifying potential suppliers and vendors:
When starting a movie theater business, it is crucial to understand and fulfill the legal requirements and obtain the necessary permits to ensure compliance with local, state, and federal laws. Failure to do so can result in fines, penalties, or even the forced closure of your theater. Here are some key steps to follow:
By adhering to legal requirements and obtaining the necessary permits, you can operate your movie theater confidently, knowing that you are compliant with the law and able to provide a secure and enjoyable experience for your customers. Taking the time to establish a strong legal foundation will contribute to the long-term success of your business.
In conclusion, starting a movie theater business requires careful planning and research. By following the nine steps outlined in this checklist, you can create a solid business plan that will help you succeed in this competitive industry. Conducting market research, defining your target audience and location, assessing the competition, and determining the type of movie theater you want to open are all crucial steps in setting a strong foundation for your business. Developing a robust financial plan, creating a detailed marketing strategy, and securing funding or investment will ensure the financial viability of your venture. Identifying potential suppliers and vendors, as well as understanding and fulfilling legal requirements and permits, are important for smooth operations. By following these steps, you can bring your vision for a movie theater that offers a convenient, comfortable, and rewarding experience to life. Good luck on your journey!
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By: Author Tony Martins Ajaero
Home » Business ideas » Hospitality, Travel & Tourism » Movie Theater & Cinema
Do you want to start a movie theater and need to write a plan? If YES, here is a sample movie theater business plan template & feasibility report.
So, if you are considering opening a movie theater, you need capital to purchase or lease/rent a suitable facility, the required equipment, tools and furniture. You also need some additional capital to secure commercial license to air movies, pay your employees at least for the first 3 months, and also to pay your utility bills.
Lastly, you would need a good business plan to be able to launch a successful business and below is a workable movie theater business plan template that will help you draft yours.
1. industry overview.
A movie theater which is also called a cinema is a venue, usually a building, that contains an auditorium for viewing films/movies or motion pictures as it is called in some quarters, for the purpose of entertainment or perhaps education.
Almost all movie theaters are commercial operations open to the general public, who attend by purchasing a ticket. Cinemas/movie theaters are generally custom designed buildings for viewing movies from any sitting position.
The Movie Theaters industry is currently in the growth stage of its life cycle. Statistics has it that the Movie Theaters industry in the united states of America is worth billion, with an estimated growth rate of 3.6 percent between 2014 and 2019.
There are about 4,545 registered and licensed Movie Theaters in the United States and they are responsible for employing about 157,928 people. Please note that the companies holding the largest market share in the Movie Theaters industry in the United States are AMC Entertainment Inc., Cineworld Group PLC and Cinemark Holdings Inc.
A recent report published by IBISWorld shows that the Movie Theaters industry has grown over the five years to 2019, despite strong external competition. Over the five years to 2019, industry revenue is estimated to grow an annualized 3.6 percent, reaching $18.9 billion in 2019, including revenue growth of 1.0 percent in 2019 alone.
With increases in per capita disposable income and the success of blockbuster films during the period, industry revenue has grown despite competition from substitute film viewing methods, other forms of entertainment and a decrease in total theater attendance.
External competition from substitute entertainment products and other ways of accessing films, including online video, on-demand services, internet-enabled TVs, smartphones and tablets, have increasingly shifted movie consumption.
Although the movie theatre industry can be said to be a competitive industry, but it does not stop entrepreneurs who are creative to still make headway in the industry. It is indeed a profitable industry especially when the business is well located. Busy cities with growing population are highly suitable for movie theatre.
Any aspiring entrepreneur can comfortably start his or her own movie theatre business by acquiring an existing cinema house and then refurbish it to meet the expected standard or start the business from the scratch by constructing a new movie theatre and then equipping it with the needed equipment and accessories.
Lastly, movie theater and other related entertainment businesses are part of human lifestyle hence it must be located near human and vehicular traffic if indeed you want to maximize profits from the business. It would be to your advantage if you lease a facility that is located in a bubbling city that has loads of upwardly mobile young adult.
Don Pedro™ Movie Theater Company, Inc. is a standard movie theater company that is fully equipped with the latest technology in the movie industry. Our movie theater facility will be located in the heart of Inglewood, Los Angeles – California, U.S and we are positioned to partner with film makers and diverse group of people who would want to watch movies in a standard movie theater.
Don Pedro™ Movie Theater Company, Inc. will engage in showing movies in our cinemas, drive-in and outdoor movie theaters. Our business goal is to work towards becoming one of the leading movie theater brands in the whole of Los Angeles and in the nearest future compete with the leaders in the industry not only in the United States but also at the global stage.
We are not ignorant of the fact that building a standard and world class movie theater company from the scratch requires huge capital base especially for the purchase of the latest equipment, which is why we have perfect plans for steady flow of cash from our business partners with interest in our line of business.
We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry.
We will ensure that all our employees are selected from a pool of talented and highly creative people with eyes for good movies in and around Los Angeles – California. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States.
At Don Pedro™ Movie Theater Company, Inc. our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely and of course showing movies and videos that can compete with the best in the world.
Don Pedro™ Movie Theater Company, Inc. is owned majorly by Donald Pedro and other partners. Donald Pedro is a certified and licensed film producer, he graduated from New York Film Academy and he has over 25 years hand on experience in the movie theater industry working for leading film and video producing companies and also leading movie theaters in Hollywood.
He will build the business alongside other experienced partners who have successfully carved a niche for themselves in the industry.
Don Pedro™ Movie Theater Company, Inc. is going to offer varieties of services in the movie theater industry in the United States of America. Our intention of starting our movie theater business in Inglewood – Los Angele, California is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and business goals.
Our business offerings are listed below;
Our Business Structure
The success of any business is dependent on the business structure of the organization and the people who occupy the available roles. Don Pedro™ Movie Theater Company, Inc. will build a solid business structure that can support the growth of our movie theater business. We will ensure that we hire competent hands to help us build the business of our dream.
The fact that we want to become one of the leading movie theater brands in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset. Below is the business structure that we will build Don Pedro™ Movie Theater Company, Inc.;
Entertainment Lawyer/Legal Secretary
Theater Manager
Admin and HR Manager
Marketing and Sales Executive
Chief Executive Office:
Theater Attendant
Client Service Executive
Don Pedro™ Movie Theater Company, Inc. engaged the services of a core professional in the area of startup business consulting and structuring to assist the organization in building a standard movie theater company that can favorably compete with other leading brands in the United States of America.
Part of what the business consultant did was to work with the management of the company in conducting a comprehensive SWOT analysis for Don Pedro™ Movie Theater Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Don Pedro™ Movie Theater Company, Inc.;
Our core strength lies in the power of our team and the latest film and video projecting equipment that we have. We have a team that can give our clients value for their money; a team that knows how to get the very latest movies from the industry.
We are well positioned in the heart of Inglewood; Los Angeles and we know we will attract loads of clients from the first day we open our movie theater company for business.
As a new movie theater company based in Los Angeles, it might take some time for our organization to break into the market; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion our business the way we would want to.
As a leisure activity, movie attendance relies on household disposable income levels, which, in turn, are affected by the employment rate, tax rates and the general state of the economy. When disposable income levels rise, people are increasingly able and willing to spend on discretionary items, driving up ticket and concession sales.
Conversely, consumers may reduce trips to the movies when they have lower disposable income. Per capita disposable income is expected to increase in 2019, representing a potential opportunity for the industry.
The number of broadband connections indicates the extent to which consumers use high-speed internet for a variety of purposes, including accessing competing streaming platforms. With the rapid rise in broadband connection numbers, more consumers are using the internet to download or stream movies, which directly reduces demand for the Movie Theaters industry.
The number of broadband connections is expected to rise in 2019, posing a potential threat to the industry. So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power.
In recent time, Movie Theaters are finding it difficult to fill up their seats. This is due to competition from online streaming platforms that have successfully drawn movie-goers away from the theaters. Going forward, the movie theater industry will benefit from rising disposable income, which will encourage consumers to spend more on entertainment.
The truth is that even though disposable income levels have improved since the recession, enabling more entertainment spending, media consumption is increasingly shifting toward lower-cost online subscriptions, such as Netflix and Hulu.
This trend has been supported by the rising number of tablets and smartphones capable of streaming movie files, as well as the continued development of wireless data connection.
The fact that the industry is highly competitive does not in a way stop some movie theater companies from declaring profits yearly. In the bid to stay afloat in the highly competitive cinema business, owners of cinemas now go the extra mile to make their facility welcoming and conducive for customers.
Movie theatres now have coffee bars, snack bars, and free Wi-Fi et al. Another known trend in the movie theater industry is that most movie theaters are trying as much as possible to recreate themselves and also to be on top of their game.
When it comes to the movie theater business, there are no exemptions to who you can market your services to. Your movies can be marketed to adults, children, teenagers, corporate organization, government and everyone who can afford to purchase a ticket.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know will need to visit our movie theater. We have conducted our market research and survey and we will ensure that our movie theater company attracts the kind of film makers and clients we would love to work with.
Below is a list of the people and organizations that we will market our services to;
We are mindful of the fact that there are stiff competitions in the movie theater industry in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our Competitive Advantage revolves around our ability to attract local support and patronage, easy compliance with government regulations, ability to quickly adopt new technology, raise financing and follow international best practices in the movie theater industry.
Don Pedro™ Movie Theater Company, Inc. might be a new entrant into the movie theater industry in the United States of America, but our competitive advantage lies in the power of our team, our cozy facility and the latest film and video projecting equipment that we have.
We have a team that can give our clients value for their money; a team that can produce world class movies that can favorably compete with movies produced by leaders in the industry.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
Don Pedro™ Movie Theater Company, Inc. is established with the aim of maximizing profits in the movie theater industry and we are going to do all it takes to attract our target market. Don Pedro™ Movie Theater Company, Inc. will generate income by offering the following services and products;
One thing is certain when it comes to movies and documentaries; they never die and the demand for good movies and documentaries will continue to grow. This goes to show that any movie theater company that is known to always show latest movies will continue to attract movie lovers.
We are well positioned to take on the available market in Los Angeles – California and beyond and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six month of operation and grow the business and our clientele base beyond Los Angeles – California to other cities in the U.S.
We have been able to examine the movie theater market, we have analyzed our chances in the industry and we have been able to come up with a sales forecast. Below are the sales projections for Don Pedro™ Movie Theater Company, Inc., it is based on the location of our business and other factors as it relates to movie theater startups in the United States;
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
Our sales and marketing team will be recruited based on their vast experience in the movie theater industry and they will be trained on a regular basis so as to be well equipped to meet the overall goal of the organization. We will also ensure that our excellent movies and videos speaks for us in the market place.
Our business goal is to build Don Pedro™ Movie Theater Company, Inc. business to become one of the leading choice in the whole of Los Angeles – California which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the U.S.
Don Pedro™ Movie Theater Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;
We have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the movie theater industry by storm which is why we have made provisions for effective publicity and advertisement of our movie theater.
Below are the platforms we intend to leverage on to promote and advertise Don Pedro™ Movie Theater Company, Inc.;
At Don Pedro™ Movie Theater Company, Inc. we will keep our fees and prices of movie ticket a little below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to groups that purchase our movie tickets.
The payment policy adopted by Don Pedro™ Movie Theater Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Don Pedro™ Movie Theater Company, Inc. will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our clients make payment for movie tickets and product purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
The cost of setting up movie theater business can be quite expensive especially if you are starting a standard movie theater. These are the areas we are looking towards spending our startup capital on;
We will need an estimate of nine hundred and fifty thousand dollars ($950,000) to successfully set up a medium scale but standard movie theater in the United States of America.
Generating Funds/Startup Capital for Don Pedro™ Movie Theater Company, Inc.
Don Pedro™ Movie Theater Company, Inc. is going to start as a partnership business that will be owned and managed by Donald Pedro and his business partners. They are the financiers of the business, but may likely welcome other partners later which is why they have decided to restrict the sourcing of his startup capital to 3 major sources.
N.B: We have been able to generate about $400,000 (Personal savings plus funds from business partners) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
Part of the plans we have in place to sustain Don Pedro™ Movie Theater Company, Inc. is to ensure that we continue to show latest movies, offer and deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.
From our findings, another factor that kills a new business is financial leakages. In order to plug financial leakages, the management of Don Pedro™ Movie Theater Company, Inc. adopted the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key components to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services once the need arises.
Don Pedro™ Movie Theater Company, Inc. will make sure that the right foundations, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
A competitive analysis is not just a tool for gauging the position of your movie theater in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your movie theater’s unique selling points, essential for differentiating your business in a competitive market.
In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
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The first step in competitive analysis is to identify who your competitors are. Start by listing other movie theaters in your vicinity. For instance, if your theater is known for showcasing indie films, your direct competitors include nearby cinemas that also focus on indie films, as well as multiplexes that offer a wider range of film genres. It’s important not to overlook indirect competitors like streaming services or community centers that host movie nights.
Utilize online resources such as Google Maps for a geographical overview of where competitors are located. Websites like TripAdvisor and Yelp can provide customer reviews and ratings, which offer insights into the strengths and weaknesses of these competitors. For example, if a competitor receives high praise for its luxurious seating and state-of-the-art sound systems, this indicates a key strength you might need to match or surpass.
Evaluating the strategies of your competitors can cover several areas:
Reflect on what makes your movie theater unique. Perhaps it’s the exclusive access to limited-release films, or maybe you offer a luxurious viewing experience with gourmet concessions not available elsewhere in your area.
Identify market gaps through customer feedback and entertainment trends. For instance, the increasing demand for immersive movie experiences like 3D or IMAX could be a significant opportunity if competitors are not already capitalizing on this trend.
Consider your location: A theater in a bustling city center may focus on late-night showings for adults, whereas a theater in a suburban area might cater more to families and early screenings.
Competitors’ strategies and market positioning can be superposed with your own movie theater’s value proposition by laying out on a page (or a presentation slide) the main differentiating factors. These factors will show investors and banks:
In a competitive analysis, various parameters are used to compare and contrast your movie theater with its competitors. The parameters listed below are examples of what you might include in your analysis.
They are not exhaustive but serve as a guide to help you understand key aspects to consider. Each parameter provides insights into different facets of the competitive landscape, helping to paint a comprehensive picture of where your movie theater stands.
The location of a movie theater greatly impacts its success by affecting accessibility, visibility, and the type of clientele it attracts. For instance, a theater in a major metropolitan area might draw a large crowd of movie enthusiasts and tourists, whereas one in a residential suburb could become a go-to spot for families seeking entertainment close to home. Additionally, being located near shopping centers or dining hubs can increase foot traffic, enhancing patronage through convenience.
The number of screens a movie theater has is a key determinant of its operational scale and variety of films it can show simultaneously. A multiplex with multiple screens can attract a diverse audience by offering a range of genres and film styles at the same time, from blockbuster hits to indie films, thereby maximizing its revenue potential. Conversely, a theater with fewer screens may focus on select films to create a niche market.
The selection of films a theater chooses to show significantly shapes its identity and appeal. A theater that regularly features foreign films, documentaries, and art-house films may cater to cinephiles and specific demographic segments interested in diverse cultural experiences. This differentiation is crucial in distinguishing it from mainstream multiplexes that primarily screen popular new releases.
Offering special features such as luxury reclining seats, 3D and IMAX screenings, or in-theater dining options can provide a competitive edge. These features enhance the viewing experience and justify premium pricing, targeting customers looking for more than just a typical movie outing. Theaters that host special events, like movie marathons or themed nights, also build a community of regular attendees.
Defining the target audience is essential for tailoring marketing strategies and film selections. A theater near a university might focus on films that appeal to young adults, while one in a family-oriented community might emphasize kid-friendly movies and animations. Understanding the demographic makeup of the surrounding area helps in customizing offerings to match local preferences.
The availability of online ticketing options reflects a theater’s commitment to customer convenience and technology adoption. Offering a seamless online booking experience can attract tech-savvy customers and reduce wait times at the theater, improving overall customer satisfaction. Additionally, theaters can leverage online platforms for marketing promotions and to gather customer data for better service personalization.
Being part of a franchise can offer advantages like brand recognition, marketing support, and operational efficiencies. Franchise theaters often benefit from corporate advertising, bulk purchasing discounts, and a standardized customer experience. Independent theaters, by contrast, can focus on unique branding and localized experiences to attract patrons looking for a more personalized movie-going experience.
To further enhance competitive analysis, consider examining:
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Film business plans. Whether you’ve learned how to make one in film school or not, it’s likely that it’s an essential aspect of your production that you could be overlooking at your own risk.
Those involved in making movies tend to be creative folk and view spending hours pouring over figures on a spreadsheet as anathema to the craft. Even some of the pros dread this unavoidable task… and don’t think that you’re not “pro” enough to get away without doing one.
Even if you’re operating on a micro-budget , it’s still a good idea to get to grips with the best practices of compiling a solid film business plan. It’ll help keep you right on path, it’s good practice for your future career, and it might just help you see the bigger picture and drive you to finish the project.
Today, we’re going to take the sting out of the tail by offering some guidance on how to get started.
You’ll also be pleased to hear that it’s nowhere near as arduous a task as it may seem, which brings us onto our first business plan tip:
As is often experienced in screenwriting , putting pen to paper in the first place is usually the hard part. Once you get going, you find your brain kicking into high gear (sometimes to the extent that it’s hard to stop typing!)
The same is true of film business plans. Initially, you might feel like the proverbial rabbit in headlights with no idea how you can possibly account for what you might be spending in the future. However, by starting with the very basic and known figures you do have, you’ll slowly begin to break the back of the spreadsheet and the rest should follow naturally.
And remember, you can always go back and revise things, so don’t be afraid to start jotting down random numbers with the intent to refine them at a later date.
Not the movie’s audience; we’re talking about the people who are most interested in your film business plan.
Don’t make the classic mistake of assuming investors and potential production collaborators want to see every dime and nickel accounted for, because they really don’t.
What they want you to answer as concisely (and accurately) as possible is this: H ow are you going to sell the movie, and what will be the return on investment?
And that’s it. Everything else is secondary.
Of course, you’ll probably want to keep a more detailed plan for your own reference and that can be produced if requested, but strip out extraneous details that won’t be of interest to an investor (they don’t want to know the hourly rates of every show runner working on set; they just want to know how much it’ll all cost.)
There are a few more sub-sets of this question that you’ll probably tackle along the way, including:
Thinking about these questions will get you ready to pitch your movie efficiently at the drop of a hat, and will help shape your business plan as you put it together. There are a number of other questions over on the Raindance website which you can expect investors to ask, so do check those out.
And on the topic of how to go about answering a potential investor’s concerns…
The following is by no means exhaustive (and not all of it may be necessary for your particular business plan), but here’s the meat and potatoes that most filmmakers use to convey their pitch:
Outline: A very brief summary of the screenplay — ideally just your logline — and some key figures regarding financial requirements. Bullet points regarding your previous work (or any notable team members) may be of benefit but only if they really are selling points, otherwise, brevity is preferred.
Shooting Schedule: A detailed plan outlining every expected cost behind each scene of the screenplay, including any props needed, cost of travel to locations, and compensation to crew members. A highly important part of the business plan which you may want to work on with the rest of the team, this will be the foundation of an accurate budget projection.
Production Budget: The shooting schedule total, plus the overall production expenditure of the movie.
Marketing Plan: The movie’s target demographics, how you’re going to get it in front of them, and how much that advertizing will cost, as well as conversion rates between how many people you’re expecting to reach and how many of those will go see the movie/buy the DVD.
Distribution Plan: The costs, profits, and expected reach of physical media sales (and the same for online streaming.) If you have details regarding the profits you’re hoping to make from rights sales, this is the place to add them.
Revenue/Profit Projections: Based on extensive market research (rather than guesswork or comparing your film to something similar that was released back in 1992), here you’ll get the chance to really hook the investor by outlaying expected profits and how much of those they’ll receive.
Letters of Intent: A hugely valued part of the business plan which can really pull an investor. Don’t just stop at crew members; letters of intent from other investors really inspire confidence, and don’t forget to also hit up relevant insurance companies covering the production.
You’ll want to close the package off with your executive summary— one or two pages delving more extensively into why the screenplay is a winner, the talent working on the movie and why the investor would be a fool to miss out (although not in those words, obviously!)
Rather than seeing your film business plan as an unavoidable headache, instead see it for what it is, i.e the tool you need to attract funding. Sounds a lot more alluring that way, doesn’t it?
Stay focused and get your film business plan nailed down as a matter of priority. The sooner you do, the sooner you can focus on the task at hand: getting to work on your big idea.
Best of luck!
[su_note]Learn more about the Film School at the New York Film Academy by clicking here .[/su_note]
Our Feature Film Business Plan template has been evolving for over 20 years and successfully used by hundreds of filmmakers around the world to raise their film financing. We have consistently worked with filmmakers and investors and updated our template after every film investor interaction to add all the best practices we come across. After every meeting, we adjust our Film Business Plan based directly on film investor feedback. Our Film Plan allows you to present your film business case using only the VERY BEST of the best information accumulated by film investors, filmmakers and industry trades, and all their years in the film industry.
Our Film Business Plan Template is professionally formatted and includes all the key business plan sections, with dozens of real-world examples in each. Our business plan was created by film investors and top industry producers, with the specific goal of helping filmmakers find film investors and secure funding. The movie business plan template is fully customizable to suit most any indie film project.
This easy-to-use Film Business Plan Template is included all of our Film Financing Packages and Bundles , along with our Film Proposals and Financing Manual, Film Projections Templates, Indie Film Pitch Deck, Latest Industry Statistics and much more. All of our products are available for immediate download and come with a 60-day full 100% MONEY BACK GUARANTEE!
FilmProposals is thrilled to offer help to documentary producers looking for investors, by enhancing our Film Fundraising toolkits to address the specific needs of documentarians. The highlight is a unique Documentary Business Plan Template included in all of our Film Financing Toolkits and Bundles . Much of the Documentary Business Plan is just like that of our narrative Film Business Plan Template, however, we've also done some major custom work to specifically highlight why documentaries are a great investment and how to best showcase your documentary to investors:
The new Documentary Business Plan Template is included in ALL of our Film Financing Toolkits and Bundles , so you can purchase any of them and be well on your way to funding any part of your documentary with private investments.
The film plan template is consistently updated (including 2024). Screenshots may be dated, but our Film Business Plan template is not.
The film business plan template is a step-by-step guide so you understand your film as a business proposition to film investors. We walk you through the nuts and bolts of your project, and the business side of the film industry, so you present the investment opportunity in the best light possible, without compromising your creativity. We have done all the heavy lifting and all you need is to focus on your film, target audience and marketing/distribution plan.
Examples from other successful business plans are included in every key section of the film business plan template.
You write this section last. It is the one page overview of everything that follows. Just wait until you see your plan all put together and you get to read through how good your investment opportunity sounds out loud, with proven industry statistics, real world examples and well-crafted language. This is always the highlight for every filmmaker - when they get to say, "Wow! I would totally invest in this film and here's why..."
This is where you discuss the type of company you've set up and why, highlight all the successes of your management team and producers, describe what you're all about and highlight the competitive advantages your team has over any others.
This is where you get to tell your story, describe your project, use your log-line, compare briefly to other films, development highlights to date, talent attached and more.
This is where your business plan gets good! Filmproposals has fine-tuned this section with dozens of known film investors. We highlight all the latest industry trends and awards using references to elite sources, describe how the film industry works, use the latest box office, festival, streaming info and other film industry statistics and describe the overview of the movie industry simply and clearly. This section is updated multiple times per year so it always has the most current information available.
Here is where you want to discuss your specific target markets and audience: who are they, how many, their demographics, how you will target them, what are their past habits, etc. We provide a few examples, but leave you plenty of room to get creative with your marketing strategy. Read More: Film Marketing Plan & Distribution Plan Expert Advice
Ahhh...this is where we really shine! First, we put all the mandatory disclaimers (film investment is inherently risky....) and then we talk about all the ways you have mitigated these risks! You add on exactly how your investment opportunity is structured (Distribution Waterfall, Recoupment Schedule options are included in our Financing Manual) and how you plan to pay your investors back. You then use all the included full explanations and detailed notes and charts for every line item, to explain how you arrived at all your calculations.
Here we emphasize how crucial the distribution strategy is to any type of film. We walk through film festivals, theatrical release, digital release (streaming and VOD), TV, other ancillary markets and why independent films have more opportunities and advantages than ever before. You just pick and choose which sections are right for your project and customize them based on your distribution strategy
Basic legal info to protect you, your project and any potential investors.
You then add on any other relevant documentation, such as your budget (template included in our Film Financing Packages), official agreements, letters of intent and more. Not ready to buy the full template? Try our How to Write a Film Business Plan Free Course.
As it turned out, the business plan WAS the hardest thing I've ever done, but with the tools in the package, it made it much less stressful and the more I got into it, I thought to myself - YES!!! - thank god someone knows what they're doing...
Melissa, I was extremely hesitant in purchasing even your lowest priced package. It all sounded to good to be true. I spent 2 months last year writing a business plan from scratch for a different medium. So I just couldn't imagine getting anything worth while for the prices you were offering. But I have an investor that requested a detailed plan with financial projections within 2 weeks, so I pulled the trigger on your Gold + Financials Filmmaker Bundle .
It was the best money I've ever spent! Can't even begin to tell you what a difference it makes. So concise and on point. Makes putting the plan together so fluid and easy. Not having to worry about what to cover, only how to best state it for my film project. Amazing. Thank you so much. Worth every dollar! - Michael
A Business Plan is a tool that helps you turn your film ideas or scripts into an investment opportunity. Saying “I have a script about XYZ and need $100 to make my film” is exactly like saying “I made this pasta dish and need $100 to open my restaurant”
Being a great chef and being a great restaurant manager are two entirely different skillsets. Can one person be both? Of course. Can you have a successful restaurant without both? No. Would you give someone money to open a restaurant because they made you a great dinner? (We hope not!)
A great chef alone is not enough to get investors. You must have a plan for how you are going build, run and maintain the restaurant. Physical build, marketing, branding, ordering, making menus, publicity, systems, hiring staff and on and on. These are the things that will cost money, and hence they are the investment.
A script is not an investment vehicle. A script may attach top level talent, but film investors don't look for scripts - they look for investment opportunities that will provide them a potential profit on the money they invest (ROI - return on investment). A completed script does not require any money. If you want to sell your script and be done, option it to a studio. If you are looking for film financing, because you want to make your own film, then you want to focus on your business, which is film production.
If any of these sound like you, now is the time to put together your Film Business Plan:
We've been helping filmmakers raise their film financing for over 20 years. One way we do this is by providing a variety of ways for filmmakers to write their Film Business Plans. The different ways have a wide range in terms of budget, time and level of expertise backing. By working directly with filmmakers, we've learned some love the business and money side of the industry, and others, not so much. This is why we've crafted different approaches based on a time/value/skillset formula to suit every type of filmmaker.
If you want to impress your investors in the most professional way, our Platinum Plus Financing Package is for you. You'll be bringing in the combined expertise of Nash Info Services (the movie data gurus behind the-numbers.com) and FilmProposals, as well as entertainment attorneys and prior successful filmmakers. You will also have your plan done in less than two weeks. NIS will be running your 20 Comparable Films (much more impressive than 10 films, since you get to choose from 20,000+ films), while FilmProposals has done all the heavy lifting in our Film Business Plan Template - the industry (including the latest streaming & festival deals, award winners and industry stats), the market, and the financial (how the film business works and how a movie earns money) section.
You simply write up your management bios, your target audience and your distribution plan. There is also the option outsource your Marketing Plan, with our Business Plan Sections - Done For You , but we have already given you the roadmap on exactly how to approach your Marketing and Distribution Plans using an analytical and proven approach. You'll have a Film Investor Agreement, a real PPM (private placement memorandum), most of the legal docs that prove you're ready to maintain your Chain of Title and a Pitch Deck template. This is our most impressive package, we have seen it work time and again, and is best for those with a high end, professional mindset targeting the same with their investors.
You can scale the Platinum Plus back to our Gold Toolkit + Financials Bundle - you get a lot of the above. Key differences are 10 Comparable Films, chosen from our scaled down database of 400+ indie films, no PPM and the Legal Pack (Chain of Title) is an optional add-on. You'll still have the Business Plan Template, Film Investor Agreement and Pitch Deck Template. This package has helped dozens of filmmakers secure investors over the years and is a solid option for those with a lighter budget. A higher time investment on your end, a bit less expertise behind you, but a lower financial investment.
The Gold Toolkit is best for those who want to really dive in to the film business and do the heavy lifting themselves. You still get a ton of Filmproposals expertise and templates, but you'll get into the nitty gritty of financial projections, comparable films, marketing plan, distribution plan and finding film investors. Just like our other bundles and toolkits, filmmakers have raised millions of dollars of film funding with this package.
Our actual Business Plan Template in Microsoft Word is always up to date (this sample is older), fully editable and contains far more detail and text than this short excerpt. You can either share the template below or subscribe to our FREE Business Plan Course and have it delivered to your inbox .
Click to download the FREE Movie Business Plan Sample .
These film business plan tips will help you to attract investors and present the offer that gets their attention. The research process inherent to preparing a business plan forces you to look at the financing of other films and refine your precise film investor offer. This process will lead you straight to finding and securing the right investors for your movie.
Whether you use a film business plan, private placement memorandum, film investor agreement or other fundraising vehicle, the thought process required to complete your film business plan is invaluable and will help you stand out from the crowd and pitch your project in a way that compels investors to want a piece of your investment opportunity!
How to Write a Film Business Plan is the Number 1 goal of most of our filmmakers, so we wrote a FREE How to Write a Movie Business Plan online course. Writing a business plan can be overwhelming to some, and while our FilmProposals Business Plan Bundles & Toolkits will save you hundreds of hours with prewritten text and templates and speed up your learning curve by showing you how to complete complicated financial projections, there is still a lot of information to process. We designed this Film Business Plan Course to be sent once per week to break the process of writing your business plan into manageable pieces, and to keep you accountable and focused. In case you can't see the sign up form, try here .
Top of Film Business Plan Template
Your Film Distribution Plan just may be the way to unlock the secret pathway to the big screen for your indie film. Dive into our comprehensive guide on crafting a compelling distribution strategy to woo audiences and critics alike! Our definitive exploration of indie film distribution, where we unveil the strategies that will help independent filmmakers navigate the complex terrain of getting their work in front of eager audiences. Learn all about: Crafting the Ultimate Film Distribution Plan .
Top of Film Business Plan
Discover the secrets behind skyrocketing yours while unraveling the blend of creative storytelling and strategic financial planning. Dive in to learn how to balance artistic passion with profitable entrepreneurship in the world of indie film. Embarking on the journey of independent filmmaking is a challenge in and of itself, but the path to profitability requires an astute blend of creativity and business acumen. The quest for a substantial Return on Investment (ROI) is not merely a financial ambition; it's a necessary strategy to sustain your passion and continue producing impactful stories. More Info: Indie Film Return on Investment
Top of Film Business Plan Tips
What does the deal actually look like between you and your investors? Who is getting paid first, when and how much? What does profit participation look like? How do you ensure nothing is standing between you and an interested film investor?
One way is by using a Film Investor Agreement .
Your Film Marketing Plan & Distribution Plans are the hardest parts of your business plan to complete. FilmProposals has done all the heavy lifting for you for your financial projections, covering the industry, using top tier research and statistics and discussing all the latest release trends and acquisitions. However, Film Marketing and Distribution Plans are unique to every film and this is where a producer has to focus their efforts to be successful. When you have these mapped out, investors and distributors will know you have a solid deal on the table. Luckily, we've helped so many successful filmmakers over the years, and now offer our expert formula for reaching your audience, winning film festivals and getting distribution .
Filmmakers gain a huge advantage when they start a film production company . This process allows them to pursue equity-based crowdfunding for larger sums across a wider base of investors than just typical donation-based crowdfunding. It also helps to protect your film, management team, opens additional financing opportunities and makes your projects far more appealing to film investors. You will, of course, need to secure legal counsel to pursue this path, however, here is a high level overview of some of your options.
For any indie filmmaker, independent film companies are greatly important. More often than not, these are the only movie companies indie filmmakers have the potential to work with. But the origin stories of your favorite indie movie company in the film industry may surprise you and will definitely enlighten you and provide inspiration as you embark on starting your own independent film company .
We are going to assume the finer details of your project are worked out, you already have a killer script and dive straight into the lesser-known secrets of business plan writing. Here we look at a few of the common pitfalls, some practical advice on how to avoid them and put you in the stakeholder’s shoes with some hypothetical pitches. Learn more: Advanced Business Plan Tips
The new world of VOD and being able to target your market directly is fantastic news for producers, especially those who could or did not follow the traditional distributor model. However, unlike the traditional theater/distributor model, these opportunities are much more difficult for projections and business plans. Use our outline of the different VOD business models, costs and calculations associated with each, as well as which statistics and case studies you want to use in your business plans. More Info: Film Business Plan VOD Projections
One of the keys to any business plan is to look at historical and projected industry trends. Do you know how well filmed entertainment is doing now and how or if it is projected to grow? Which segments and countries have the most promise? Streaming and VOD trends? Which markets and audiences are succeeding and which are trending down? You can't possibly talk to investors unless YOU know your industry cold. Learn more: Film Industry Statistics
The business plan info really opened my eyes to how a lot of this business is so dependent on a sound business plan... and that creativity does not have to be compromised. -- More Testimonials
... I'm now sending out my completed business plan/film proposal document to potential investors and the one comment I'm getting back almost immediately is that it's so well laid out and professional. Believe me, first impressions really do count. --
While our FilmProposals Bundles & Toolkits will save you hundreds of hours with prewritten text and templates and speed up your learning curve by showing you how to complete complicated financial projections, there is still a lot of information to process. We designed this FREE Film Business Plan Course to be sent once per week to break the process of writing your business plan into manageable pieces, and to keep you accountable and focused. In case you can't see the sign up form, try here .
DIY Toolkits, Legal & Finance Service Bundles See All Financing Toolkits , Financing Bundles & Film Legal Packs
Just want to thank you for your materials and help over the past year. I could not have raised the $1.5 million or made this film without the materials you provided. The bargain of my career! - James Sadwith, Producer, Writer, Director, Coming Through the Rye
Finished my deck on Friday. Got it into a few potential investor’s hands over the weekend, and by Monday had 3 out of the 10 available memberships spoken for at $160K each. The revenue projections and film comparable services by NASH, along with the business plan and pitch deck templates were instrumental in presenting the project in such a way that financially minded potential investors could understand the movie business, the market and how my project could possibly give them a substantial ROI. Melissa was amazing throughout the entire process. Always there to answer any questions. Couldn’t have done it without you guys. Can’t thank you enough. Best money I’ve ever spent. - Michael F, Executive Producer, Inside Sportfishing ( Gold + Financials Bundle )
How to write a drive in movie theater business plan in 7 steps:, 1. describe the purpose of your drive in movie theater business., 2. products & services offered by your drive in movie theater business., 3. build a creative marketing stratgey., target market, customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a drive in movie theater business, 5. management & organization of your drive in movie theater business., 6. drive in movie theater business startup expenses & captial needed., 7. financial plan & projections, frequently asked questions about drive in movie theater business plans:, why do you need a business plan for a drive in movie theater business, how to write a business plan for your drive in movie theater business), can you write a drive in movie theater business plan yourself, related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.
I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Fast Facts:
When MoviePass first launched its cinema subscription service back in 2011, it faced fierce pushback from prominent theater chains and the entertainment industry at large. At the time, theaters were having trouble getting butts in seats, but despite falling viewership, MoviePass’ innovative new model was shunned by the industry’s major players. Fast-forward more than a decade, however, and movie theater subscription programs are now common.
Not only is MoviePass back from the dead with a new three-tiered pricing model, but most major theater chains — including AMC, Regal, and Cinemark — now offer their own branded monthly subscription programs as well.
Here’s how each theater-specific subscription works, how they compare to MoviePass’ current membership options, and how much each choice costs.
Plan | Monthly price | “Free” movies per month | Concession benefits | Access to premium formats |
---|---|---|---|---|
MoviePass | $10–$40 | 2–4 (one month credits rollover) | None | No |
Regal Unlimited | $18.99–23.99 | Unlimited | 10% discount | For surcharge |
AMC Stubs A-List | $19.95–$24.95 | 12 | Free size upgrades | Yes |
Cinemark Movie Club | $10.99–$11.99 | 1 (unlimited credit rollovers) | 20% discount | For surcharge |
MoviePass folded in 2019 but rose from the ashes in 2022 with a new business model.
SOPA Images / Contributor (Getty Images)
MoviePass — which was repurchased post-bankruptcy by co-founder Stacy Spikes then relaunched in 2022 — no longer offers an unlimited subscription. Instead, users can choose from three membership tiers, each of which comes with a certain number of credits that can be redeemed for movie tickets.
Once signed up for one of MoviePass’ three plans on the app, users can view their credit balance and browse theaters, titles, and showtimes.
Each individual movie showing is assigned a cost in credits, with newer, more popular movies (and more popular showtimes) commanding a higher credit cost. For instance, a weekday matinee showing would cost fewer credits than a weekend evening showing, and a movie that just came out would cost more credits than a movie that has been out for two weeks.
Users can book a movie ticket with their credits the day of the showing (without checking in at the theater physically), but tickets cannot be booked days in advance. Once a ticket is booked, its actual cost in USD is loaded onto a virtual card on the app, which the user can use to purchase the ticket immediately in the app or later at the theater.
Here’s how MoviePass’ three membership tiers work:
This above pricing model applies in most areas of the United States, but prices are $10 higher for each tier ($20, $30, and $40, respectively) in certain areas of New York and southern California. To check whether your local area falls into one of these categories, search your zip code on the MoviePass website .
Movie pass credits roll over, but members can only hold twice their monthly allotment of credits in their account at one time. This means basic members can have up to 68 credits, standard members can have up to 144 credits, and premium members can have up to 226 credits. Any credits beyond these limits disappear.
Regal Unlimited is the only truly unlimited movie subscription service on the market today.
Sewageboy, CC-BY-4.0 via Wikimedia Commons
Regal Unlimited was launched by Regal Theaters in July 2019 to offer a branded subscription service that could compete with MoviePass (which would go bankrupt less than six months later) and AMC Stubs A-List.
Unlike MoviePass, Regal Unlimited allows users to see an unlimited number of showings, and users are not limited to a single film per day.
To sign up for Regal Unlimited, moviegoers must first download the Regal App and join the free Regal Crown Club loyalty program.
Then, from the app, users can sign up for a Regal Unlimited subscription, beginning with either a three-month or 12-month commitment, which can be paid for in a lump sum or on a monthly basis. Once the term of the initial plan is up, the subscription converts to a month-to-month basis.
Once a user’s account is activated, they must take a selfie to upload to their account. Then they can simply show up at their local Regal theater, select their film and showtime on a kiosk, scan the digital Regal Unlimited card on their Regal app, select their seat, print their ticket, and make their way to the theater (or the concessions stand, where they receive 10% off all snacks and non-alcoholic beverages).
Alternatively, Regal Unlimited users can book a ticket and select a seat ahead of time directly from the app without going to the theater first, but they must pay a $0.50 fee to do so.
Regal Unlimited offers three subscription tiers:
Each of these plans grants the user the same perks — unlimited films and discounted concessions. The only difference between the plans is which theaters the user has access to.
Regal Unlimited members have access to 148 of the chain’s theaters, Regal Unlimited Plus Subscribers have access to 363, and Regal Unlimited All Access members can use any of Regal’s 434 U.S. theaters. Theaters in more expensive, urban areas (e.g., Los Angeles, NYC, etc.) are more likely to be reserved for one of the two higher-priced tiers.
In order to determine which subscription you need, simply search your city or zip code in Regal’s theater list to see what tier of Regal Unlimited is required at your local theaters. (For example, the author of this article lives in Portland, and all Regal theaters in the Portland metro area require Regal Unlimited Plus, so the author would need to pay $21.99 per month for a Plus subscription in order to see unlimited movies at all Portland-area Regal theaters).
Subscribers can still use their subscriptions at Regal theaters not included in their plan; they simply have to pay a $1.50–$3 surcharge per film if they do so.
In addition to unlimited movies, Regal Unlimited subscribers also receive the following:
More consumer finance:
AMC Stubs A-List is the only theater subscription whose free movie credits are always valid toward premium-format showings like IMAX and 3D.
Paul Sableman, CC-BY-2.0 via Wikimedia Commons
Despite its ardent opposition to MoviePass since its 2011 inception, AMC launched its own theater subscription in June of 2018. An expansion of its existing Stubs rewards program, Stubs A-List is the brand’s premium offering aimed at capturing its share of the theater-happy cinephile market.
Unlike Regal Unlimited, AMC Stubs A-List does not offer unlimited movies, but it comes fairly close with three movies included per week.
AMC Stubs A-list memberships are a paid extension of the AMC Stubs rewards programs. New users can sign up for both at once through the AMC Theaters mobile app, then pick a membership tier based on where they live and plan to see movies (more on this below). New memberships cannot be canceled for an initial term of three months.
Once signed up, users can see up to three movies per week at AMC theaters for no additional charge. All showings are included, so there is no surcharge for IMAX, Dolby, RealD 3D, or other premium formats.
Subscribers can use their membership to see multiple movies per day or see the same movie multiple times. Unlike Regal Unlimited, an in-app photo is not required — instead, subscribers must bring an unexpired photo ID with them to each showing to verify that they are the individual whose account is being used.
Like Regal Unlimited, AMC Stubs A-List offers three subscription options, which only differ in terms of which theaters are included:
In most cases, unless a subscriber travels frequently, they select the lowest-priced plan available in their home state. (For example, the author lives in Oregon, so they would select the 45-state plan in order to have access to all Oregon AMC theaters.) Members can see up to three movies per year for no additional charge in states not covered by their plan.
In addition to three movie showings per week at any AMC theater, AMC Stubs A-List subscribers receive the following:
Free movie credits through Cinemark Movie Club roll over from month to month and never expire so long as a user continues paying for their subscription.
Cinemark’s Movie Club was actually the first theater-specific subscription service launched in the U.S. The Cinemark membership program debuted in December 2017, just months after MoviePass famously lowered its unlimited subscription to just $9.95 per month. The program surpassed one million subscribers in June of 2022.
New subscribers can join Cinemark Movie Club through Cinemark’s mobile app or on its website. Unlike Regal Unlimited and AMC Stubs A-List, new subscribers do not need to commit to an initial three-month term.
A subscriber’s monthly membership fee entitles them to one free movie credit per month. Movie credits can be redeemed for seat-specific tickets in the Cinemark app or online for no additional fee. Any unused credits roll over to subsequent months and do not expire so long as the membership remains active.
If a member wants to purchase an additional ticket beyond the number of credits they have available, they can do so without additional fees at a special member price (usually between $9.99 and $11.99 depending on location).
Free movie credits are only valid toward 2D showings, but they can be used toward 3D, IMAX, and other premium-format showings for a surcharge. Membership benefits are valid at all Cinemark theaters and Cinemark-owned theater chains like Century, CinéArts, Tinseltown, and Rave theaters.
Cinemark Movie Club has two price tiers, and each subscriber’s tier is determined by the location of the Cinemark theater closest to their home zip code:
In addition to one free movie credit per month valid at any Cinemark or Cinemark-owned theater, Movie Club subscribers also receive the following:
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Sample Business Plans Entertainment & Recreation Theater. Movie Theater Business Plan Start your plan ... Start your own movie theater business plan. Falls River Theatre Executive Summary. Falls River is a smaller town that lost its only movie theatre over 10 years ago. Since then, residents wishing to enjoy a night out at the movies have to ...
2.1 The Business. The Arena will be a registered and insured movie theater company located in El Paso, Texas. Business will be owned by a husband and wife, Zac Martin and Enna Martin. All type of movies such as second run and first released will be played in The Arena. Start your Business Plan Now.
Writing a theater business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a movie theater business plan, your marketing plan should include the following: Product: In the product section, you should reiterate the type of movie theater company that you documented in your Company Analysis.
Industry Analysis. According to Global Market Insights, the movie theater industry in the United States was valued at $63 billion in 2022. The industry is bouncing back from the pandemic years and is expected to grow at a CAGR of 4.9% from now until 2032.
Let's go through the content of each section in more detail! 1. The executive summary. The first section of your cinema's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.
How to Write a Movie Theater Business Plan. 1. Executive Summary. An executive summary is a crucial part of any movie theater business plan. An effective executive summary should provide a high-level summary of the entire business plan, including the proposed concept, execution, estimated costs, and expected return on investments.
How to Write a Movie Theater Business Plan in 7 Steps: 1. Describe the Purpose of Your Movie Theater Business. The first step to writing your business plan is to describe the purpose of your movie theater business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Welcome to our blog post on how to write a business plan for a movie theater! In today's rapidly growing movie theater industry, it's crucial to have a well-thought-out plan in order to create a successful and thriving business.According to recent statistics, the global movie theater market is projected to reach a value of $50.1 billion by 2026, with a compound annual growth rate (CAGR) of 6.7 ...
2. Draft a movie theater business plan. 3. Develop a movie theater brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for movie theater. 6. Open a business bank account and secure funding as needed. 7. Set pricing for movie theater services. 8. Acquire movie theater equipment and supplies. 9.
A Sample Movie Theater Business Plan Template 1. Industry Overview. A movie theater which is also called a cinema is a venue, usually a building, that contains an auditorium for viewing films/movies or motion pictures as it is called in some quarters, for the purpose of entertainment or perhaps education.
This guide helps you develop a sales and marketing plan tailored to the business plan of your movie theater. We'll delve into the importance of conducting a comprehensive market analysis to understand your competition and discern the preferences of potential moviegoers. Next, we'll focus on establishing your theater's brand identity and ...
Management team. Sales & marketing plan. Download for $90. See an example. Click to order and receive it within 24 hours. The business plan shown here is an example from the Cryotherapy business plan template. Naturally, the. Movie Theater Business Plan. is customised for your business instead.
The first step in competitive analysis is to identify who your competitors are. Start by listing other movie theaters in your vicinity. For instance, if your theater is known for showcasing indie films, your direct competitors include nearby cinemas that also focus on indie films, as well as multiplexes that offer a wider range of film genres.
Provided YES, here is a sample movie theater business plan template & feasibility report. So, if you represent considering opening a movie theater, to need capital to purchase alternatively lease/rent a suitable attachment, the required equipment, diy and furniture. You also need some additional capital to secure commercial license to blow ...
A highly important part of the business plan which you may want to work on with the rest of the team, this will be the foundation of an accurate budget projection. Production Budget: The shooting schedule total, plus the overall production expenditure of the movie. Marketing Plan: The movie's target demographics, how you're going to get it ...
Establish a realistic budget and timeline for your project. Attract potential investors and secure funding. Create a marketing and distribution strategy that maximizes your film's reach and revenue. Assemble a talented and experienced management team. Manage the risks and challenges associated with the film industry.
NIS will be running your 20 Comparable Films (much more impressive than 10 films, since you get to choose from 20,000+ films), while FilmProposals has done all the heavy lifting in our Film Business Plan Template - the industry (including the latest streaming & festival deals, award winners and industry stats), the market, and the financial ...
How to Write a Drive In Movie Theater Business Plan in 7 Steps: 1. Describe the Purpose of Your Drive In Movie Theater Business. The first step to writing your business plan is to describe the purpose of your drive in movie theater business. This includes describing why you are starting this type of business, and what problems it will solve for ...
Business Plan Sample - Free download as PDF File (.pdf), Text File (.txt) or read online for free. The XYZ multiplex hopes to offer entertainment and shopping options to people in Varanasi through a combination of movie theaters, restaurants, gaming areas, and branded stores. It aims to be a one-stop destination for relaxing and spending time with family/friends.
Contents. Movie theater subscriptions at a glance; MoviePass: $10-$40 per month; Regal Unlimited: $18.99-$23.99 per month; AMC Stubs A-List: $19.95-$24.95 per month