Cinema business plan

Business plan

A movie theater business plan is not among the most popular ideas among entrepreneurs. Why?

Because even if you invest a lot of money in the creation of an entertainment facility and find a “crowded” territory under it, it is not at all a fact that the sessions will gather full halls.

On the other hand, any business organized «wisely» can bring profit. The main thing is to think over and calculate everything well. Read more about the business idea of ​​organizing a cinema, read here .

Cinema business plan: choice of premises

Starting to draw up a business plan for a cinema should be with the choice of location and the selection of «premises». In the rental expense column, you will need to include the costs of passing sanitary and epidemiological and fire control.

Much depends on what kind of cinema you want to open — whether it will be open-air, whether it will be able to broadcast films in 3D format, and so on.
It usually costs at least $2,000,000 to build or redesign a building for 50-70 seats.

Cinema Business Plan: Costs to Start a Business

As for the purchase of equipment, the costs here are also high:

1. In your movie theater business plan, you will need to include expenses in the amount of at least 5-6 thousand dollars. Without good technology, your entertainment establishment will never pay for itself.

2. The average cost of advertising events for the opening of a new cinema is 15-20 thousand dollars.

3. The staff should include a controller, a ticket seller, a cleaner. The average cost to pay cinema staff is $60,000.

4. You need to spend money on movie rentals. You need to take them from the copyright holder. Thinking through and calculating your cinema business plan.
Don’t forget that 50 percent of the value of the money you receive from the sale of each ticket must go to the copyright holder.
If we summarize the costs, then on average, to open such an entertainment facility, you need to spend:

— more than 2-3 million dollars for a mini-cinema,

— more than 30 million dollars for a full-fledged institution with films shown in 3D technology.

Cinema Business Plan: Business Payback

The payback of such establishments does not appear soon, it is necessary to wait for it at least three years.

On the other hand, you will start receiving profit immediately. But only if your cinema is in a convenient location and you show really popular and interesting films.

The main risks of the project

1. When compiling a business plan for a cinema, you need to prepare for high costs that will not pay off soon.

The risk of not getting back the money invested in the business is quite large. Especially in a big city where the competition is especially strong. In order to reduce the risks when starting a business, it is necessary to conduct a marketing research. Read about how to do this in this article .

2. As for small villages and towns, there are either no cinemas here, or they are presented in a single “copy”. But there is another limitation — the consumer demand of the population. Will villagers be willing to give their modest income for tickets to your entertainment venue?

Before starting any business, it’s a good idea to find out how your competitors are doing. Perhaps they are already the sole leaders in the field of film screening. And your new cinema will simply have nothing to stand out against their background. All risks must be well thought out in advance.

Business and plan