Cinema Business Plan: Settlement Procedure, Payback Definition

Almost everyone wants to spend their time in an interesting and exciting way. This is a normal desire of those who live not only in megacities, but also in small cities. Moreover, people are always ready to pay money for their interesting and vibrant leisure activities. That is why a business related to the entertainment sector can be considered quite promising.

One of these areas is the opening of its own cinema. Today, despite the enormous potential of the Internet and the advent of equipment that allows you to watch any interesting movie without leaving your home, these institutions have not lost their relevance. Based on the available data, the profit of domestic companies that specialize in the field of film distribution is growing steadily. Its annual growth is approximately 15-20%. This confirms the great interest of people in this industry.

Pros of the chosen direction

Not in all cases the opening of a modern cinema becomes a highly profitable business. To obtain the desired income, an entrepreneur must understand the scheme of work of such an institution and be able to withstand competition with large organizations that control most of the market in this area. To do this will allow a pre-compiled business plan.

businessmen make calculations

As in any business, there are strengths and weaknesses. Each of them must be carefully studied in advance, even before investing money.

The advantages of cinemas are:

  • high attendance;
  • daily income;
  • the ability to provide additional services to viewers.

Of course, when the business plan of the cinema with the calculations is drawn up, it becomes obvious that to open a large institution in which several halls are expected, you will have to invest about 30 million rubles. In order for the costs incurred to pay off, it will take at least two years. That is why an entrepreneur should start by considering the business plan of a small cinema. And only after a certain period of time the activity can be gradually scaled.

For example, for starters, you can draw up a business plan for a 3D cinema. To open it, no more than 500 thousand rubles will be needed, which, if properly organized, will pay off within 1-2 years.

The business plan of the cinema should include the possibility of providing some additional services. For example, a photo zone can be organized for viewers, a kiosk selling souvenirs, a bar, and a room for children can be opened. Often, just such an additional service will bring up to 50% of the income of a small cinema.

In the business plan for opening such an institution, you can consider the purchase of a cabin for 5D rides. Of course, such a direction will also require significant investments from the novice entrepreneur, but they will pay off quite quickly, since the demand for this service is very high.

Cons of the chosen direction

Despite such bright prospects, movie theater owners should be aware of the negative aspects of this business. Among them:

  • the need for a large start-up capital;
  • the inability to sell film without special permission from official distributors;
  • significant level of competition;
  • high rent for the provision of premises.

If you make a business plan of the cinema with calculations, it becomes clear that to open such an institution in a metropolis is problematic. Without multi-million investments, it is unlikely to be mastered. But as for the small city, such an enterprise is able to bring good profit to the entrepreneur due to the low level of competition.

Format selection

Where to start drawing up a movie theater business plan? First of all, an entrepreneur will need to analyze this market in his city. Given the existing large competition, which can be observed, as a rule, in large cities, investing in such a niche in the entertainment industry becomes a very risky business. However, in order to consistently earn money, owning a cinema of your own, you should correctly determine the format of the establishment when drawing up a business plan. What can it be?

Classic cinema

The format of such an institution provides for the presence in it from 2 to 5 rooms intended for watching movies.

cinema with red seats

Such a cinema can simultaneously accommodate up to several hundred spectators. However, it should be borne in mind that the entrepreneur will have to pay up to half a million dollars to open only one hall. In addition, if at least one full-fledged classic cinema is already operating in the city, then the opening of the second will become unprofitable.

Attractions 3-, 4-, 5- and 7D

In the business plan for opening a cinema, one can consider an innovative direction. This is the discovery of rides in the format 3-, 4-, 5- or 7D. Moreover, in many cities this niche is still practically not occupied. There are always many who wish to watch such films.

If in the locality where the novice entrepreneur is going to do business, there are no such institutions, then he can safely invest in this event. Within a few years, he will not only pay back his initial investment, but also earn a decent amount in order to open an even more profitable business.

However, when compiling a business plan for 3D or 4-, 5-, 7D cinema, it is worth bearing in mind that such projects can be quite risky. After all, there is always the possibility that viewers will get fed up with this format and stop visiting such attractions.

Mini cinemas

From the point of view of doing business, this format of film distribution industry establishments is the most interesting. It is perfect for small settlements in which up to 150 thousand people live. As you know, in such cities, cultural institutions are in short supply. That is why the opening of its own cinema will certainly bring a steady income to the entrepreneur.

cinema with spectators

Typically, the halls of such small establishments are designed for about 50 people. And when providing additional services in the mini-cinema, it will be possible to significantly increase the amount of profit.

In the open air

The operation of such cinemas is a seasonal business. Such services will be in demand by viewers only in warm weather.

open-air cinema

When drawing up a business plan for an open-air cinema, it should be borne in mind that this format of the institution is especially relevant in resort areas. According to experts, the organization of this business will require a lot of start-up capital. However, all investments will be returned to the entrepreneur in 2-3 seasons.

Car theaters

This format is one of the varieties of open-air establishments. However, to organize a car cinema, you will not need impressive amounts of starting capital.

car cinema with spectator cars

An entrepreneur only needs to find a platform (preferably asphalt) where cars with spectators will stand. There are always plenty of people who want to watch a movie in their car when friends or a loved one are sitting nearby in the salon.

Home cinema

This option is great for those who decide to develop a business plan for the cinema and plan to organize their activities in the village or in the village. In this case, a room for watching movies can be organized right at home, which will allow you to get a good income. Indeed, in such settlements not only modern video equipment, but not every resident has an Internet connection. That is why there will always be people who want to watch a series, a football match or a good movie without going to the regional center for this.

home theater

An entrepreneur should keep in mind that rural residents cannot boast of abundance, in connection with which ticket prices must be set accordingly.

Paperwork

In a business plan for opening a cinema, an entrepreneur needs to consider the procedure for registering his business. First of all, you need to contact the tax authorities and open an IP. In this case, it will be necessary to present a passport, indicate the TIN, write the appropriate statement and show the receipt of payment of state duty.

Making an IP does not require the presence of the authorized capital, as well as the legal address of the company. However, with this form of doing business, there are significant risks. They are the loss of property by the entrepreneur in the failure of his case. Another thing LLC. The founders of this form of ownership risk only part of their share capital.

When registering a legal entity, it will be necessary to complete the relevant application, present the charter of the company and pay the state duty in the amount of 4 thousand rubles.

A novice entrepreneur will need to have a lease on hand, as well as acquire a license to allow films to be shown. To work with distributors, you must have a bank account. The cinema will not be able to function without the permissions of the Rospotrebnadzor, fire inspection and SES.

Anyone who decides to open a movie theater needs to consider the amount that they will need to spend at the stage of registering an institution in their business plan. Taking into account the purchase of a license, it can amount to 120 thousand rubles.

Choice of premises

This question may cause some difficulties for the entrepreneur. After all, a room for a cinema must meet certain requirements. First of all, it concerns the walls. They must be soundproof. If the hall will be designed for 50 spectators, then for the institution you will need a room with a total area of ​​350-400 square meters. Here you will need to place:

  • lounge with bar and dressing room;
  • foyer;
  • cinema hall;
  • hardware room;
  • service and sanitary rooms.

There should be toilets for visitors and office for staff in this room. It is necessary to take into account the height of the ceilings. It should be at least 5 m.

Somewhat different room requirements are presented for a 5D cinema. A business plan for its opening should consider the issue of renting premises of 20-30 square meters. m with a ceiling height of 3.5 m.

It is important that the building that will be selected for the cinema is located near places with high attendance. An entrepreneur will need to pay attention to the availability of a spacious car park. You can open a small cinema in the hotel. The business plan should include various options and choose the most optimal one. You will also need to take into account the amount of the monthly rental space in advance. In a month, it can reach up to 200 thousand rubles.

Equipment purchase

Cinema is impossible without high-class professional equipment. Only on such equipment can films with high-quality images be shown to the viewer. The list of necessary equipment for a cinema for 50 visitors should include:

  • screen (100 thousand rubles);
  • film projector (3.2 million rubles);
  • speaker systems (600 thousand rubles);
  • server equipment (up to 90 thousand rubles);
  • installation, which makes it possible to demonstrate films in 3D-format (500 thousand rubles);
  • a set of special glasses (85 thousand rubles);
  • armchairs (300 thousand rubles);
  • cash register (10 thousand rubles);
  • air conditioners (60 thousand rubles);
  • lighting equipment (50 thousand rubles);
  • landline telephones (2 units - 4 thousand rubles);
  • 2 laptops (50 thousand rubles);
  • MFP (up to 12 thousand rubles).

You will need hangers for wardrobe, furniture for installation in the lobby, as well as for office rooms. All this will require approximately 1 million. As a result, the purchase of the necessary equipment and preparation of the cinema for work requires 6 million rubles.

Staff recruitment

To ensure the smooth operation of the cinema, it is necessary to include two technical engineers in the staff. They will not only broadcast films, but also service equipment.

What should be the list of cinema workers whose hall is designed for 50 spectators? These are employees such as:

  • technical engineers (two people with a salary of 30 thousand rubles);
  • four staff members (40 thousand rubles);
  • two cleaners (18 thousand rubles).

The total staff salary for a small cinema will total 88 thousand rubles. Work shift lasts, as a rule, from 10 hours to 23 hours. Those duties that must be performed by the director of the enterprise and his accountant, the entrepreneur can assume. Thus, he will be able to fully control the conduct and development of his business, while saving on wages of employees.

Advertising

In the business plan of the cinema, it is necessary to include this cost item. Such an institution needs constant advertising. First of all, you will need to notify potential visitors about your appearance, and only then inform them about current updates.

In order for the viewer to know that a new cinema has appeared in his city, a bright and well-remembered sign is needed. This is necessary if the institution is located in the building of the shopping center. The cinema sign must certainly show off on the facade of the building.

It is also worth considering the option of advertising on the radio and putting up posters in the city. In crowded places it is necessary to distribute flyers and leaflets. Also, the entrepreneur is advised to take care of the placement of banners and banners.

When drawing up a business plan for a movie theater in a small town, it is worth considering such an unusual version of advertising as a car with a loudspeaker installed on it. Driving through the streets of the village, he will notify residents of the upcoming films.

Advertising institutions should be conducted on social networks. By the way, this option to alert potential visitors is the cheapest. And of course, an entrepreneur should definitely start his own website on the Internet. Information on films will be posted on this resource, as well as the opportunity to purchase tickets without leaving your home.

Expense accounting

The business plan of the enterprise must provide for mandatory monthly costs. Among them:

  • rent (up to 200 thousand rubles);
  • taxes (up to 45 thousand rubles);
  • payment of utilities (up to 25 thousand rubles);
  • salaries of employees (88 thousand rubles);
  • amounts allocated for an advertising campaign (up to 50 thousand rubles);
  • maintenance and repair work (up to 10 thousand rubles);
  • payment of outsourcing services (up to 15 thousand rubles);
  • other expenses (up to 20 thousand rubles).

Taking into account all these expenses, the monthly cost of maintaining a cinema will be approximately 453 thousand rubles. If during the day 8 sessions are conducted, each of which will bring 30 people, then in a month the institution will receive 7200 visitors. At the same time, 1.44 million rubles will fall into the cash desk of the enterprise. 720,000 rubles will remain on the cinema’s account, since half of the amount received from showing the films will have to be paid to the distributor.

man holds money in his hands

If you take into account the monthly costs, the net profit will be 267 thousand rubles. The businessman’s earnings will be increased by the organization of additional services. In this case, it will be possible to add from 150 to 180 thousand rubles to the received profit amount.

Source: https://habr.com/ru/post/C26767/


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