Cinema business plan: calculation procedure, determination of payback

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Almost every person strives to spend their time interesting and exciting. This is a normal desire of those who live not only in metropolitan areas, but also in small towns. Moreover, people are always ready to pay money for their interesting and full of bright emotions leisure. That is why the entertainment business can be considered quite promising.

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

Pros of the chosen direction

Far from all cases, the opening of a modern cinema becomeshighly profitable business. To obtain the desired income, an entrepreneur needs to understand the scheme of operation of such an institution and be able to compete with large organizations that control most of the market in this area. A pre-drawn business plan will allow you to do this.

As in any business, it has its 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 a cinema business plan is drawn up with calculations, it becomes obvious that in order to open a large institution, which is supposed to have several halls, it will be necessary to invest approximately 30 million rubles. It will take at least two years for the costs incurred to pay off. That is why an entrepreneur should start by considering a business plan for a small cinema. And only after a certain period of time, activities can be gradually scaled up.

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

The cinema's business plan should provide for the possibility of providing some additional services. For example, a photo zone can be organized for viewers, a kiosk is opened that sellssouvenirs, a bar, as well as a room for children. 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 purchasing a cabin for 5D attractions. Of course, such a direction will also require significant investments from a novice entrepreneur, but they will pay off pretty quickly, since the demand for this service is very high.

Cons of the chosen direction

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

• need for large start-up capital;
• impossibility to realize film distribution without special permission from official distributors;
• significant level of competition;
• high rent for space provision.

If you draw up a business plan for a cinema with calculations, it becomes clear that opening such an institution in a metropolis is problematic. It is unlikely that it will be possible to master it without multimillion-dollar investments. But as for a small town, such an enterprise can bring good profits to the entrepreneur due to the low level of competition.

Format selection

How to start writing a movie theater business plan? First of all, an entrepreneur will need to analyze this market in his city. With the existing great competition, which can be observed, as a rule, in large cities, investing in a similar niche of the entertainment industrybecomes a very risky business. However, in order to consistently earn money by owning your own cinema, you should correctly determine the format of the institution when drawing up a business plan. What could it be?

Classic cinema

The format of such an institution provides for the presence in it of 2 to 5 halls intended for watching films.

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 classical cinema is already operating in the city, then opening a second one will become unprofitable.

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

In the business plan of opening a cinema, an innovative direction can be considered. This is the opening of attractions in 3-, 4-, 5- or 7D format. Moreover, in many cities this niche is still practically not occupied. There are always many people who want to watch such films.

If there are no such establishments in the locality where a novice entrepreneur is going to do business, then he can safely invest in this event. Within a few years, he will not only recoup 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 a 3D or 4-, 5-, 7D cinema, it should be borne in mind that such projects can be quite risky. After all, there is always the possibilitythat 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 the film distribution industry is the most interesting. It is perfect for small towns with up to 150 thousand people. As you know, cultural institutions are in short supply in such cities. That is why opening your own cinema will definitely bring an entrepreneur a steady income.

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

Outdoor

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

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

Drive-in cinemas

This format is one of the varieties of open-air establishments. However, the organization of a drive-in cinema will not require impressive amounts of start-up capital.

An entrepreneur only needs to find a platform (betterpaved), 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 cabin.

Home theater

This option is great for those who decide to develop a business plan for a cinema and are planning to organize their activities in a village or village. In this case, a hall for watching movies can be organized right at home, which will allow you to receive 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 those who want to watch a series, a football match or a good movie, without going to the regional center for this.

An entrepreneur should keep in mind that rural residents cannot boast of prosperity, and therefore ticket prices must be set accordingly.

Documentation

In a business plan for opening a cinema, an entrepreneur needs to consider the procedure for registering his business. First of all, you will 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 a corresponding application and show a receipt for payment of the state duty.

Registration of IP does not require the presence of authorized capital, as well as the legal address of the company. However, there are significant risks associated with this form of business. They consist in the loss of property by the entrepreneur in the event of the failure of his business. LLC is another matter. The founders of this form of ownership risk only a part of their authorized capital.

When registering a legal entity, you will need to fill out an appropriate application, present the charter of the company and pay a state duty in the amount of 4 thousand rubles.

A novice entrepreneur will need to have a rental agreement on hand, as well as purchase a license allowing films to be shown. To work with distributors, you must also have a bank account. The cinema will not be able to function even without permission from Rospotrebnadzor, the fire inspectorate and the SES.

Those who decide to open a cinema, in the business plan must take into account the amount that will need to be spent at the stage of registration of the institution. Taking into account the purchase of a license, it can amount to 120 thousand rubles.

Choose a room

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

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

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

Slightly different requirements for the premises are presented for a 5D cinema. The business plan for opening it should considerlease of premises with an area of 20-30 sq. m with a ceiling height of 3.5 m.

It is important that the building that will be chosen to house the cinema is located close to places with high traffic. The entrepreneur will also need to pay attention to the availability of ample parking. You can open a small cinema in the hotel. The business plan should provide for various options and choose the most optimal one. You will also need to take into account the amount of the monthly rent of the premises. It can reach up to 200 thousand rubles a month.

Procurement of equipment

The operation of the cinema is impossible without high quality professional equipment. Only on such equipment it will be possible to show the viewer films with a high-quality image. The list of necessary equipment for a cinema for 50 visitors should include:

• screen (100 thousand rubles);
• film projector (3.2 million rubles);
• acoustic systems (600 thousand rubles);
• server hardware (up to 90 thousand rubles);
• installation that makes it possible to show 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 phones (2 pieces - 4 thousand rubles);
• 2 laptops (50 thousand rubles);
• MFP (up to 12 thousand rubles).

You will need wardrobe hangers, furniture for installation in the foyer, as well as for service rooms. For all thisit will take approximately 1 million. As a result, it is necessary to have 6 million rubles on hand to purchase the necessary equipment and prepare the cinema for operation.

Recruitment

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

What should be the list of employees of the cinema, the hall of which is designed for 50 spectators? These are employees like:

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

The total salary of staff for a small cinema will eventually amount to 88 thousand rubles. The working shift of employees lasts, as a rule, from 10:00 to 23:00. Those duties that need to be performed by the director of the enterprise and his accountant, the entrepreneur can take on. Thus, he will be able to fully control the conduct and development of his business, while saving on the wages of employees.

Advertising

The cinema's business plan should include this cost item as well. Such an institution needs constant advertising. First of all, you will need to notify potential visitors about your arrival, and only after that only inform them about current updates.

In order for the viewer to know that a new cinema has appeared in his city, a bright and memorable sign is needed. This must also be done in the case when the institution is located in the building of a shopping center. Signboardthe cinema must certainly show off on the facade of the building.

It is also worth considering the option of advertising on the radio and posting posters around the city. Hand out flyers and leaflets in crowded places. Also, the entrepreneur is advised to take care of the placement of streamers and banners.

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

Advertising of the institution should be carried out in social networks. By the way, this option of alerting potential visitors is the cheapest. And of course, an entrepreneur should definitely start his own website on the Internet. This resource will contain information about films, as well as the opportunity to purchase tickets without leaving home.

Accounting for current expenses

In the business plan of the enterprise, it is necessary to provide for mandatory monthly costs. Among them:

• rent (up to 200 thousand rubles);
• taxes (up to 45 thousand rubles);
• payment for utilities (up to 25 thousand rubles);
• salary of employees (88 thousand rubles);
• amounts allocated for an advertising campaign (up to 50 thousand rubles);
• repair and preventive maintenance (up to 10 thousand rubles);
• payment for 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 the cinema will amount to approximately 453 thousand rubles. If inDuring the day, 8 sessions will be held, each of which will come to 30 people, then in a month the institution will receive 7200 visitors. At the same time, 1.44 million rubles will go to the cash desk of the enterprise. The cinema will have 720 thousand rubles left on its account, since half of the amount received from showing films will have to be paid to the distributor.

If we take into account the monthly costs, the net profit will be 267 thousand rubles. The businessman's earnings will be increased by organizing additional services. In this case, from 150 to 180 thousand rubles can be added to the amount of profit received.