Business plan for opening a cinema from scratch
How to open a cinema from scratch: an example of a business plan
This project is a business plan for a cinema with a payback period of 24 months.
Summary of business plan for a cinema from scratch
Project manager (name, business registration data, TIN, legal address, tax deductions and contributions to funds). This project is a plan to create a cinema in 24 months. First of all, let's list the key points of the process of creating a business plan for launching a cinema from scratch.
First of all there is a Project Idea, and Project Goals, such as:
- Creation of an enterprise with a high level of profitability.
- Making a profit in a legal way, with the registration of the enterprise in the tax office and all-Russian funds.
- Satisfying consumer demand for entertainment services, filling and modernizing the niche of the entertainment market in Russia.
- Search and conclusion of agreements with investors.
Action algorithms prescribed in the business plan
The business plan contains the following algorithms for starting a business:
- Methods and methods of analyzing the target audience, drawing up a portrait of an ideal client, his level of solvency.
- Registration of business with state supervisory and tax authorities.
- Hiring qualified employees.
- The project is financed by obtaining a commercial loan in the amount of 6 437 396 rubles.
- Nature of the business: entertainment and movie-watching business.
- Project cost: 6 437 396 rubles.
- Payback period: 24 months.
- The income of a private investor will be 708,230 rubles.
- Loan interest payments begin from the first month of the project.
- The repayment of borrowed funds starts from the first month of the project. This circumstance is introduced in this business plan to simplify the understanding of the structure of calculating the discounting flow and cash flow regulation. The pledged interest rate on borrowed funds is 16%. It should be borne in mind that at present banks are revising the rate of interest for investment projects downward.
- The total amount of accrued interest will be 708,230 rubles.
- The conditional project life cycle is 24 months.
- Payback period from the beginning of the project is 20 months.
- The payback period, taking into account discounting, is 24 months.
- The total economic effect of the project for a conditional life cycle is 4,741,111.11 rubles.
Stages of project development and implementation
Commercial and financial risks
Federal Agency for Education
Federal State Autonomous Educational Institution
higher professional education
Siberian Federal University
Interinstitutional base department
"Electrochemical scientific-educational-industrial complex"
Teacher Yakimenko O.
Chapter 1. Description of the enterprise and its development strategy
1. Business location
Although today there are many opportunities to download films or watch them online from the comfort of their homes, many people still prefer to watch them on the big screen in the company of other viewers or their friends. Therefore, people are ready to pay for pleasure and the profit of cinemas grows by 15-20% annually.
The growth of the audience is partly due to the anti-counterfeiting law, according to which it is illegal to copy a movie you like, which means that it will be more difficult to find it on the Internet. Considering that the average cost of a licensed disc is 300-400 rubles, many will prefer this to a trip to the cinema, where you can watch your favorite movie in more comfortable conditions.
The emergence of 3D, 4D and 5D technologies that are impossible to have at home also contribute to the fact that viewers prefer to spend time in front of the screen in the cinema.
The spread of advertising in front of films has led to the fact that cinema owners can also make money on advertisers.
Advantages and Disadvantages
The business plan for opening a cinema seems to be quite interesting and can bring profit in the long term, but it requires large investments. Even a mini-cinema in a provincial city will require a large sum to start at the first stage of the business. Because of this, the payback time increases to several years. And this is in case the business develops successfully. Otherwise, the founders will simply lose funds and remain in debt. Therefore, it is recommended to develop a detailed business plan before starting a project.
The key benefits of cinema as a business will be:
- the popularity of this type of leisure;
- daily profit;
- the opportunity to earn on additional services (selling food and drinks, souvenirs, providing services photo zones, organization of leisure activities for small children);
- low competition in case of opening a cinema in a small town.
The business plan of the cinema should also take into account the possible difficulties and disadvantages of the sphere:
- the need for large investments at the initial stage;
- the need to obtain permission to rent from official distributors;
- high competition in large cities;
- high rental costs;
- long payback period.
Choosing a Niche
Reviews of the cinema business plan ()
The main thing about the cinema business plan for the year
Cinema opening: D ideas
The idea of opening a 3-D cinema involves a relatively small initial investment, for this purpose it is enough for an entrepreneur to have 20 thousand dollars available. Of course, we are talking about small cinemas - a still new direction for our country. In this regard, at the stage of organizing his cinema, a businessman runs the risk of facing various problems. And the main one is legal issues. This side of the business is very specific, which creates certain difficulties.
The opening of a small 3D cinema in Russia has good prospects if a businessman is able to thoroughly understand all the nuances of this type of business. To open even a small cinema, you will need to obtain an appropriate package of documents, including a license to carry out this type of activity. In each region, the requirements for opening a cinema will be different, as well as the development opportunities for this type of business. It is important to calculate in advance all the probable pros and cons of a risky project, so as not to end up in a trough.
Opening a mini 3D cinema in a city with a population of 30-40 thousand people seems to be more expedient than creating a full-fledged cinema with 400-500 seats. You can count on a normal profit only with a more or less normal load of the cinema. If the city is small, there is no point in planning a large-scale project. Moreover, such a business as small 3D cinemas is actively developing in large cities, as cinema owners prefer to attract customers with lower prices.
In order to open your own business - mini-cinema 3 D, you need at least half a million rubles. Most of the funds will be spent on the purchase of special equipment needed to create a 3D effect. In addition, you should take care of renting or buying suitable space in advance. In your search, be guided, first of all, by the height of the room - it should be at least 4 meters, and preferably a little higher. Otherwise, it will be impossible to place the screen so that the image on it can be seen by viewers from all rows.
In terms of location, it is important that there are no large cinemas in the immediate vicinity of your cinema. After you have decided on the premises, it is time to start buying chairs for the cinema. And it is quite possible to save on this cost item. Those who plan to open their own business - cinema, cinema, do not have to purchase new furniture. At first, used chairs will also come off. But what you cannot do without is a qualitative example of a business plan for opening a cinema with ready-made calculations. From it you will learn how to open your own cinema, get the necessary advice, learn how to calculate the prices for the necessary equipment. With the help of this document, you will be able to determine how much it costs to open a small cinema with 150 seats, and what costs will be required for the further development of the project.
Cinema organization in numbers
If you have a lot of money and have not yet decided what business to invest in, think about such an interesting type of business as opening a cinema. The pleasure, although very expensive, promises very solid prospects at the same time. In addition, the project can interest people who are enthusiastic, interested in bringing people joy. But these good goals will cost a businessman too much: a movie theater business requires significant initial investments - at least $ 2 million.
Hundreds of films are released annually. Many of them are blockbusters that attract thousands of viewers to cinemas. This should not be surprising even now, in the era of the developed Internet. The new tape will not appear on the World Wide Web in an acceptable quality yet. Therefore, a direct road to the cinema is the only opportunity to see the much-anticipated masterpiece right now.
Residents of big cities do not experience difficulties - dozens of different options are available to them. Whereas the inhabitants of a small village to enjoy the premiere have to go to neighboring regions, or patiently wait for the film to be posted on the network. This leads to a movie theater business plan that will tell you in detail how to start your business from scratch.
Types of cinemas
This type of business does not attract investors very much. The thing is that opening a cinema will require large-scale investments, and reaching self-sufficiency will become real only in a few years. But there are several options that will interest the investor.
- Multi-screen cinema. This option is available to those who are ready to invest about 15 million rubles. Success depends on how many similar places are in the city.
- Home. Relevant only when you live in a village, settlement or settlement, the number of inhabitants of which does not exceed several thousand people. People who do not have the Internet and the opportunity to go to the city for a show will gladly take the opportunity to watch a good movie. How much to charge for the entrance, you decide. But you shouldn't abuse it. Otherwise, you may be left without clients.
- In the open air. It is also called summer. In the west, this type of viewing of films is very much in demand. There are very few such enterprises within our country, which can play into the hands. It is worth remembering that such a business from scratch is seasonal. Therefore, you can forget about earnings all year round.
- Newfangled. These are the ones that show films in modern innovative formats. Such as iMAX 3D. But the price for such equipment is incredibly high. And not all films are produced using such technologies.
- Mini cinema. The most promising occupation of all possible in this business. A great option for a small town. And if it so happened that there was no such institution before, then the opportunity to open a mini cinema will become a real gold mine.
Cinema Business Plan
Let's look at how to start a small mini-enterprise from scratch. Almost any business starts with the choice of premises for its implementation. Opening your own cinema is no exception.
To open your own small cinema (approximately) with 50 seats, a room of 400 square meters will be enough. m. Of these, 90 will be required for the hall itself, and the rest will go to the following:
- foyer ;
- restroom - for men, women, for staff;
- area for selling food, drinks;
- service room;
- equipment room;
- room for staff needs.
When choosing a room, you must take into account some of the requirements that it must meet:
- Compliance with sanitary and fire regulations.
- High ceilings.
- Availability of parking spaces.
- Location. Ideal - the city center, close to the shopping center.
Finding suitable premises in a small town is difficult. But if a suitable option has turned up, then this will allow you to get rid of the construction of the desired building from scratch. It will be enough to make repairs.