How to open a mini cinema: a business plan

It is interesting to spend time - an absolutely normal desire of any person, be it a resident of a metropolis or a small town. People are willing to pay for this, and therefore the entertainment business is quite promising.

One of the requirements for joining the WTO is the fight against counterfeit products and, first of all, it concerns unlicensed audio and video recordings. This means that getting an illegal copy of a movie you like will become even more difficult, and buying a licensed disc costs about 300-400 rubles. Accordingly, to watch an interesting film, you will need to spend a lot of money to buy discs or visit a cinema.

From the above it follows that the film distribution business is becoming even more interesting and relevant. However, you need to understand that opening your own cinema, and even more so a network of cinemas, is very, very expensive in terms of the amount of funds that you need to have to start such a business. Therefore, if you are determined to open a cinema, first of all, you should consider how to open a mini-cinema, as it will be less expensive and will pay off faster.

Drawing up a business plan

For a successful start of any business, before starting any action, you should calculate your upcoming expenses and see what the income will be. Before opening a movie theater in a small town, a business plan is a must. Let's start, of course, with the costs that lie ahead. The main costs will be spent on the repair and arrangement of the hall and equipment. Consider the costs of opening a 45-seat mini-cinema. So the costs are:

• equipment from 4 million rubles;
• repair of premises from 800 thousand rubles;
• rent from 70 thousand rubles per month ;
• staff salaries from 90 thousand rubles per month;
• advertising from 20 thousand rubles per month;
• unforeseen expenses 15 thousand rubles per month ...

As you can see, you will have serious expenses - the initial investment will amount to at least 4.8 million rubles, and monthly expenses will be from 195 thousand rubles. In addition, you need to pay taxes and do not forget that you will have to give almost half of the ticket price to the distributors of the films you show.

Let's estimate the profit that such a cinema can bring. If you hold 3 movie shows on a weekday, and the hall is one third full, then with a ticket price of 200 rubles, you will receive 180 thousand rubles a month. And if on weekends, for the same 3 sessions, the entire room is filled, then this will add another 270 thousand rubles to the monthly profit. In total, you will receive 450 thousand rubles a month. As you can see, the payback will not come soon, it will take at least 2 years.

It is better to buy equipment so that you can show not only ordinary cinema, but also 3D films. You can consider the option of renting equipment - this also happens. If you have a suitable space, it is best to use it. All this will save on costs and accelerate ROI.

To increase the profitability of your cinema, it is worth setting up a buffet there that will sell snacks and drinks at a large mark-up. Although this will entail additional costs, it will well increase profits.

Depository

Now closed cinemas have become traditional and a certain contingent of consumers who want a more interesting pastime have become boring. You can satisfy this desire by offering the residents of your city a familiar service in a new (or rather, a well-forgotten old) format.

In the twentieth century, open-air cinemas, in which one could watch a movie sitting in the cab of one's car or simply on the grass, were a familiar and popular format of recreation. Such film screenings were held at stadiums, in children's camps and on suburban areas. Then the romance of open-air films gradually faded into the past - film lovers moved under the roofs, into comfortable halls with comfortable armchairs and high-tech speaker systems.

However, now closed cinemas have become traditional and have become boring for a certain contingent of consumers who want a more interesting pastime. You can satisfy this desire by offering the residents of your city a familiar service in a new (or rather, a well-forgotten old) format.

Documents and licenses

First of all, you need to register as a business entity. In this case, it is advisable to register individual entrepreneurship - this is the least simple and inexpensive: you only need an entrepreneur's passport, his TIN, an application of the P21001 sample and a receipt for payment of a state duty in the amount of 800 rubles. To register an individual entrepreneur, the authorized capital and the legal address of the company are not needed, however, this form of doing business has one significant drawback - in the event of a business failure, the entrepreneur risks all his property, while, for example, the founders of a limited liability company in a crisis situation are responsible only with their parts authorized capital.

If an entrepreneur decides to register a legal entity (for example, starting his own business with partners), then it is most convenient to choose an LLC. To register, you need an application form P1101, a decision to create a company and its charter, statutory documents of a legal entity and a receipt for payment of a state duty of 4,000 rubles. The founders of an LLC can be both individuals and legal entities.

As of today, there are no specific reporting and licensing requirements for film distribution companies. Some entrepreneurs even hint at the possibility of showing films without transferring the appropriate payment to the copyright holder, but this way of saving is risky, since the fine for this copyright infringement can be up to 100,000 rubles. In addition, a license to rent a film that is not part of the premiere category will cost only a few thousand rubles. The system of payment for renting movie premieres is expressed not in specific amounts, but in percentage deductions from the total profit (usually about 50%), but when opening an open-air cinema, you should not rely on new items for a number of reasons. First, of course, the cost. Secondly, the need for equipment made with the latest technology and capable of reading license codes. And, thirdly, such a film distribution format attracts visitors primarily not with premiere screenings, but with a special atmosphere, for which time-tested masterpieces are more likely to be suitable. The average viewer will prefer to watch the expected novelty in a comfortable hall, and here cinemas of the traditional format will play the role of more successful competitors.

Equipment

Of course, the biggest investment will require the purchase of a large screen. Depending on your budget and desired level, you can choose from the following options:

• - Mobile projection screen. An almost universal solution. It can be produced in various modifications and can be mounted either on the wall or directly on the ground. It is erected with the help of air injection, therefore it somewhat resembles a trampoline. The price fluctuates around 200,000 rubles, so this option is convenient for novice entrepreneurs. MPE is convenient for transportation - all the equipment necessary for screening films can be fit into a small minibus, which, if desired, will allow not to be limited to one platform and organize a “wandering cinema”.
• - Building wall with a matte finish. This method is the most economical, since you only need a projector from the special equipment. However, the disadvantages are obvious: this method can be implemented only by agreeing on a lease with a large shopping mall or shopping center and showing films in the parking lot of these establishments. On the other hand, there is an accompanying saving on payment for using the site - not for a month or a year, but for a specific session. This option can be suitable as an easy start for those entrepreneurs who have very little initial capital and plan, after saving money, to open their own site over time.
• - LED screen (LED screen). The most high-tech, but expensive option - the cost of a complete set, together with related equipment and installation, will be about 15 million rubles, in addition, you still need to find a manufacturer who will undertake to make an LED screen of such dimensions that are suitable for a site with a capacity of 200 cars. As for the savings on the absence of a projector, it is symbolic in comparison with the cost of the screen itself.

You should also take care of how the sound accompanying the picture will be broadcast (the option of showing exclusively silent films is unprofitable, since this genre has an extremely narrow circle of fans and will not bring any significant profit). Placing speakers next to a screen may not sound powerful enough to be heard by those in the back row cars. If you increase the power of sound reproduction, then in the dark it is fraught with a fine for violation of public order. The option with speakers placed around the perimeter of the "cinema" is more suitable, but also much more expensive.

Enterprising open-air cinema owners have come up with an interesting solution to this problem - broadcasting sound directly to visitors' cars via a point-tuned FM transmitter. For those who do not have a radio in their car, simple receivers are given out at the entrance when buying tickets. The transmitter and antenna-feeder equipment will cost about 60,000 rubles.

Watching movies is a special sacrament, when a person for a moment plunges into a completely different reality. It is as if he himself experiences the events on the screen, which is why he always gets strong, real emotions. This allows you to escape from everyday problems, get inspiration or a positive charge, which must be shared with someone close or completely unfamiliar, but experienced the same feelings.

Therefore, many people prefer to go to cinemas rather than just watch movies downloaded from the Internet at home. In order to see new items, you need to go to a large cinema - this is a well-known fact. However, sometimes it is so pleasant to revisit something well-known or get acquainted with a rather old film, for some reason not seen before.

And I want to do this in a small company of other people in a cozy, almost homely atmosphere. Previously, there was practically no such opportunity. Today it is offered by small cinemas, which are increasingly opening all over the country. If there is none, take on this business yourself. You will learn how to open a small cinema for residents of your city in this article.

Is it worth opening a mini-cinema: pros and cons

In recent years, this business has become quite popular, despite a number of obstacles that face small cinemas. Its attractiveness is quite understandable - large investments are not required, it is quite easy to fill the hall for each session, there are practically no competitors in this niche yet, and you can get a net profit after 3-5 months of work.

But then why is not everyone in a hurry to implement this tempting business in many ways? In every barrel of honey you know what. Small cinema is no exception. An aspiring entrepreneur will surely face a number of obstacles, including:

• the need for licensing activities (which is not always easy);
• inability to show new items (due to the specifics of the mini-cinema);
• attracting visitors - you need to try hard so that as many people as possible know about you;
• maintaining interest in your place for a long time, etc.

Of course, all these issues can be settled if you have a real desire and not be afraid of difficulties. Is this all about you? Then there is no reason to refuse to occupy an empty niche.

How to register an activity?

One of the rather controversial issues is the licensing of small format cinemas. In order not to miscalculate and not to break the law, it is better to contact the local administration with an official question. There you will be prompted with a list of all the necessary documents, licenses for the legal conduct of business and the absence of problems with supervisory authorities. The most important thing is to comply with copyright and safety requirements, in particular the fire department.

With regard to registration, the most appropriate form would be to open a limited liability company. The OKVED code for showing films is 92. 3. You can use the preferential system to pay taxes.

Home theater - any modern resident of the metropolis will be happy with this opportunity. After all, the presence of a home cinema makes it possible for the whole family to relax in comfort and coziness at the moment when you need it: without strangers, with a choice of film adaptation that will be interesting to every family member, with the ability to stop viewing at any time and continue when needed. In this article I will share my own experience of organizing a home theater.

Preparing a place for a home theater

Often sellers of household appliances call a flat-screen TV with a large diagonal home theater. This definition is not entirely correct. Modern technologies make it possible to bring the feeling of watching a movie at home closer to what you experience in a real cinema. But for this it is important to think over and implement the creation of a home theater at the stage of repair.

• Home theater is a complex of technical means, between which it is necessary to lay electrical cables. So that the aesthetically large number of wires does not attract attention, at the stage of repair it is necessary to think over how to hide the wires and connect the necessary devices to each other.
• The room in which the equipment is supposed to be installed must be additionally soundproofed, the walls must be laid with high-quality material, and carpet must be laid on the floor. If you plan to use the projector, you need to prepare the wall. I will write about this in more detail below.
• Decide in advance which room the home theater will be installed in. A long room or niche in the room, which is so difficult to use for its intended purpose without losing usable space, will do.

Screen selection

When installing a home theater, the main issue that needs to be resolved is whether to hang a TV or a projector on the wall. A projector has many advantages over a TV:

• The projector does not affect eye health or vision in general. The absence of any kind of radiation protects the eyesight of adults and children.
• The projector can literally be stretched to the entire wall, the screen will really look like a movie theater. At the same time, taking into account the first point, you can not be afraid for your eyesight, even with a small room size.

But the projector has one significant drawback. Compared to a modern TV, a projector will cost several times more. The vinyl canvas from which the screen is made, depending on the size, will cost several tens of thousands of rubles.

Home theater organization

Movie screen is selected. But this is not the end of the creation of the cinema. Work is only at the very beginning of the journey. In addition to the screen, take care of the purchase and installation of the following home theater elements:

• Home theater sound. The use of a speaker system is one of the main differences between a conventional TV and a home theater. The TV speakers produce a flat sound directed towards the listener, and the correctly positioned speaker system, thanks to the surround sound, creates the effect of being in the scene.
• Places to watch the movie. Cozy location plays one of the important tasks when creating a home theater. The most affordable and simple solution is to install a sofa in front of the screen. Replacing the sofa with frameless furniture will add atmosphere and comfort. And if there is free space, you can even build several multi-level rows with chairs.

Fact 1. Now there are technologies of very high-quality video and sound reproduction, which are practically not inferior to cinemas (it is not for nothing that these technologies are called home theater by the people).

Fact 2. The cost of a home theater with excellent sound and image with a screen diagonal of 2-3 meters (i.e. on the entire wall of a standard apartment) is 150 thousand (50 thousand sound + 70-80 projector + screen for projector 20-25). The quality, again, is crazy.

Fact 3. With sufficient development of giant cinemas (for 200-300 seats), there are practically no small and medium-sized cinemas.

Conclusion: you need to fill an empty niche and create a video salon for 15-20 seats !!

1. We are renting a one-room apartment in a decent densely populated area, preferably 25 meters in area. A two-room apartment is also possible, but you will have to break the wall, and not every owner will agree to this. Or we find a basement, so that as a classic video salon of the 80s)))

2. We buy and install equipment. We buy a batch of films.

3. Advertising in the entrances of the surrounding houses. You can also post the current repertoire of films there.

4. Income can be generated from the sale of drinks and snacks. Home cafe.

5. We buy a shovel. To row money.)))

Technique - 150 thousand. You can take a loan - 15 thousand down payment and the same amount every month.

Premises - 15-20 thousand per month. You can negotiate payment in installments to reduce initial costs. Or you can remodel your apartment. It's a home business!

Purchase of products for mini-cafes - 5000.