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How to open a cinema: a business plan

Before starting any business, it is always worth considering to the smallest details how profitable it is, how much money and effort will have to be invested when it pays off. To open a cinema, you need to think through the whole concept of this business in advance. And the main thing is to thoroughly study this "kitchen" from the inside. You can do it this way: just work a couple of months yourself in the cinema. So it will be easier to understand all the nuances of this business.

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Not a single business has started with a simple human “want”. There should always be a clear plan of action. First you need to calculate your expenses so that "I want" to become "I can."

The cinema’s business plan begins with the “room” column. According to the legislation, there are special requirements for it. Since the room is conceived as an entertainment place, which is visited by many people, it must comply with all fire control standards and sanitary and epidemiological requirements.

Of particular importance is the size of the room. Sometimes it’s cheaper to re-build a building than to remodel an old one. On the other hand, it all depends on how big the cinema you want to open.

If this is a mini-hall with a small number of seats (for example, 60-70), then you can buy the building or part of it, then convert it into a room for watching movies. On average, about 2 million rubles will be spent on redevelopment or construction.

But the room is only half the battle. A special column is the purchase of equipment. Here it is worth exploring the market in advance. The “made in China” technique will not cost too much, but how long it will last is a big question. So it’s better not to skimp. Cinema equipment will cost an average of 6 million rubles. This is the biggest expense item, but without it, the consciousness of a full-fledged movie theater is simply impossible.

In addition to the premises and equipment, you need to think about advertising. Not a single business has not done without it. You can spend money on a professional PR agency (if the city is large), or do all the work yourself (if your settlement is not large, but it is easier to do it yourself). In any case, it is necessary to separately advertise expenses in the article. On average, they will be about 20 thousand.

how to open a movie theaterIt is also worth considering in advance what the staff will be. There must be at least two technicians so that they can work in shifts. A cleaning lady, ticket seller, supervisor - a total of three more people. And, of course, a director, who can be an accountant at the same time. A staff of six should receive a salary, which also goes to the “expenses” item. In addition to the salary itself, there is also an income tax, which must be paid to the tax service. This is also an expense item. On average, about 70 thousand will be spent on this per month.

By the way, when buying equipment, it is worthwhile to decide in advance the format of the cinema: whether it will be a 3d cinema or an ordinary, traditional one. If you stayed at a 3D cinema, then the equipment will cost a little more. But its payback will come faster.

Where to get films for showing? This is a separate column, because it will require investments. Films are always rented from the copyright holder. At the same time, it is worth knowing that exactly half of the money received from the sale of tickets will go to the right holder. Opening a cinema is not so easy as it seems at first glance. When compiling a business idea, you should always leave funds for unforeseen expenses.

Total expenses:

  1. The room.
  2. Equipment.
  3. State.
  4. Advertising.
  5. Films.
  6. Unexpected expenses.
  7. Registration of activities (depends on the greed of officials, an average of about 50 thousand rubles).

Profit

It will take quite a long time to wait for the payback after you open the cinema. Profit can come immediately after the opening, especially if the place for the cinema is convenient and the competition is small. But from the moment of obtaining the first profit to the payback, more than one year can pass. On average, it will take 4-6 years. To get a plus, you must always maintain the interest of viewers as interesting and popular films, and in other ways. For example, you can increase profits from the cinema if:

  1. open a cafe at the cinema hall,
  2. arrange promotions
  3. arrange children's days, days for senior citizens, days for couples in love, and more.

These simple steps will help to constantly stimulate interest in your project. In addition, if the cinema is open in a city with a small population, there is almost no competition, then attendance will not be long in coming. And one more thing: there should be popcorn in any movie theater. Sometimes, oddly enough, only on it you can make more revenue than on tickets.

When a cinema is open, it works, it is popular, profitability can reach 20 and even sometimes 25%. This result will have to wait, but it's worth it.

Is the game worth the candle

Of course, everyone who thought about opening his own such a large-scale project as a cinema hall wondered - is this a worthwhile investment? The advantages of such a business are that it brings real profit, is interesting, popular, has many additional sources of income. All this will be more than enough not to doubt the success of the operation. For the most part, this applies to small cities, because competition is either not at all, or it is insignificant.

The disadvantages include the following:

  1. it will take a long time to wait for the payback;
  2. large investments are needed;
  3. there is a risk of “burnout" (for the most part it concerns large cities);
  4. there is a high risk of competition.

Practice shows that in Russia about 140 cities can boast the presence of cinemas. At the same time, small villages and regional centers do not even dream of cinemas. Here this niche is absolutely free. You can open a cinema in an urban-type settlement, even if you yourself live in the city. At the same time, you can create a small cinema that will bring a steady income.

When creating a business project, you should always think about how and where to implement it. The film business allows you to manage yourself even at a remote distance, which makes it quite convenient and interesting. When thinking over a strategy, always clearly weigh the pros and cons. And, of course, pay attention to the budget (both initial and final).


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Michael
Cinema is a serious matter, more suitable for expanding a business, and from scratch, as a first business, it’s complicated
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