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Movie Theater

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How to Start a Movie Theater

Written by: Natalie Fell

Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 28, 2022 Updated on November 29, 2023

How to Start a Movie Theater

Investment range

$135,500-$324,600

Revenue potential

$195,000 - $520,000 p.a.

Time to build

0 - 3 months

Profit potential

$59,000 - $156,000 p.a.

Industry trend

There’s nothing quite like seeing a movie on the big screen. The cinematic experience of watching a film in a theater feels larger than life! Although streaming services have made it easier to watch the latest blockbusters at home, improved technology and new innovations keep people coming back to the theater.

As the pandemic recedes, people are heading back out on the town, and the US movie theater industry is expected to grow 4.8% annually through 2028.  

Right now is a great time to start the cinema of your dreams, but it’s important to make sure you have the business fundamentals down before you dive in. Luckily, this step-by-step guide contains all the information and insight you need to put you and your new movie theater on the path to success. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Before you decide to start your own movie theater, it’s important to consider the pros and cons.

  • Fun Work Environment – Show films and delight your customers!
  • Post-pandemic Boom – Movie-goers are heading back to the theater
  • Make Connections – Build lasting community relationships
  • High Startup Costs – Equipment and film licensing fees are pricey
  • Compete with Streaming Services – Many are choosing to watch movies at home

Movie Theater industry trends

Industry size and growth.

  • Industry size and past growth – In 2022, the US movie theater industry is worth $12.1 billion. The industry dipped during the pandemic, but it’s now making a full recovery . (( https://www.ibisworld.com/industry-statistics/market-size/movie-theaters-united-states/ ))
  • Growth forecast – Globally, the movie theater market is expected to grow at an annual rate of 4.7% through 2028.(( https://www.verifiedmarketresearch.com/product/movie-theaters-market/ ))
  • Number of businesses – There are 2,525 movie theater businesses in the US in 2022.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/movie-theaters-united-states/ ))

movie theater industry size and growth

Trends and challenges

Trends within the movie theater industry include:

  • Some theaters have pivoted to offering private events where families, friends, or organizations can reserve their own screenings. They’re also thinking outside the box and renting out their space for fantasy football draft parties, pay-per-view sporting events, and more. 
  • Tech innovations like Magic Screen enable audiences to interact live with movie characters. It’s still in development, but pilot testing has shown promising results.

Challenges within the movie theater industry include:

  • Before the pandemic, new releases typically stayed in theaters for around 90 days. Today, that time has been cut in half, which means fewer tickets are sold. There are also less movies being released. 
  • With many new releases heading straight to streaming, people can now view these films right from their couches. More people are now choosing to stay home and save money instead of heading to the theater.

movie theater Trends and Challenges

How much does it cost to start a movie theater?

Startup costs for a movie theater range from $135,000 to $325,000. Major costs include theater rental, equipment, labor, and the cost to license the films you feature. You may be able to keep costs low by renting equipment or purchasing used items and licensing older films instead of new releases. 

You’ll need a handful of items to successfully launch your movie theater, including: 

  • Digital projector
  • Projector screen
  • Film licenses
  • Concessions

How much can you earn from a movie theater?

The average cost of a movie ticket is $15. Movie-goers often purchase concessions when they’re available and spend an additional $10. After costs, your profit margin should be around 30%.

In your first year or two, assuming a two screen theater, you could show two screenings per week to 75 patrons each. You could charge $15 a ticket and sell $10 worth of concessions to each person, bringing in $195,000 in annual revenue. This would mean $59,000 in profit, assuming that 30% margin. As your movie theater becomes more popular, you could draw 200 people per screening, bring in $520,000 in annual revenue, and make an impressive profit of $156,000. 

movie theater earnings forecast

What barriers to entry are there?

There are a few barriers to entry when starting a movie theater. Your biggest challenges will be:

  • Securing a viable theater location
  • High startup costs
  • Drawing viewers away from established theaters

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Step 2: hone your idea.

Now that you know what’s involved in starting a movie theater, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research movie theaters in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a theater with a full-service restaurant or arcade. 

movie house business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as independent films or private events.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

At your movie theater, you’ll be selling tickets to the films you decide to feature. Due to licensing fees, blockbuster new releases are more expensive to show than older films. Offering concessions or a full bar with alcoholic beverages would increase revenue. 

Some theaters also have arcade games onsite. You could also consider renting your theater out for corporate events or private screenings. 

How much should you charge for movie tickets and concessions?

Movie tickets typically cost between $12 and $20. You can charge a discount for a matinee show or a premium price for weekend showings. In terms of concessions, you could charge anywhere from $5 to $12 for candy, popcorn, and sodas. If you decide to offer alcoholic beverages, you can charge between $10 and $20 per drink. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be individuals and families who enjoy viewing films in a theater. Movie-goers come in all ages, shapes, and sizes, so spread your marketing efforts across social media platforms like TikTok, Facebook, and Instagram. 

Where? Choose your movie theater location

Ideally, you’ll want to lease an existing theater that’s already designed for showing films. Look for a theater in a desirable location that’s easily accessible with plenty of parking. Theaters attached to malls and shopping centers are convenient for patrons. 

As your business grows or if you acquire additional theaters, you’ll likely need to hire workers for various roles and may need to rent out a separate office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed

movie theater idea rating

Step 3: Brainstorm a Movie Theater Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “cinema” or “theater”, boosts SEO
  • Name should allow for expansion, for ex: “Screen Savvy” over “Horror House Cinema”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Movie Theater Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary : A brief summary outlining the movie theater business’s main highlights and goals.
  • Business Overview : A concise description of the movie theater, its location, and its mission.
  • Product and Services : Explanation of the movies, concessions, and additional offerings provided by the theater.
  • Market Analysis : An assessment of the local demand for movie entertainment and demographic trends.
  • Competitive Analysis : Evaluation of other theaters and entertainment options in the area.
  • Sales and Marketing : Strategies for promoting the theater and attracting customers.
  • Management Team : Introduction to the key individuals responsible for running the movie theater.
  • Operations Plan : Details on day-to-day theater operations, from screening schedules to staffing.
  • Financial Plan : Financial projections, including revenue, expenses, and profit expectations.
  • Appendix : Supplementary information, such as supporting documents or additional research.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to movie theaters. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your movie theater will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

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movie house business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

movie house business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a movie theater. You might also try crowdfunding if you have an innovative concept.  

types of business financing

Step 8: Apply for Movie Theater Business Licenses and Permits

Starting a movie theater requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your movie theater as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Veezi , JACRO , or Ticketor , to manage ticketing, develop mobile apps, and create digital signage. 

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a movie theater business is an exciting venture, but success requires more than just a love for film. Here are concise and effective marketing strategies to help you fill those seats and create a thriving cinema experience.

  • Strategic Partnerships: Collaborate with local restaurants for cross-promotions, offering discounts or package deals that include dinner and a movie, creating a win-win for both businesses.
  • Themed Movie Nights: Organize themed movie nights to attract niche audiences; for example, classic movie marathons, date nights, or family-friendly weekends.
  • Loyalty Programs: Introduce loyalty programs that reward frequent customers with discounts, free tickets, or concession upgrades to encourage repeat visits.
  • Social Media Engagement: Leverage social media platforms to engage with your audience through interactive content, polls, and behind-the-scenes glimpses to build a sense of community around your theater.
  • Exclusive Premieres and Events: Host exclusive premieres, red-carpet events, or Q&A sessions with filmmakers to create buzz and position your theater as a go-to destination for film enthusiasts.
  • Student and Senior Discounts: Attract a broader audience by offering discounted tickets for students and seniors on specific days or times, making your theater more accessible to different demographics.
  • Matinee Specials: Introduce matinee specials during off-peak hours to entice budget-conscious customers, providing an additional revenue stream during slower periods.
  • Local Sponsorships: Seek sponsorships from local businesses to fund special screenings or events, enhancing your community presence while generating additional revenue.
  • Mobile App Integration: Develop a mobile app for easy ticket purchasing, personalized recommendations, and exclusive mobile-only promotions to enhance the overall customer experience.
  • Customer Feedback Incentives: Encourage customer feedback by offering incentives such as discounts or free concessions, showing that you value their opinions and are committed to continuous improvement.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your movie theater meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your movie theater could be:

  • Where Hollywood meets hometown!
  • Fantastic film fun for the whole family
  • More than just movies – cinema bar and cafe 

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a movie theater, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the film industry for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in movie theaters. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a movie theater include:

  • Cashier – Greet customers, sell tickets
  • Concessions Workers – Prepare and serve food, collect payments
  • Theater Manager – Manage employees, maintain inventory
  • Film Operator – Manage projector and sound, troubleshoot equipment

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Movie Theater – Start Making Money!

As movie-goers head back to the big screen, it’s the perfect time to start your own cinema. It will take hard work, but it’s a rewarding way to make a living, and your movie theater could become everyone’s favorite hang-out spot!  

Now that you’ve done your homework, it’s time to put your entrepreneurial insights to good use and spark up that projector. 

  • Movie Theater FAQs

Yes, movie theaters can be profitable. The key to increasing revenue is to offer and upsell concessions to your customers. You might also consider renting out your theater space for private events.

Movie tickets usually cost between $12 and $20. Films shown during weekday afternoons typically cost less than those shown during evenings and weekends. Concessions like candy, soda, and popcorn are usually priced from $5 to $12. Alcoholic beverages go for about $10 to $20 each.

To differentiate your movie theater, focus on providing a unique and immersive movie-watching experience through features like state-of-the-art technology, comfortable seating, enhanced sound systems, specialized screenings (e.g., 3D, IMAX), curated film selections, and offering a variety of alternative content such as film festivals or special events.

Identify and secure movie distribution deals for your theater by networking with film distributors, attending industry events and film markets, utilizing online platforms for industry connections, showcasing your theater’s capabilities and audience reach, and negotiating licensing agreements directly with movie studios or independent filmmakers.

Offer discounts or loyalty programs such as discounted ticket prices for matinee screenings, special pricing for student or senior citizens, bulk ticket purchases for groups, loyalty cards with rewards or points-based systems that can be redeemed for future movie tickets or concessions, and exclusive access to advanced screenings or special events.

Provide a range of food and drink offerings in your movie theater, including traditional concessions like popcorn, candy, and soda, as well as expanded options like gourmet snacks, specialty coffees, artisanal ice cream, healthy snack choices, and even a full-service dining experience with a menu tailored to the movie theme or audience preferences.

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Movie Theater Name
  • Create a Movie Theater Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Movie Theater Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Movie Theater - Start Making Money!

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Filmmaking Lifestyle

Film Production Company Business Plan: The Complete Guide

movie house business plan

The process of film production is a long and arduous one. It starts with the writing stage, where screenplays are written by a writer or multiple writers.

The screenplay typically has at least three acts that have to be edited for pacing and story development purposes. Once the script is finished, it’s time for pre-production!

There’s a lot of misconception about what film production really entails. This article will clear up some of the misconceptions and give you an idea of what it is like on set, as well as how to break into the industry.

FILM PRODUCTION COMPANY BUSINESS PLAN

What is a film production company business plan.

A film production company business plan is a document that can help you to get investors and loans from banks, but it’s also useful for you to see if your idea is viable. It helps you determine if it’s worth investing money, time, and effort.

Film production company business plans are documents that should be created before starting the business.

They will help you gain investors so you can start your film production company and make money out of your films.

A business plan should have all the necessary information about your film company , including the mission statement, executive summary, market analysis, funding request, financial projections, and management team.

Starting a film production company is an exciting venture that blends creative storytelling with the thrill of entrepreneurship.

Crafting a solid business plan is our roadmap to success, ensuring we navigate the complex landscape of the film industry with confidence.

We’ll jump into the essentials of a film production company business plan, from financial projections to marketing strategies.

Stick with us to learn how to lay the groundwork for a thriving production company that’s ready to take on Hollywood.

Executive Summary

When embarking on the exhilarating journey of starting a film production company, the executive summary stands as a pivotal introduction to the business plan.

It provides a snapshot of the company’s vision and objectives, ensuring that potential investors or partners grasp the core of what we’re building.

In our executive summary, we’ll outline the major points that distinguish our company, such as our unique storytelling capabilities and innovative distribution strategies.

We hone in on our competitive advantage – a blend of seasoned industry professionals and fresh talent that pushes the envelope of what’s possible in film.

We’ll also touch upon our foundational goals:

  • Captivate a diverse audience with groundbreaking narratives,
  • Create a slate of projects that showcase profitability and creative ingenuity,
  • Establish a brand synonymous with quality entertainment.

Financial plans are succinctly summarized to demonstrate the strategic allocation of resources and the anticipated financial trajectory.

Here, investors will find confidence in our capability to manage budgets effectively and produce high-return projects.

Marketing strategies are briefly yet powerfully presented, showcasing how we plan to penetrate the market and gain substantial traction.

We outline our approach to leveraging social media , partnerships, and film festivals to amplify our presence and stake our claim in a crowded industry.

Each element of our executive summary is designed to pique interest and invite deeper exploration into our full business plan.

Through it, we lay the foundation for a dialogue with stakeholders that could translate into lasting support for our creative endeavours.

Company Overview

In the heart of our business plan lies the comprehensive Company Overview section, a detailed portrait of who we are and what we stand for.

As seasoned filmmakers at Filmmaking Lifestyle, we take pride in our ability to tell gripping stories through the lens of our cameras.

We offer a range of filmmaking services, but here’s a snapshot of our core offerings:

  • Narrative Film Production – Our signature offering includes developing and producing feature films that resonate with audiences globally.
  • Commercial Video Production – We craft compelling marketing videos that help brands tell their stories and engage with their target demographic.
  • Innovative Content Creation – With the digital space evolving rapidly, we stay ahead of trends producing content that stands out in crowded platforms.

Our mission goes beyond the visual aesthetics; it’s about weaving narratives that leave a lasting impact.

Each project is an opportunity for us to push the envelope in creative storytelling.

At the core of our operation, we strive to achieve a convergence of artistic vision and commercial viability.

Anchored by a team of dedicated professionals, we bring diverse perspectives and skills to every production.

This synergy creates a fertile ground for innovative filmmaking.

Our work ethic revolves around a relentless pursuit of excellence and a commitment to staying on top of the latest industry advancements.

Focused on scaling our film production capabilities, we’re actively exploring emerging technologies and distribution channels to enhance our impact in the industry.

We’re all about staying ahead of the curve, making sure our films are not just seen, but remembered and revered.

With a portfolio that spans various genres and styles, our flexibility allows us to tailor our approach to each unique project.

Collaboration is key – by joining forces with talented writers, directors, and producers, we amplify our ability to craft unforgettable cinematic experiences.

Investing in our growth, we’ve equipped ourselves with state-of-the-art equipment and editing suites, ensuring professionalism and efficiency in our production workflow.

Convergence of art and technology is critical in our approach and is reflected in every piece of content we produce.

eventually, our Company Overview is not just an introduction to who we are; it’s an open invitation to jump deeper into the possibilities and potent potential of partnering with Filmmaking Lifestyle.

We’re here to bring visions to life and curate a portfolio of work that speaks volumes of our passion for filmmaking.

Vision And Mission

movie house business plan

Matt Crawford

Related posts, film tax credits: a complete guide, your business energy level: 15 daily habits that are draining you of energy, film funding: the definitive guide [with tutorials & templates], buying electronics online – how to not get scammed, 5 ways to stop being your own worst enemy, how to make money on youtube: the complete guide.

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Iam having a movie by the name from the streets to the world

movie house business plan

Best of luck, Kelvin!

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Matt .. would you have template of the Biz Plan .. and are you Fine with sharing the same? – AMAAN

Here’s an idea for a template: https://toskaproductions.com/wp-content/uploads/2013/06/TEA-Business-Plan.pdf

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How to Start a Profitable Movie Theater Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

image of a movie theater business

Business Steps:

1. perform market analysis., 2. draft a movie theater business plan., 3. develop a movie theater brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for movie theater., 6. open a business bank account and secure funding as needed., 7. set pricing for movie theater services., 8. acquire movie theater equipment and supplies., 9. obtain business insurance for movie theater, if required., 10. begin marketing your movie theater services., 11. expand your movie theater business..

Before jumping into the movie theater business, a thorough market analysis is crucial to understand the current landscape and identify opportunities for success. This step involves evaluating the demand for movie theaters in your target area, the competition, and the preferences of potential customers. Here are some key points to consider:

  • Assess the local population demographics to determine potential audience size and movie preferences.
  • Analyze competitors by visiting nearby theaters to understand their offerings, pricing, and customer experience.
  • Examine industry trends, such as the rise of streaming services and how they might impact traditional movie-going habits.
  • Identify any gaps in the market that your theater could fill, such as offering unique viewing experiences or specialized movie selections.
  • Consider the economic conditions of the area to ensure that there is a viable customer base with disposable income for entertainment.
  • Conduct surveys or focus groups to gather direct feedback from potential customers about their desires and expectations for a movie theater.

image of a movie theater business

Are movie theater businesses profitable?

Yes, movie theater businesses can be profitable. Factors that affect profitability will vary based on the specific movie theater and market conditions, such as ticket prices, concession sales, and the number of available screens. Additionally, movie theaters can earn additional income from special events, advertising, and promotions.

Creating a detailed business plan is a critical step in the journey to open a movie theater, as it serves as a roadmap for your venture and is essential for securing investors or loans. Your plan should outline your business's strategic direction, financial projections, and operational guidelines. Here's what you should include in your movie theater business plan:

  • Executive Summary: An overview of your business concept, mission statement, and the unique selling points of your theater.
  • Market Analysis: Research on your target audience, industry trends, and competitive landscape.
  • Organization and Management: Your business structure, details about the management team, and staffing requirements.
  • Services Offered: The types of movies you'll show, special events, and any additional services like concessions or merchandise.
  • Marketing and Sales Strategy: How you will attract and retain customers, including pricing, promotions, and partnerships.
  • Funding Request: If applicable, the amount of funding you will need to start and grow the business, and how you plan to use the funds.
  • Financial Projections: Detailed forecasts including profit and loss, cash flow, and a break-even analysis.
  • Appendix: Any additional information such as resumes, legal documents, or other pertinent materials.

How does a movie theater business make money?

Movie theaters make money primarily by selling tickets to audiences for viewing films. Movie theaters also make money by selling snacks and refreshments to their audiences, who often purchase such items when viewing a film. Additionally, movie theaters can also earn money by selling merchandise related to popular films, such as toys and t-shirts. As an example, a target audience for the air duct cleaning business could be homeowners or landlords who need their ducts to be cleaned in order to keep their indoor air clean and free of harmful dust particles.

Developing a brand for your movie theater is a crucial step that will set the tone for your customer's experience and differentiate your business from competitors. A strong brand identity can influence customer perception and foster loyalty. Here are some key points to consider:

  • Define your brand's unique value proposition: What makes your theater special? This could be anything from luxury seating, indie film selections, or community events.
  • Choose a memorable name and logo: Your brand's name and visual identity should be distinctive and reflective of the movie-going experience you aim to provide.
  • Decide on a theme or concept: Whether it's classic Hollywood glamour or a high-tech modern experience, make sure your theme is consistent across all aspects of your theater.
  • Consider your target audience: Tailor your branding to appeal to the specific demographic you aim to attract, whether it's families, cinephiles, or a general audience.
  • Create a strong online presence: Utilize a professional website and active social media profiles to build your brand's image and engage with potential customers.
  • Ensure brand consistency: From your marketing materials to the staff uniforms and in-theater decor, maintain a consistent brand image that aligns with your values and messaging.

How to come up with a name for your movie theater business?

When coming up with a name for your movie theater business, it's important to consider what makes your theater unique. Think about the type of movies you'll show and the atmosphere you want to create. Brainstorm some ideas and narrow down a list of potential names that are catchy and memorable. Consider including elements that represent the local region, or even a pun or alliteration that may draw attention. Ultimately, choose a name that will have lasting appeal and best represent your business.

image of ZenBusiness logo

Formalizing your business registration is a critical step in establishing your movie theater. This process gives your venture legal recognition and allows you to operate within the framework of the law. Follow these guidelines to ensure your business is properly registered:

  • Choose a business structure (e.g., sole proprietorship, partnership, LLC, corporation) that best suits your theater's needs and offers the right balance of legal protections and benefits.
  • Register your business name with the appropriate state authority, ensuring it's unique and not already in use.
  • Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
  • Apply for the necessary permits and licenses, which may include a business license, a health and safety permit, and a specific cinema operating license.
  • Register for state and local taxes to ensure you are compliant with sales tax, payroll tax, and any other applicable tax regulations.
  • Check with your local government for zoning laws and regulations that may affect where you can locate your movie theater.

Resources to help get you started:

Explore the crucial resources curated for drive-in movie theater entrepreneurs looking for comprehensive market trends, operational excellence strategies, and tips for business expansion:

  • International Drive-In Movie Day (IDMD) Official Site : Offers insights and promotional opportunities related to drive-in theaters worldwide. http://driveinmovieday.com
  • National Association of Theatre Owners (NATO) : Provides industry reports, advocacy, and educational resources for theater owners, including drive-ins. https://www.natoonline.org
  • Boxoffice Pro : A trade magazine offering the latest news, trends, and marketing tips for the cinema industry. https://www.boxofficepro.com
  • Drive-In Theater Fan Club : A community resource for drive-in theater enthusiasts and owners, featuring a directory, event listings, and operational advice. http://www.driveintheater.com
  • Screen Trade Magazine : Focuses on the broader entertainment venue industry, providing insights that can be applied to drive-in theaters. https://screentrademagazine.com
  • Small Business Administration (SBA) : Offers guides on starting a business, financing, and managing a small business, applicable to launching a drive-in theater. https://www.sba.gov

Starting a movie theater requires careful attention to legal requirements. Licenses and permits are crucial to ensure your business operates within the law and avoids any penalties. Here's a guide to help you navigate this process:

  • Business License: Check with your local city or county clerk's office to apply for a general business license, which is a basic requirement for any commercial operation.
  • Building Permits: If you're constructing a new theater or renovating an existing space, you'll need building permits. Contact your local building department for the correct applications.
  • Public Health Permits: If your theater will sell food, you'll need health permits from your county's health department to ensure you meet food safety regulations.
  • Fire Department Permits: Fire codes are strict for theaters. Obtain a permit from the fire department, and expect regular inspections for safety compliance.
  • Alcohol Licenses: If you plan to serve alcohol, you'll need a liquor license, which can be complex and varies by state. Start this process early as it can take time to acquire.
  • Entertainment License: This is sometimes required to show films or host live performances. Check with your local government for specifics.
  • Film Licensing: You'll need to secure the rights to screen movies from film distributors. This is not a government permit, but a license agreement between your theater and the distributor.

What licenses and permits are needed to run a movie theater business?

Depending on the location, a business owner may need to secure various different licenses and permits when setting up a movie theater. Generally, the following permits and licenses are needed to run a movie theater business:

  • Tax Permits
  • Business Licenses
  • Occupancy Permit
  • Building Permit (for remodeling or construction)
  • Fire Department Permit
  • Food Service Permit (if serving food)
  • Alcoholic Beverage Sales License (if offering alcoholic beverages)

Opening a business bank account and securing funding are crucial steps in establishing the financial foundation for your movie theater business. A dedicated bank account will help you manage your finances effectively, while securing funding is necessary to cover startup costs and maintain cash flow. Follow these guidelines to ensure these steps are completed successfully:

  • Research banks and financial institutions that offer business banking services and compare their fees, services, and customer support to find the best fit for your movie theater business.
  • Prepare the necessary documents, which typically include your business plan, EIN (Employer Identification Number), incorporation papers, and personal identification, to open your business bank account.
  • Consider the different types of business loans, lines of credit, or investors that could help finance your movie theater. Assess their terms and choose the one that aligns with your financial strategy and business goals.
  • Develop a solid pitch if you plan to attract investors, highlighting the potential success of your movie theater based on market research, location, and your unique value proposition.
  • Apply for funding well in advance of when you will need it, as the process can take time and you want to ensure that funds are available when necessary for your business operations.

Setting the right price for your movie theater services is crucial to attract audiences while ensuring profitability. Consider the market, audience demographics, and your operational costs to establish competitive and fair prices. Here are a few guidelines to help you set your pricing:

  • Research competitor pricing to understand the current market rate for movie tickets and concessions in your area.
  • Analyze your costs, including film rental fees, staffing, maintenance, and utilities, to determine the minimum price needed to cover expenses and generate profit.
  • Offer tiered pricing for different seating options, such as standard, premium, and VIP experiences, to cater to diverse customer preferences and budgets.
  • Implement dynamic pricing for peak times, such as evenings and weekends, and offer discounts for matinees and weekdays to balance demand.
  • Consider membership or loyalty programs to encourage repeat customers, offering perks like discounted tickets or free concessions after a number of visits.
  • Create special promotions and partnerships with local businesses to provide value-added packages or cross-promotional deals.
  • Ensure your pricing is clearly communicated at the point of sale and online to maintain transparency and trust with your customers.

What does it cost to start a movie theater business?

Initiating a movie theater business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $910000 for launching such an business. Please note, not all of these costs may be necessary to start up your movie theater business.

Starting a movie theater requires not only a passion for films but also the right equipment and supplies to ensure a memorable experience for your patrons. From the latest projection systems to comfortable seating, every detail counts. Below is a list of essential items you'll need to acquire for your movie theater:

  • Projection Equipment: Invest in a high-quality digital projector with 4K resolution or higher and 3D capabilities, if desired. Don't forget a compatible sound system for immersive audio.
  • Screens: Purchase screens that are the appropriate size for your viewing rooms, with a preference for high-gain models for better brightness and clarity.
  • Seating: Comfortable, durable seats with cup holders and ample legroom are crucial. Consider options like recliners for a premium experience.
  • Concession Stand Equipment: Acquire popcorn machines, soda dispensers, refrigerators, candy displays, and other necessary equipment for serving snacks and beverages.
  • Point of Sale System: Implement an efficient ticketing and sales system, which may include online ticketing options and self-serve kiosks.
  • Cleaning Supplies: Maintain a stock of cleaning supplies and equipment like vacuums, mops, and sanitizing products to keep your theater clean and hygienic.
  • Signage and Decor: Invest in promotional and wayfinding signage as well as decor that enhances the overall ambiance and theme of your theater.

List of software, tools and supplies needed to start a movie theater business:

  • Movie theater seating: $2,000 - $30,000
  • Projector: $1,000 - $10,000
  • Sound system: $500 - $5,000
  • Screen: $800 - $2,000
  • Point of sale system: $300 - $1,000
  • Cinema concessions such as popcorn makers, soft drink machines and snack machines: $2,000-$6,000
  • POS software and hardware for ticketing: $1,500 - $3,000
  • Theater lighting and dimming equipment:$500 -$3,500
  • Furniture and decorations to create the desired atmosphere in your theater: $500-$2,500
  • Licensing fees for displaying films: cost varies depending on the type of license you need

Ensuring your movie theater business is adequately insured is crucial for protecting your investment and maintaining smooth operations. Business insurance can safeguard against a variety of risks, from property damage to liability claims. Here are some key steps to obtain the necessary insurance:

  • Research the types of insurance required for a movie theater, such as general liability, property insurance, workers' compensation, and business interruption insurance.
  • Consult with a licensed insurance broker who specializes in commercial insurance to get professional advice tailored to your specific needs.
  • Gather necessary information about your theater, including property value, equipment costs, number of employees, and estimated revenue to accurately assess coverage needs.
  • Compare quotes from multiple insurance providers to find the best coverage at competitive rates.
  • Read policy documents carefully to understand coverage limits, deductibles, and exclusions before making a decision.
  • Once you select a policy, ensure that all required documentation is submitted, and premiums are paid on time to keep the policy active.

Successfully marketing your movie theater is crucial for attracting customers and creating a memorable experience that keeps them coming back. With the right strategies and a touch of creativity, you can ensure that your theater stands out in the competitive entertainment industry. Here are some key steps to kickstart your marketing efforts:

  • Develop a strong brand identity that encapsulates the unique experience of your theater, including a memorable logo, tagline, and consistent visual elements.
  • Launch a user-friendly website with showtimes, online ticketing, and a signup option for newsletters to keep your audience informed about upcoming movies and events.
  • Utilize social media platforms to engage with your community, share behind-the-scenes content, and create buzz with exclusive promotions and contests.
  • Partner with local businesses and organizations for cross-promotions to tap into new audiences and offer special packages or discounts.
  • Consider loyalty programs or membership options that reward frequent visitors with perks such as discounted tickets or concessions.
  • Host special events like premieres, themed movie nights, and film festivals to generate excitement and provide unique viewing experiences.
  • Invest in search engine marketing and local SEO to make sure your theater appears prominently when potential customers search for entertainment options in your area.
  • Collect and leverage customer feedback to improve services and tailor your marketing efforts to meet the desires of your audience.

Once your movie theater has established a solid customer base and a reliable revenue stream, it's time to consider expansion. This move could involve diversifying your offerings or enlarging your footprint. Here are some strategic steps to guide you in growing your movie theater business:

  • Open additional locations: Look for new markets where there is a demand for entertainment but a lack of movie theaters.
  • Upgrade technology: Invest in the latest projection and sound equipment to enhance the viewing experience and attract more patrons.
  • Add more screens: Increase the number of screens at your current location to show a wider variety of films and accommodate more showtimes.
  • Offer diverse content: Include independent films, foreign cinema, and live events to appeal to a broader audience.
  • Enhance concessions: Expand your food and beverage options to include gourmet snacks and perhaps a dine-in theater experience.
  • Develop partnerships: Collaborate with local businesses and organizations for cross-promotion and special events.
  • Implement loyalty programs: Reward frequent visitors to encourage repeat business and word-of-mouth marketing.

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Movie Theater Business Plan Sample

MAR.20, 2019

Movie Theater Business Plan Sample

Do you want to start movie theater business plan

A movie theater is a business in which you make contact with the film distributors, buy their movies and play them on a big screen for your audience in a comfortable and enjoyable environment. This business requires continuous serious work, money and time investment, resulting in the production of huge profit.

If you are looking for a complete guide on how to open a movie theater , thoroughly read this sample business plan for movie theater including financial and marketing analysis, written for a movie theater startup named, ‘The Arena’.

Executive Summary

2.1 the business.

The Arena will be a registered and insured movie theater company located in El Paso, Texas. Business will be owned by a husband and wife, Zac Martin and Enna Martin. All type of movies such as second run and first released will be played in The Arena.

2.2 Management

To open a movie theater and run it successfully, one should either have strong management skills or should hire an efficient manager. From the distribution of tickets to the proper seating of the audience in the hall, it’s all about management.

Zac will be responsible for upgrading the building, managing finances of the business, and supervision. However, Enna will manage stuff like the selection of the movie, hiring staff, theater marketing, and snacks. For managing day to day tasks efficiently they have decided to hire a general manager to help them run the business.

2.3 Customers

After a busy and a hectic day, everyone resorts to some entertainment place to spend their evenings. So every young and adult, child and old living near to our theater will fall into the category of our customers.

2.4 Target of the Company

The company aims at balancing the startup costs by earned profits within just three months of the launch and generate huge profits afterward by providing the best film, best food, and best drink all in one seat.

movie theater business plan - 3 yeaes profit forecast

Company Summary

3.1 company owner.

Zac and Enna, a husband and wife who were previously acting as managers in a multiplex company, will be the owners of The Arena. They both are graduates in management regarding domains from the same university and are skilled in their respective domains.

3.2 Why the Business is being started

After a three-year valuable experience in management, Zac and Enna have decided to start a movie theater of their own to serve the audience in the best way they have explored and of course to avail the opportunity of running their own company.

3.3 How the Business will be started

Zac and Enna will work in coordination with each other, however, they have decided to have a clear work division to avoid any sort of mismanagement. The Arena will be a movie theater comprising of four movie halls with a capacity of at least 250 people in each hall.

A building which previously was a marriage hall, will be restored to its fullest glory and upgraded to fulfill a theater requirement. And lastly, highly customer care-oriented staff will be hired for undertaking day to day chores.

movie theater business plan - startup cost

The detailed start-up requirements as included in The Arena’s movie theater business plan  is given here:

To provide the services in a way you actually want to provide, you need to map their implementation even before researching on how to run a movie theater busines . Knowing the importance of preplanning Zac and Enna have enlisted their services with a little detail in their business plan for a movie theater  as given here:

  • First & Second Run Movie Presentation: During the early stages of the startup, The Arena will present already released movies to its customers.
  • Animated Movie Presentations: Animated movies will be played according to the demands of the public.
  • Sales of Snacks & Drinks: To provide its customers with a great experience, The Arena will serve them with instant and delicious snacks and drinks.

Marketing Analysis of Movie Theatre Business

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

After you have decided to run a movie theater business , the next step is to do its accurate and detailed marketing analysis. Before opening a movie theater , you have to make sure whether you are selecting the convenient location or not. Or whether you have to opt for a drive in theater business plan  or a movie theater business plan for an auditorium. In either case, this sample on starting a movie theater business plan will be a great help for you.

5.1 Market Trends

Despite a large competition, movie theater business has been growing since the past few years by the annual growth rate of 3.1 percent and is expected to follow even a faster growth rate in the future. According to IBISWorld, movie theaters have generated a revenue of $18 billion in 2018, employing more than 155,400 people in the United States.

The business has its scope around the year in any climate or in any economic conditions, indicating that you won’t be at loss provided that you plan it successfully.

5.2 Marketing Segmentation

Before thinking about how to start your own movie theater business , you must be very clear about who will be your audience. Zac and Enna had divided their customers into three groups to focus on the demands of each group separately as given here:

movie theater business plan - marketing segmentation

5.2.1 Families: As The Arena will mainly be a second run released movie theater so its main target group will be the families who want a light entertainment within a walking distance or a short drive from their homes. People who seek family-oriented entertainment experience usually don’t care about watching a movie on the very first run. They just want quality and inexpensive entertainment.

5.2.2 Young & Adults: The second category which we look up as our customers will be the young and adults who want entertainment for a slight break in their daily routines, or as a good chance to enjoy with their friends and mates.

5.2.3 Children & Teens: The children and teens who want to have experience of watching movies in the cinemas like the other members of their families will also be our target customers. We’ll play our collection of animated and children movies for them.

The detailed market analysis of our potential customers is given in the following table:

5.3 Product Pricing

In the initial stages, we’ll price our tickets and snacks a little less than our competitors to get introduced to a wide audience. However, the prices may vary depending on the seat allocated and the price of movies.

After identifying the market trends, the market demand, and the potential customers of the startup, the next thing to cater in movie theater business plan  is to develop a strategy to attract those customers toward us.

6.1 Competitive Analysis

In all out research about how to start a cinema theater , Zac and Enna have thoroughly analyzed the market and the competitive edges they have to come up with, also given here for your help if you are formulating your home theater business plan .

Our biggest competitive advantage is that we are starting our business in an excellent locality in El Paso, as rest of the cinemas are very far from us, and several people would prefer to have a good entertainment near to their homes and offices. We’ll have excellent management, comforting environment, and good quality snacks to serve our customers.

Lastly, we have come up with a competitive edge which most of the others in the same business lacks. We will develop a website for our theater not for just looking at the schedule of movies but also for buying tickets and making reservations through online payment. We will make a poll every week, in which people could vote for the movie they want to see, the movie with the largest votes will be shown on every Sunday.

6.2 Sales Strategy

Sales strategy is the plan of how you will introduce your new business to your target customers. Considering the importance of advertisements, Zac and Enna had also included advertisements’ costs in their movie theater startup costs .

To advertise ourselves:

  • We will sell discounted tickets for the first few months of our launch.
  • We will offer a 20% discount on the purchase of snacks and drinks for the first three months.
  • We will offer a free ticket to our customers after the purchase of six tickets in a month.

6.3 Sales Monthly

movie theater business plan - sales monthly

6.4 Sales Yearly

movie theater business plan - sales yearly

6.5 Sales Forecast

Considering our competitive advantages, our lower rates, and the quality of our services, our sales pattern is expected to increase with years. Our sales forecast on a yearly basis are summarized in the column charts.

movie theater business plan - unit sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

In your movie theater business plan   selection, distribution of tickets, proper seating arrangements and selling of delicious snacks have great importance. What’s more important is the dedicated and customer care oriented staff which will ensure the smooth running of your business for you.

7.1 Company Staff

Zac and Enna have decided to initially hire the following people for the startup:

  • 2 Accountants to maintain financial records
  • 2 Sales Executives responsible for marketing and discovering new ventures
  • 4 Cleaners for cleaning the facility
  • 4 Assistants for operating the facility and regulating day to day operations
  • 1 Inventory Manager to manage the inventory needed for events
  • 1 Front Desk Officer to act as a receptionist
  • 2 Security Officers

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

After you have decided each and everything about your business, the last step is to estimate start up cost for a movie theater and make a detailed financial plan. Your financial plan should depict how much does it cost to open a movie theater, what are your investment group for business plan , how you will be able to balance your investments with the earned profits and much more.

The detailed financial plan for The Arena is given here for a rough estimate.

8.1 Important Assumptions

8.2 brake-even analysis.

movie theater business plan - brake-even analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

movie theater business plan - profit monthly

8.3.2 Profit Yearly

movie theater business plan - profit yearly

8.3.3 Gross Margin Monthly

movie theater business plan - gross margin monthly

8.3.4 Gross Margin Yearly

movie theater business plan - gross margin yearly

8.4 Projected Cash Flow

movie theater business plan - projected cash flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Movie Theater Business Plan Sample in pdf

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Movie Theater Business Plan Template

Written by Dave Lavinsky

Movie Theater Business Plan

You’ve come to the right place to create your Movie Theater business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Movie Theater businesses.

Below is a template to help you create each section of your Movie Theater business plan.

Executive Summary

Business overview.

Cinema Escape offers the residents of Wichita, Kansas a temporary escape from their daily grind with the magic of cinema. Our new movie theater has five enormous screens that will showcase a wide range of movies, including blockbusters and indie films. We will offer a diverse list of film options to cater to the diverse interests of the community of Wichita. Our goal is to ensure that every customer who walks through our doors has the best cinema experience possible.

Cinema Escape is run by Christine Ismay, a former movie theater manager and MBA graduate from the University of Kansas. She has loved cinema her whole life but always hated the corporate feel of most national chain movie theaters. She has been committed to starting her own movie theater for several years and finally has the plans and support to make her dream a reality. Her combination of experience and education will ensure that our movie theater succeeds in the local market.

Product Offering

Cinema Escape offers five screens that will show several movies throughout each day. We will offer a diverse mix of movies, from major blockbusters to local indie films. Cinema Escape will also offer several snacks and refreshments for customers to enjoy while they watch these films.

Customer Focus

Cinema Escape will target movie lovers of all ages and genders. We aim to offer a wide selection of movies so that everyone will be enticed to visit our establishment. Though our customer base will be determined by which movies are available each week, we expect most of our customers will include families and young adults.

Management Team

Cinema Escape is founded and run by Christine Ismay. Christine Ismay is a graduate of the University of Kansas with a Master’s in Business Administration. In addition to her education, Christine worked for several years as a movie theater manager at a local competitor. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun and profitable operation will help her quickly attract customers and employees to Cinema Escape.

Success Factors

Cinema Escape will be able to achieve success by offering the following competitive advantages:

  • Friendly and highly qualified staff of professionals.
  • Wide range of movie options that include blockbusters and indie films.
  • Unbeatable pricing. A movie night with the family will be far more affordable with Cinema Escape than any other theater in the area.

Financial Highlights

Cinema Escape is seeking $450,000 in debt financing to launch its movie theater. The funding will be dedicated to leasing and building out the space, purchasing equipment and supplies, marketing expenses, working capital, and three months of overhead costs. The breakout of the funding is below:

  • Theater build-out: $200,000
  • Equipment, supplies, and materials: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $25,000
  • Working capital: $25,000

The following graph below outlines the pro forma financial projections for Cinema Escape.

Cinema Escape Pro Forma Financial Projections

Company Overview

Who is cinema escape.

Cinema Escape offers its customers a chance to escape from the daily grind of modern life by providing them with the ultimate cinema experience. Our cinema has five large screens that show a diverse selection of movies seven days a week. Our movie selection will include the biggest blockbusters as well as lesser-known indie films. We will show a wide variety of genres, including children’s films, romances, dramas, and sci-fi.

  Customers can purchase a variety of snacks to consume while they watch a movie on one of our screens. These refreshments include typical movie theater fare such as popcorn, nachos, sodas, and water. Our customers will also enjoy comfortable seating, interacting with friendly and professional staff, and a family-friendly atmosphere.

Cinema Escape’s History

Cinema Escape is owned and operated by Christine Ismay, a former movie theater manager and MBA graduate from the University of Kansas. Christine is a dedicated leader with the ability to effectively manage a team of employees, build rapport with customers, and maintain a fun, safe, and profitable operation. These skills will help her quickly attract customers and employees to her new movie theater.

Since its incorporation, Cinema Escape has achieved the following milestones:

  • Registered Cinema Escape, LLC to transact business in the state of Kansas.
  • Has been approved for all required licenses and permits to run a movie theater.
  • Has a contract in place to lease the theater.
  • Determine required equipment and supplies.
  • Began recruiting key staff.

Cinema Escape’s Services

Cinema Escape will showcase a wide selection of movies across its five screens. These will include major blockbusters as well as lesser-known indie films. Nearly every genre is welcome at Cinema Escape, including children’s films, dramas, romances, action movies, and sci-fi films.

We will also have a wide selection of refreshments for our customers. This will include popcorn, nachos, hot dogs, sodas, water, and other non-alcoholic drinks. We will also sell merchandise that will display our company logo and artwork pertaining to popular films.

Industry Analysis

According to Global Market Insights, the movie theater industry in the United States was valued at $63 billion in 2022. The industry is bouncing back from the pandemic years and is expected to grow at a CAGR of 4.9% from now until 2032. Despite the negative outlook that the industry had just a few years ago, the movie theater industry is doing well, with strong growth and enormous profits expected over the next decade.

The main sources of revenue for industry operators are ticket sales, followed by food and beverage sales, as well as merchandise sales. Market drivers include an increase in disposable income as well as increased marketing efforts by the movie industry at large. Movie theater industry operators can maintain a competitive advantage by providing competitive pricing, extended hours, or unique refreshment and merchandise options the competition does not offer.

Customer Analysis

Demographic profile of target market, customer segmentation.

Cinema Escape will primarily target the following customer profiles:

  • Children and adolescents
  • Young adults

Competitive Analysis

Direct and indirect competitors.

Cinema Escape will compete with other companies with similar business profiles. A description of each competitor is below.

Regal Cinemas

Regal Cinemas is one the largest and most diverse movie theaters in the country, boasting over 6,000 screens across 500 theaters. Customers nationwide can always count on Regal to show the best and most popular modern films in cinema as well as unique and lesser-known films and special events. Regal also has a great selection of refreshments and offers an appealing membership program that helps customers snag deals and save money. Regal’s best offer is its unlimited pass, which allows customers to see as many movies as they want in a given year.

Established in 1984, Cinemark is another major competitor in the movie theater market, operating nearly 6,000 screens across over 500 theaters. It is one of the top three largest movie theaters in the United States and is the largest theater chain in Brazil. Cinemark offers a great selection of movies at all of its theaters as well as rewarding and affordable membership plans. Customers particularly enjoy their movie club, which offers discounts on movie tickets, refreshments, and merchandise.

AMC Theaters

AMC Theaters has the largest share of theaters across the U.S. Headquartered in our home state of Kansas, AMC has a major presence and is consistently some of the most visited theaters in the area. AMC offers incredible refreshments, premium movies, great membership programs, and tons of great merchandise to keep customers coming back. As such, we expect that AMC will be our toughest competition to beat.

Competitive Advantage

Cinema Escape will be able to offer the following advantages over the competition:

  • Staff : Cinema Escape will hire friendly, knowledgeable, and highly qualified staff who will provide excellent customer service and keep the theater in perfect condition.
  • Variety : Cinema Escape will offer a wide variety of films, refreshments, and merchandise to keep customers coming back.
  • Affordable pricing : Cinema Escape offers the best pricing in town to ensure that everyone can enjoy a fun outing at the movies.

Marketing Plan

Brand & value proposition.

Cinema Escape will offer a unique value proposition to its customers:

  • Qualified and friendly staff
  • Unbeatable pricing
  • A mix of blockbusters and local films
  • Fun, family-friendly atmosphere

Promotions Strategy

The promotions strategy for Cinema Escape is as follows:

Word of Mouth/Referrals

Christine Ismay has built up an extensive list of contacts over the years by providing exceptional service to her customers. Once Christine advised them she was leaving her employer to open her own movie theater, many customers expressed interest in coming to Cinema Escape and spreading the word about the new location to their friends and families.

Print Advertising

Cinema Escape will invest in professionally designed print ads to display in programs or flyers and to put in magazines, newspapers, and direct mailers.

Website/SEO Marketing

Cinema Escape will employ an in-house marketing manager to design and maintain the company website. The website will be well organized, informative, and list all the services the movie theater will offer. The marketing manager will also manage Cinema Escape’s website presence with SEO marketing tactics so that when someone types in the Google or Bing search engine “Wichita movie theater” or “movie theater near me,” Cinema Escape will be listed at the top of the search results.

Social Media Marketing

The company will create social media accounts on multiple platforms, including Facebook, Instagram, TikTok, and YouTube. The marketing manager will manage the accounts and maintain an active presence to promote the theater.

The pricing of Cinema Escape will be moderate so that our customers can afford to have a fun outing at the movie theater. This pricing model will apply to our tickets as well as our refreshments and merchandise.

Operations Plan

The following will be the operations plan for Cinema Escape. Operation Functions:

  • Christine Ismay will be the Owner and Manager of the Cinema Escape. She will oversee all staff and the general operations of the theater. Christine will spend the next several months recruiting the following:
  • An Assistant Manager who will co-manage the staff and oversee the day-to-day operations of the theater.
  • An Accountant who will provide all budgeting, accounting, tax payments, and financial reporting.
  • A Marketing Manager who will provide all sales, marketing, and PR campaigns.
  • Several hourly staff who will sell tickets, refreshments, and merchandise. They will also provide excellent customer service and keep the theater in clean and perfect condition.

Milestones:

Cinema Escape will have the following milestones completed in the next six months.

  • 8/1/2023 – Finalize contract to lease the movie theater space.
  • 9/1/2023 – Begin build-out of the movie theater.
  • 10/1/2023 – Begin recruiting key employees.
  • 11/1/2023 – Begin marketing campaigns.
  • 12/1/2023 – Cinema Escape opens for business.

Cinema Escape is founded and run by Christine Ismay. Christine Ismay is a graduate of the University of Kansas with a Master’s in Business Administration. In addition to her education, Christine also worked for several years as a movie theater manager at a local competitor. Christine has garnered a reputation for being a positive role model for her employees and a dedicated leader. She is confident that her ability to effectively manage a team of employees, build rapport with customers, and maintain a fun and profitable operation will help her quickly attract customers and employees to Cinema Escape.

Though Christine has never run a company of her own, she has considerable experience in the industry and knows how to run the general operations of a local movie theater. She is in the process of hiring staff who will help her manage the marketing, accounting, and administrative aspects of the business.

Financial Plan

Key revenue & costs.

The revenue drivers for Cinema Escape include movie ticket sales as well as the sales of our refreshments and merchandise.

The cost drivers will include the overhead costs, the cost of the equipment and supplies, marketing expenses, and labor expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Number of monthly customers: 3,000
  • Average ticket price: $12
  • Average fees per month: $50,000
  • Office lease per year: $50,000

Financial Projections

Income statement, balance sheet, cash flow statement, movie theater business plan faqs, what is a movie theater business plan.

A movie theater business plan is a plan to start and/or grow your movie theater business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Movie Theater business plan using our Movie Theater Business Plan Template here .

What are the Main Types of Movie Theater Businesses? 

There are a number of different kinds of movie theater businesses , some examples include: First-Run Movie Theater, Discount Movie Theater, and Art House Theater.

How Do You Get Funding for Your Movie Theater Business Plan?

Movie Theater businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Movie Theater Business?

Starting a movie theater business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Movie Theater Business Plan - The first step in starting a business is to create a detailed movie theater business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your movie theater business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your movie theater business is in compliance with local laws.

3. Register Your Movie Theater Business - Once you have chosen a legal structure, the next step is to register your movie theater business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your movie theater business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Movie Theater Equipment & Supplies - In order to start your movie theater business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your movie theater business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful movie theater business:

  • How to Start a Movie Theater

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Production Company Business Plan Template

Written by Dave Lavinsky

Production Company Business Plan

Production Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their production companies.

If you’re unfamiliar with creating a production company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a production company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your production company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a production company or grow your existing production company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your production company to improve your chances of success. Your production company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Production Companies

With regards to funding, the main sources of funding for a production company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for production companies.

Finish Your Business Plan Today!

How to write a business plan for a production company.

If you want to start a production company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your production company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of production company you are running and the status. For example, are you a startup, do you have a production company that you would like to grow, or are you operating a chain of production companies?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the production industry.
  • Discuss the type of production company you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of production company you are operating.

For example, your production company might specialize in one of the following types of production companies:

  • Feature Film Production Company : this type of production company handles all of the necessities that go with producing a major film – hiring on-screen and off-screen talent, writers, musicians, location scouts, a team for pre-production, post-production, legal, etc.
  • Commercial Production Company: this type of production company can produce stock footage, short corporate videos, training videos, and creative projects such as music videos and short films
  • Post Production Company: this type of production company handles video editing, special effects, color correction, sound mixing, and editing to eventually produce the final video.
  • Niche Production Company: this type of production company focuses on one specific niche that it has perfected. They often combine the best of animation, commercial, and post-production companies.

In addition to explaining the type of production company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of clients served, the number of films with positive reviews, reaching X number of clients served, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the production industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the production industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your production company business plan:

  • How big is the production industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your production company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your production company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, companies, filmmakers, studios.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of production company you operate. Clearly, small businesses would respond to different marketing promotions than filmmakers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Production Company Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other production companies.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes social media platforms, web developers, apps and even college or university students. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of clients do they serve?
  • What type of production company are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide concierge services or customized packages for your clients?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a production company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f production company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide video editing, music editing, pre-production, or post-production services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your production company. Document where your company is situated and mention how the site will impact your success. For example, is your production company located in New York or Los Angeles, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your production company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Be part of filmmaker associations and networks
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your production company , including client communication and interaction, planning and producing production services, billing clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your production company to a new city.  

Management Team

To demonstrate your production company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing production companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a production company or successfully running a small filmmaking company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 films or videos per day, and/or offer production packages ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your production company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a production company:

  • Cost of equipment and production studio supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio location lease or a list of production services you plan to offer.  

Writing a business plan for your production company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the production industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful production company.  

Production Company Business Plan FAQs

What is the easiest way to complete my production company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your production company business plan.

How Do You Start a Production Company Business?

Starting a production company business is easy with these 14 steps:

  • Choose the Name for Your Production Company Business
  • Create Your Production Company Business Plan
  • Choose the Legal Structure for Your Production Company Business
  • Secure Startup Funding for Your Production Company Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Production Company Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Production Company Business
  • Buy or Lease the Right Production Company Business Equipment
  • Develop Your Production Company Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Production Company Business
  • Open for Business

Don’t you wish there was a faster, easier way to finish your Production Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to hire someone to write a business plan for you from Growthink’s team.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

The Minimalist Guide To Writing A Film Business Plan

Film business plan essentials, movie pitch deck vs. movie business plan, legal aspects of film business planning, private placement memorandum, movie business plan template, tl;dr (too long; didn’t read).

  • FAQs on Film Business Plans

Film Business Plan Glossary

A film business plan is important to raise money for a movie. This document outlines how you plan to produce and sell your film.

It’s a confidential information overview that you’ll “leave behind” with prospective investors after pitching. And it needs to be solid.

If you’re like many filmmakers, you’ve likely come across at least a dozen examples of what should go into a film business plan created by film finance “gurus” who teach business planning but have never raised money for a movie.

Many of these people make an entire living creating movie business plans full of nonsense and stuff that doesn’t work in the real world.

If this describes your plan, you are not alone.

As a result of all the terrible movie business plan information, many filmmakers get it wrong. So the first thing you need to do is stop listening to idiots. The second thing you need to do is cut your plan down to the essentials.

Take a few minutes and write out the following:

  • Executive Summary: A snapshot of your film and team.
  • Project Synopsis: The pitch.
  • Hypothetical Investment Return: How the investment could pay off.
  • Distribution Fees Example: A look at revenue sharing.
  • Timeline/Production Plan: Key milestones.
  • Bios/Resumes: Who’s on board?
  • Budget Top Sheet: The financial outline.
  • Supporting Article: Why this film, why now?
  • Risk Management Details: The risks and the plan to tackle them.
  • Contact Info: Get in touch.

You might ask: “What if I just want to make movies and sell my movie?”

My response: “1995 called, and they want their dumb distribution plan back.”

You might run into info about movie pitch decks when you’re looking up how to create a movie business plan. But remember, they are not the same thing.

A movie pitch deck is a quick, visual look at your film. It’s not for the money people or investors. It’s for creative people, like directors and actors. It’s about giving them a feel of the story and style. And hope that you can entice them to work with you.

On the other hand, a movie business plan is all about the details. It talks about money, timelines, and marketing.

This is stuff that investors care about.

It’s your way of showing them how your film can succeed and make money. And importantly, it’s about showing them that you’re a professional.

And although it’s detailed, a movie business plan is not a contract. It’s just a way to show potential investors what you’ve got planned and how you aim to pull it off .

Creating a film business plan is a crucial step, but getting the funding requires more than just a well-laid plan.

In the U.S., laws are in place to protect investors from fraud. The Securities and Exchange Commission (SEC) oversees this, ensuring people aren’t tricked into shady investments.

You’ll need to decide on the legal structure for your film’s business side. It could be a corporation, an LLC, or something else, each with its rules and benefits.

Get a good entertainment lawyer to help you through this.

Doing this will not only help you stay compliant, but doing things right also boosts your project’s credibility in the eyes of potential investors.

They’ll see a well-structured, professionally managed venture ready for investment. In this regard, the name of the game is compliance, transparency, and trust.

Your attorney will advise you on the steps you need to take before investors can fund your film . These steps usually include paperwork and other legal requirements.

Discover The FIVE Essential Film Funding Tactics  

...Without Begging For Money!

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Sometimes, your attorney may draft up a set of documents called a private placement memorandum. Like a film business plan, your PPM will outline the goals for your film.

It will explain the possible upside to your project. But unlike a business plan (a confidential information overview), it doesn’t sugar-coat things.

It lays out the risks. That way, anyone considering putting money into your film knows exactly what they’re getting into.

It is easy to feel overwhelmed when it comes to raising money. If that describes you, check out this business plan template .

Why Choose Movie Plan Pro?

Movie Plan Pro is more than just a template. It’s a comprehensive guide based on Tom Malloy’s experience raising over $25 million to produce multiple feature films.

Unlike the majority of templates out there, this movie business plan template is simple. Using it will help you quickly finish your film business plan so that you can focus on the next steps of the process.

  • User-Friendly: Movie Plan Pro is designed to be intuitive and easy to use, ensuring that filmmakers can finish the plan fast.
  • Comprehensive: It covers every aspect of a professional film business plan.
  • Proven Success: Backed by Tom’s track record of securing film financing, users can access tried-and-tested tactics.

With Movie Plan Pro, filmmakers are not just filling in the blanks but are guided through creating a plan tailored to their specific film project.

Each section is complemented by tips and examples that breathe life into the plan, making it a dynamic tool for securing funding.

With Movie Plan Pro , ensure that your film business plan is comprehensive, compelling, and investor-friendly. Getting money to make your film begins with a plan, and there’s no better companion than Tom Malloy’s Movie Plan Pro.

Here’s a quick overview of what goes into a movie business plan:

A film business plan is vital for securing funding focusing on essential content like team, budget, marketing, and sales strategy. Legal compliance and consultation with an attorney are crucial for credibility. A clear, simple business plan template streamlines the process.

Film Business Plan Questions

Here are answers to common questions on crafting an effective film business plan. From the basics to legal compliance, we’ve got you covered. Let’s get started.

A film business plan outlines the budget, goals, and strategy to produce and distribute a film, targeting potential investors with detailed financial and operational information.

Be clear and concise, focusing on the budget, timeline, marketing, expected returns, legal compliance, and risk assessment.

A movie pitch deck is a visual presentation, giving a snapshot of a film project, typically aimed at creative professionals to attract collaborations.

A film business plan focuses on financial and operational aspects for investors. A pitch deck is a visual, concise overview for creative collaborators.

They ensure legal compliance and help set up the business structure, protecting filmmakers and investors.

A PPM is a document detailing the investment terms, risks, and rights for prospective investors. It’s an investment document.

Online resources offer various templates. Choose one focusing on essential elements to attract investors effectively. We recommend Movie Plan Pro .

These key terms are essential for understanding the film business planning process and the steps involved in raising funds for a film project.

  • Film Business Plan : A document outlining how a filmmaker plans to produce and sell a film. It serves as a roadmap for the project and is presented to prospective investors after pitching.
  • Budget : A financial plan that outlines how much money is needed for various aspects of the film’s production, including pre-production, shooting, post-production, marketing, and distribution.
  • Target Audience : The specific group of people the film intends to reach and resonate with. Understanding the target audience is crucial for marketing and distribution strategies.
  • Marketing Strategy : A plan that details how the film will be promoted to the target audience, including advertising, public relations, social media, and other promotional activities.
  • Sales Strategy : The approach for selling the film to distributors, streaming platforms, or other outlets. It includes strategies for negotiating deals and securing distribution agreements.
  • Securities and Exchange Commission (SEC) : A regulatory body in the United States that oversees securities markets and works to protect investors from fraudulent activities and scams.
  • Legal Business Entity : A formal legal structure, such as a corporation or limited liability company (LLC), established to separate a film project’s assets and liabilities from the personal assets of the filmmaker.
  • Private Placement Memorandum (PPM) : A set of documents prepared by an attorney that outlines a film project’s goals, potential returns, and inherent risks. It helps potential investors make informed decisions.
  • Compliance : Adherence to laws, regulations, and guidelines, particularly in the context of securities laws and regulations, to make sure that a film project is credible and transparent to investors.
  • Distribution Plan : A strategy for how the film will be released and distributed to audiences, including decisions about theatrical releases, streaming platforms, DVD sales, and international distribution.

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ProfitableVenture

Film and Video Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Media Sector

Are you about starting a film and video production company ? If YES, here is a complete sample film and video production business plan template & feasibility study you can use for FREE .

If you have ever come across a movie buff, chances are that you will notice the way at which they are able to analyze a movie for expertise or mediocrity. The truth is that these folks can tell when a movie has been well produced. This is one of the reasons why those who are at the helms of affair in the movie production business try their best to churn out quality stuff.

Starting a film and video production company is one of the best things that may happen to you. This is because of the promising nature of the trade. As a matter of fact millionaires are being made every time in the movie production world. Good news still remains that there are newbies every now and then.

A Sample Film and Video Production Business Plan Template

1. industry overview.

We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21 st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc. et al. These are companies that truly define the trends in the industry.

Basically, film and video production industry is an industry that is responsible for producing and distributing motion pictures and videos. This industry does not include third-party providers such as distributors and disc manufacturers, as well as products, such as television shows and made-for-television movies, aimed specifically toward television et al.

Despite the fact that film and video production business can be expensive to run, the business is indeed a thriving business that has loads of players making huge profits from the industry. One thing is certain, if a film and video production company can successfully produce a major hit movie or musical video; it won’t be too long before video recording contracts come calling from all over the united states and beyond.

Players in the Film and Video Production industry struggled with mounting film production costs and of course the decline in theater/cinema attendance.

It is now common in recent times to find the average movie producers increasingly investing in high – end special effects hence they choose to shift their focus toward generating high ticket sales as against increasing the number of dramas and comedies, which usually generate comparatively lower revenue.

The industry is exploring now maximizing new distribution channels to continue to increase revenue generation so as to break even after spending huge sum of money to produce a movie.

Any entrepreneur who intends to start a film and video production company must be ready to pull enough cash to be able to acquire expensive film and video production gears, for location shooting equipment and professional movie editing software amongst many other expenses associated with movie production.

In other to cut cost especially when starting out, movie producers often rent shooting equipment for a fraction of its cost, which has helped limit the massive capital expenditures that would otherwise be necessary to produce major films.

For instance, in 2015 alone, for every dollar spent on labor, movie producers incur an estimated $0.22 in capital expenditures. In the last five years, capital intensity has remained fairly constant.

The Film and Video Production industry still depend on experts(highly skilled workers and artists) in all stages of the production process, and highly talented and hardworking employees are required for planning, shooting, editing and distributing films.

The Film and Video Production industry is indeed witnessing a steady growth over the years- especially in countries such as the United States, Nigeria, india and China et al. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.

Statistics has it that the Film and Video Production industry in the United States of America, is worth $34bn, with an estimated growth rate of 0.7 percent. There are about 6,527 registered and licensed film and video production companies in the United States and they are responsible for employing about 63,228 people.

One good thing about starting a film and video production business is that even if you decided to start it in the United States of America, your market would not be restricted to business opportunities in the U.S.; the world will be your target market.

Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your film and video production brand on the internet and you will be amazed at the rate people will be calling you from all parts of the world.

2. Executive Summary

Film production is one art that requires a ton of skills. This is so that nothing short of the best is produced. Moonlight™ Film and Video Production Company is a one stop and standard film and video production company that is fully equipped with the latest technology in the film and video production industry.

Our film and video production studio will be located in the heart of Inglewood, Los Angeles – California, U.S and we are positioned to work for a wide range of client ranging from individual clients to corporate organizations, national clients to international clients and players in the Hollywood industry et al.

Moonlight™ Film and Video Production Company will engage in all aspect of business services synonymous to standard organization operating in the film and video production industry.

Our business goal is to work towards becoming one of the leading film and video production brand in the whole of Los Angeles and in the nearest future compete with the leaders in the industry not only in the United States but also in the global stage.

We are not ignorant of the fact that building a standard and world class film and video production company from the scratch requires huge capital base- essentially for the purchase of world – class and latest film and video production equipment; which is why we have perfect plans for steady flow of cash from our business partners with interest in our line of business.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry.

We will ensure that all our employees are selected from a pool of talented and highly creative people with eyes for good movies in and around Los Angeles – California (with bias from Hollywood) and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Moonlight™ Film and Video Production Company our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely and of course producing movies and videos that can compete with the best in the world. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Moonlight™ Film and Video Production Company is owned majorly by Macqueen Reeves and other partners. Macqueen Reeves is a certified and licensed film producer, he graduated from New York Film Academy and he has well over 15 years hand on experience in the film and video production industry working for leading film and video producing companies in Hollywood prior to starting his own film and video production company.

He will build the business alongside other experienced partners who have successfully carved a niche for themselves in the industry.

3. Our Products and Services

We do not want to leave any stone unturned when it comes to producing the best products and services. So, Moonlight™ Film and Video Production Company is going to offer a variety of services within the scope of the film and video production industry in the United States of America.

Our intention of starting our film and video production business in Inglewood – Los Angele is to make profits from the film and video industry and we will do all that is permitted by the law in the US to achieve our aim and business goals. Our business offering are listed below;

  • Action and adventure films
  • Comedy films
  • Drama films
  • Thriller/suspense films
  • Musical Videos
  • Documentaries
  • Other films (Commercials and Advertisement et al)
  • Creating a timeline of production for film and video and ensuring that timelines are met
  • Seeking financing for film and video productions
  • Producing film and video programming
  • Publicizing film and video productions
  • Distributing film and video (if the company is also involved in all of the above)
  • Film and Video Production Merchandize (Sale of Film and Video Production Equipment)
  • Film and Video Production Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • Our vision is to build a standard and world – class film and video production business that can favorably compete with leaders in the industry.
  • Our mission is to build a world class and well equipped film and video production company that will produce standard movies that can be generally accepted in all parts of the world; we want to build a film and video production brand that can work for clients not only in the United States of America and Canada, but in all parts of the world.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Moonlight™ Film and Video Production Company will build a solid business structure that can support the growth of our film and video production business.

We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading film and video production brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Moonlight™ Film and Video Production Company;

  • Chief Executive Officer

Entertainment Lawyer/Legal Secretary

Studio Manager

Film Producer

Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for drawing up contracts and other legal documents for the company
  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
  • Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Responsible for managing every activities that goes on in the studio
  • Responsible for managing the company’s video editing department
  • Handle any other responsibility as assigned by the Chief Executive Officer
  • Responsible for developing concept and producing movies from start to finish
  • Responsible for choosing the right locations to shoot a movie
  • Works with the accountant and other stakeholders in the company to draw – up a budget for any movie project
  • Responsible for handle any picture and sound related job for the company; helps achieve certain specific sounds or feelings to portray through that matches with the movie (especially for soundtracks).
  • Responsible for handling all aspect of video shooting on locations
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of film shooting and studio equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Facilitates and coordinates strategic sessions.
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Oversees the smooth running of the daily office activities.
  • Once the movie is ready, then the marketing team will go out to market and promote the album
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients, cinema operators and movie distributors
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives Visitors/clients on behalf of the organization
  • Receives parcels/documents for the company
  • Handles enquiries via e-mail and phone calls for the organization
  • Distribute mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Moonlight™ Film and Video Production Company engaged the services of a core professional in the area of film and video production consulting and business structuring to assist the organization in building a standard and world – class film and video production company that can favorably compete with other leading film and video production brands in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a comprehensive SWOT analysis for Moonlight™ Film and Video Production Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Moonlight™ Film and Video Production Company;

Our core strength lies in the power of our team and the latest film and video production equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

We are well positioned in the heart of Inglewood, Los Angeles and we know we will attract loads of clients from the first day we open our film and video production company for business.

As a new film and video production company based in Los Angeles – the headquarter of film production in the world, it might take some time for our organization to break into the market and attract some well – established artist and bigger corporations and investors; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion our business the way we would want to.

  • Opportunities:

The opportunities in the film and video production industry is massive especially in a place like Los Angeles – California where we have Hollywood, and we are ready to take advantage of any opportunity that comes our way.

We like other brands in the industry, have our own fair share of threats. Hence, technology and the internet which of course is a major tool for the advancement and gains achieved in the film and video production industry can also poses a threat to the industry.

The truth is that with the advancement of technology, it is now easier for individuals to produce home videos and musical videos without the help of professional film and video production companies. So also, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new film and video production company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

Online video is one major trend in the film and video production industry. Recent statistics from Comscore show that on an average day in 2011, over 100 million Americans viewed online video content. This represents growth of 43 percent over the previous year.

Well over 43.5 billion videos were streamed in December 2011 alone; a 44 percent increase over the previous year. This growth shows no signs of dwindling, as people increase the absolute number of videos they watch, in addition to viewing longer form content on leading video sites such as Netflix and Hulu.

Entrepreneurs that are venturing into the film and video production industry are coming in with creativity and good business skills. The fact that it is highly competitive in the industry does not in a way stop some film and video production companies from declaring profits year in year out.

Another known trend in the film and video production industry is that most film and video production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.

8. Our Target Market

When it comes to film and video production business, there are no exemptions to who you can market your services products to especially finished movies. Your movies can be market to adults, children, teenagers, corporate organization, government and everyone who can afford to purchase a movie et al.

Over and above, our target market as a film and video production company cuts across people of different class and people from all walks of life and corporate organizations. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our products and services.

We have conducted our market research and survey and we will ensure that our film and video production company attracts the kind of artists and clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;

  • Advertising Agencies
  • Corporate Organizations (Branding and Advertising Agencies et al)
  • Teenagers, Adults and Children
  • TV stations

Our Competitive Advantage

We are mindful of the fact that there are stiffer competition in the film and video production industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Moonlight™ Film and Video Production Company might be a new entrant into the film and video production industry in the United States of America, but our competitive advantage lies in the power of our team and the latest film and video production equipment that we have.

We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups film and video production companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Moonlight™ Film and Video Production Company is established with the aim of maximizing profits in the film and video production industry and we are going to go all the way to ensure that we do all it takes to attract our target market.

Moonlight™ Film and Video Production Company will generate income by offering the following services and products;

10. Sales Forecast

One thing is certain when it comes to movies and documentaries; they never dies and the demand for good movies and documentaries will continue to grow. This goes to show that any film and video production company that is known to always produce good movies will continue to attract talented artists, corporate organizations and clients and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles California and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Los Angeles – California to other cities in the U.S. and even the global market.

We have been able to critically examine the film and video production market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.

Below is the sales projection for Moonlight™ Film and Video Production Company, it is based on the location of our business and other factors as it relates to film and video production start – ups in the United States;

  • First Year-: $1M
  • Second Year-: $1.75M
  • Third Year-: $2.5M

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Our sales and marketing team will be recruited based on their vast experience in the film and video production industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent movies and videos speaks for us in the market place; we want to build a standard and well equipped film and video production company that will leverage on word of mouth advertisement from satisfied clients/artists.

Our business goal is to build Moonlight™ Film and Video Production Company business to become one of the leading choice in the whole of Los Angeles – California which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Moonlight™ Film and Video Production Company is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in the film and video industry (movie distributors and cinema operators) in Los Angeles and other parts of the U.S.
  • Advertise our business in relevant entertainment magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local film festivals, expos, seminars, and concerts et al
  • Create different packages for different category of clients in order to work with their budgets and still produce top notch videos or movies for them
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We are aware that there isn’t any business that despises new clients. This the reason why we have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the film and video production industry by storm which is why we have made provisions for effective publicity and advertisement of our recording studio company. Below are the platforms we intend to leverage on to promote and advertise Moonlight™ Film and Video Production Company;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows and radio programs
  • Maximize our official website to promote our business
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (music online forums) to promote our business.
  • Offer Pro Bono services as part of our community social responsibility
  • Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
  • Brand all our official cars/buses and ensure that our trademark label is boldly printed in all our movies and videos (DVDs) et al

12. Our Pricing Strategy

At Moonlight™ Film and Video Production Company we will keep our fees and prices of videos a little below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce movies or short videos especially for advert purposes.

  • Payment Options

At Moonlight™ Film and Video Production Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of setting up film and video production business can be quite expensive especially if you are all out to start a standard film and video production company. Aside from the money required to purchase the latest film recording and production equipment, you would also need a huge cash base to be able to attract and pay well established film actors to act in your movies.

Essentially, this is the area we are looking towards spending our start – up capital on;

  • The Total Fee for incorporating the Business in Los Angeles, California – $750.
  • The budget for Liability insurance, permits and license – $2,500
  • The Amount needed to acquire a suitable Office facility with enough space for standard movie production studio in a business district 6 months (Re – Construction of the facility inclusive) – $200,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
  • The cost for equipping the movie production studio with the required video gears – $150,000
  • The Cost of Launching our official Website – $600
  • Budget for paying at least 5 employees for 3 months and utility bills – $100,000
  • Budget for paying actors and taking care of logistics in movie locations – $500,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $20,000

Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America. Here are some of the key film and video production equipment and gear that we would need to set up our film and video production company;

  • Standard Video Cameras
  • Camera lights/Three-Point Lighting Kit
  • Shotgun Mic with boom pole accessories
  • Audio (XLR) Cables
  • Wireless Microphone
  • Lenses: Wide Angle, Clear “Protective” Lens, Polarizer, Zoom Lens, Macros, etc.
  • Light Reflector
  • DSLR Shoulder Mount Rig
  • Video Editing Software and Video Editing Computer (MacBook Pro Laptop / Apple MacBook Pro Laptop)
  • External Hard Drive
  • Digital video workstation

Generating Funding/Startup Capital for Moonlight™ Film and Video Production Company

Moonlight™ Film and Video Production Company is going to start as a partnership business that will be owned and managed by Macqueen Reeves and his business partners. They are the financial of the business, but may likely welcome other partners later, which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $500,000 (Personal savings plus funds from business partners) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Moonlight™ Film and Video Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to ensure that every movie that we produce is a hit back to back and it appeals to the needs of the society we intend selling the movies

Moonlight™ Film and Video Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Renting of Office Facility: Completed
  • Setting Up Of The Recording Studio: In Progress
  • Intellectual Property Protection and Trademark: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

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How to Create a Production Company Business Plan [FREE Template]

H ighly successful video companies start with a strong production company business plan. Whether your company has been around for a while, or you’re a freelancer ready to take your services to the next level, this post will provide you with actionable strategies for success to compete more effectively right now.

It all beings with formulating the business plan that will get you where you want to go. If you don’t have a business plan, don’t worry. We provide a  free business plan template below and will walk you through it. 

Step by step.

  • Production Company Business Plan
  • The Executive Summary
  • Perform a Video Company Self Assessment
  • How to Get Started
  • Financing a Video Production Company
  • Marketing Plan
  • Day to Day Operations

Freebie: Business Plan Template for Video Production

Business Plan Template for Video Production - StudioBinder

Download your FREE printable business plan template for your video production. Just enter your email address and we'll instantly send it to you!

business plan template

1. what is a production company business plan.

Essentially it's a tool for raising funds, creating a roadmap, or altering course and plotting out the next steps.

One purpose of any business plan to so convey to investors, or a bank, why they should put money into this business.

Make Your Own Production Company Business Plan - Shark Tank

Think of creating a business plan you could bring to them

What does that mean?

It means you need this business plan for a production company to prove that you will make money. To prove it to you, but also to any investors.

After all, nobody invests to lose money. Or break even. So with that in mind, let's forge ahead into the actual writing of the business plan.

how to make a business plan

2. what is an executive summary.

Every business plan starts from the top down, with an executive summary.

What is that, exactly?

An executive summary is a short part of a larger proposal or report that summarizes the main points so the reader can become quickly educated on the whole document without having to read it all.

So it’s a detailed overview.

Of course, "executive summary" has a nice ring to it...

Your job here is to lay out the big picture of your plan. Some questions to ask yourself: Why do you want this business in the first place?

Similarly, what inspired you to start it? What's going to make it work?

Next, start to answer the questions your investors might have. Try getting into their head-space.

"Why would YOU invest in this business?"

You might want to write about the competition. The targeted demographic. Be specific here.

What need does your business fill? Which kinds of customers and clients are you targeting?

Think about your target market

Furthermore, what else sets you and your business apart?

Especially relevant is using concrete examples and not only ideas. Can you cite previous work you've done?  

This brings us to...

Your production companies competition

What does the rest of the field looks like. Your investor will want to know if they don't already.

What sets this company and this production company business plan apart from others?

Knowing the entire field of competitors you have is a good idea, even if it's a very long list.

Your production company business plan must factor in what else is being offered. That way you can adjust, and target a more specific niche.

Or, you can figure out what you can do better.

For example: what can you identify in your competitor's list of services that you know you can nail?

This is what your video company plan needs to convey.

Finally, remember to think of it from the investor's standpoint. How is this an opportunity for them?

how to create a business plan

3. why a video company self-assessment.

This step is easy to do, but hard to do well.

Can you take a good long look at your video production studio? With the intent to circle problems? Areas that need improvement?

The second part of this step might be easier. Find the areas where your video production studio can really shine.

In contrast, you don't want to elaborate on weaknesses in your video production company business plan. Rather, you want to identify them so you can find ways to address them.

You need to have answers to the questions these flaws might bring to the mind of your investors.

Make Your Own Production Company Business Plan - Mirror

  You are not required to sing “Man in the Mirror” 

Then go beyond looking in the mirror.

Look back at the field before you.

This is a business plan for a production company. What opportunities exist for that?

Most of all, try and tailor this production house business plan to specific needs.

Here are a few methods of company self-analysis:

This is a way to identify changes in your industry, to target potential growth opportunities. The acronym stands for:

P olitical Factors

E conomic Factors

S ocial Factors

T echnological Factors

 P roduction company business plan would include a PEST

We've mentioned elements of SWOT:

W eaknesses

O pportunities

The one to focus in on here is threats. Don't assume everything will work out for the plan just the why you'd like it to.

Because it won't. Investors will know that. You should not only know it, you should expect it.

Most important of all: prove that you're prepared for whatever may happen.

Here's a cool way to approach your SWOT analysis. Try applying your strengths to your opportunities and see what kind of leverage you can create.

Then theoretically expose your weaknesses to your threats. Are you in trouble? Do you need to address something to better protect your company?

Think of this as planning for a battle. Therefore, you don't want to ignore cracks in the wall if your enemy is bringing a battering ram.

Business plan can benefit from SWOT

Strategy, structure, systems, style, shared values, staff, and skills.  The 7S model  was developed by business consultants  Robert H. Waterman Jr. and Tom Peters . It's also known as the McKinsey 7S framework.

The idea here is that your business needs these elements to be aligned and "mutually reinforcing". Let's go over each "S".

Strategy: How does this business plan to gain an advantage.

Structure: How do you divide the various operations of the company.

Systems: Procedure for measurement, reward and resource allocation.

Skills: the companies core and distinctive capabilities.

Staff: Human resources.

Style: Behavior patterns of the key groups like managers.

Shared values are in the middle of them all on the diagram. It's somewhat self-explanatory.

In theory, using these methods of self-analysis will help you a great deal. Due to them you'll know, and decide, all sorts of things about your production company.

The 7 S model of analysis

Start putting these ideas onto paper now! If you haven’t already…

Gentlemen, start your engines

4. how to get started.

A business plan for a production company must lay out how you will get started. This is also referred to as a "roll out plan".

How you engineer your beginning is critical to your cash flow. What do you need to get started?

And can you start at a sustainable level?

Will you open a physical office space right off the bat?

Overhead is a major cost. If this is more of a production house business plan then you’ll want to factor that in.

Do you have existing clients?

Equipment or gear already in place?

A video production business plan suggests that your focus will be on video production. Things like equipment will be critical.

In addition to considering this an entertainment production company business plan you may also want to focus on creative development.

How you want to focus effects how you want to phrase things. And it matters almost immediately.

START FEES YOU CAN AVOID

It's a good idea to propose that you start small.

There are two reasons for this.

The first is that you will scare away investors if you ask for too much up front, almost without fail they can tell if you are asking for more than it seems like you need.

It also throws into question how serious you are about sustaining success.

Which leads to the second reason.

It'll be much harder for you to sustain success if you ask for big upfront funding that you aren't sure you can earn back plus profit.

Let's say because you know of a few jobs you'll have early on, that you ask for less up front.

You'll be able to get rolling right away, earning back the initial investments and then some.

Above all you want to start off with easy wins.

Or as close to easy wins as you can get when launching or re-launching a video production business plan.

Seems like it would somewhat obvious not to ask for more than you can earn back...

Rather, it's a mistake people make all the time.

Speaking of which...

do have the capital?

5. financing a company.

Any business needs capital. As a result, you need a section where you lay out the cash flow for the production house business plan.

What kind of money do you expect to have coming in, and how much do you expect to be spending?

Make the budget, while also estimating how you'll be earning.

If you can't demonstrate this, then you need to go back to the drawing board.

Make Your Own Production Company Business Plan - Stacks on Stacks

Just pose like this and you’ll reassure any investor

You will want to get involved with an accountant at some point soon.

But remember, this is a business plan for a production company. So you may have a lot of costs coming at you early just to get started.

What is a marketing plan?

Your video production business plan is almost complete. Another section worth including would be one on marketing.

Here is a good additional resource on small business accounting .

You want to prove that business will be coming in, and not assume it will on faith alone.

Building a strong portfolio is a must. Consider again what niche you may be able to serve best. Find a solid "bread and butter" to start with.

Remember, good businesses expand when they need to. They don't bite off more than they can chew right out of the gate.

INVEST IN A GOOD WEBSITE

Do some research on how you’ll be building the best website for your product.

Get your production company a few social media accounts, and start trying to create a presence there. You'll need to find many ways to attract clients, and show your work.

Do some additional research on how to market a production company.

All this needs to find its way into the marketing section of your production company business plan.

what's your daily workflow?

7. day to day operations.

The day to day operations are a critical part of the plan. Have you visualized what the daily workflow will be?

Now is the time to do that. Who is going to be on your team, and how will it grow and change over time?

Determine what tasks will take priority each day, and how to best utilize your resources and finances.

This will be a key step in determining if your production company business plan is sustainable.

Ask yourself a few of the following questions:

How much time per day will you spend building your client base? What elements of each job will you tackle in-house? Which tasks might you outsource?

What equipment and gear do you own?

When will it need to be replaced and/or upgraded?

Are you going to hire anyone to start? Will they be full-time employees?

Will you hire independent contractors per project? How many, roughly?

As mentioned in the finance section, you need to know how you'll plan your reporting for taxes and your bookkeeping process.

These questions will help you start to determine what each "day at the office" will look like.

The clearer a picture you can paint here, the better.

Write a Business Plan

Get as specific as possible in each section of your entertainment company business plan. The more you know... right?

Now, let's get a little more advanced. In our next post we'll dive into writing a 4 part business plan. 

Up Next: Write a 4-Part Business Plan →

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Writing a Film Business Plan: What Should I Include?

Picture of calculator, glasses, and papers

Film business plans. Whether you’ve learned how to make one in film school or not, it’s likely that it’s an essential aspect of your production that you could be overlooking at your own risk.

Those involved in making movies tend to be creative folk and view spending hours pouring over figures on a spreadsheet as anathema to the craft. Even some of the pros dread this unavoidable task… and don’t think that you’re not “pro” enough to get away without doing one.

Even if you’re operating on a micro-budget , it’s still a good idea to get to grips with the best practices of compiling a solid film business plan. It’ll help keep you right on path, it’s good practice for your future career, and it might just help you see the bigger picture and drive you to finish the project.

Today, we’re going to take the sting out of the tail by offering some guidance on how to get started.

You’ll also be pleased to hear that it’s nowhere near as arduous a task as it may seem, which brings us onto our first business plan tip:

However You Start, Make Sure You Start

As is often experienced in screenwriting , putting pen to paper in the first place is usually the hard part. Once you get going, you find your brain kicking into high gear (sometimes to the extent that it’s hard to stop typing!)

The same is true of film business plans. Initially, you might feel like the proverbial rabbit in headlights with no idea how you can possibly account for what you might be spending in the future. However, by starting with the very basic and known figures you do have, you’ll slowly begin to break the back of the spreadsheet and the rest should follow naturally.

And remember, you can always go back and revise things, so don’t be afraid to start jotting down random numbers with the intent to refine them at a later date.

Consider Your Audience

Not the movie’s audience; we’re talking about the people who are most interested in your film business plan.

Screen Shot 2016-01-21 at 11.45.07 AM

Don’t make the classic mistake of assuming investors and potential production collaborators want to see every dime and nickel accounted for, because they really don’t.

What they want you to answer as concisely (and accurately) as possible is this: H ow are you going to sell the movie, and what will be the return on investment?

And that’s it. Everything else is secondary.

Of course, you’ll probably want to keep a more detailed plan for your own reference and that can be produced if requested, but strip out extraneous details that won’t be of interest to an investor (they don’t want to know the hourly rates of every show runner working on set; they just want to know how much it’ll all cost.)

There are a few more sub-sets of this question that you’ll probably tackle along the way, including:

  • How are you spending the cash?
  • Why is this film sellable right now?
  • What is your sales/marketing strategy?
  • What share of the proceeds will you receive?
  • What share of the proceeds will investors get?
  • Are there any perks to investing in this film?

Thinking about these questions will get you ready to pitch your movie efficiently at the drop of a hat, and will help shape your business plan as you put it together. There are a number of other questions over on the Raindance website which you can expect investors to ask, so do check those out.

Calculator and pen

And on the topic of how to go about answering a potential investor’s concerns…

What Should I Include?

The following is by no means exhaustive (and not all of it may be necessary for your particular business plan), but here’s the meat and potatoes that most filmmakers use to convey their pitch:

Outline: A very brief summary of the screenplay — ideally just your logline — and some key figures regarding financial requirements. Bullet points regarding your previous work (or any notable team members) may be of benefit but only if they really are selling points, otherwise, brevity is preferred.

Shooting Schedule: A detailed plan outlining every expected cost behind each scene of the screenplay, including any props needed, cost of travel to locations, and compensation to crew members. A highly important part of the business plan which you may want to work on with the rest of the team, this will be the foundation of an accurate budget projection.

Production Budget: The shooting schedule total, plus the overall production expenditure of the movie.

Marketing Plan: The movie’s target demographics, how you’re going to get it in front of them, and how much that advertizing will cost, as well as conversion rates between how many people you’re expecting to reach and how many of those will go see the movie/buy the DVD.

Distribution Plan: The costs, profits, and expected reach of physical media sales (and the same for online streaming.) If you have details regarding the profits you’re hoping to make from rights sales, this is the place to add them.

Revenue/Profit Projections: Based on extensive market research (rather than guesswork or comparing your film to something similar that was released back in 1992), here you’ll get the chance to really hook the investor by outlaying expected profits and how much of those they’ll receive.

Letters of Intent: A hugely valued part of the business plan which can really pull an investor. Don’t just stop at crew members; letters of intent from other investors really inspire confidence, and don’t forget to also hit up relevant insurance companies covering the production.

31-365 (Year 8) Accounts

You’ll want to close the package off with your executive summary— one or two pages delving more extensively into why the screenplay is a winner, the talent working on the movie and why the investor would be a fool to miss out (although not in those words, obviously!)

In Conclusion…

Rather than seeing your film business plan as an unavoidable headache, instead see it for what it is, i.e the tool you need to attract funding. Sounds a lot more alluring that way, doesn’t it?

Stay focused and get your film business plan nailed down as a matter of priority. The sooner you do, the sooner you can focus on the task at hand: getting to work on your big idea.

Best of luck!

[su_note]Learn more about the Film School at the New York Film Academy by clicking here .[/su_note]

Rodriques Law, PLLC

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The Anatomy of a Film Business Plan

Making an independent film is like starting a company from the ground up: you’re creating a brand, operating a business and selling a product or service. You will address issues such as raising capital, hiring talent, marketing and distribution, including, States’ Blue Sky and Securities and Exchange Commission (SEC) laws, rules and regulations related to fundraising.

Generally, the first step to completing a film and exploiting it in the domestic and international markets is raising financing. Any movie proposal or investor deck that seeks to raise money from private investors, private equity groups and venture capitalists (VCs), will, in general, have to be supported by a good business plan. All the research and financial data involved in creating your business plan will be used to provide all the information you need in a pitch deck, film finance plan, prospectus and even in the  private placement memorandum  (PPM) (if you are using one).

The information that is usually included in a film business plan include:

1. Confidentiality Agreement:

Often a business plan may contain revelations or confidential information that the producer wishes to protect until the movie is completed and available to the public. In order to insure that potential investors or other third parties do not reveal the secrets, the business plan may include a confidentiality agreement, requiring that the potential recipient promise not to reveal any of the information given to them or contained in the plan.

2. Project Summary:

This is an overview of the project and the production company: the production company’s mission, the kind of project, the logline of the project, the production team, the target market, distribution strategy, etc.

3. Story Synopsis:

This provides an overview of the story, characters and plot.

4. Investment Opportunity:

This focuses on why the film project should be made: it has the best chance to make a profit, the filmmaker has a unique insight into the subject matter that no one has heard before, the different ways the project can earn revenues, any niche audiences the film can target, the size of the market and how the producer plans to access it.

5. Project Team:

This focuses on who is managing/producing the project and why the producer and his/her team are the ones to make the movie. It may list any “bankable” or “bondable” attachments that will bring credibility to the project. Sometimes money well spent, even before funding is in place, is to hire legal and creative representation, a line producer and a good casting director. Production counsel will draft or review contracts and advise you in both the creative and the business aspects of development, production, content licensing, distribution and ancillary exploitation transactions. A line producer creates the budget. A casting director is helpful so you can cast and raise funding simultaneously. This is helpful when you need a name actor to raise the money and the money to attach the actor.

6. Marketing Plan:

This shows how the producer plans to build an audience around the film and drive significant revenue. For example, use of social media (including twitter, Facebook, Instagram, snapchat, etc.), film festival, and promotional campaigns, can serve to position the film in front of an audience, create opportunities for press coverage, and hopefully obtain positive reviews, good word of mouth and potential distributors.

7. Distribution Strategy:

This clearly communicates a realistic distribution strategy for how you plan to generate revenue on your film. Avoid using template-like business plans. Say which distribution platforms work best for your film, which ones work best for your different audiences, what your strategy is for getting onto these platforms, and once you’re on these platforms, what your strategy is for maximizing your revenue on each of them.  It says if you will be going the route of traditional or non-traditional distribution, self-distribution, independent distributor, studio or network. It says what platforms you will use to land a good distribution deal, such as, aggregators, film festival premier, film market, big theatrical exhibitors, small art house cinemas, broadcasters or cable networks.

Traditional Distribution –

Traditional distribution platforms include:

  •  Theatrical – In a traditional distribution deal, theatrical release              comes first. The producer should be aware that only a small percentage of the films shown at even the most prestigious film festivals get theatrical distribution, and that it’s incredibly difficult to get your film into one of the major festivals unless you are a producer or director with previous track record there.
  • Video on Demand  – This is digital and OTT/VOD (over-the-top and video-on-demand). VOD is now considered traditional distribution. VOD rights include TVOD (transactional video on demand), SVOD (subscription video on demand) and Add-Sponsored-Video-On-Demand (AVOD). TVOD includes Electronic-Sell-Through (EST) which allows the consumer to permanently retain a copy of the work, and Pay-Per-View (PPV). SVOD is a service that offers its subscribers a monthly subscription package for a monthly fee. An AVOD platform streams its library of content to consumers for free but inserts advertising into the program.
  • Broadcast  – pay TV, pay Cable, free TV
  • Home Video  – This involves the rental or sale of the film on DVD or Blu-ray for use on home television sets and other playback devices.
  • Non-Theatrical  – This involves the distribution of films for public screening to a gathered audience outside of traditional movie theaters. This includes airplanes, trains, ships, schools, colleges and other educational institutions, etc. A sub-set of Non-Theatrical rights are “Educational” and “Transportation”. Educational specifically refers to a film being shown in an educational setting (in a classroom or on a school campus). Some distributors will handle only a film’s educational rights. Transportation includes in-flight exhibition, ships at sea, oil rigs, military, etc. Some distributors will handle only the film’s transportation rights.

Non-Traditional Distribution  – These are your DIY distribution options, also called self-distribution. The budget will dictate if a self-distribution route is right for your project. For example, if your budget is over $1 million, you may not make your money back, let alone make a profit. You’ll either need traditional distribution, or a hybrid approach, that is, both traditional and non-traditional methods.Obviously, self-distribution is not easy. You’re going to have to get creative with your marketing strategy and your budget. It helps if there’s a niche audience for the film that you can market to and promote the release, such as, a school club or community organization. For example, if your movie audience is faith-based, religious, LGBT, or a college campus, traditional theater exhibitors may not be able to promote within those communities as well as the filmmaker who has created a work geared toward that particular audience. Self-distribution includes:

Foreign  – DIY international sales will be costlier and will require more time and effort than setting up a basic domestic self-distribution plan.

VOD  – As film and digital are converging, there is increasingly more creative freedom for online content distribution. These includes “self-service” distribution platforms, where you pay no or a low upfront fee to access VOD and DVD distribution, but for a higher share of profits.

Home Video  – This is also known as direct-to-consumer. It includes physical DVD sales or digital download on your website.

Theatrical self-releasing  –  This is also known as “four-walling”. You may plan to do a limited theatrical run to help build a buzz around your film that will drive eventual digital and VOD sales.

Non-Theatrical  – Generally, whenever this involves the exhibition of the film at hotels and airlines, this only works for star-driven narrative feature.

8. The Budget:

This says how much it will cost to take the project from inception through to release of the finished negative. The budget must reflect where you’re at in your career, the choices you will make regarding the level director, cast, locations, wardrobe, props, set design, stunts and special effects needed. The budget must reflect what the project should cost to make, not what you want it to cost. Making the film for what it should cost is particularly relevant to maintaining a long-term relationship with your equity investors. The size of the budget directly affects the amount of money that needs to be raised, the investment strategies to employ, the financial caps placed by securities laws and regulations, the completion bond company and the type of collective bargaining agreements between the industry unions and the producer. The budget costs include:

  • Negative Cost  – This is how much it costs to produce and shoot the film. This is also called the direct production costs. This consists of:
  • Development – Getting from inception of the project through to a final script.
  • Pre-production – Building a team and planning the shoot.
  • Production – Shooting the movie, including fees for cast, director, producer, crew, locations, security, sets, costumes, makeup, transportation, permits, equipment rentals, labor union (e.g. SAG-AFTRA, IATSE).
  • Post-production – Editing, visual effects, titles, sound design, duplication and licensing fees (including music, artwork, brand names, stock footage, etc.).
  • Insurance  – Liability insurance on the negative and videotape, sets, equipment, and property; workers’ compensation insurance; cast insurance; and errors and omissions (E&O) insurance to cover problems with the script such as defamation or copyright infringement.
  • Contingency Reserve  – Typically 10% of the total budget. This is usually required by a completion bond company to be set aside in an escrow account to cover contingencies and “deliverables,” such as dupe negatives for foreign distributors.
  • Completion Bond  – If you plan to borrow money for all or part of the budget, the lender, especially a bank, will demand that there is a completion bond in place. The completion bond company agrees to pay those fees in excess of the 10% contingency. The bonding company charges a fee, typically up to 6% of the budget (including the fee).
  • Deferred Compensation  – This covers income earned but not paid to cast, crew or other parties. This expense must be separately identified in the budget since this reflects the cash needs of the project and any additional royalties and residuals that will be paid to the deferred income participants.
  • Legal Fees  – This covers costs to hire a lawyer or production counsel to do all the legal work on the film.
  • Marketing and Promotion  – The budget must have enough left over to do the festival circuit and launch the initial marketing campaign for your film. These include: costs of film festival submission fees, deliverables and travel to festival premiere; costs to hire a publicist; and costs to attend film markets (AFM, EFM, Cannes, MIPCOM, MIP, etc.) and meetings with sales agents, potential distributors and networks to try to sell the finished negative.
  • Distribution – Most distribution expenses, such as, the costs of advertising and preparing release prints (P&A), are generally not included in the budget. However, unless your picture comes within the rare case that a distributor pays you to distribute your movie, you should plan to spend some money for your distribution. Often the distributor doesn’t have the resources to do the grassroots marketing the filmmaking team can. Nevertheless, due to SAG-AFTRA budget caps, e.g., the Ultra Low Budget Agreement and Modified Low Budget Agreement, it can often be beneficial to raise your P&A budget at a later date, rather than including it in your budget.

9. Financing Plan:

This says what financing methods and investor risk-mitigating strategies are available to the producer that work best for the project. These factors will be influenced by the type of project: the budget, the genre, the level director and cast, type of story, and the relationships and track record of the production team. A typical  film financing model  can comprise any one or combination of the following:

  • Soft Money  – These include refundable and transferable tax credits, sales tax immunities, lodging exemptions, fee-free locations tax credits, cash rebates, grants, film funds (including regional funds that only need to be paid back if and when the film is deemed sufficiently successful), and foreign subsidies. Producers can raise from 50%-80% of their film budgets from foreign subsidies. Productions which qualify for tax incentives can receive from 25%-35% of their qualified production and post-production expenses. In a previous article I shared some information about  New York film tax credit incentives . Unlike grants, you can’t spend a tax credit or rebate. Producer will have to spend money in order to get them (usually after production is completed). Therefore, for those productions which qualify for tax credits, producer will have to raise equity or borrow money to cover the full cost of producing the film.
  • Pre-sales  – These are financing in exchange for certain distribution rights within a particular foreign territory, usually in the form of minimum guarantees (MGs) or advance on future royalty income. Bank loans and gap/mezzanine financing are mechanisms usually used to cash flow pre-sales. Pre-sales may also be used as a tool in structuring foreign co-productions. The amount of MGs that the producer has the ability to negotiate depends on his (or her sales agent) negotiating strength (bargaining power) compared to the foreign distributor. That power can be based on any number of factors including whether there are multiple offers, the size of those offers, the projected commercial success of the film, the perceived value of the elements in the film, including, most notably the star-power of the actors. Nevertheless, the best a producer can hope for these days from the foreign markets is 80% of the budget. There are costs involved in putting pre-sales deals together. Packagers can take anywhere from 5%-15% of every sale. Foreign sales agents’ fees vary between 15%-25% for obtaining distribution contracts only — and as much as 30%-35% should they secure a cash advance or bank contract.
  • Negative Pickups  – A negative pickup is a form of pre-sale deal, whereby the distributor (usually a studio) guarantees the producer that it will distribute the finished picture and reimburse the producer for an agreed amount for the negative costs, subject to the picture conforming to terms detailed in the negative pickup agreement. With distribution and reimbursement of production costs secured, the producer will then borrow money from a bank or other third-party lender using the negative pickup contract as collateral.
  • Production Loans  –  In order to secure a loan from a bank, a producer has to enter into pre-sales or negative pickup agreement, which are acceptable collateral. In the case of a pre-sales agreement, banks will usually lend no more than 80% of the face value of the collateral. The maximum amount of the loan usually depends on the bank’s history with the distributor, country/territory, and/or producer. But from that sum, the bank will deduct its own fee. Once the loan is delivered, the producer must pay the foreign sales agent’s fee. On the other hand, unlike, pre-sales, the bank usually lends up to 100% of the negative pickup contract value, and the lender just takes a basic origination/setup fee.Outside of banks, there are private individuals and private companies that finance films on so-called “debt deals (usually at interest rates of 10%-%15) against pre-sales agreement. Using a private investor to cash flow pre-sales versus a bank loan will dictate if you need a completion bond or not. In addition, some private companies will lend against tax credits or bankable tax rebates.
  • Gap Financing  – This covers shortfalls between the film’s budget and what the producer is able to accumulate in soft money, pre-sales and equity. With gap financing, a lender provides a loan of between 10%-30% of a film’s budget against the value of all the unsold foreign distribution markets. An experienced foreign sales agent/company makes an assessment of what these foreign markets are worth. With gap financing, the documentation and legal fees can be quite considerable, constituting another expense to be built into the budget. Some of these deals are structured as mezzanine financing.
  • Mezzanine Financing  – This is often referred to as “super-gap” financing. It is a junior debt capital for a portion of the film’s budget against future revenue projections. It often gives the lender the rights to convert to an ownership or equity interest in the production company or underlying film project if the loan is not paid back in time and in full. This is a very risky form of capital investment and accordingly, usually carries interest rate of 15-20%. Mezzanine investment typically provides 65%-75% of the film’s budget.
  • Foreign Co-production  – This include: (1) co-financing, where more than one party invests in a production to share both risk and upside; and (2) certain pre-sales. Some countries have co-production treaties with each other that provide tax benefits and/or subsidies when production companies from the two countries co-produce a film. These deals may also involve soft loans (i.e. at below-market rates of interest) and equity in form of services or equipment.
  • Donations and in-kind Contributions  – This include crowdsourcing to solicit donations by offering perks in exchange for financing. In addition, the producer may partner with service-providers such as production facilities, who provide services or goods for free, including, stock footage or editing services.
  • Sponsorships and Product Placement  – This include upfront funding via embedded product placements. Income from product placement can be used to supplement the budget of the film. Sponsors spend for placement in the film, based on the amount its brand is integrated into the storyline, including, the number of times its brand appears onscreen or is mentioned in the script. Product placement may also take the form of in-kind contributions to the film, such as free cars, watches or computers (as props or set-dressing). While no money changes hands, the films budget will be lowered by the amount that would have otherwise been spent on such items.
  • Ancillary Advances  – These are other downstream revenues, such as from music and publishing, merchandising or video games. Because these downstream revenues are dependent on the success of the film (e.g., there will likely not be any spin-offs based on the film until it is a box office hit), these amounts are speculative. Accordingly, these are harder advances to obtain, and will usually be discounted given the uncertain value.
  • Producer’s Investments and Deferrals  – An actor, producer and crew may invest or defer his/her own fee for producing the movie. Note any restrictions on producer and crew deferrals (e.g., for calculating qualified costs for state tax credits purposes).
  • Bank Credit Lines  – If a producer has a sufficient track record and consistent volume of production, a direct bank credit line may be able to be secured. This will often take the form of a revolving credit facility. It is also possible to structure a bank line as “gap financing.”
  • Private Equity  – The new and first-time producer usually has to go the private equity route. The other financing methods usually depend on relationships and track records the producer has, which, if you’re a first-time filmmaker, you may not have. In general, unless you’re a producer with a track record and strong connections, you may need to write a business plan (or a business-like plan) in order to get anyone to invest in your movie.With larger budgets, equity usually covers 25%-60%. For lower budget projects, equity usually covers 80%-100% of the budget. Generally, for the lower budget indie film, producer is unlikely to get pre-sales, mainly due to the inability to attract pre-sellable cast at lower budgets. Therefore, if your budget is $500,000 and you have pre-sales in your finance plan, it’s a dead giveaway to the savvy investor that you do not know what you’re doing.Private equity typically comes from wealthy or high net worth individuals (also called angels) and private companies. The producer can promise repayment from the domestic (USA and Canada) release and from unsold foreign territories and soft money not covered by production loans. If the producer manages to bring the movie in on budget, the funds that were held for contingencies can also be used to further repay the equity investor.

Depending on the amount of money involved, the nature of the potential investors and if the producer elects to use a prospectus or PPM, this section is somewhat optional. Nevertheless, the key to properly structuring documents that describe the investment opportunity is that all the information is true, accurate and sufficient to help the investor to completely understand the risks involved with an investment in the film industry. The potential investor should be advised that the producer makes no guarantees that the film will get a theatrical release, or that the film will make any money at all. The film & TV industry is a hit-based business. No matter how good the script, cast and execution, the investors are exposed to risks.

11. Comparables:

Film Comps are previously released movies that are used to estimate sales projections for the current project. Do not use comps that are older than five years. Use comps within the project’s budget range, genre, sub-genre, subject matter (theme as opposed to story line) and potential audiences. Say where your comps were distributed, for how long, the number of screens and what those marketing strategies and logistics look like. Even better, if you can draw on your own experience with taking previous films to market and what your personal track record is. Show which of your comps did well domestically, yet flopped overseas, and vice versa.  You’re probably thinking, the territory-by-territory sales technique makes it difficult to establish how successful some films have been worldwide. That’s true. That doesn’t mean you should ignore it. If you can’t say how well films like yours do overseas, mention it, and say what will make your film marketable overseas, or why it will not. If you have answers, you’re going to instill confidence.

12. Sales Projections:

This says what your realistic sales estimates are. Remember you will be sending your business plan to savvy investors and people who work in the movie industry. Be careful not to show basic assumptions that are so erroneous that they show you do not know what’s going on. A common mistake in business plans is to equate box office success with massive returns for investors. For example, savvy investors tend to reject business plans which recite how “Paranormal Activity” cost $15 thousand to make and went on to earn $194 million in the box office to suggest that the investor will receive a big chunk of cash from the theatrical distribution of the film. This is because the advances or MGs paid for indie films are typically the only money the production company ever sees from theatrical rights.Show how your sales projections match with your planned distribution strategy. Explain any assumptions about your film, such as, it will be sold on a territory-by-territory basis or acquired in a worldwide all-rights deal. The prices distributors are willing to pay to exclusively acquire a film at any given time depends on several factors: does the film have A-list stars, is it considered commercial or have broad audience appeal in a specific region? You may even start with your projections as a baseline from which to build your financing plan.The type of information typically found in sales projections include:

Foreign Sales Revenue

  • Foreign Box Office  – This is how much money the film is estimated to make in theaters in the foreign territories. Less foreign exhibitor share (usually 40%-65% of box office gross), distribution fee (10%–30% of what’s left from the box office after exhibitor takes its share), P&A, MGs, etc. Depending on what “back-end” agreements were or will be struck with the film’s stars, writers, and director, residual payments and talent participations might also kick in, usually within 60 days of the film’s release.
  • Foreign Sales  – This include VOD, pay cable, TV revenues and Home Video and foreign ancillary revenues. Less distribution fee, P&A, interests (against P&A spend), dues (e.g., talent guilds and distributor’s association dues).

Domestic Sales Revenue

  • Domestic Box Office Gross  – These are theatrical estimates for the United States and Canada. Less distribution fee (including, sales agent fees and expenses, producer’s rep fee), P&A, MGs, exhibitor share, etc.
  • Home Video, VOD, Streaming and Ancillary Revenues  – These are estimates from DVD/ Blu-Ray sales, VOD, Non-Theatrical, pay cable sales, network television, TV syndication, soundtrack albums and music publishing, and merchandising (e.g., toys, games, etc.). Less distribution and licensing fee.
  • Soft Money  – This lists the locale incentives and rebates on production.

13. Return on Investment (ROI ) / Anticipated Profits Over Time:

Most investors almost always skip to this. Therefore, it is very important that a good business plan set out exactly how a potential investor is going to get their money back and make a profit, how much time it’ll take and the order in which investor will recoup its investment. Whether or not day-and-date theatrical and streaming release is part of your distribution strategy, you should show how your planned release will affect your recoupment schedule. For example, in a typical sales cycles, it may take 18-24 months after completion of the film before you can start positive cash flow. Another thing to keep in mind is the turnaround time on getting the tax credit for the rebate. In New York, for example, it may take 16-18 months to receive a tax rebate.

  • Revenue Waterfall  – This is the contractual order in which financial contributors to a film’s production are repaid. From the total income to producer from worldwide sales and government incentives, any tax obligations and bank loan are repaid first. Next, the costs associated with arranging distribution, including, sales agent’s fee and expenses, are paid. Next, you deduct investor’s first share (up to 120% of their investment). Next, the completion guarantor is repaid. Next, payment of any deferments to talent. Finally, you deduct investor’s share of profits (50%). Typically, any third-party talent participants (residuals/participation share) are paid from the producer’s share of profits, except for those participations that are deducted “off-the-top”, that is, before any division between producer and investor.The process of structuring the revenue waterfall is usually done when the producer negotiates the agreements between the parties. Therefore, in what order the monies are paid out – and to whom – will vary from one project to another. This is also why a well-structured business plan is so important.Since equity is customarily at the bottom of the revenue-sharing waterfall, one of the reasons why investors like to keep budgets low is that this accelerates the break-even point and improves the internal rate of return on that investment.

14. Project Schedule / Funding Release Schedule:

if funding source is already known and targetable, you have any talent attached, there are notable crew on board, and you are talking with sales agents, you will then provide an actual set of dates for pre-pro, principal, post, a few festival submissions, meetings with distributors and networks etc and theoretical release dates, usually anywhere from 6-to-12 months after film is completed, though sometimes sooner if going direct-to-digital or direct-to-video. National release dates of tent-poles and major studio releases must be carefully considered lest the indie film be forced out of theaters to make room. Depending on the genre, budget and type of film, producer must carefully consider the impact of a release of the film in foreign territories will have on domestic release, and vice versa.

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Movie Theater Restaurant Business Plan

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Second Run Pizza

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The number of movie theaters is decreasing as the major chains create megaplexes that pile more people into smaller spaces.  This profit strategy has left once popular downtown theaters vacant.  Second Run Pizza is a theater/restaurant business that believes there is a significant number of theater-goers that are craving a more satisfying and enjoyable way to catch a movie and a bit to eat. Second Run Pizza is renovating the downtown Majestic Theater and creating a medium-size restaurant that will show second-run movies that have proven to still be popular to our target market.  We will offer a totally unique dining and movie experience at a affordable price that will fill the theater space with repeat customers.

The owners of Second Run Pizza, Robert Williamson and Judy Fillmore, stress two factors that they believe assures the success of the business:

  • Judy’s 15 years experience as a manager of four of the city’s most successful restaurants and Robert’s experience as manager of the Lighthouse Theater, a small art house theater which has recently returned to profitability under Robert’s stewardship.
  • Robert’s strong seven year working relationship with Premiere Film Distributors which will provide the second run films for Second Run Pizza.

Our market and financial analyses indicate that with a start-up expenditure of $300,000 we can generate $600,000 in sales by the end of year one, and produce high net profits by the end of year three.

Movie theater restaurant business plan, executive summary chart image

1.1 Objectives

  • Sales over $600K the first year, more than a million by the third.
  • Personnel costs less than $300K the first year.
  • Profitable in first year, with net profits increasing each year.

1.2 Mission

Second Run’s mission is to create a new theater experience for our customers that will be so enjoyable and satisfying that they will return often and recommend Second Run to their friends and family.  Our customers will be delighted with our level of service, the quality of the food, and a theater environment that is second to none.  When the film ends and the applause die out, we believe that our customers will prefer to watch a new movie at Second Run rather than to ever be squeezed into a Megaplex again.

1.3 Keys to Success

  • Selection of popular films that work best in the group viewing environment; i.e. comedies, scary or adventure films.
  • Provide exceptional service that leaves an impression.
  • Consistent entertainment atmosphere and product quality.
  • Managing our internal finances and cash flow to enable upward capital growth.
  • Strict control of all costs, at all times, without exception.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Second Run Pizza is a single-unit, medium-sized restaurant. We focus on pizza and a few creative Italian dishes. The restaurant will be located downtown near the major shopping centers and evening entertainment establishments.

2.1 Start-up Summary

The founders of the company are Robert Williamson and Judy Fillmore. Judy focuses on the financial issues and Robert on the personnel issues. Judy earned her business major undergraduate degree from the University of Berkeley. A lease for the location has been secured for $2,000 per month. The theater will have to be equipped as a restaurant. It will be able to set up shop in time to begin turning a profit by the end of month eleven and be profitable in the second year. Both Robert and Judy are investing $150,000 each to start up the company.

Movie theater restaurant business plan, company summary chart image

2.2 Company Ownership

The restaurant will start out as a simple sole proprietorship, owned by its founders.

The menu is extremely simple.  Pizza is the perfect finger food for watching a movie.  We will also include select Italian dishes that fit will in the viewing  environment.

The films will be chosen with two target audiences in mind.  The first is the families that will come to Second Run Pizza to watch movies like Shrek and Spy Kids.  These movies will be shown three times during the afternoon. The second group is young adults who will come to the evening shows to watch movies like Jeepers Peepers, the Fast and the Furious, and Rush Hour 2. There will be three evening showings of these films.  In addition, there will be midnight movies for the college crowd on Friday and Saturday.

Market Analysis Summary how to do a market analysis for your business plan.">

We believe that our unique dining environment will attract our target customers.  The central location of Second Run Pizza to the downtown shopping and entertainment center makes the restaurant easily accessible. Once inside, the customer will find watching a movie at comfortable table seating, while enjoying great food, is a experience to repeat again and again with friends.

4.1 Market Segmentation

We are focusing on parents with children who want to catch a movie with a pizza in the afternoon or early evening, before or after shopping at the downtown mall.

Young Adults:

The second group we are going to focus on is young adults ages 18 – 26 for the evening shows.  We believe that this target group will enjoy this unique way to watch a film and Second Run Pizza will become a common place for friends to have an affordable evening’s entertainment together.

Movie theater restaurant business plan, market analysis summary chart image

Strategy and Implementation Summary

Our strategy is simple, we intend to succeed by giving our target customers a combination of great food and a relaxed enjoyable environment that creates a memorable experience.

5.1 Competitive Edge

Our competitive edge is two fold:

  • The experience of Robert and Judy in managing Second Run Pizza.
  • The agreement with Premiere Film Distributors which have agreed to supply Second Run Pizza with second run movies.

Co-owner Judy Fillmore has been a fixture of the city’s restaurant scene for the past 15 years.  She managed four successful restaurants and has received industry accolades for her operational excellence. She is now a highly sought consultant on improving  restaurant operating efficiency and work flow. Her client list include the city’s best restaurants.

Robert Williamson has 20 years of experience in the movie theater industry. Robert was the manager of the city’s largest multiplex for seven years before taking a position with Premiere Film Distributors where he served as a regional distribution coordinator for six years. When Robert took over the challenge of managing the Lighthouse Theater, the business was failing and losing significant market share to the larger chain theaters.  Under his management,  the theater regained its vitality as an Indie film center.  Usage levels increase by 200% over a two-year period and the theater soon became a key feature in the city’s cultural community.  The combination of Judy and Robert’s experience will ensure that Second Run will be a unique competitive force in both the theater and restaurant industries.

The owners have negotiated an agreement with Premiere Film Distributors that will assure that the Second Run will have best available second run films. Premiere Film Distributors will provide the films and will receive 75% of the admission revenue.  This is a better return for the distributor who normally receive only 50% of admission revenue for second run films. In exchange, Second Run will get the films most popular with their target customers.

5.2 Sales Strategy

Our initial sales strategy is to flood our target consumers with free movie coupons for the first three months of operation.  The $1.50 charge for the film will be waived with the coupon. These coupons will be in the city’s daily paper as well as the student papers of Claremont University and Jefferson College.

The film charge is really incidental.  Second Run’s profits will come from food sales. Menu pricing will reflect this focus. Our prices will be higher than a traditional Pizza restaurant but we believe the unique dining environment will justify those prices with our customers.

On the traditional slow days (Monday and Tuesday) we will offer cheaper fare (spaghetti) and market these days to college students as spaghetti movie night. In addition, we will have two for one date nights, where couples will only be charged for one admission.

Sales projections for this plan are presented in the following topics.

5.2.1 Sales Forecast

This chart represents our forecast for income on a monthly basis. The table presents yearly expected sales. Complete monthly forecast figures for the first year are presented in the appendix.

Movie theater restaurant business plan, strategy and implementation summary chart image

5.3 Milestones

The following table lists important program milestones, with dates and budgets for each. The milestones schedule indicates our emphasis on planning for implementation.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Judy will be responsible for hiring, training and supervision of all restaurant staff. As we stated previously, Judy is the best in her field and will have no trouble in assembling a team that will be eager to participate in the success of Second Run.

Robert’s management focus will be marketing and responsibilities related to the presentation of the film. It is widely acknowledged that Robert’s marketing of the Lighthouse Theater pulled it out of the red and into its current profitability.

6.1 Personnel Plan

As the personnel plan shows, we expect to invest in a good team, fairly compensated. We think the planned staff is in good proportion to the size of the restaurant and projected revenues.

Financial Plan investor-ready personnel plan .">

We will invest $300,000 of our own capital. This will provide the start-up financing required.

7.1 Break-even Analysis

Our break-even analysis is based on the average of the first-year numbers for total sales by meal served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not the same as fixed cost, but these conservative assumptions make for a better estimate of real risk.

Movie theater restaurant business plan, financial plan chart image

7.2 Projected Profit and Loss

The following table and chart shows projected profit and loss.

Movie theater restaurant business plan, financial plan chart image

7.3 Projected Cash Flow

The table and chart shows projected cash flow for the year.

Movie theater restaurant business plan, financial plan chart image

7.4 Projected Balance Sheet

The table shows projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry Profile ratios based on the Standard Industrial Classification (SIC) code 5813, Eating Places, are shown for comparison.

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movie house business plan

TheWrap

Sony to Take Over Disney's New and Existing Home Video Business

F ollowing the announcement that Disney Movie Club , a esoteric but essential Columbia House-like service that Disney ran for more than two decades, would be shutting down this summer, it has now been revealed that Disney is transitioning to a licensed model via an agreement with Sony Entertainment.

As part of this new agreement Sony will market, sell and distribute Disney's new releases plus catalog titles on physical (including 4K Ultra HD, Blu-ray and DVD) to consumers through retailers and distributors in the U.S. and Canada.

Disney will still regularly evaluate the goto market approach as the home entertainment business and the industry continue to rapidly evolve alongside consumer behavior. The agreement with Sony allows Disney to continue to offer films and TV shows via physical retailers/distributors and serve the customers in an efficient manner.

What makes this so staggering is that Disney home video has been a huge part of the company since it was introduced in the mid-1980's, thanks to the leadership of Michael Eisner and Frank Wells. At the time, Disney animated features were released theatrically every seven years and completely taken out of the market in-between exhibitions.

What Eisner and Wells proposed was putting these titles out on the growing VHS market, eschewing the prohibitively expensive price point (meant more for video stores and other outlets than consumers) for a more attractive price point (usually around $30) and a limited availability window, which would drive consumer demand. The approach was a huge success.

From there, the home video market exploded, in part under the leadership of future CEO Bob Chapek, who got original titles into production specifically for the home video market, both with cheaply produced sequels to popular animated titles (everything from "Tarzan II" to "Cinderella III") and for franchises all their own (like the "Air Bud" franchise which subsequently spawned the "Air Buddies" films).

For Disney to transition its home video output to a fully licensed agreement is both shocking and not entirely unfounded, given the lack of retailer support for physical media and the somewhat dwindling numbers.

If there is a silver lining to this situation it's that there is the possibility of many more Disney catalog titles getting the 4K Ultra HD remastered treatment. Sony, after all, developed the technology behind the discs and the players, which are also the bedrock of its disc-based gaming system PlayStation 5. Let us pray for 4K remasters of all of your favorite Disney classics that haven't been touched.

The post Sony to Take Over Disney's New and Existing Home Video Business appeared first on TheWrap .

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The ‘Road House’ Reboot Battle: A Contested Streaming Deal, Ari Emanuel’s ‘Desperate’ Pleas and a Director Going Scorched-Earth

By Tatiana Siegel

Tatiana Siegel

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Road House Jake Gyllenhaal

Hollywood loves a bare-knuckle brawl. And the town got a battle royal with “ Road House .”

The reboot of the 1989 cult favorite, which launches on Amazon Prime on March 21, sparked a fierce fight behind the scenes over its release. While studio-filmmaker standoffs are not uncommon, this one featured such subplots as the involvement of a notorious private investigator, a producer given the heave-ho , a cameo from Ari Emanuel and a director going scorched-earth. Even more shocking, some of the embarrassing details began to publicly spill out in recent months, culminating with director Doug Liman promising to boycott the film’s premiere at SXSW on March 8.

In November 2021, Mike De Luca and Pam Abdy were running MGM and began negotiating with Liman to direct and Jake Gyllenhaal to star as the tough-guy bouncer, played by Patrick Swayze in the original. Joel Silver, who produced the Swayze version for MGM, was on board to bring the film into the modern era (Gyllenhaal’s character is now a former UFC fighter). At the time, MGM was making movies for the big screen, and the prospect of streaming didn’t factor into discussions. But after Amazon closed its $8.5 billion acquisition of MGM in March 2022, the trajectory of “Road House” changed.

In July 2022, De Luca and Abdy left to run Warner Bros., and the film was put into turnaround. Still, Amazon Studios chief Jennifer Salke quickly salvaged it and was poised to greenlight the film with a cast that also included Billy Magnussen, Daniela Melchior and Lukas Gage. Sources familiar with the negotiations say the filmmakers and Gyllenhaal were given a choice: Make the film for $60 million and get a theatrical release or take $85 million and go streaming only. They opted for the latter.

“They all took the money,” says one knowledgeable source.

(Amazon and Liman declined comment.)

But the acrimony was only just beginning.

Silver continued to push for a theatrical release and grew so combative that the studio threatened to cut ties with him. That prompted Emanuel, CEO of WME parent Endeavor, to lobby on Silver’s behalf. Sources say Emanuel reached out to Salke and begged her not to fire the legendary producer. One source familiar with the back and forth described his pleas as “desperate.” Emanuel enlisted private investigator-turned-quasi consultant Anthony Pellicano in an effort to help Silver keep his job. (WME declined comment.)

“It made no sense why Ari cared,” says an insider. “WME doesn’t even rep Liman. CAA does.”

All the while, things continued to look rosy from the outside, with all parties onboard with the streaming plan. Deadline reported that UFC superstar and WME-repped Conor McGregor was joining the cast, noting that the film would “stream on Prime Video in more than 240 countries and territories worldwide at release.” The story made no mention of the fact that the two-time UFC champ was facing multiple sexual assault and violence against women allegations at the time. (McGregor has denied.)

But in late 2023, Salke finally booted Silver from working on the “Road House” rollout for verbal abuse of several staffers, including Amazon Studios and MGM marketing head Sue Kroll and Amazon film head Courtenay Valenti. The studio also severed ties with Silver on the upcoming Mark Wahlberg film “Play Dirty,” prompting the producer to hire high-profile Hollywood litigator Bryan Freedman. (It is unclear how the legal dispute was resolved.) When news of Silver’s ouster broke on Nov. 30, Pellicano became the de facto spokesperson on the brouhaha, noting, “The parting of the ways is amicable. He was not fired. There were just disagreements with creative concerns.”

Just as the maelstrom was dying down, Liman went nuclear with an open letter on Jan. 24, writing that he would boycott the film and claiming that “Amazon has no interest in supporting cinemas.”

The missive appears to be the final shot on a project fraught with discord. Ultimately, it’s left some with a bad taste. “It’s so disrespectful to everyone who worked hard on it,” says one person involved. “It’s a great big fun streaming movie.”

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Kevin Costner Makes Plans to Build Film Studio in Utah After Finalizing Divorce

Kevin Costner filmed his upcoming 'Horizon: An American Saga' movies, set to release in June and August, respectively, in Utah

Jeff Kravitz/FilmMagic

Kevin Costner is getting to work after finalizing his divorc e from his ex-wife  Christine .

Multiple outlets have reported that Costner, 69, is building a brand-new film studio in St. George, Utah, named Territory Film Studios, roughly 30 minutes outside Utah's Zion National Park. The city's mayor Michele Randall announced the plans in a recent State of the City address she delivered last Tuesday, as The Salt Lake Tribune reported. Randall told Fox Business that the studio plans to "break ground in the spring or summer," depending on the speed of permit processes for the new complex.

Territory Film Studios plans to build 152,750 square feet of studio space at an industrial complex near the city's airport, including a "Costner-themed" restaurant that will also offer catering services, as the Tribune reported.

Costner filmed his two upcoming movies for his long-awaited series Horizon: An American Saga in Utah, as the Tribune reported back in October. The first entry in the series is expected to release in theaters June 28, with the sequel expected to release just under two months later in August. The actor grew interested in building a film studio in the area after he found it difficult to find a warehouse to shoot scenes in, the outlet reported.

Joyce Kelly, a sales and event manager with Utah's Greater Zion Tourism Office, told Fox Business that Costner "has truly fallen in love with this state" while filming Horizon , leading to his plans for the new film studio.

Alberto E. Rodriguez/Getty Images

She also told the outlet that Costner plans to return to St. George to film Horizon 's third and fourth installments. The actor and filmmaker has previously said he has been working on the series in various forms since 1988.

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News of Costner's new business venture in Utah comes as he and his ex-wife Christine officially finalized their divorce, per court documents obtained by PEOPLE. The former couple married in 2004 , and Christine initially filed for divorce  on May 1, 2023. Their marriage was officially terminated on Friday, February 16 after lawyers for Christine, 49, filed court documents requesting that a Santa Barbara, Calif., court excuse both parties from completing a mandated co-parenting course.

Karwai Tang/Getty Images

The  Yellowstone  actor and his ex-wife have already agreed to retain joint custody of their three children and  otherwise settled their divorce  back in September. Costner and Christine  share three children : sons Cayden, 16, and Hayes, 15, plus daughter Grace, 13.

A rep for Kevin told PEOPLE in a statement back in September that the couple "have come to an amicable and mutually agreed upon resolution of all issues pertaining to their divorce proceedings," after  TMZ  initially reported news of their settlement.

Costner's Horizon movies and burgeoning film studio in Utah are not the only projects on his to-do list. The actor is set to star in and produce an untitled upcoming feature film with director Ariel Vromen , based on a script that Costner owns the rights to, as Deadline reported on Feb. 6. Vromen, who worked with Costner as recently as in 2016's Criminal , described the upcoming movie as Costner's "incredible longtime passion project" in an Instagram post he shared at that time.

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U.s. department of commerce releases 2023 update to equity action plan, outlines new commitments to advance equity, office of public affairs.

Today the U.S. Department of Commerce released the 2023 update to its Equity Action Plan , in coordination with the Biden-Harris Administration’s whole-of-government equity agenda. This Equity Action Plan is part of the Department’s efforts to implement the President’s Executive Order on “ Further Advancing Racial Equity and Support for Underserved Communities Through The Federal Government ,” which reaffirmed the Administration’s commitment to deliver equity and build an America in which all can participate, prosper, and reach their full potential.

“Homogeneity is the enemy of innovation. If we are to out-build, out-innovate, and out-compete the rest of the world, we need to ensure we’re harnessing and empowering Americans across the country by utilizing our greatest strength - diversity,” said Secretary of Commerce Gina Raimondo. “That’s why the Biden-Harris Administration’s commitment to equity is so important and why I’m proud to see that reflected in this updated action plan. We fail to meet our full potential as a nation unless we harness the talents and strengths of all parts of the country, including those who have too often been left behind.”

Deputy Secretary of Commerce Don Graves will participate in an event at the White House this morning to outline the updated Equity Action Plan, where he will be accompanied by Donna Ennis, Co-Director of the Georgia Artificial Intelligence in Manufacturing (Georgia AIM), who is a winner of the Build Back Better Regional Challenge (BBBRC). The presentation will highlight  workforce pipelines put in place to ensure all Americans, including people from underserved communities, can participate in the innovation economy.

“Thanks to President Biden’s continued and steadfast commitment to supporting underserved and underrepresented communities, this Administration has made historic progress to achieving equity centered initiatives,” said Deputy Commerce Secretary Don Graves. “Through investments in business grants and funding opportunities, the Secretary and I are proud of the Commerce Department’s efforts in promoting equitable and inclusive capitalism that will pave the path to America’s economic prosperity.”

In alignment with the Department of Commerce’s strategic goals , the Equity Action Plan includes real-life examples of how America’s economy and people are best served by filtering our work through a prism of equity. America’s diversity is its competitive advantage – but only if everyone has an opportunity to fulfill their potential and fully participate in our economy.

The equity strategies associated with each strategic goal will assist in designing programs that will address barriers to equity and meet the needs of all Americans, including underserved communities.

  • Equity Strategy 1: Mobilize our nation’s diversity to fuel innovation and sustain our global competitiveness across geographic regions so that all communities have equal access to opportunities.
  • Equity Strategy 2: Expand growth opportunities for businesses and entrepreneurs, including in underserved communities.
  • Equity Strategy 3: Promote equitable economic development and career pathways to good jobs.
  • Equity Strategy 4: Use targeted investments and program design to address the climate crisis through mitigation, adaptation, and resilience efforts to ensure environmental and economic resilience.
  • Equity Strategy 5: Expand opportunity and discovery through data to inform and evaluate actions that improve community outcomes.

Since the release of its first-ever Equity Action Plan in 2022, the Department of Commerce has:

  • Released $3 billion in American Rescue Plan dollars across 780 awards through six innovative economic development programs.
  • Reduced the cost of bringing high-speed internet to unserved and underserved communities, and increased the resilience of internet infrastructure.
  • Invested $100 million to support the needs of tribal governments and Indigenous communities across 51 awards in 25 states and the Northern Mariana Islands.

Learn more about the Administration’s equity work at whitehouse.gov/equity and check out all Federal Equity Action Plans at performance.gov/equity .

To follow stories and posts across agencies, follow the hashtags #GovEquity and #GovDelivers on social media.

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IMAGES

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    8. Register Your Film Production Business With the IRS. Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN). Most banks will require you to have an EIN in order to open up an account.

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    1. Industry Overview A movie theater which is also called a cinema is a venue, usually a building, that contains an auditorium for viewing films/movies or motion pictures as it is called in some quarters, for the purpose of entertainment or perhaps education.

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