Film-Tech Forum ARCHIVE: Business Plan for New Theatre

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Posted by Joshua Lott (Member # 240) on 11-11-2003, 04:56 PM:

I have talked a couple of times on this web site about starting a traveling cinema here in Alaska. I now have a couple of investors that would like to see a business plan.

I am looking for any advice from others that have made or had to review business plans. Please let me know what has impressed or not impressed you.

I have been involved with developing very few business plans. I do have a background in the theatre business.

Also am looking for industry statistics and figures to back up the plan.

Thanks for your help.

Posted by Andrew McCrea (Member # 674) on 11-11-2003, 10:55 PM:

What I've done, which most people don't know, is made a VERY rough draft, sent it to Brad for review and had an amazing review. Try making a rough draft, and then posting it for us to look at, add too, critique, etc.

Posted by Ky Boyd (Member # 23) on 11-11-2003, 11:30 PM:

We have had the business plan advice/tips/helps, etc discussion rather frequently over at Big Screen Biz. I'd start by reading all of those threads as most of us over at BSB are independents and have done the b-plan thing.

Good luck and happy writing!

Ky

Posted by Mike Fitzgerald (Member # 1304) on 11-11-2003, 11:49 PM:

I have found the SBA web www.sba.gov site to have a lot of helpful information inclding a step by step info on how to make the business plan and most states have a small buiness council to help as well as SCORE(Senior Core of Retired Executives)
Good luck I have been working on my traveling booth for a while now I have the truck, the projectors, the lamphouses I just got, and The sound system is almost complete. I am going to use a white Vinyl tarp for the screen for now the whole screen should be around 300 dollars including the frame the screen will be 12 x 24 and 6 - 8 feet off the ground. [beer]

Posted by Joshua Lott (Member # 240) on 11-12-2003, 12:32 AM:

Mike,

What type of projector and other equipment are you using?

I have to keep in mind that I will be flying to all of my locations. (Going to remote villages)

I will check out BigScreenBiz and see what they have to say.

thanks

Posted by Mark Gulbrandsen (Member # 72) on 11-12-2003, 08:07 AM:

If your investors are willing to sink at least some bucks into this I would get a medium sized DLP projector, Harkness Blow Up Screen, and a decent sound system specifically set up for portable use based around a CP 650. A 7kw Honda portable generator would run the whole thing easily and they are crystal controled to boot. Feed from DVD and license it the same way you would any film. You'd be surprised at how many people are doing it this way......

For film a Kinoton PK 60D System would be by far the most reliable to utilize and its lighter in weight. Set this all up in a decent sized trailer with a Double MUT, Kinoton or Ernamann type, for film transport. The large reels on the Double MUT would allow easy and safe transport of films already made up and to be shown in many locations. Same blow up screen and sound system. The film system would be far more of a hassle to deal with than the DLP system, but you might be able to get first run product for the film system.
BTW: A back up generator is also a must!!

Mark @ CLACO

Posted by Barry Floyd (Member # 385) on 11-12-2003, 10:05 AM:

We worked with SCORE (Service Corps of Retired Executives) and found them to be VERY helpful. They will NOT write your plan for you, but will critique the shit out of it. I worked on mine for 3 months, let them review it, and they basically chewed it up, spit it out and said... try again.

I was ticked, but they actually DID know more than me. I re-wrote the entire plan, made the financials easier for a suit in a bank to understand, and made the whole package very condensed and to the point. With our new refined business plan... we got approved for our funding within 3 days!!

I'll concur with Ky about www.bigscreenbiz.com, a wealth of information to dig through for the independant theatre owner. It's all there... but you do have to look for it.

Posted by Robert E. Allen (Member # 1351) on 11-12-2003, 04:00 PM:

What Barry said. A couple of SCORE reps in my area helped me develop an excellent business plan. And it was free.

Posted by Dennis Benjamin (Member # 1137) on 11-13-2003, 01:49 PM:

I have written a business plan for a new theatre company, had it reviewed by a bank president, and it almost went off without a hitch. The lesson I learned was: as long a process as it takes to write the actual plan (over a year in my case) - the process afterward takes much longer. Getting the investors and money secured is the hardest part of getting any business off the ground.

The biggest issue I had to deal with is the fact the nobody is the real business world really understands the theatre business at all.There are no books written or really any "How to Start a Theatre Company - For Dummies" books out there. Maybe we could write one.......

Posted by Kevin Roudebush (Member # 1916) on 11-13-2003, 02:27 PM:

The business plan for a theatre is not that unique compared to other businesses. I've written business plans for three different industries now. All industries have their unique areas that you have to deal with. Joshua should start with a standard business plan outline and then add the industry unique specifics as he identifies them. My plan for the theatre is in outline form since I needed little financing and was mostly making sure I covered everything and convince myself this is a good idea. It is my money that is at risk after all.
I think the big thing this site can do to help people considering starting a theatre is making sure they are well informed about things you may not consider that could make or break a theater. Theatres don't fill themselves. What does it take to get people in the theatre. What does it cost to get set-up? "Oh, you are kidding, you have to pay that much to the studios for the movies" Does it really cost $6,000 for a good popcorn popper? How much ice per day will I need? Joshua, how are you going to do concessions in the villages when you have to fly everything in? You get my point. I've sent Joshua some of my thoughts and will again thank you all for your comments on this forum/site that have helped me answer many of my questions.

Posted by Mike Williams (Member # 1140) on 11-16-2003, 09:37 AM:

There is a website I ran accross the other day with tons of Sample Business Plans. None of them are for a theater, but looking at a few of them would give you a good start on what needs to go into a good business plan.

Posted by Bill Enos (Member # 440) on 11-17-2003, 05:45 PM:

There was an article in "Film Journal" a while back about a Mexican cimpany that does just that. Photos showed a pretty nice theatre that travelled in two tractor trailer rigs. Complete with generators, air conditioning, concessions etc. it visits areas that don't have the population or facilities to support a permanent theatre.

Posted by Joshua Lott (Member # 240) on 11-18-2003, 03:18 PM:

I might not have mentioned, but I do need to FLY to all of the locations that I will be showing films at. So the wieght of the equipment is going to be an issue.

I am looking for the best way to have popcorn at these locations also. I don't think that they will have any poppers that will be large enough to handle the crowds that I am looking at.

Posted by Scott Norwood (Member # 30) on 11-18-2003, 03:37 PM:

How many locations will you be serving? Would it make sense to buy equipment (at least a popper) to leave permanently at each site?

Posted by Joshua Lott (Member # 240) on 11-18-2003, 03:44 PM:

Scott,

It might be...

I will be serving 4 locations. I am working out a bulk deal for transportation of the equipment, so a few hundred extra pounds will not be a big deal.

I am planning to have enough equipment eventually to leave at the locations... but I don't think that it would be very profitable to do it at the beginning.