1. Nobody cares about Contacts, put them at the end.

2. From the average ticket price, it looks like you are going to give away the product. Studios are trying very hard to kill sub run cinemas in the United States. I am certain that they will not sign a contract with one that charges this little for a ticket.

3. Andrew seems to place great stock in advertising revenues. While these can add to the bottom line, they will not pay the bills as it were. Too much advertising will just piss off the customers.

4. In the making money section Andrew mentions making the popcorn too salty to drive up the soda revenue. That kind of manipulation went out in the 1950's. If you do this people will not buy again.

5. In the saving money section, the first item is advertising. How much is this going to cost. I can tell you that we spend over $135,000 per year just advertising our show times.

6. Then there is the amateur projectionist comment! Andrew, after reading this forum for a while, you should understand that the main argument is that the exhibition companies have stopped treating projection as a profession and quality has suffered as a result.

7. How much do you think it will cost to lease a theatre. It will be a lot more than you think.

8. How much will all the theatre improvements cost? The LED signs will be? The lighting will cost? The Dolby Digital systems will cost? The Seating will cost? The "funky carpet" will cost?

9. Some of your candy will cost you more than a $1 per packet so you will be losing money on candy sales.

10. I run a five-plex. We guessed wrong on how many employees we needed. So did you. You are understaffed.

11. Also you seem to only be running evening shows. Most theatres are open at least 12 hours per day. No landlord would rent to a business that wasn't operating during most hours.

12. Screens: "All screens reach from wall to wall and ceiling to floor." That's just stupid.

13. "On quarter of the concession counter is devoted to junk food." I have news for you, it's all junk food!

Now I know he's 13!

 

As for critiquing the "plan," shooting holes in swiss cheese is a waste of buckshot. A plan includes information like consumer profile and demographics of the target group, estimated impact, cost analysis of plant, product, labor, fees, etc. Forgive the bluntness, without any intentional disrespect to young Andrew himself, this is no more a business plan than a doodle is an oil painting.
 

Acoording to my thesaurus:

Famous - Great
Players - Thespian

I guess the name could be thought about more harder, but I like this name. It sticks.

------------------
Andrew McCrea

"I'm Not Bad, I'm Just Drawn That Way!" - Jessica Rabbit
 

Financial Categories

Ordinary Income/Expense
Revenue
Admission Revenue
Discount Card Sales
Discount Card Redeemed
Gift Certificate Sales
Gift Certificate Redeemed
Concession Revenue
Other Revenue
Total Revenue
Rental Income
Total Income

Expenses
Operating Expenses
Box Office Over/Short
Concession Merchandise Costs
Equipment Rental
Film Expenses
Feature Film Rental
Other Film Rental
Film Buying Expense (Booker)
Film Freight Costs
Total Film Expenses

Marketing & Advertising
Daily Directory Ad
Weekly Ad
Co-op Advertising
Film Ads - Non Co-op
Mylar’s & Posters
Flyers
Calendar Expense
Graphic Design
Radio Ads/Sponsorships
Web Site Expenses
Public Relations
Marketing & Advertising Other
Total Marketing & Advertising

Rent
Repairs & Maintenance
Janitorial Service
Concession Stand Repair
Projection & Sound Equipment Repair
Repairs & Maintenance - Other
Total Repairs & Maintenance

Supplies
Staff Uniforms
Box Office Supplies
Concession Supplies
Facility Supplies
Projection Supplies
Total Supplies

Utilities
Total Operating Expenses

General & Administration Expense
Amortization Expense
Bank Service Charges
Business Gifts
Depreciation Expense
Dues & Subscriptions
Entertainment
Insurance
Health Insurance
Liability Insurance
Workman's Comp. Insurance
Total Insurance

Licenses & Permits
Miscellaneous
Office Expenses
Payroll Services
Printing
Other
Total Office Expenses

Payroll Management
Management Salaries & Wages
Payroll Taxes Management
Total Payroll Management

Professional Fees
Interior Design Fees
Accounting
Legal Fees
Professional Fees Other
Total Professional Fees

Postage and Deliver
Travel Expenses
Telephone

Taxes
Local
Property
State Total Taxes

Total General & Administrative Expenses

Interest Expense
Finance Charge
Loan Fee
Loan Interest
Late Fees and Penalties
Total Interest Expenses

Total Expense

Net Ordinary Income
Interest Income
Other Income
Net Income

Andrew, put a number in every category. We did for the past two years. Project numbers in every category for five years, and that will be a business plan!

Please do listen to Ian and don't just disregard his advice. He really IS doing you a favor with his posts here, regardless of how it may "read" to you. Running a movie theater (and inparticularly owning it) is something you are not going to be able to do with zero experience. Basically you need to cut the "talk" (meaning "state of the art...stadium seating...cool neon...etc, etc, blah, blah, blah). "Talk" is just what it is, all talk. Anyone and I do mean anyone can say "we are the best", but hardly ever do those people come remotely near it. For this to succeed you are going to have to have hard numbers and investors. Picking the color of the carpet is one of the last things you do. Listing vendors for products is something that can be pulled out of a Box Office magazine. You are going to have to get a job at a theater to see what all is involved just to make it run (which still won't show you what happens behind the management scene), and don't be surprised if you don't have to work there for 5-10 years to gain enough knowledge to take a good crack at this.

I am not telling you to give it up, just that you are going to have to work about 10,000 times harder to stand a chance of making this fly. Right now you need to concentrate on one thing...money. First, your proposal doesn't "add up" on paper moneywise. You are wasting money in areas where you should be saving and being cinchy on things you should not be a cheepskate about. Second, without money this will never work. Who is going to supply you with the money necessary to make this dream a reality? Unless your family is unbelieveably filthy rich, you need to get some hard numbers together and get some investors.
 

Andrew, I may not be an owner of a theater but I do run a sub-run theater as a General Manager and I would never EVER EVER work for (what did you put???) under $150.00 a week? The only people you are going to get for that price is X-con's who are looking for a loose business owner to rip some money off of!

I hope you have at least a million dollars or can get many loans to run your theater because if you don't, you'll get half of it done and realize you ran out of money and have no staff. I'm sorry to be so blunt but I'm sure many film-tech members would love to say, "I told you so!" You see Andrew, I'm not trying to be mean but you ask for advice and obviously never read what these knowledgeable people say or you wouldn't have written half of the things you did on your business plan. Amateur projectionist, that says it all!

I started working in a theater when I was 13, I’m only 20 and I am considered young for what I do. Believe me, I DO understand! I think it would be a good idea for you to work in a theater before you try to run one. You see Andrew, I used to be a lot like you. I ALWAYS wanted to own a theater but I can honestly tell you that my perception of running a theater when I was 13 is a lot different at the age of 20. The smartest thing for anyone to do would be for the person that is considering opening ANY TYPE of business to first work in that type of business they want to open, not just to see if you like it but to see what its like. I believe that with your ambition you will someday open your own theater but you really do need help running one unless you learn how the business works, including what the correct pay for the employees should be!

------------------

 

And I still would like to start that theatre idea of mine with the penitentiary theme. All I'd need are a few extremely gullible backers. Any takers?

------------------
The man with the magic hands.
 

Also, Joe, did you have to take it up a step higher than it needs to go? And you know it's not Great Lesbian, It's Great Thespian.

Also, Ian, I'll try the numbers... BTW, It's going to be a second run theatre! That's why the projectionist is an amateur. I understand what you've all said oven a over, but second run theatres can't pay a unionized projectionist. If I had a first run, I'd use unionized projectionists.

------------------
Andrew McCrea

"I'm Not Bad, I'm Just Drawn That Way!" - Jessica Rabbit

As to paying a projectionst $150.00/ week that is $600.00/ month and $7200.00/year. I do keep in mind that Andrew is in Canada, but that still sounds a bit under paid to me as well. As to having Amatuer becasue it is a Second Run theatre. I started out as a projectionist at a Cinemark Dollar house and I took great pride in giving the customers a first run expierence. Although projectionist made only slightly higher wages, we did have a veteran staff that had at least 5 yrs expierence in a booth teaching us newbies. When I went to work for UA I was only one of two people other than Mangement allowed to touch the projectors. Don't short change yourself on expierence in the booth, after all the presentation is what people are paying to see.

About ten years ago some friends of mine and myself were looking into reopening a theater that was damaged by a fire next door. We looked into everything that Ian listed above and came to the realization that making our money back in five years was going to be very difficult do to all the renovations that the theater was going to need.

Since then some investers and the city have reopened the theater and it a fine opperation. Much better than I would have dreamed.

I think by knowing how this industry works helped us make the decision not to invest in this opperation.

Andrew their is no guarentee that your investment will work at all. The most important thing to know is the demographics of your area. What kind of movies do the people like to watch. What is the average age of the people and how often do they go to the movies.

unfortuatly there is no cheap way to go about concession items. I know you can say the local stores can sell that same size reese cup for a dollar. The problem is is that it costs the store .95 cents for each of thos candy bars. So their profit is .05 cents a bar. Stores can get away with this because they sell large quanities of everything.

Movie theaters on the other hand have to charge two and a half times the cost of the candy bar to make a profit. Since the turn over of concession items is no where near that of a grocery store.

It is a strange fact that second run theaters have a harder time selling concession Items than do first run. The two main factors that could cause this are the people looking for the cheaper theater ticket can't afford to spend the extra money on concessions. So they slip in food they by somewhere else. Two, some people just don't think that they should have to pay more for their food than it cost to get in.

It will be a long road Andrew. But if you are serious about this and not just blowing wind around. Take and follow everyone's advice in these forums. Especialy Ian's because he has been thru this and obviously knows what he is talking about.

Making Money every one is selling advertising and it is an added revenue but not sufficient to cover your day to day costs. Also certain film distribs will not permit any advertising with there product

Saving Money
Every one uses the Public service adds that is nothing new
When the big guys finish with a picture it is basically finished
CineQ? why it is lucky to work when it does and requires even a higher level of skill on the part of an operator when it doesn't work
2 Union projectionist in canada don't make 33.50 per hour to run silver city complexes
The highest in Toronto is 16.00 per hour (9.00 us) for union people
Renovations you get what you pay for
GST is still charged on all admissions
Theatre designs
Carpet doesn't sell seats and in a business plan the supplier doesn't really count
LED signs are about as unimportant
Also the seat model isn't all that important and for a budget operation that you are claiming this is abit extravegant

Theatre Descriptions
Do you have a agreement with the landlords ?

Theatre Operations seems taken right out of a large Canadian circuits handbook
Future Great Thespian chain
As I explained to your father in an email The industry is under federal investigation in this country right now So your expansiion plans seem a little to optimistic I have seen too many small circuits fold up here in the last couple of years
Your inventory
Well it is an inverntory after it is purchased and niether theatre has this list right now

Rateings
Neither theatre is THX approved and I doubt if they have been tapped since Starwars
The screens are not wall to wall nor floor to ceiling (but they are large)
They don't currently have EX

Employment
You are probably flirting with problems for minium stafing in a public building under your city's bylaws
 

Chase Taylor
Owner / General Manager
Continental Cinema 5
Troy, Alabama
 

I too am reaching the end of the proverbial rope here. Brad: I think it is time to pull the plug on our little wanna-be 'entepreneur'

Final advice to Andrew: COME BACK IN ABOUT 10 YEARS AFTER YOU HAVE WORKED IN A *REAL* (as opposed to this 'sick dream' that you are perpetuating here) MOVIE THEATRE!!!!

Aaron

 

a duotang is a folder (i believe its made of plastic, but i could be wrong.

<<I too am reaching the end of the proverbial rope here.>>

you keep talking about being sick of Andrew and all his posts, but YOU KEEP READING THEM!!!

i kind of like having andrew around.
although andrew may not have a good plan for running a theatre, he seems to know more about theatres that most other 13 year olds would care to.
it would be intersting to see him actually get a job at a theatre one day, get a job in the booth, mature in his knowledge of theatre operations and one day be able to actually run a successful business.
 

Everyone said Walt Disney was crazy when he:

- Tried to make it as a cartoonist
- Made "Snow White"
- Built Disneyland
- Built Walt Disney World

Also:

"Star Wars" was rejected by every studio in Hollywood before Fox finally agreed to make it after Lucas hit with "American Graffiti".

Don't be so quick to criticize the kid... he could be another Bill Gates someday.

Andrew,

In addition to knowing something about your theatre, you need to know how to structure and present a business plan along with some basic small business stuff. I strongly recommend that you (and any other's interested in owning their own theatre) go to your local library and check out the following books and read them:

1. Growing a Business by Paul Hawken. Paul Hawken is one of the founders of Smith and Hawken and he has written the best book on small business. Movie theatre's aren't even mentioned but all the information about starting a business from idea to plan to raising money to operations are covered in this marvelous little book. A must read for any small business person.

2. The Movie Business Book by Jason E. Squire(Editor) This book covers all aspects of the movie business - the chapters on distribution and exhibition are very helpful, even though they are somewhat dated.

3. The Successful Business Plan : Secrets & Strategies by Rhonda M. Abrams, Eugene Kleiner. Includes a sample plan to help you as you write your own. Also Rhonda has a flow-through financials system for those who are scared of the numbers part of business planning.

4. Movie Money: Understanding Hollywood's (Creative) Accounting Practices by Bill Daniels, David Leedy (Contributor), Steven D. Sills. Again, a book aimed at the whole spectrum of the movie industry - but the early chapter on this thing called gross is one of the best explainations of where the gross goes that i've ever seen.

Finally, a piece of advice for anyone writing a business plan for a movie theatre. Write it, then put it away for a week. Then get it out, re-read it, and re-write. I spent two+ years writing the business plan for Ian's and my theatre and there are still things that I didn't get right - but that's the nature of a business plan - if done right - it forces you to think it through and examine all the options. Also writing your business plan will reveal a great deal about your character to potential investors. This is especially true in the section where you analyze your competition.

Good luck!

Many of them are unavoidable as they come up in topics he hasn't originated. And, as annoying and bothersome as he is, its interesting to see what hairbrainer he has come up with next.

>>although andrew may not have a good plan for running a theatre, he seems to know more about theatres that most other 13 year olds would care to.<<

Unfortunately, as cool as it sounds, this is feeding his obsession with the whole thing, its a vicious circle of sorts.

>>it would be intereting(sic) to see him actually get a job at a theatre one day, get a job in the booth, mature in his knowledge of theatre operations and one day be able to actually run a successful business.<<

When that day comes, i will welcome Mr. McCrea back to Film-Tech with open arms. Until then, he has some constructive thinking and a little maturing to do.

Remember its MANY users not just one or two that are no longer happy with him. Some of us are just more vocal about the issue, thats all.

Aaron

The costs for the SCORE classes are very inexpensive.

Check them out at www.score.org

------------------
Barry Floyd
Floyd Entertainment Group
Nashville, Tennessee
(Drive-In Theatre - Start-Up)
 

Aaron Sisemore
Chief Technician
Cinema West Theatres http://www.cinema-west.com

Is there really a need to send nasty e-mails to people whom you don't even know? Everyone has there own opinions and are entitled to them. Just because my opinion doesn't necessarily match Aaron or Andrew's doesn't mean I'm going to send them nasty e-mails. That's just plain rude. We ALL need to grow up!

 

Flix@film-tech.com

Thank you.
 

Good luck with SCORE. I tried to use them in the San Francisco office, but everybody they had came out of manufacturing which wasn't a big help to me. I'm sure that what each office offers varies based on the backgrounds of the people who volunteer. The SF office did have great resource books.
 

------------------
Barry Floyd
Floyd Entertainment Group
Nashville, Tennessee
(Drive-In Theatre - Start-Up)
 

The next time anyone gets an email that is suspected to have come from you and is forwarded to me, we will do a full investigation on it, track down through the ISP the owner of that account and take action that you and especially your father will not be pleased with in the least bit. Your father's account is already on the verge of being shut down because of your childish actions and if you receive one more official and verifiable complaint, it will be. If you decide to try and get smart by using a friend's account to illegally spam and harass people, don't worry as it can STILL be traced back to you and ultimately it is your father who will be responsible for your actions. I will not tolerate any more of this nonsense from you. You have no further business here as a member nor a lurker. Do not email me nor any other member of Film-Tech again.

In light of this nonsense, I have made the decision to restrict memberships to 18 years of age, since that is the age people can be easily verified. The only exception to this rule will be 16 and 17 year olds who have a job (who are always welcome). No more children will be allowed. Anyone who cannot be verified as an adult (meaning the 16 and 17 year olds) can send in a paycheck stub for verification if the members or I feel the need. I don't care if it is a McDonald's check stub, that still shows a certain age and most importantly...a little bit of maturity.

Grow up a little bit Andrew and if you still have your movie theater dream a few years down the road after you have had a real job, send me an email at that point. The members here tried to help you and perhaps in a few years you will listen and can contribute as you mature. At that point you will be welcome back. I think that is more than fair, but again do not bother emailing me on this as that decision is final.

 

Staying anonymous on the Web is more difficult than one would think.

Andrew, Brad is not kidding when he says things can be traced.

Mark Lensenmayer
 

Some forums I have used in the past, instead of just giving the name of the poster, say something like

"Evans A Criswell at 146.229.80.103"

for identifying users. I don't think that is necessary here since I believe Brad approves everyone who participates here on a per person basis which eliminates 99.99 percent of these kinds of problems. Doing that here would mainly show whether someone is at work or at home when they post.

It's best to never use computers or the net to try to get even with someone or harass someone. Once a message is sent or an action performed, there may be long-term traces of it that are beyond the sender's control that can never be erased. Something you do today could come back to haunt you years from now. Keep in mind that once an email is sent and is received at the other end, there is NOTHING you can do to change what you wrote or take the message back.

Evans A Criswell

MAC = Media Access Control

MAC Address = 48 Bits (24 for Manufacturer ID and 24 for serial number)

IP Address is NOT the same as MAC

Mark Lensenmayer

What if a particular computer user does not use ethernet? What if he/she is stuck back in the 1830's and still uses a modem? Do modems have MAC addresses?

I know that there are a few ISP's that give you a brand new IP address every time you sign on, and cable modem users IP changes all the time... DSL users every once in a blue moon (but it does change). So I would think that every computer motherboard would require a MAC.

So, beware of your E-mails....if they feel the need, Big Brother may be watching!!

------------------
Mark DeLettera
Eastman Kodak Co.
Worldwide Technical Svs.
Rochester, NY
mark.delettera@kodak.com
716-588-4189
 

------------------
Greg Mueller
Amateur Astronomer, Machinist, Filmnut
http://www.muellersatomics.com/