Business lawyer > Starting a business > Business ideas > Business plan for a mini-cinema: what makes the project successful
Going to the cinema is a favorite pastime for many people, regardless of their income and social status. That is why opening your own mini-cinema is considered an extremely profitable and profitable business project. A particularly successful idea, due to the lack of competitors, can be the organization of a 3D cinema in a small locality. In addition, the features of the mini-cinema will allow you to expand the traditional repertoire by showing films on demand or showing football matches in 3D format.
Business plan of the establishment
For small towns and regional centers, the most reasonable solution would be to open a mini-cinema with a capacity of up to 50 people. Where to start and what issues will have to be resolved during the organization process? By drawing up a business plan for a mini-cinema, you can assess the situation as accurately as possible, analyze the market and all the necessary costs.
Mini cinema
Many people dream of having a cozy mini-cinema located next to their house, showing interesting films. But not everyone plans to constantly visit such an establishment. That is why, before opening, it is necessary to draw up a business plan for a mini-cinema and find out the profitability of the establishment. Based on these calculations, a survey of potential visitors should be conducted.
Setting up a 3D mini-cinema has many positive aspects. For example, the absence of impressive financial investments, the presence of a wide target audience, as well as a fairly quick payback. To accurately calculate the cost of opening a cinema hall, let’s take approximate data:
- population of the region - 100,000 inhabitants
- number of seats in the auditorium – 50 seats
- number of sessions per day – 8 shows
- average entrance ticket price – 150 rubles
The maximum monthly income of a mini-cinema is calculated by the formula: 30 days * 8 films per day * 150 rubles * 50 seats. Total, 1,800,000 rubles per month. Taking into account all possible factors, the resulting amount is divided by two. The result is 900,000 rubles.
A cost analysis will then be required. The main expense item will be payment to distribution companies of a percentage of revenue. Calculate your payroll costs and any necessary taxes. Regular expenses of a mini-cinema also include payment for security, advertising, utilities and premises rental, and documentation maintenance. After calculating your profits and expenses, determine the establishment’s net annual income.
Next, try to rationally estimate how long it will take to pay off the costs of starting a business. The most optimal period in this case is considered to be from 2 to 4 years.
Market analysis
When deciding how to open your own cinema in a small town, the best option would be to opt for a mini business option. A large establishment will be more difficult to maintain and may only bring losses.
Large cities usually attract people to open franchise networks or build their own businesses on a large scale. This is directly related to the number of people willing to spend a certain amount per month on entertainment in the form of going to the movies.
Drawing up a business plan and first preparing for the opening - analyzing the audience, and understanding what genres are popular, whether a cinema is needed in the city, how many people are willing to pay to watch a movie.
You can do an analysis after opening and the first week of work. From the visits it will be possible to understand:
- What genres are relevant?
- How full is the hall on opening night?
- How full is the hall after the premiere?
It is also necessary to understand what audience the entrepreneur is counting on, because this will determine what films will be released.
Portrait of the target audience
Before opening a cinema, you need to create a description of the future target audience of the business. The portrait of the target audience looks like this:
- Age from 4 to 55 years.
- Income is average and above.
- Distance – 5-7 kilometers from where the cinema is located.
Using these criteria, you can select suitable paintings, as well as look for the most advantageous place to open.
What competitive advantages can you use?
In any business, it is very important to find your own flavor and stand out from other establishments. Competitive advantages for a cinema can be:
- Create a discount system for regular visitors, issue cards with savings promotions.
- You can arrange certain hours when reduced ticket prices will apply - for example, from 10 a.m. to 1 p.m. for mothers with children or from 8 p.m. to 10 p.m. for students.
- Organizing screenings of old films, hits of past years, short films, anime - thus attracting a large audience.
- Monitor equipment and display quality.
- Organize various competitions and ticket giveaways on social networks.
- Create a stylish place with a unique interior, constantly work to improve service.
Paperwork
Also, such entrepreneurial activity is impossible without completing all the necessary documents. To ensure that the opening of a mini-cinema does not bring serious troubles, you should:
Collection of documents
- register ownership rights or a lease agreement for premises
- register with the Federal Tax Service
- purchase a license to show films
- open your own bank account
- obtain permission from Rospotrebnadzor
- obtain permission from the State Fire Supervision Authority
When choosing a form of ownership, it is advisable to choose a limited liability company. This is the organizational form that is most preferable for creating a mini-cinema. When registering it with the Federal Tax Service, do not forget to indicate the OKVED code (92.13 film screening).
A serious issue for the owner of a future mini-cinema is the acquisition of a license to rent films. Before opening a cinema hall, it is necessary to draw up an agreement for the supply of artistic material with the companies that are responsible for film distribution.
To license the rights to a small theatrical public screening, they usually turn to the services of distribution companies (for example, MediaExpert). The first step to show the film in your own establishment is to enter into a contract with the selected distributor. The contract specifies a certain validity period, the price of entrance tickets and the number of screenings of the film. As a rule, the distributor is entitled to about 50% of ticket sales at the mini-cinema.
Organizational plan
Registration and choice of taxation system
Registration of business activity is the first step in organizing a business. The status of an individual entrepreneur is suitable if you plan to open a home, drive-in or open-air cinema. For the classic format, it is best to register a legal entity in the form of an LLC (limited liability company).
Procedure:
- Preparation of documents - application, founder’s passport, decision to establish a legal entity, company charter, authorized capital, paid state duty receipt.
- Contact the Federal Tax Service.
- Choosing a taxation system – for organizing a cinema, OSN or simplified tax system is suitable.
- Indication of OKVED code – 92.13 (film demonstration).
- Waiting for 5 days.
- Obtaining a certificate of registration of a legal entity.
Cinema room
One of the most difficult stages of organizing a business is finding premises for a cinema. This is explained by the fact that the building area is large, and the architecture of the halls is a unique structure with the necessary sound insulation, elevated floors, etc.
For settlements with a population of up to 100–150 thousand people, you can choose Soviet-built cinemas that are not used for their intended purpose, as well as non-functioning cultural centers.
If there is a shopping center in the city, it is better to rent space there than to use buildings built in the Soviet era. In large cities, shopping and entertainment complexes initially provide premises for a cinema, which makes the task easier for tenants.
The most optimal, but at the same time the most expensive option for choosing a premises is considered to be the construction of your own cinema. It is clear that the construction of a building from scratch with an area of 500 square meters. m implies costs of several million rubles, but on the other hand, if there is such an opportunity, then this can be considered as a long-term investment in real estate.
The area of the room should be calculated based on the number of halls and seats. For example, a hall with 40 seats has an area of 70–80 square meters. m. In this case, it is necessary to take into account the space for the foyer, recreation area, shopping area and utility room.
Interior creation
Cinema design is like a separate art form. At first glance, it may seem that all establishments look the same, but in fact this is not the case. An identical or similar design is observed only in chain cinemas of the same company. Other organizations decorate the premises to their own taste or according to the terms of the franchise. As a result, each cinema chain or individual entrepreneur develops its own style.
To save money and still look modern, you can use a few simple techniques:
- decorating the foyer, hall and recreation areas with posters, placards and banners of new film releases;
- use of bright colors in room decoration;
- equipping the halls and foyers with modern and comfortable furniture.
Help: minimalism in the equipment of the room will free up more space for cinema visitors, and will also create a certain comfort while waiting, as opposed to cluttering the same area with unused equipment and gaming tables.
Purchase of equipment and furniture
To start a cinema you will need:
- Film projector – 1 pc. for 1 room Type of technology – from conventional (2D) to modern (IMAX and 3D).
- Acoustic system - the principle is the same (1 set of equipment per 1 room).
- Armchairs - in the required quantity for all halls.
- Screens – 1 pc. per hall (for 2D and 3D canvases differ in size).
- 3D glasses in sufficient quantity.
- Server equipment for data storage.
- Split systems designed for the entire area of the cinema.
- Furniture for the foyer and recreation areas - tables, chairs, sofas and armchairs.
- Cash machine.
- Counter.
- Furniture for the cashier (chair, cabinets, cabinets).
- Office equipment.
- Wardrobe equipment.
- Furniture and equipment for the utility room (tables, chairs, hangers, refrigerator and microwave for storing and preparing food during the lunch break).
Formation of staff
Staff:
- technical staff - 1-2 people, whose responsibilities include servicing equipment, preparing and launching a session;
- service personnel – 1–2 people at the box office, plus controllers at the entrance to the cinema hall – 1–2 people, depending on the number of halls and the frequency of screenings;
- cinema administrator - 1 person whose responsibilities include monitoring the work of employees, as well as resolving conflicts with visitors;
- cloakroom attendant – 1 person (in the summer the position may be vacant);
- accountant – 1 person;
- director – 1 person.
The optimal number of shifts is 2, so 2 employees are hired for each position (an accountant and an administrator are an exception, and the duties of a director are assigned to the entrepreneur).
Thus, for a six-screen cinema you will need:
- 2 equipment;
- 4 cashiers;
- 4 controllers.
Which films to rent?
The lion's share of cinemas' profits comes from modern feature films, announced and advertised in advance, as well as anticipated by audiences. As a rule, these are continuations of already successful projects or restarts of past franchises. The same “Avengers,” already at the production stage of the first film, expected the highest box office among all films based on comic books, and the forecasts came true. Today this is the most successful project of the Marvel studio, the premieres of which are shown in every cinema.
In addition, you should focus both on the mass audience, which is more than 60% of those who attend popular and advertised cinema, and on the narrower category of “film buffs”. To do this, it is necessary to include films of various genres in the rental:
- comedies;
- melodramas;
- horror;
- militants;
- thrillers;
- detectives.
The number of screenings of less popular films can be reduced to 1–2 per day, and well-known films can be shown 5–6 times a day.
Don't forget about the show time. For example, cartoons are best shown in the morning or lunchtime, while horror, action films and more serious genres are best shown in the evening.
In addition to premiere screenings, you can organize a demonstration of films that are classics of cinema in one genre or another. Movie fans will not mind watching the same “Titanic”, “Terminator”, “The Shawshank Redemption”, “The Godfather”, “Back to the Future” or Soviet films loved by many, such as “Love and Doves”, “They Fought for the Motherland,” etc. Such sessions can be made a “weekend promotion” at reduced prices. Depending on the attendance and popularity of the service, it will become clear whether the number of sessions needs to be increased or the format abandoned.
Marketing and advertising
The opening of a new cinema in the city is a major event, so it is necessary to spend money on an advertising campaign to attract the maximum number of visitors. The following can be used as advertising platforms:
- outdoor advertising;
- own website;
- print media, radio, television;
- Internet groups on social networks, advertising on blogs;
- bright and attractive sign.
Everyone will know about a new cinema in a mid-sized city. And you can attract and retain visitors only with favorable ticket prices and a wide selection of screenings with convenient film screening times.
Choosing a location and renting a room
An unsuccessful choice of location and premises for a future mini-cinema threatens complete failure even for the most thoughtful and interesting business project. In order for a mini-cinema to become a sought-after and popular vacation spot, it is worth paying attention to some of the requirements for establishments of this type:
Hall decoration
- the mini-cinema should be located in the city center or large residential areas, within walking distance from public transport stops
- for a cinema, you can rent a site in a shopping or entertainment center, in close proximity to schools, parks, train stations and other crowded places
- the establishment must have its own parking spaces
- The dimensions of the room must be large enough. After all, in addition to the foyer and auditorium, it will require placement of a wardrobe, toilet rooms, staff rooms and equipment storage
- when searching for premises, do not forget about the requirements of Rospotrebnadzor and Gospozharnadzor put forward for such establishments
After choosing a location, calculate the area of the auditorium. Recommendations for the ratio of the number of spectator seats and the dimensions of the room:
- Hall for 12 seats – 18 sq.m. m, height from 2.7 m.
- Hall for 20 seats – 40 sq.m. m, height from 3.2 m.
- Hall for 40 seats – 70 sq. m, height from 4 m.
- Hall for 60 seats – 115 sq. m, height from 4.5 m
Pay attention to the height of the ceilings, as this helps to better build the audio space of the hall, correctly set the height of the screen, and allows the back row seats not to rest against the ceiling.
Cinema formats
When choosing a format for cinemas, you should be guided by the demand for the institution. If a cinema opens in a small town, then there is no point in building large halls. If the business operates in a large city (or town), then there is a high probability that a small cinema will not be able to cope with the flow of guests, and you can also lose a significant part of your money. Therefore, in a large city, it is best to open a large cinema, with halls of various sizes (at least 2-3).
Big
When opening a large cinema, you must understand that having one or two million rubles will not help make the business profitable. Here you will need an impressive amount of money (at least 30-50 million rubles).
The specificity of a large cinema is associated with its following features:
- Availability of spacious halls (at least 2-3);
- High quality screen image and sound;
- Several ticket offices;
- The ability to accommodate over 100 people in one hall, etc.
Usually, large cinemas offer related services: shooting range, slot machines, hockey, etc. This also needs to be considered (look for those who are ready to cooperate with you or purchase the necessary equipment yourself).
Small
The best option is to open a small cinema. It can accommodate no more than two rooms. Despite the lack of heavy workload, you can get significant money from ticket sales.
5D
5-D is currently not popular. This is due to the fact that ticket prices are quite high, and no more than ten people can visit such a cinema. In this regard, it is very difficult to make a profit from such a format and “recapture” the initial capital that was spent when opening the business.
Open air
An open-air cinema is in demand during certain seasons (warm spring, summer and early autumn). In other words, if the summer turns out to be cold and rainy, visitors will not come to you, and therefore you will not receive your profit and will be at a loss. At the same time, if the city does not yet have a similar format, you can launch it in test mode.
Technical equipment
Before opening an establishment, you will need to purchase specialized equipment for showing films. For a small auditorium, it is more profitable to immediately purchase 3D technical equipment. Since at the moment the vast majority of films are released in this format.
Pay attention to the screen diagonal, the choice of a high-quality projector, acoustic equipment and other technical equipment of the auditorium.
Approximate list of equipment:
Equipment
- professional video projector with filters
- server system for demonstrating 3D films
- movie screen
- Projector ceiling stand and screen frame
- powerful speaker system
- set of 3D glasses
- professional wires for connecting equipment
Keep in mind that the price of equipment directly depends on the power of the equipment, manufacturer and many other factors. The requirements and cost of conventional equipment for a mini-cinema will differ slightly from the cost of equipment for 3D cinemas. To take into account all the nuances, it is advisable to use the services of a company engaged in the sale and installation of equipment for cinemas.
Choosing equipment
It's time to start selecting and purchasing equipment for organizing film screenings.
The equipment must be purchased professionally and so that it can be shown both regular films and films in 3D format.
To operate a cinema you will need at least:
- film projector;
- device for non-rewinding operation;
- acoustic system;
- lenses;
- audio amplifier;
- screen.
It is advisable to purchase high-quality equipment. If you don’t have enough money for a new one, it is better to buy a used one, but from good manufacturers. If you are a small specialist in this matter, then it is better to contact a specialized company that supplies equipment for cinemas.
In addition to equipment for showing films, you will definitely need furniture for the cinema hall (chairs) and furniture for the foyer, locker room and buffet. And, of course, furniture for staff quarters.
Staff
When selecting personnel for your mini-cinema, first of all you should pay attention to the responsibility, sociability and friendliness of the applicant. After all, most vacancies will not require special professional knowledge, while the work will involve constant contact and communication with visitors to the establishment.
For a mini-cinema, it is best to choose a shift schedule. In this case, the staff of the institution may consist of:
- From the manager and owner of a mini-cinema - personnel manager, dealing with contacts with distributors, advertising companies and documentation. Also, these responsibilities can be shared by the administrator and the advertising manager.
- Technical engineer. A technical worker is needed to set up equipment and directly rent films. With the cinema operating almost around the clock, this position will require at least two specialists.
- Hall administrator, cafe worker, cashier, cloakroom attendant and premises cleaner - at least 3-4 people per shift.
Before we begin
To begin with, it is important to understand what costs the opening of a mini-cinema will entail, and what benefits can be obtained from it. For calculation, we will take the following output data: hall capacity - 50 seats, number of sessions - 8 per day with an average cost of 1 ticket 150-200 rubles.
If the cinema is always sold out, the revenue will reach 2 million rubles or more. However, on weekdays, perhaps, the hall will be no more than half full, so it is better to take the average income as 900 thousand.
Most of the costs are payments for licensed video from distribution companies. It is equal to half of the money received for tickets. The second largest are personnel costs - about 150 thousand, also taxes - 45 thousand, advertising and administrative expenses - 50 thousand. In total, after paying income tax, net profit will be about 160 thousand rubles. Business profitability is estimated at 17-20%. If the building for the cinema is built independently, then the payback of such a project will exceed 5 years, while a rented building will pay off faster - 2-3 years.
Also, before organizing a cinema, you need to decide on companies that provide film rentals. Some of the largest in Russia are Karo Film and Central Partnership. The right to screen a film is transferred under a contract, according to which about half the cost of the proceeds from the tickets is transferred to the distributor.
Main risks : novice cinema owners talk about difficulties with the legal side of the issue: even professional lawyers are not always knowledgeable in this area, especially regarding copyright law. Often this issue needs to be resolved with the local administration. In addition, there is a risk of breakdown of expensive equipment, so it is recommended to insure it.
“Step-by-step instructions on how to open a mini 3D cinema”
Basic recommendations for decorating a mini-cinema
To create a cozy and comfortable space, follow the basic rules:
Features of the chairs
- Give preference to muted, rather soft colors. This will reduce the likelihood of flare and glare on the screen.
- To control sound, use special upholstery, thick fabrics and acoustic panels.
- Consider the design of the spectator seats and their functionality. Choose chairs that are not only comfortable, but also easy to care for and clean.
- Pay special attention to proper lighting. Suitable for diffused, soft light from zone-type lamps (sconces, spotlights and built-in lighting fixtures)
Also, the most important part of organizing the work of a mini-cinema is the arrangement of a spacious, comfortable wardrobe, the installation of soft seats in the foyer and the equipment of toilet rooms.
Don’t forget to equip the foyer and checkout area with small monitors for showing trailers and advertising.
Equipment
The list of technical equipment of the mini-cinema includes:
- Equipment for showing films that support 3D format: 3D playback server, projector.
- Acoustic equipment.
- Screen.
- Switching units: wires, lighting, transformers.
The playback server and digital film projector are the key components of the cinema's technical equipment. According to the requirements of digital film exhibition, servers are used for feature films that support playback of films with JPEG2000 compression. The most common and reliable equipment is DoReMi Technologies, EVS, Dolby Laboratories, GDC, Kodak.
A digital film projector allows you to get an image that is not inferior in quality to a 35 mm film projector. Its main difference is the need to communicate with the replay server. The signal is transmitted over an encrypted communication line. At the moment there are 2 digital image projection technologies: DLP Cinema and SXRD.
Based on the first technology, projectors are produced by companies such as NEC, Barco and Christie Digital. They work at 2K resolution. Digital projectors based on SXRD technology are produced only by Sony.
Depending on the manufacturer, the cost of equipment varies greatly. In the economy version it will be about 20 thousand dollars. At the same time, furniture for spectators will cost a decent amount - a good chair costs about $300-500.
Ideas for additional income
In addition to film rental, other additional services provided will help increase income. For example:
- small cafe or bar
- children's playroom
- slot machine hall
- photo zone
- souvenir kiosk
- separate 5D attraction cabin
Proper organization of additional services allows you to bring in up to 50-60% of the profit from the total income of the mini-cinema. As a rule, in mini-cinemas these points are outsourced. Which means providing space and trading rights to small private firms in exchange for a percentage of sales.
Additional services
To generate more revenue, you can organize the provision of additional services. This approach can increase revenue by 25%, and in some situations, more.
Entertainment
If you have free space after you have fully equipped the cinema and bar, then you can install a special gaming area (with slot machines, a shooting range, billiards). This will help increase your profits. After all, when a person comes to the cinema, he may have a little extra time left, which he will happily spend on games and entertainment. In other words, you will occupy his space with entertainment, and he will bring you additional income.
Bar
Having a bar in a movie theater is the norm, as everyone who attends a movie likes to bring (or buy from the bar) drinks and food. The bar menu should include not only chips, crackers, popcorn, but also healthy food, baked goods, and chocolate. This way you will significantly increase the number of those who wish to use the bar’s services.
Arrangement of the bar
Having a bar in the cinema will significantly increase our profits, but to equip it we will need some investments. Compared to the costs of basic equipment, they will be quite small.
Name | Sum |
Bar counter | 100,000 rub. |
Popcorn machine | 10,000 rub. |
Ice cream machine | 10,000 rub. |
Cotton candy machine | 10,000 rub. |
Refrigerator (4 pcs.) | 60,000 rub. |
Cash machine | 10,000 rub. |
Product racks | 20,000 rub. |
Liquor license | 65,000 rub. |
Total: | 285,000 rub. |
Advertising and promotion of your cinema
The success and profitability of a business largely depends on a properly conducted advertising campaign. Before opening a mini-cinema, it is necessary to inform and interest potential visitors as much as possible. To do this you will need:
Advertising boards
- hang an attractive colorful sign
- decorate the hall festively
- hold the opening ceremony
- During the event, you can hold a prize draw, promotion and distribution of discount leaflets
Of course, it will also be necessary to put up posters and actively participate in social projects (for example, providing tickets for children from large families, pensioners and the disabled).
The cheapest and most effective type of advertising at the moment is to promote your cinema through social networks and open your own website with detailed information. On social networks, organize weekly drawings for free tickets and other prizes. Actively participate in the cultural life of the city and provide your venue for small children's parties and other entertainment events.
We advertise our cinema
A field of activity such as a mini-cinema needs constant advertising. First, you must notify everyone about your appearance, and in the future you will need to constantly inform about new products shown in your establishment.
How to inform your potential viewers about the opportunity to spend your leisure time usefully and interestingly? First of all, you need to worry about a bright and memorable sign. Even if your cinema is located in a shopping center, you need to agree with the administration so that your sign will be displayed on the facade of the building.
It is worth resorting to advertising on the radio and posting posters around the city. You need to distribute leaflets and flyers in crowded places. Take care of the placement of banners and streamers.
This unusual type of advertising has proven itself well, such as a car with a loudspeaker, notifying everyone about the films showing in your cinema. This will be especially effective in a small town - everyone will immediately pay attention.
It is worth paying attention to advertising on social networks, especially since it is one of the cheapest types of advertising. And, of course, you need to have your own website on the Internet, which should contain information about films and the opportunity to purchase tickets without leaving your home.
Advantages and disadvantages of business
The entertainment sector is considered a fairly profitable business, so by opening a mini-cinema in a small regional center or large residential area, you can be sure that it will pay for itself fairly quickly.
One of the main disadvantages of such a business is the lack of rights to the official screening of film premieres. The solution in this case will be to attract the largest number of visitors to the cinema:
- For children, organize morning cartoon shows combined with entertainment and game programs.
- For retirees, consider matinee screenings of old films and retrospectives.
- For football and hockey fans, offer online viewing of the most interesting matches.
- For couples in love, leave the evening time for watching romantic comedies and melodramas.
- Music lovers and connoisseurs of classical art will appreciate the broadcast of opera and ballet productions of the world's leading theaters.
- For fans of TV series and trilogies, come up with a “Movie Night” and organize a screening of your favorite episodes.
The success of such a business largely depends on the interest of the audience. Try to create a comfortable environment for both young people and married couples, as well as older people. Then, over time, one single establishment can turn into a whole network of modern mini-cinemas.
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Relevance of the business idea
Small and medium-sized businesses are developing rapidly in the world; entrepreneurial ideas are constantly emerging or existing areas are being developed. The entertainment sector is considered one of the most promising, because you can make money on new ideas, unique solutions, and you can’t be afraid to experiment.
A large percentage of the population loves to watch a good movie, because the variety of genres, talented actors and huge budgets are captivating and evoke a feeling of genuine delight.
Opening a cinema is a step towards an interesting business, which can be supplemented with various services (cafes, other entertainment, attractions) or open an unusual establishment.
Summary
The market for 3D mini-cinemas is an absolutely unoccupied niche in many cities that is just developing. Entering the market will require considerable expenses, at least 30-50 thousand dollars, however, the profitability of the business is quite high - 20-25%.
Additional income can be brought in by a min-bar organized in your mini-cinema. It brings in up to 50% of the total income of the cinema hall. This kind of business takes root well in small towns where there are not many entertainment venues. It is also suitable for a small resort town.
Selecting a room
This question can cause some difficulties for an entrepreneur. After all, the premises for a cinema must meet certain requirements. First of all, this concerns the walls. They must be soundproof. If the hall is designed for 50 spectators, then the establishment will need a room with a total area of 350-400 square meters. Here you will need to place:
- hall with bar and dressing room;
- foyer;
- cinema hall;
- hardware room;
- service and sanitary rooms.
There should be toilets in this room for visitors and service toilets for staff. It is necessary to take into account the height of the ceilings. It must be at least 5 m.
Slightly different requirements for the premises are imposed for a 5D cinema. A business plan for opening it should consider renting a premises with an area of 20-30 square meters. m with a ceiling height of 3.5 m.
It is important that the building that will be chosen to house the cinema is located close to places with high traffic. The entrepreneur will also need to pay attention to the availability of ample parking. You can open a small cinema in a hotel. The business plan should provide for various options and select the most optimal one. You will also need to consider the amount of monthly rent for the premises in advance. It can reach up to 200 thousand rubles per month.
Recruitment
To ensure uninterrupted operation of the cinema, it is necessary to include two technical engineers on the staff. They will not only broadcast films, but also service the equipment.
What should be the list of employees of a cinema whose hall is designed for 50 spectators? These are employees such as:
- technical engineers (two people with a salary of 30 thousand rubles);
- four service personnel (40 thousand rubles);
- two cleaners (18 thousand rubles).
The total staff salary for a small cinema will ultimately be 88 thousand rubles. Employees' work shifts usually last from 10 a.m. to 11 p.m. The entrepreneur can take on the duties that need to be performed by the director of the enterprise and his accountant. In this way, he will be able to fully control the conduct and development of his business, while saving on wages for employees.
What documents are needed
First of all, you need to obtain the status of a legal entity. In addition, a permit to organize a cinema is required, as well as a conclusion from the sanitary and epidemiological service. In addition, you may need a permit from Rospotrebnadzor, an agreement on disinfection, and an agreement on garbage removal.
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We are preparing for the opening of a mini cinema
Let's calculate the costs and profits for a mini 3D cinema with 50 seats.
With eight sessions per day and a ticket price of 200 rubles, you can count on revenue of more than 2,000,000 rubles. But on weekdays you can’t expect the hall to be 100% full, and prices can be reduced, so let’s take an income of 900,000 rubles as a basis.
50% of the money received for tickets will go to distribution companies for licensed video. Next will be: employee costs (150,000), taxes (45,000), advertising and administrative resource costs (50,000), and income tax. As a result, about 160,000 rubles remain. net profit (profitability - 20%).
If you rent a building for a cinema, the project will pay off in 3 years, if you build it - in more than five. If you build an air support structure, it will cost 3,000 rubles. per sq. m plus 500,000 rub. for project development and installation.
Open air
The operation of such cinemas is a seasonal business. Such services will be in demand by viewers only in warm weather.
When drawing up a business plan for an open-air cinema, it is worth keeping in mind that this type of establishment is especially relevant in resort areas. According to experts, organizing this business will require a lot of start-up capital. However, all investments will be returned to the entrepreneur within 2-3 seasons.
Location
Finding a location for an open-air cinema is perhaps the most difficult stage of opening this business. Here you can take one of three paths.
- — Rent or buy a plot of land outside the city. A drive-in cinema is not just an opportunity to watch a movie, but also a good idea for a romantic trip, so if the location is good, customers will not find it difficult to get to you. The selected location should not be more than 10 kilometers from the city limits (long distances can scare off even lovers of romance) and its capacity should be no less than 200 cars. The approximate area of one parking space is 125 meters (taking into account the required distance between cars). A separate place should also be allocated for the empty space in front of the screen - cars should not drive closer than 25 meters to it, so as not to create an emergency situation in the event of a breakdown of the structure. The price for annual rent of one square meter within the Moscow region is 500-1500 rubles per year. The business of open-air cinemas is seasonal, so in the cold season you can increase the profitability of the business by renting out an empty area - for example, to driving schools.
You need to remember that the site and the access roads to it must be properly paved - the poor condition of the path to your cinema will also not please customers. Taking into account the changing weather conditions, it will be good if the site is also equipped with a drainage surface.
- — Rent surface parking for a large shopping and entertainment complex. This will help you not only save some money on the advertising campaign, but also not invest money in installing a barrier and bringing the site into proper shape. The main disadvantages of this way of doing business are that it is difficult to reach an agreement with the owners of the shopping and entertainment complex (after all, in the city limits, the loud sound from evening film shows (and open-air cinemas usually operate in the dark) can interfere with the rest of residents of nearby houses, as well as potentially more “ hares."
- — Rent a site in a park, stadium or similar place. Land of this nature is usually state-owned, and the contract can be concluded through a public auction. Of course, it will not be possible to set up a drive-in cinema in a park or stadium, but the very format of watching films in the open air (the audience usually sits on the grass) is an original format for recreation. What will help attract customers.
Step-by-step instructions for opening a cinema
Starting any business, including opening a cinema, is not possible without drawing up a business plan. In the process of preparing it, the nuances of entering into a business will be immediately visible, and if you don’t have any ideas on how to deal with them, you may even change your mind about starting such a business. If you still want to make money by showing films in comfortable halls, you need to approach the implementation of the idea consistently:
- Preparation of documents for business registration.
- Buying or renting premises.
- Decoration of premises (repair, refurbishment).
- Purchasing the necessary equipment to demonstrate films in selected formats.
- Design of premises and installation of equipment.
- Conducting an advertising campaign.
- Obtaining all necessary permits.
- Hiring employees.
- Opening.
Documentation
First of all, the business must be registered in accordance with the law. For a cinema, the form of organization will be LLC. To arrange everything accordingly you will need:
- register the company name;
- draw up a purchase and sale or lease agreement for the premises used to create a cinema;
- open a current account in the name of the organization and deposit the required amount into it;
- draw up an LLC charter;
- pay the government LLC registration fee;
- write an application requesting registration;
- draw up minutes of the meeting of founders with the decision on registration.
All collected documents are submitted to the local tax office. When submitting documents, you must indicate the OKVED code. For the business of opening cinemas, codes 55.30 and 92.13 will be used. As for the tax system, choose a simplified one. In this case, you will need to pay no more than 15% of the business profit.
However, to open and legally operate a cinema, you will additionally need to obtain the following documents:
- license to demonstrate film products;
- permission from the sanitary and epidemiological service to use the premises;
- fire inspection permit;
- waste removal agreement;
- agreement on regular disinfection.
Room and design
When searching for a suitable room or building, it is worth familiarizing yourself with the rules described in SNiP II-L.15-68. In particular, the following requirements are stated there:
- ceilings in viewing rooms must be at least 6.5;
- the presence of sound insulation in the room;
- high-quality air conditioning and ventilation systems with a noise level below 35 dB;
- availability of fire-fighting water supply.
A hall with 50 seats must be at least 80 m2.
In addition to the auditorium, the cinema must have:
- latrines;
- utility rooms for workers;
- administrator's office;
- foyer;
- hardware studio;
- cash registers;
- wardrobe;
- bar and food court.
You can build your own building, but this will be expensive, so it is more profitable to rent a space of 300-400 m2 in one of the city’s large shopping centers. Moreover, it is best to conclude a lease agreement at the construction stage: this will allow you to get more favorable conditions and agree on a layout that is convenient for the future business, which will also reduce the costs of further redevelopment.
If you can’t rent the space you need in a shopping center, look for an area nearby. Depending on the size of the city and the location of competitors, you can open a cinema both in the city center and in residential areas.
As for re-equipping old Soviet cinemas, this option can be considered, but in most cases they do not meet modern requirements, and their re-equipment and reconstruction will cost almost the same amount as building a building from scratch.
Equipment and inventory
It is not recommended to save on purchasing equipment. If funds are not enough, it is better to purchase used devices from reputable manufacturers.
At the same time, at the initial stage, a minimum set of necessary technical means will be sufficient. To open a cinema you will need:
- film projector with DCI Digital Cinema support according to the number of halls;
- movie screen (size depending on the size of the hall);
- acoustic system;
- audio amplifier;
- screen;
- lenses;
- server equipment;
- air conditioning system;
- cash machine;
- lighting equipment.
Additionally, it is necessary to purchase furniture for the foyer and cinema rooms, wardrobe, bar, buffet, etc.
Staff
The minimum staff for opening a cinema will consist of:
- 2 cashiers;
- administrator;
- 2 technical engineers;
- 2 cleaners;
- 2 controllers.
At the initial stage, the business owner is recommended to take on the role of director and accountant. This is beneficial from a financial point of view, and will also allow the manager to always be aware of the nuances of business development. If the owner cannot perform the duties of an accountant due to a lack of necessary knowledge, you can outsource a specialist.
Rental provision
To obtain films for screening, you must enter into an agreement with one of the rental companies. In Russia it is “Central Partnership” or “Karo-film”. The agreement is usually drawn up for a specific period - 3, 6 or 12 months.
Applications for films are recommended to be submitted in advance so that the company can order a sufficient amount of film.
Prospects for the cinema
Experts have found that approximately 1% of the economically active population are users of any service. This means for a city with a population of 700 thousand inhabitants and an active population of 350 thousand people. The size of the potential cinema audience is 3,500 people. These are people who are willing to spend money on watching new films on a regular basis. A well-structured marketing policy, approach to the organizational process and personnel management should ensure profit for the owners of the film distribution business.