Movie Theater Business Plan and SWOT Analysis

Movie Theater Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Movie Theater Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Movie Theater business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Movie theaters have remained popular despite the fact that there are now many streaming video services that are available. One of the things about the movie tier businesses that people are going to continue to want to go out to watch a movie on a large screen. Popular new formats such as IMAX as well as 3D film has allowed these businesses to thrive despite the fact that many people now enjoy watching media from their own home. In the past 20 years, movie theaters have remedied the issue of having people stay at home to watch media by offering new and exciting incentives for them to come to a movie theater on an ongoing basis. Many people enjoy going on dates will frequently go to a movie that is as it is considered to be a moderate cost of entertainment.

The startup costs associated with the new movie theater are very high given the fact that several large-scale theater rooms need to be developed in order to provide these services to the general public. It can be expected that a new movie theater business will typically have a startup cost at ranges anywhere from $3 million to $10 million depending on the initial scale of the facility. It should be noted that there are a few movie theaters operate a much smaller scale basis in which case these businesses typically have a startup cost ranging anywhere from $250,000 to $500,000. The gross margins generated from sales is considered to be somewhat moderate as it relates to the sale of movie tickets. The vast majority of the income generated by a movie theater comes from the sale of popcorn as well as other concessions. One of the other ways that these businesses have begun to monetize their facilities in order to remain competitive is to operate on a subscription basis where individuals can pay a monthly fee and see as many films as they want. This trend is expected to continue as movie theaters compete with the Internet as well as streaming media services.

Given the economically secure nature of the revenues generated from movie ticket sales and concession sales, most financial institutions are willing to provide a strong level of capital support for a new movie theater business. A movie theater business plan is going to be required in this case, and this document should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, these businesses generate about $18 billion a year among 5,000 companies that own and operate one or more movie theater locations. The industry employs 200,000 people. A full demographic analysis as well as a competitive analysis is frequently developed in conjunction with the business plan in order to ensure the movie theater is not opening their operations in an overly saturated market. A thorough competitive analysis going to want to be seen by any private investor or financial institution that is entertaining providing the capital for this type of business. This competitive analysis should showcase each competitor within a 10 mile radius, the types of films that are shown, and the average attendance on a weekly basis. The demographic analysis should encompass all of the market traits of people living within the target market.

A movie theater SWOT analysis should be produced as well. As it relates to strengths, movie theaters are typically able to generate strong revenues in any economic climate. During times of economic recession, revenues tend to remain flat given the fact that people will go to a film rather than take an expensive vacation when money becomes tight. The gross margins and concessions easily allows these businesses to remain profitable and cash flow positive at all times.

For weaknesses, these businesses have very high operating expenses not only from maintaining a large-scale facility, but also from utility and personnel expenses. As such, it is imperative that the movie theater show very good movies in order to have as many people as possible come to the theater location.

As it pertains to opportunities, movie theaters typically do well when they are able to develop a membership to the system that provides a highly recurring stream of revenue on a month-to-month basis. These businesses can also expand by establishing additional locations outside even the initial target market.

For threats, the biggest issue faced by these businesses is the ongoing changing of technology that distributes films and other media to the general public. There is the possibility that some films may be distributed directly to consumers in the future and bypassing the entire movie theater system. However, this is unlikely given the fact that many people now want to see 3-D films as well as large format IMAX films which can only be seen in a large-scale movie theater setting. As such, these risks will be continued be mitigated as new technology improves the movie going experience.

A movie theater marketing plan also needs to be developed in order to ensure that people come to the facility on a regular basis. Most importantly, most movie theaters start the locations in areas that are highly trafficked and in highly densely populated markets. As such, the high visibility facility is typically enough to drive people to the market on an ongoing basis. One of the other things to know is that almost all movie theaters these days maintain an expansive online presence so that individuals can directly purchase tickets from their mobile phones without having to wait in line once they get to the movie theater. These online platforms easily allow for sales to be made without having to do too much additional marketing to the general public. It should be noted that the cost of establishing a new e-commerce driven website that allows for movie tickets he purchased and redeemed on-site typically runs about $50,000 to $100,000 depending on the level functionality required by the theater.

On an ongoing basis many movie theaters will also offer a substantial number of discounts and specialty deals in order to continue to drive traffic. This is especially important during the grand opening. As it will provide people with the incentive to come to the movie theater, so that they become can become familiar with the location and its offerings. Other ways that many theaters have driven their revenues higher and by drawing a larger audience is to maintain on-site arcade games which is a continued draw especially among parents are bringing their children to the theater. Theme nights are also of importance to a movie theater especially ones that are independent of any major chain.

People love going to the movies, and it is still considered to be a moderately low-cost form of entertainment. The high gross margins generated from concession sales, the moderate gross margins generated from ticket sales, and the large tangible asset base allows these businesses have easy access to capital and a strong return on investment. Although there are continued in ongoing changes to the technological infrastructures that relate to distributing media to the general public, people still love to go to the movie theater and this will continue to be a common trend moving forward.