How to Open a Movie Theatre
Many people dream of starting their own business. You can be your own boss, setting your own schedule--even if it is demanding. Running a movie theater is an ideal career for movie buffs. It's a way to get yourself involved in the entertainment industry while serving your local community, and if executed successfully, it can set you up for life.
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Instructions
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Decide what kind of theater you want open. You have two options: Become a franchisee for a larger chain or open a small, independent movie theater. Each option has its pros and cons. With a franchise, you have the benefit of brand recognition and a large corporation to rely on for help. However, you might have less freedom in how you run your business, and a portion of your profits will go to the franchiser. With an independent business, all decisions are up to you, and you will have a niche market, but without the security of a large corporate backer. You can also opt to become a second-run theater, also known as a dollar theater. These theaters show films long after they've first been released at a highly discounted rate.
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Write up a business plan. You'll need one of these to open up a business banking account, to take out any loans or to make any pitch to potential investors. You may want to consult a professional business adviser during this step.
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Select a location. This step builds directly off the first step. If you are opening a franchise, build it near a mall or other consumer-heavy location. If you are opening an art-house or independent movie theater, you'll want to locate yourself as close to the center of your city's high-brow culture hub.
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Get all of the proper permits and licenses necessary in your area. These can be obtained by visiting your city or town hall.
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Build your movie theater or renovate your pre-existing theater. Most franchise companies will require you to build new, state-of-the-art facilities, and their specifications must be followed to the letter. Independent movie theaters can simply replace older, empty theaters. Some of the most important details are the sound equipment, projector equipment, audio system, the main screen, the seats and the air-conditioning unit. Be sure everything meets local building codes.
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Contact distributors to purchase rights to screen films, and contract suppliers for concessions. It's not a theater without popcorn and snacks, and because of the prices charged by film distributors, concessions is where you will make most of your money.
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Hire a staff. Because this is the first crew you'll have, try to find as many experienced people as possible. You can hire less-experienced employees as time goes on and as knowledge on how operations will run gets grandfathered in.
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Sell advertising to display on screen before the movie starts. Advertising revenue is a huge source of profit for movie theaters. Slate.com reports that some advertisers will pay up to $50,000 to get their message on screen.
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Advertise your business. Create a buzz around your new movie theater with a catchy commercial or viral marketing campaign.
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Open your doors for business. Hold a big grand opening event, inviting the community in for discounted movies and free popcorn. People like a deal, and this will entice them through your door to check out what you have to offer. If service is above and beyond expectations, they will certainly come back.
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References
Resources
- Photo Credit movie scene image by Nicemonkey from Fotolia.com
