Free Movie Theater Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $2,000,000 for the development of a ten
screen movie theater while showcasing the expected financials and operations
over the next three years. Movie Theater, Inc. (“the Company”) is a
New York based corporation that will provide
sales of tickets coupled with concessions from its theater location within the
metropolitan area. The Company was founded by John Doe.
1.1 Products and Services
The primary revenue source for the business will come from the sale of movie tickets to
popular films to the general public. Although this will be the primary revenue
center for the business, the profits of the business will come primarily from
the sale of concessions.
The Company’s secondary revenue center (but the Company’s primary profit
center) will come from the sale of food and other concessions to customers that
are visiting the Movie Theater. These products will include traditional fare
that is sold in a Movie Theater such as popcorn, sodas, candy, hotdogs,
pretzels, smoothies, ice cream, and related items.
The third section of the business plan will further describe the services
offered by the Movie Theater.
1.2 The Financing
Mr. Doe is seeking to raise $1,800,000 from as a bank loan as well as
$200,000 from a private investor to be used as a down payment. The interest rate
and loan agreement are to be further discussed during negotiation. This business
plan assumes that the business will receive a 10 year loan with a 9% fixed
interest rate. The financing will be used for the following:
Development of the Company’s Movie Theater location.
Financing for the first six months of operation.
Capital to purchase FF&E and booths associated with the Company’s operations.
Management and an investor will invest $200,000 into the business.
1.3 Mission Statement
The Movie Theater’s mission is to provide a quality movie going experience to the general
public within the New York metropolitan area.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
movie theater industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the
expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first
three years of operation. Mr. Doe intends to implement marketing campaigns that
will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Movie Theater, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, Movie Theater,
Inc. requires $2
million of investment funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
This will be further discussed
2.4 Management Equity
This will be further discussed
2.5 Exit Strategy
If the business is very
successful, Mr. Doe may seek to sell the business to a third party for a
significant earnings multiple. Most likely, the Company will hire a qualified
business broker to sell the business on behalf of the Movie Theater. Based on
historical numbers, the business could fetch a sales premium of up to 3 to 5
times the previous year’s net earnings.
3.0 Products and Services
3.1 Sales of Movie Tickets
As stated in the executive
summary, the primary revenue center for the business will come fro the sale of
movie tickets to the general public. The business will earn $8 to $15 per ticket
sold depending on the age of the movie attendee. Management has already begun to
work with major film distributors so that the business can acquire in demand
films from the onset of operations. This will ensure that the business can reach
profitability very quickly (anticipated by the third month of operations). While
this will be the highest revenue center for the business, the profits that are
generated through this segment will be minimal. As with all movie theaters, the
sale of tickets usually provides a loss during the first week that the film is
shown. As such, it is imperative that there is a focus on selling high margin
3.2 Sales of Food and Concessions
The Company’s secondary line of
revenue will come from the sale of small food items and concessions to customers
that are attending the Movie Theater. The Company will obtain the proper
licensure to sell small food items to the general public. Management anticipates
that 40% of the Movie Theater’s aggregate revenues will come from this segment
of the business. The business will serve popcorn, sodas, candies, hotdogs,
nachos, and other products that are commonly served at movie theaters.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the movie theater industry, the
customer profile, and the competition that the business will face as it
progresses through its business operations.
Currently, the economic market condition in the United States is moderate. Unemployment rates have declined
while asset prices have risen substantially. However, this should have a minimal
impact on the Movie Theater’s ability to generate revenues as many people attend
movies in any economic climate.
4.2 Industry Analysis
Within the United States, there are approximately
10,000 movie theaters. Each year, these revenues generate more than $8 billion
of revenue while concurrently providing jobs to more than 120,000 people. Annual
payrolls in each of the last five years have exceeded $1.8 billion. One of the
common trends within this industry is to have 3D movie shown. As such, the
business may want to invest in specialized technology that will allow the Movie
Theater to show three dimensional movies to the general public.
This is a mature industry, and
the expected future growth rate is expected to equal that of the general
4.3 Customer Profile
Among people that will come to
the Movie Theater, Management anticipates that customers will be a middle class
man or woman living in the Company’s target market. Common traits among clients
Annual household income
Lives or works no more than 15
miles from the Company’s location.
Will spend $25 to $50 per visit
to the Movie Theater.
4.4 Competitive Analysis
This is one of the sections of
the business plan that you must write completely on your own. The key to writing
a strong competitive analysis is that you do your research on the local
competition. Find out who your competitors are by searching online directories
and searching in your local Yellow Pages. If there are a number of competitors
in the same industry (meaning that it is not feasible to describe each one) then
showcase the number of businesses that compete with you, and why your business
will provide customers with service/products that are of better quality or less
expensive than your competition.
5.0 Marketing Plan
Movie Theater, Inc.
intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the Company.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
Develop ongoing relationships with film distributors so that the business can
market the fact that it has the latest in releases at all times.
5.2 Marketing Strategies
Mr. Doe intends on using a
number of marketing strategies that will allow the Movie Theater to easily
target men, women, and families within the target market. These strategies
include traditional print advertisements and ads placed on search engines on the
Internet. Below is a description of how the business intends to market its
services to the general public.
The business will also maintain
an online website which will showcase the operations of the business, the Movie
Theater facility, movie times, and directions as to how to get to the movie
theater. The Company will register this website with several major online
portals and directories.
On a regular basis, the Company
will place large scale advertisements in newspapers and local publications to
inform the general public of the Movie Theater’s operations and its location.
These advertisements will often have coupons attached that will provide
discounts on concessions.
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However,
if you have hundreds of items, condense your product list categorically. This
section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
The Movie Theater, Inc. will
have an annual revenue growth rate of 14% per year.
The Owner will acquire $1.8
million of debt funds to develop the business.
The loan will have a 10 year
term with a 9% interest rate.
The business will also acquire
$200,000 of private capital.
7.2 Sensitivity Analysis
In the event of an economic
downturn, the business may have a decline in its revenues. However, attending a
movie is often considered to be an alternative to more expensive forms of
entertainment. As such, the high margin revenues that are generated from the
sale of tickets coupled with the sale of concessions to the general public.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis