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TOPIC: Some questions about theater start-up

Some questions about theater start-up 05 Oct 2006 13:18 #13393

  • Mr. Bill
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Hey everyone, I'm taking a college course on Entrepreneurship and out assignment is to make up a mock business plan for the opening of a business. My group chose to open an IMAX theater in southeastern CT. I'm in charge of both the financial, and marketing parts...the two largest parts of the business plan.

Any help on star-up costs would be greatly appreciated.
I have ticket admission price at $10 for adult, $7.50 for child/senior.
Ticket sales are estimated 62,000 a year so that's $620,000ish per year on ticket sales.
The building will take $2,000,000 to put up.
Projector costs are $60,000 for IMAX projector and $20,000 for regular movie projectors (for a late night insomniac theater)
Audio equipment is set at $200,000.

Are these figures ridiculous? or at least semi-believeable? I don't know much (hell, hardly anything) about the industry, so any help would be wonderful.

How much does it typically cost to buy/rent a movie to show at the theater?

If you have any other ideas, just throw them out there for me! Help a hopeful entrepreneur-to-be!

[This message has been edited by Mr. Bill (edited October 05, 2006).]
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Re: Some questions about theater start-up 06 Oct 2006 09:50 #13394

  • jimor
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Dear Mr. Bill: You are among hundreds who have come to this site wanting a quick, capsule guide to the Exhibition business, and to each of them we say the same thing: READ the FAQs here as well as the ARCHIVES of the various Forums! (adjust the time span to cover the widest span.) As the saying goes, 'There's nothing new under the sun' and likewise the knowledge needed to make up a business plan has been discussed here before in some detail.

There are also a couple of books in the CLASSIFIEDS and CONCESSION STAND areas that bear upon your quest. Others can be found under MOTION PICTURE--EXHIBITION at such as

Perhaps your best quick source for any locale is a local manager of an independent cinema. Befriend him and eventually ask for an interview making clear that you are a student and not a potential nearby competitor. If he is a football fan, offer him some tickets to the big game at your school, or otherwise show your appreciation for his time. If he has been in business for years, he knows how to be successful --and where more than 'a few bodies are burried' in the business. He will know the difference between theory and local practice.
Jim R. (new E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) member:
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