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TOPIC: NEED HELP WITH WRITIN A BUSINESS PLAN

Re: NEED HELP WITH WRITIN A BUSINESS PLAN 02 Jun 2012 02:10 #38564

  • wlnewcomb
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Dustin,

I am also trying to start a 1 screen draft house type theater in a town a little smaller than Toledo.

In completing my business plan, I need to get a better grasp on expenses. I am a novice in terms of running a business, but I do have a very strong background in finance. The main issue I have is that I can't seem to find any resources on a probable expense ratio. The theater I am trying to start is going to be one which serves beer/food/wine etc..It is a 1 screen theater that will primarily show independent films and 2nd run classics. I have done extensive research on the costs/revenues/profit margin associated with the food/beverage/labor costs. I am still very much in the dark on the expenses associated with running a small theater (200 seat 1 screen 2 bathrooms) like this and what kind of profit you can assume from the ticket sales. I hear 0-50% for first run theaters but didn't find much for art house theaters.

In general..based on being open for 5 days a week...11-14 shows a week probably..any idea what a reasonable "occupancy rate" so to speak would be? I know this is dependent on the movie showing..the area...how popular the theater is etc....but just looking for an industry standard.

Lastly...just a ballpark figure...what kind of net profit margin (before taxes) do you model for?

Thank you so much in advance for any data you can supply.

--Luke
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