There are many resources for those who want to learn how to start a movie theater business.
Talk to the movie theater owners in your area, as these will be your best guides. Speaking to a business consultant will give you a wider and more accurate idea of the feasibility of your project, too.
This is a good time to learn how to start a movie theater business.
There are thousands of cinema owners across the country who are benefiting from the slew of good movies that have been released recently, as well as the returning popularity of a night out with friends and family.
You can order guidebooks and manuals on the business to get ahead – such as the Encyclopedia of Exhibition published by the National Association of Theater Owners. You will also find movie theater listings and suppliers, repair companies, and the other people related to the business through the Association.
How To Start A Movie Theater Business – Business Model
You can either have an independent theater or opt to run a franchise. As an owner of an independent theater you will be your own boss -choosing the movies to be shown and offering innovative facilities. It requires more initial capital investment because you would need to purchase property and build a theater on it.
As a franchise, you get to work for different Hollywood studios and major theater chains. The drawback with this is that you will need to operate according to their regulations regarding the movies and facilities offered. You will not need to invest in property, however, but will need to share your profits with the franchise owner.
Financing
Most theaters fund their operations through ticket sales, advertising, and facilities such as popcorn.
Most advertisers are product manufacturers who pay big bucks to have their advertisements screened before movies start. Be warned however, that you may need to juggle with your move theater schedule to fit in all the advertisements lined up.
If you own a franchise theater you have to divide your ticket profits equally with the studio. Movie theater tickets cost anything between $6 to $14, so multiply this by the theater capacity and arrive at the profit per screening. However, some studios cut it fine and you may find yourself getting as little as 20% from each ticket with the rest going to the studios.
Movies
As an independent theater owner you will have a more challenging job on hand, as you cannot hope to compete with big multiplexes showing Hollywood movie theater blockbusters. Instead, try to create a niche in different movies. Indie cinema is a good option, as these films are often cheap to purchase.
You can also have screenings for movies that have been screened before and yet remain popular. Showing documentaries and holding film festivals is another great way of raising revenues and promoting your theater.
Learning how to start a movie theater business is just the first step; you need to learn the tricks of the trade to stay afloat and beat your competition.
