Movie Theater Business Plan

Falls River Theatre

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Company Summary

The Falls River Theatre, a movie house with two screens and a capacity of 400, is located on Main Street in downtown Falls River, Wisconsin. Falls River, population 12,000, has been without a local movie theatre since 1992 when the old theatre, The Kinnick, closed down due to the death of its long time owner and the lack of an interested successor. Since that time, interested movie-goers in Falls River have had to drive 45 miles to the outskirts of Madison to go to a movie.

2.1 Company Ownership

The Falls River Theatre will begin operations as a sole proprietorship, owned and operated by its two founders: Samantha Farmer and Steve Brinksman.

2.2 Start-up Summary

Samantha Farmer and Steve Brinksman will be the main investors and operators of the Falls River Theatre. Samantha has been managing a multiplex theatre in Madison for the past seven years, gaining valuable experience while she looked for an opportunity to run her own theatre. Steve has been working part-time as a contractor/handy man in the local community.

The building where the theatre will be housed has been vacant, except for the occasional rental to a community group, since the closing of the former business. This has made the building's owners anxious to collect a regular check, so they have agreed to rent the entire building for $900 per month for the first three years. There are some repairs and upgrades needed, especially in the balcony and snack bar areas. The founders will be responsible for those repairs and those estimates are included in the start-up expenses.

Start-up Funding
Start-up Expenses to Fund $21,900
Start-up Assets to Fund $23,100
Total Funding Required $45,000
Assets
Non-cash Assets from Start-up $10,700
Cash Requirements from Start-up $12,400
Additional Cash Raised $0
Cash Balance on Starting Date $12,400
Total Assets $23,100
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Samatha Farmer $30,000
Steve Brinksman $15,000
Additional Investment Requirement $0
Total Planned Investment $45,000
Loss at Start-up (Start-up Expenses) ($21,900)
Total Capital $23,100
Total Capital and Liabilities $23,100
Total Funding $45,000
Start-up
Requirements
Start-up Expenses
Legal $800
Stationery etc. $800
Marketing materials and Advertising $1,200
Insurance (8 months) $1,400
Rent (8 months) $2,700
Counter/kitchen retrofit $2,000
Sound and Projection Equipment $500
Theatre repairs $12,000
Other $500
Total Start-up Expenses $21,900
Start-up Assets
Cash Required $12,400
Start-up Inventory $700
Other Current Assets $0
Long-term Assets $10,000
Total Assets $23,100
Total Requirements $45,000
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Start-up Funding
Start-up Expenses to Fund $21,900
Start-up Assets to Fund $23,100
Total Funding Required $45,000
Assets
Non-cash Assets from Start-up $10,700
Cash Requirements from Start-up $12,400
Additional Cash Raised $0
Cash Balance on Starting Date $12,400
Total Assets $23,100
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Samatha Farmer $30,000
Steve Brinksman $15,000
Additional Investment Requirement $0
Total Planned Investment $45,000
Loss at Start-up (Start-up Expenses) ($21,900)
Total Capital $23,100
Total Capital and Liabilities $23,100
Total Funding $45,000
Start-up
Requirements
Start-up Expenses
Legal $800
Stationery etc. $800
Marketing materials and Advertising $1,200
Insurance (8 months) $1,400
Rent (8 months) $2,700
Counter/kitchen retrofit $2,000
Sound and Projection Equipment $500
Theatre repairs $12,000
Other $500
Total Start-up Expenses $21,900
Start-up Assets
Cash Required $12,400
Start-up Inventory $700
Other Current Assets $0
Long-term Assets $10,000
Total Assets $23,100
Total Requirements $45,000