Falls River Theatre
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 Expenses to Fund||$21,900|
|Start-up Assets to Fund||$23,100|
|Total Funding Required||$45,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$45,000|
|Loss at Start-up (Start-up Expenses)||($21,900)|
|Total Capital and Liabilities||$23,100|
|Marketing materials and Advertising||$1,200|
|Insurance (8 months)||$1,400|
|Rent (8 months)||$2,700|
|Sound and Projection Equipment||$500|
|Total Start-up Expenses||$21,900|
|Other Current Assets||$0|