JMJ Ch

Notre Dame of Kidapawan College

Datu Ingkal St. Kidapawan City

HOLOGRAM MOVIE CINEMA

J,W. Diokno Boulevard, Mall of Asia Complex, Pasay, Luzon 1300, Philippines
09156830891/09097916551
 EXECUTIVE SUMMARY OR STATEMENT OF PURPOSE

Writing a business plan is an essential step in starting or expanding any business. It

assists the enterprise owner through organizing information that describes the business and its
operation. As such, it turns into a guide for developing strategic plans to expand an enterprise or
to higher control a current commercial enterprise. A marketing strategy also can provide the
statistics that should be supplied to a financial institution or other investor before a credit score
choice is made. whether or not you operate your personal budget or borrowed funds to begin up
or extend your enterprise, the improvement of reliable and complete data in a business plan is
important.

This cinema will not only be the first one in the country but also around the world. The
goal is to provide the hologram experience to its viewers. It will be a brand new experience and
with the affordable price with so much to get, it is a bang for the buck. It will have a very friendly
environment and our staff will be assisting the viewers whenever they need help. We will not
only give an experience that you always deserve, but also an experience that you will never get
from the others and will always crave.
Table of Contents

Section One: The Business

A. Description of Business
B. Products/Services
C. Market Analysis
D. Marketing Plans
E. Location
F. Competition
G. Management and Operations
H. Personnel
I. Application and Effect of Loan or Investment

Section Two: Financial Data

A. Projected Financial Statements

 Income Statements
 Cash Flow Statements
 Balance Sheets
 Assumptions to Project Financial Statements
B. Break Even Analysis
C. Sources and Uses of Funds

Section Three: Supporting Documents

References
SECTION ONE: THE BUSINEESS

A. Description of Business
Basic Questions:
1) What general type of business is this?

This type of business is for entertainment. In fact, it is a cinema. Not just an

ordinary cinema, but a futuristic one. This cinema will be the first one to use a
hologram instead of a projector. The effects of a hologram may be similar to the
effects of a 3D cinema, but this one doesn’t require you to use 3D glasses and it will
make you experience the 3D film with your naked eye.

2) What is the status of the business? Start-up, expansion or take-over?

The business will be an expansion because we will not have the enough funds to
do a start-up and it will be difficult because the costumers doesn’t know us due to
lack of advertisement which will cost a lot and will get some of the budget as well.

3) What is the business form? Sole Proprietorship, Partnership, Corporation or Limited

Liability Company?

The business will be a partnership with SM Megamalls. Since SM is known

nationwide and known for its great cinemas, this will be the best choice.

4) Who are (will be) your customers?

The cinema will allow costumers with all kinds age and will be allowed depending
on the type of the movie following the rules of the MTRCB.

Additional Questions for Start-Ups:

1) Why will you be successful in this business?
This business will be successful not just because it is the first one in the country,
but all around the world. It will catch the attention of all the movie enthusiasts and
also all the curious people that wants to experience firsthand. Also our partner has a
high rating when it comes to movie theaters.
 2) What will be special or unique about this business?
What’s special about it is it will be the first cinema theater that will use a
hologram instead of a projector while showing you the film. Not only the first one in
the country but the first one in the globally.
There will be promotions like 15% off for the first 20 costumers or free snacks for
the first 25 costumers. Once it garners the attention of the people, it will be easy to
sell tickets.

B. Products/Services
Basic Questions:
1) What products/services are you (will you be) selling?

Our Movie Theater sell soft drinks, popcorn, and candy, and sell hot fast food. In
some jurisdictions, our movie theater can be licensed to sell alcoholic drinks.

2) What are the features and benefits of what you sell?

The benefits of watching movies immense. Sitting in a theater with your friends

munching on popcorns and sipping your favorite smoothie you watch your favorite
actors battle aliens in a larger than life frame. You feel excited, scared, emotional
and happy during those two and a half hours; you are transferred to a world away
from reality and you enjoy every moment of it. As you walk out of the theater doors,
you feel rejuvenated, de-stressed and realize that you had, even for a few hours at
least, forgotten about the troubles of day to day life.
3) What Position do you have (or want to have) in the market?
1.Film Projectionist -operates the film projector and sound equipment for a movie
theater.
2. Movie Ushers - are responsible for a wide variety of theater duties.
3. Cashiers - work in a box office and offer front-line customer service to guests at
movie theaters.
4. Concession Counter Attendants - prepare and serve various snack items to movie
theater customers.
5. The Manager of a Movie Theater - oversees all daily operations. They hire and
train staff, schedule work shifts, oversee building maintenance duties, and ensure
excellent customer service
 4) How do your products/services differ from the competition?
Competition for movie theatres comes in a number of different forms. In general
you can describe the indirect competition as any entertainment alternative in the

local area. 
5) What makes your products unique and desirable?
It makes unique because it is maybe the first movie theater near in the city that
everybody wishing of it to have.

6) Why do (will) customers buy from you?

Costumer should buy from us because most of us loves to watch movie. A way of
bonding during holiday, weekends or day off of the family, friends, and love once.

C. Marketing Plan
Product Strategies
1) How will products be packaged?
Our products must be with free popcorn and drink.

2) How broad will your product line be?

3) What new products will you introduce?

Tickets with cheap promo.

4) What Position or Image will you try to develop or reinforce?

To develop affordable and best quality of a movie theater.
Pricing Strategies
1) What will be your pricing strategies? (For example: Premium, Every Day Low
Price, Frequent Sale Prices, Meet Competitor Price, etc.)
VIP – ₱ 650.00
- The VIP will have the best position inside the cinema and will have the
most comfortable seats that will be shown below. The VIP will also
come with free snack and drink of your choice and you can also
choose the size. But there will be a consequence if you don’t fully
consume your food, you will have to pay for it. You will also feel the
effects. For example, you will feel the blast and vibrations of an
explosion.

PREMIUM – ₱ 400.00
- The premium will still have a good view of the film but the seats will be
less comfortable compared to the VIP (will be shown below). It will also
have a free 140g popcorn and 22oz. drink. There will also be no
special effects for this section.
 ECONOMY – ₱ 200.00
- No frees, you will just pay for the seat so that you can watch the film.
The seats will also be like the regular ones in the theater.

2) How will you compare with competition and how will they respond?
There will be no competition and even if they wanted to, they will have no answer
for it and cannot respond. The only way to access the technology is through us and
since we have a partnership contract with SM, they will have to wait for it to expire
and pursue us with a better offer.

3) Why will customers pay your price?

They will pay the price because it will be worth it. Having to experience a 3D film with
your naked eye is an experience we all wanted ever since the idea of it came out.

4) Is there anything about your business which insulates you from price competition?
We make people can afford our tickets.

Promotional Strategies
1) Who are your Target Markets?
Our main target must be the Shoppers, Shopping and entertainment is the center
of town. This provides easy access for someone and a viable entertainment option
any night of the week. The local business community has shown great support for a
theatre since it would keep residents, and their spending money, in the community
instead of one of the surrounding communities.
 2) How will you reach your Target Markets? (What Media will you use?)
The strategy is simple: provide fair-priced, quality entertainment close to home

for the two markets that comprise into everyone . We need to do advertising trailers in
Social media or Televisions.

3) How will you motivate them to buy? (What Message will you stress?)
Unfortunately, we must talk about features and let them customers try to figure
out that they can afford it.

4) What is the cost and timetable for implementation of the marketing plan?

D. Location
Basic Questions:
1) What is the business address?
All SM Megamalls and Supermalls with movie theaters.

2) Is it owned or leased? If leased, what are the terms?

The technology is owned by us and through the partnership, the SM
management can have an access.

3) Are renovations or modifications needed, and what are the costs?

Renovations are necessary because we need to divide the whole cinema into 3
parts. And the common projector needs to be replaced with our hologram projector.
The costs of the renovation will be

4) Describe the property and the surrounding area.

Area must be in SM malls and other supermalls with movie theaters.

5) Why is this a good location for your business?

It is a good location and a good partnership because it is a free advertisement
and exposure for us.
E. Competition
Basic Questions:
1) Who are (will be) your largest competitors? List them
Private cinema/theater.

2) How will your operation be better (and worse) than your competitors?
Our operation must be better in terms of quality and management.

F. Management and Operations

Basic Questions:
1) What is the business management experience of the management team?

2) What are the functional areas of the business?

3) Who will be responsible for each functional area?

4) Who reports to whom?

5) What will salaries be?

6) What management resources outside the company are available?

 7) How will your products/services be produced? (Describe manufacturing processes,
proprietary technology and key supplier relationships.)

G. Personnel
Basic Questions:
1) What are the personnel needs now? In the future?

2) What skills must they have? What training will you provide?

3) Are the people you need available?

4) What is their compensation? What fringe benefits will be provided?

H. Application and Effect of Loan or Investment

Basic Questions:
1) What is the total investment required?

2) How will the loan or investment be used?

3) How will the loan or investment make the business more profitable?

4) When will the loan be repaid?

5) If you are seeking equity (selling part of the business to an investor):
- What percent of the company are you willing to give up?
- What rate of return is possible for the investor? (Note: If your business plan will
be presented to private investors, seek legal counsel to be sure you are in
compliance with securities laws.)
SECTION TWO: FINANCIAL DATA
A. Projected Financial Statement

Fixed Asset Description:

Equipment and/or Vehicles Costs
- Hologram Projector – P820,000.00
- Softdrink Fountain – P88,330.00
- Juice Dispenser – P15,300.00
- Coffee Vending Machine – P17,500.00
- Refrigerator – P169,995.00
- Food Warmer – P16,000.00
Start-up Expense Description:
Legal/Organization Costs
- 15 Beds w/ 8 inches’ memory foam mattress – P450,000.00
- 15 Comforters – P43,965.00
- 30 Large size pillows – P60,000.00
- 30 Pillow cases – P19,500.00
- 50 Recliner seats – P533,450.00
- 70 Floor-mounted recliner seats – P349,930.00
Initial Marketing & Promotion
- 20 1x4 feet Tarpaulin – P2500.00
Beginning Inventory Every day for VIP
- 16 15” Pizza – P8,160.00
- 16 Dozen Donuts – P14,680.00
- 10 Bottles of Wine – P5,000.00
- 56 Liters of Softdrinks – P2,362.00
- 20 Liters of Juice – P2,279.00
- 8400g of Popcorn – P6,600.00
Beginning Inventory Every day for Premium
- 28000g of Popcorn – P20,000.00
- 4400oz. of Soft Drinks – P11,000.00
Total Fixed Asset and Start-up Expenses: P2,649,951.00

Ticket Booth Cashier: 1 Person - P9,000.00 / Mo.

 Unit Selling Price and Cost Analysis

Product or Service #1:
________________________________________________________
A. Selling Price: VIP – P650.00
Direct Costs:
Labor for Crew P9,000.00 per Mo. x 4
Food & Beverage P1,172,430.00 per Mo.
B. Total Cost per Unit P335.68 per Mo.
C. Unit Gross Profit (A minus B) P1,131,570.00 per Mo.
D. Gross Profit % (C divided by A) 48%

Product or Service: #2:

________________________________________________________
A. Selling Price: PREMIUM – P400.00
Direct Costs:
Labor for Crew P9,000 per Mo. x 6
Food & Beverage P930,000.00 per Mo.
B. Total Cost per Unit P30,349.00 per Mo.
C. Unit Gross Profit (A minus B) P1,416,000.00 per Mo.
D. Gross Profit % (C divided by A) 59%
Product or Service: #3:
________________________________________________________
A. Selling Price: ECONOMY – P200.00
Direct Costs:
Labor for Crew P9,000 per Mo. x 6
B. Total Cost per Unit P5,770.00 per Mo.
C. Unit Gross Profit (A minus B) P1,626,000.00 per Mo.
D. Gross Profit % (C divided by A) 97%

TICKET SALES PER MONTH

VIP PREMIUM ECONOMY

January 3600 4350 5430
February 3600 4173 3156
March 3600 4672 4179
April 3600 6000 7627
May 3600 5072 5678
June 3600 2872 1679
July 3600 3314 2889
August 3600 3907 3120
September 3600 4492 3970
October 3600 3568 2881
November 3600 4011 3261
December 3600 5321 6170

Project Income Statement For the 12 Months Beginning: P 34,198,200.00

Jan Feb Mar Apr

Total Revenue P5,654,700.00 P4,900,770.00 P5,257,052.50 P7,409,450.00
Cost of Goods P2,371,380.00 P2,115,615.00 P2,145,042.00 P3,282,480.00
Sold/Free
Gross Profit P3,283,320.00 P2,785,155.00 P3,112,010.50 P4,126,970.00
Salaries P153,000.00 P153,000.00 P153,000.00 P153,000.00
Depreciation P42,118.71 P42,118.71 P42,118.71 P42,118.71
(1.63% per Mo.)
Utilities P187,890.00 P172,212.00 P179,978.00 P207,023.00
Repairs & P35,000.00 P35,000.00 P35,000.00 P35,000.00
Maintenance
Telephone P199.00 P199.00 P199.00 P199.00
Insurance P40,250.00 P40,250.00 P40,250.00 P40,250.00
Total P2,676,907.71 P2,405,464.71 P2,442,658.21 P3,607,140.71
Expenses
Pre-Tax Profit P606,412.29 P379,690.29 P669,352.29 P519,829.29
Taxes P18,192.37 P11,390.71 P20,080.57 P15,594.88

May Jun Jul Aug

Total Revenue P6,185,760.00 P3,937,932.50 P4,460,075.00 P4,854,400.00
Cost of Goods P2,675,950.00 P1,766,922.50 P1,938,775.00 P2,141,615.00
Sold/Free
Gross Profit P3,509,810.00 P2,171,010.00 P2,521,300.00 P2,712,785.00
Salaries P153,000.00 P153,000.00 P153,000.00 P153,000.00
Depreciation P42,118.71 P42,118.71 P42,118.71 P42,118.71
 (1.63% per Mo.)
Utilities P193,890.00 P165,981.00 P168,201.00 P171,289.00
Repairs & P35,000.00 P35,000.00 P35,000.00 P35,000.00
Maintenance
Telephone P199.00 P199.00 P199.00 P199.00
Insurance P40,250.00 P40,250.00 P40,250.00 P40,250.00
Total P2,987,477.71 P2,050,541.21 P2,224,613.71 P2,430,541.71
Expenses
Pre-Tax Profit P522,332.29 P120,468.79 P296,686.29 P282,243.29
Taxes 15,669.97 P3,614.06 P8,900.59 P8467.30

Sep Oct Nov Dec Total Year 1

Total Revenue P5,407,200.00 P4,581,082.00 P4,890,090.00 P6,442,800.00 P63,981,312.00
Cost of Goods P2,382,090.00 P1,999,152.50 P2,123,625.00 P2,773,585.00 P27,716,232.00
Sold/Free
Gross Profit P3,025,110.00 P2,581,929.50 P2,766,455.00 P3,669,215.00 P36,265,070.00
Salaries P153,000.00 P153,000.00 P153,000.00 P153,000.00 P1,836,000.00
Depreciation P42,118.71 P42,118.71 P42,118.71 P42,118.71 P505,424.52
(1.63% per Mo.)
Utilities P184,482.00 P168,989.00 P170,896.00 P194,852.00 P2,166,683.00
Repairs & P35,000.00 P35,000.00 P35,000.00 P35,000.00 P420,000.00
Maintenance
Telephone P199.00 P199.00 P199.00 P199.00 P2,388.00
Insurance P40,250.00 P40,250.00 P40,250.00 P40,250.00 P483,000.00
Total P2,683,209.71 P2,285,779.21 P2,412,158.71 P3,086,074.71 P31,292,568.02
Expenses
Pre-Tax Profit P341,900.29 P296,150.29 P354,296.29 P583,140.29 P4,972,501.98
Taxes P10,257.01 P8,884.51 P10,628.89 P17,494.21 P149,175.07
 Optional Method to Calculate Needed Capital
Total Required Capital =
Six Months of Fixed Expenses + Asset Purchases + Start-up Expenses

Column 1 Column 2
Monthly Fixed Expenses
Salaries (include owner) ₱ 181,000.00
Payroll Taxes at 12% ₱ 86,880.00
Advertising ₱ 2,500.00
Telephone & Utilities ₱ 188,089.00
Insurance ₱ 40,250.00
Maintenance ₱ 35,000.00
Others: Food and Beverages ₱ 69,481.00

Monthly Fixed Expense Sub-total ₱ 603,200.00 x 6 = ₱ 3,619,200.00

Asset Purchases
Decorating and Remodeling ₱ 1,127,125.00
Fixtures and Equipment (plus installation) ₱ 1,456,845.00
Deposits on Utilities ₱ 187,890.00
Beginning Inventory ₱ 69,841.00

Asset Purchase Sub-Total ₱ 2,841,701.00

Start-up Expense You Pay Once

Legal and Accounting Organization Costs ₱ 2,676,907.71
Initial Advertising and Promotion ₱ 2,500.00
Start-up Expense Sub-total ₱ 2,679,407.71

Total Estimated Cash Needed to Start (Add Column 2) ₱ 9,140,308.71

B. Break Even Analysis
 For VIP
Monthly Fixed Expenses:
Unit Sales Price: ₱ 300,000.00
(-) Costs of Goods Sold: Utilities ₱ 187,890.00
Material & Labor ₱ 1,637,845.00 Salary ₱ 181,000.00
Others ₱ 69,481.00

Unit Contribution Margin = ₱ 1,337,845.00 Total Fixed Exp. ₱ 438,371.00

CM%(UCM/USP) = 4.46%
B/E=Fixed Expenses/CM%
Monthly B/E Sales = ₱ 9,828,946.18

 For Premium
Monthly Fixed Expenses:
Unit Sales Price: ₱ 450,000.00
(-) Costs of Goods Sold: Utilities ₱ 187,890.00
Material & Labor ₱ 1,637,845.00 Salary ₱ 181,000.00
Others ₱ 69,481.00

Unit Contribution Margin = ₱ 1,187,845.00 Total Fixed Exp. ₱ 438,371.00

CM%(UCM/USP) = 2.64%
B/E=Fixed Expenses/CM%
Monthly B/E Sales = ₱ 16,604,962.12
 For Economy
Monthly Fixed Expenses:
Unit Sales Price: ₱ 400,000.00
(-) Costs of Goods Sold: Utilities ₱ 187,890.00
Material & Labor ₱ 1,637,845.00 Salary ₱ 181,000.00
Others ₱ 69,481.00

Unit Contribution Margin = ₱ 1,237,845.00 Total Fixed Exp. ₱ 438,371.00

CM%(UCM/USP) = 3.09%
B/E=Fixed Expenses/CM%
Monthly B/E Sales = ₱ 14,186,763.75

C. Sources and Uses of Funds

 Sources:
Term Loan ______________
Line of Credit ______________
Personal Equity ______________
Outside Equity ______________
Other ______________
Total Sources ______________
 Uses:
Purchase Equipment ₱ 1,127,125.00

Renovations ₱ 1,456,845.00

Inventory ₱ 70,081

Working Capital ₱ 181,000.00

Cash Reserve ______________

Total Uses: ₱ 2,835,051.00
SECTION THREE: SUPPORTING DOCUMENTS

Reference:

1. https://investinganswers.com/financial-dictionary/ratio-analysis/gross-profit-margin-
2076?fbclid=IwAR1D0nyj3Uzsq04EVyh-
25swOHfs6e28TXnMyknsIA9OvK_MOlhCtmwCKG0
2. https://www.entrepreneur.com/article/226158?fbclid=IwAR20-
iyHzdw9qqacLDKl_9fTS_f0Ir80qM-14BlzZ2dovLtVRJOQxiK9Ji8
3. https://www.accountingtools.com/articles/how-to-calculate-cost-per-unit.html?
fbclid=IwAR1D0nyj3Uzsq04EVyh-25swOHfs6e28TXnMyknsIA9OvK_MOlhCtmwCKG0
4. http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=total%20fixed
%20cost&fbclid=IwAR3dprXCTCrTGfgrolnymamnj_Fg5fT4h8JkS1I_vUihmVYs_T2KvVQ
Wg34
5. http://www.businessdictionary.com/definition/total-variable-cost.html?fbclid=IwAR20-
iyHzdw9qqacLDKl_9fTS_f0Ir80qM-14BlzZ2dovLtVRJOQxiK9Ji8
6. https://www.homecinemachoice.com/content/are-you-sitting-comfortably-home-cinema-
seating-explained?
fbclid=IwAR1s8UjbwfCTluw_DCqBvJDQumHAJm0HfVpRvlOsT9BQmWpkw6-JxiTs83E
7. https://en.wikipedia.org/wiki/Holography?fbclid=IwAR0o7mS2dde2fEGZu6Pqm2jAq7JB-
EYxqkwFoeAwAbVFUq5gTcz7eXiEvFc
8. https://now.krispykreme.com.ph/?
fbclid=IwAR2lph6MuOK3gy5Hnc_koGxA6rh1vtY4s19mPn9rNQ11z2e-Db92HnyP81Y