Movie theater business plan

By: SISNA company pvt ltd

 Executive summary

• Entertainment industry is one of the most thriving industry all over the world. In this
perspectives Maldivian also very much interested on entertainment. Therefore, this
business plan is all about planning of opening a movie theater business for small
group of people to enjoy themselves with other activities. this business plan give
opportunities to people who wants to enjoy watching their favorite movie in a private
theater with available drinks, snacks and other arrangement up on request such as
celebrating different occasion, anniversary, b day party and may more.
Company profile
 Competitive advantages of the business

➢ There are few small theater businesses operate in male

➢ Greater demand for private cinema

➢ Opportunity to generate large sums of revenue for the business

➢ Less chances of competitors theater

➢ Abel to market the business in various social media platform.

 Product and service with pricing
Services Pricing
Family
Movie of their choice
100 MVR for each entrance
Drinks
Snacks Sperate bill for drinks and snacks

Celebrating events
Movie of their choice 100 MVR for each entrance
Drinks
Sperate bill for drinks and snacks
Snacks
Additional services for couple Include
Arranging cakes Stating 350mvr (personalize Cake)
Flower bouquets 250Mvr for flower bouquets Customization
Additional charge 120Mvr Starting)
Candle Light dinner after the movie Starting 550 Mvr Price vary with the dish
Additional services for birthday and other
celebration
Dinner Vary with the dish
Decoration Starting 950 mvr
Cakes Stating 350mvr (personalize Cake)
Karoke nights
Number of packs For each charge 100mvr
Renting hours Each the theater cost is 250Mvr
Foods and drinks Sperate bill for drinks and snacks
Foods Price charge as per food menu
Cost of the theater operation

Rent of the theater premises 15,000.00

Inventory 4,000.00
Projector 28,000.00
Technical supports equipment’s 12,000.00
Sound System 25,000.00
Fridge 7,000.00
Furniture and fitting 25,000.00
Marketing 2,000.00
Repairing and maintenance 10,000.00
Laboure cost 35,000.00
Miscellaneous 26,000.00
Total Cost for the operation 189,000.00
 Industry and target Market
➢ families:-
this segment focuses on adults and parents with younger children who don’t
need to see the latest movies on release and seek an inexpensive, quality,
family-oriented entertainment experience.

➢ Young adults:-
this segment is comprised of the 16-24-year-old age group. This group is
interested in seeing comedy and action/adventure type movies that are not
directed at the younger and family markets.
 Marketing plan
Product:
➢ Movie night-
➢ Party Night along with DJ-
➢ Karaoke Nights-
Price:
➢ Rates are based on the packages customer prefer
➢ The price charge on the product are inclusive if GST
➢ customer can book the date with settlement of half payment
➢time of cancellation 20% of the advance will be charge
Place:
➢ The theater location is in Hulhumale Phase one.
Promotional activities
➢ Give your product the red-carpet treatment.
➢ Brand partnerships that get into character
➢ Be a social media butterfly
 Financial Scheme
➢ In order to settle down the business the sources of finance undertaken in bank loan.

➢ bank of Maldives provides lui express loan with small interest rate for small and
medium size business expansion which can be taken from 20k to 300k with interest
rate of 15% per annum.

➢ The loan repayment period extend for over 5 years and Repayments will be made
automatically from salary account.

➢ The estimate cost incur for the business is estimated approximately 180k.
 Business development plan
Sales:
➢ Sales personnel focus on a particular market or targeted revenue number
➢ sales worth 200k to 300k can be achieved in three years.
➢ sales department targets the customer base in the new market with their sales strategies.
Marketing:
➢ Marketing involves promotion and advertising aimed towards the successful sale of products to
end-customers.
➢ Higher budgets allow aggressive marketing strategies like roadshows, and
sponsoring.
➢ Lower budgets tend to result in passive marketing strategies, such as limited online ads, print
ads, social media ads,
Cost Savings
➢ Business development is not just about increasing sales, products, and market reach.
➢ Strategic decisions are also needed to improve the bottom line, which includes
cost-cutting measures.
SWOT analysis
 Competitor analysis
➢ Competitive analysis in marketing and strategic management is an assessment of
the strengths and weaknesses of current and potential competitors.

➢ This analysis provides both an offensive and defensive strategic context to identify
opportunities and threats.

➢ the limitation from the SWOT analysis it can, be understand that there is High
chance of rapid growth of competition.
Organizational Chart
Staffing plan

➢ Determining current staffing levels

➢ Forecasting future staffing needs

➢ Identifying the gaps between the two

Forecasted staff recruitment for the next 5 years
Year 1 Year 2 Year 3 Year 4 Year 5

Waiter and waitress

Technical expertise

Office Assistant

office workers Admin/

HR/ Finance /
Marketing/ Reservation

Hire every year to fill the gap and to serve additional demand
Hire in first years/ after that recruitment takes place one the employee leaves the job
Hire foreign cleaners and additional recruitment on year 2 and 3 depend on the work

Hire depends on the urgency and fill the gap of employees leaving the job
 Forecasted Salary for the next 2 years

NUMBER OF EMPLOYEES SALARY

Operation head (managing director) 1 12000.00

Waiter and waitress 4 (5000.00 MVR for each) 20000.00

Technical expertise 2 (10000.00 MVR for each) 20000.00
Office assistant 2 (4000.00 MVR for each) 8000.00
Internal departments workers 5 (7500.00 For Each Employee) 37500.00

Total 97500.00

Estimated salary increment for the next 2 years 35% 34125.00

Budgeted Income and Expenditure for the Year 2021 and
2023
2021 2022 2023

Amount In MVR

Revenue 1,500,000.00 1,800,000.00 2,430,000.00

Cost of Sales (189,000.00) (289,000.00) (390,150.00)

Gross Profit 1,311,000.00 1,511,000.00 2,039,850

Expenses

Salaries and wages 97,500.00 131,626.35

136,626.350
Electricity 54,000.00 72,900.00
78,900.000
Water 48,000.00 64,800.00
68,900.000
Telephone 42,000.00 56,700.00
60,700.000
loan Interest 30,000.00 40,500.00
44,500.000
Delivery expenses 21,000.000 28,350.000
35,200.000
Depreciation 12,000.00 16,200.00
20,100.000
Repair and maintenance 50,000.00 67,500.00
72,600.000
Total Expenses 354,500.00 478,576.35
517,526.350

Income fro the Year 956,500.00 1,032,423.65 -

1,522,323.65
Gantt Chart of how initial financial capital will be use
(First Year)

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Purchasing fixed assets

Hiring staffs

Purcahsing stock

Renting office premsies

Marketing and
advertising
 Loan requirement
➢ The main reason why the Sisna Movie Theatre expecting to take a bank
loan is to purchase expensive new advance equipment for the theater to make
their services better. Another reason is to finance the operation and purchase
of inventory for the business.
Loan repayment schedule

Borrower Bank of Maldives Sisna company pvt lts

:

LOAN [42 Summary

INFORMATION ]
900,000.00 0.03287671%
Loan Amount Daily Interest
Rate
12.00% 36
Annual Interest Number of
Rate Payments
3 1,075,629.91
Term of Loan in Total Payments
Years
01 1 2021 175,629.91
Loan Issue Date Total Interest
02 1 2021 -
First Payment Balloon
Date Payment
Monthly .
Payment
Frequency
365

DAYS IN YEAR

Balloon Payment
#
TRUE
On
Rounding

Est. Monthly (estimate)

Payment 29,917.91 FALSE

Actual Monthly
Payment
 Conclusion
➢ In conclusion it can be detailed out that executing a business plan has unpredicted
turn out in every step in the process. Therefore, the company must be financially
capable to implement changes to go forward.

➢ it’s very important to detail out every expenditure incur in the

process to make sure the company financially independent.

➢ with the cost implication detailed out in the plan. It’s very important for getting a
funding source. Therefore, the most applicable loan for the business is BML Business
development loan with interest rate of 12% per annum.

➢ The reason is operating a theater involve huge cost on purchasing capital goods
such as projector sound system and seating arrangement.

➢ The cost cannot be estimated realistic as there is no such business going on in the
Maldives at this level.