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This topic comprises 3 pages: 1 2 3
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Author
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Topic: Andrew McCrea's business plan
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Ian Price
Phenomenal Film Handler
Posts: 1714
From: Denver, CO
Registered: Jun 99
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posted 03-31-2001 08:37 PM
While I applaud Andrew's ambition, I question his knowledge. This isn't a business plan, this is a mission statement. A business plan is mostly financial projections. There are none here. Our mission statement took two pages in our business plan.1. Nobody cares about Contacts, put them at the end. 2. From the average ticket price, it looks like you are going to give away the product. Studios are trying very hard to kill sub run cinemas in the United States. I am certain that they will not sign a contract with one that charges this little for a ticket. 3. Andrew seems to place great stock in advertising revenues. While these can add to the bottom line, they will not pay the bills as it were. Too much advertising will just piss off the customers. 4. In the making money section Andrew mentions making the popcorn too salty to drive up the soda revenue. That kind of manipulation went out in the 1950's. If you do this people will not buy again. 5. In the saving money section, the first item is advertising. How much is this going to cost. I can tell you that we spend over $135,000 per year just advertising our show times. 6. Then there is the amateur projectionist comment! Andrew, after reading this forum for a while, you should understand that the main argument is that the exhibition companies have stopped treating projection as a profession and quality has suffered as a result. 7. How much do you think it will cost to lease a theatre. It will be a lot more than you think. 8. How much will all the theatre improvements cost? The LED signs will be? The lighting will cost? The Dolby Digital systems will cost? The Seating will cost? The "funky carpet" will cost? 9. Some of your candy will cost you more than a $1 per packet so you will be losing money on candy sales. 10. I run a five-plex. We guessed wrong on how many employees we needed. So did you. You are understaffed. 11. Also you seem to only be running evening shows. Most theatres are open at least 12 hours per day. No landlord would rent to a business that wasn't operating during most hours. 12. Screens: "All screens reach from wall to wall and ceiling to floor." That's just stupid. 13. "On quarter of the concession counter is devoted to junk food." I have news for you, it's all junk food! Now I know he's 13! 
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Jerry Chase
Phenomenal Film Handler
Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000
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posted 03-31-2001 08:41 PM
Thespian implies live performances and is a poor choice of names for a venue showing movies. As for critiquing the "plan," shooting holes in swiss cheese is a waste of buckshot. A plan includes information like consumer profile and demographics of the target group, estimated impact, cost analysis of plant, product, labor, fees, etc. Forgive the bluntness, without any intentional disrespect to young Andrew himself, this is no more a business plan than a doodle is an oil painting.
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Andrew McCrea
Jedi Master Film Handler
Posts: 645
From: Winnipeg, Manitoba, Canada
Registered: Nov 2000
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posted 03-31-2001 08:58 PM
Thanx for the feed back.Acoording to my thesaurus: Famous - Great
Players - Thespian I guess the name could be thought about more harder, but I like this name. It sticks. ------------------
Andrew McCrea "I'm Not Bad, I'm Just Drawn That Way!" - Jessica Rabbit
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Ian Price
Phenomenal Film Handler
Posts: 1714
From: Denver, CO
Registered: Jun 99
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posted 03-31-2001 09:02 PM
Now I am going to do Andrew one last favor. Then I am never going to answer another post by him or about him!Financial Categories Ordinary Income/Expense
Revenue
Admission Revenue
Discount Card Sales
Discount Card Redeemed
Gift Certificate Sales
Gift Certificate Redeemed
Concession Revenue
Other Revenue
Total Revenue
Rental Income
Total Income Expenses
Operating Expenses
Box Office Over/Short
Concession Merchandise Costs
Equipment Rental
Film Expenses
Feature Film Rental
Other Film Rental
Film Buying Expense (Booker)
Film Freight Costs
Total Film Expenses Marketing & Advertising
Daily Directory Ad
Weekly Ad
Co-op Advertising
Film Ads - Non Co-op
Mylar’s & Posters
Flyers
Calendar Expense
Graphic Design
Radio Ads/Sponsorships
Web Site Expenses
Public Relations
Marketing & Advertising Other
Total Marketing & Advertising Rent
Repairs & Maintenance
Janitorial Service
Concession Stand Repair
Projection & Sound Equipment Repair
Repairs & Maintenance - Other
Total Repairs & Maintenance Supplies
Staff Uniforms
Box Office Supplies
Concession Supplies
Facility Supplies
Projection Supplies
Total Supplies Utilities
Total Operating Expenses General & Administration Expense
Amortization Expense
Bank Service Charges
Business Gifts
Depreciation Expense
Dues & Subscriptions
Entertainment
Insurance
Health Insurance
Liability Insurance
Workman's Comp. Insurance
Total Insurance Licenses & Permits
Miscellaneous
Office Expenses
Payroll Services
Printing
Other
Total Office Expenses Payroll Management
Management Salaries & Wages
Payroll Taxes Management
Total Payroll Management Professional Fees
Interior Design Fees
Accounting
Legal Fees
Professional Fees Other
Total Professional Fees Postage and Deliver
Travel Expenses
Telephone Taxes
Local
Property
State Total Taxes Total General & Administrative Expenses Interest Expense
Finance Charge
Loan Fee
Loan Interest
Late Fees and Penalties
Total Interest Expenses Total Expense Net Ordinary Income
Interest Income
Other Income
Net Income Andrew, put a number in every category. We did for the past two years. Project numbers in every category for five years, and that will be a business plan!
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Brad Miller
Administrator
Posts: 17775
From: Plano, TX (36.2 miles NW of Rockwall)
Registered: May 99
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posted 03-31-2001 09:43 PM
Andrew,Please do listen to Ian and don't just disregard his advice. He really IS doing you a favor with his posts here, regardless of how it may "read" to you. Running a movie theater (and inparticularly owning it) is something you are not going to be able to do with zero experience. Basically you need to cut the "talk" (meaning "state of the art...stadium seating...cool neon...etc, etc, blah, blah, blah). "Talk" is just what it is, all talk. Anyone and I do mean anyone can say "we are the best", but hardly ever do those people come remotely near it. For this to succeed you are going to have to have hard numbers and investors. Picking the color of the carpet is one of the last things you do. Listing vendors for products is something that can be pulled out of a Box Office magazine. You are going to have to get a job at a theater to see what all is involved just to make it run (which still won't show you what happens behind the management scene), and don't be surprised if you don't have to work there for 5-10 years to gain enough knowledge to take a good crack at this. I am not telling you to give it up, just that you are going to have to work about 10,000 times harder to stand a chance of making this fly. Right now you need to concentrate on one thing...money. First, your proposal doesn't "add up" on paper moneywise. You are wasting money in areas where you should be saving and being cinchy on things you should not be a cheepskate about. Second, without money this will never work. Who is going to supply you with the money necessary to make this dream a reality? Unless your family is unbelieveably filthy rich, you need to get some hard numbers together and get some investors.
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Dustin Mitchell
Phenomenal Film Handler
Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000
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posted 04-01-2001 12:36 AM
Andrew, I applaud your enthusiasm for starting your own business. It is not an impossible dream. But I do think you need to listen to the advice of others. A Business Plan isn't your dream or mission statement, as Ian said its full of hard numbers. There is a very well defined form that all business plans are supposed to take. This goes here, that goes there, etc. Any investor that you seek out, especially a bank, is going to demand to see your business plan before they even consider your request for funds. My recomendation? Learn how to write a Business Plan. Read a book on it, watch a video, take a class, whatever. Whatever you do, remember that thousands of people have to do this every year. There is a right and wrong way to do it.
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Rachel Carter
Expert Film Handler
Posts: 248
From: Gloucester, Massachusetts, USA
Registered: Dec 2000
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posted 04-01-2001 05:00 AM
I've always stood behind Andrew and appreciated his enthusiasm but this has gone too far. Andrew, I may not be an owner of a theater but I do run a sub-run theater as a General Manager and I would never EVER EVER work for (what did you put???) under $150.00 a week? The only people you are going to get for that price is X-con's who are looking for a loose business owner to rip some money off of! I hope you have at least a million dollars or can get many loans to run your theater because if you don't, you'll get half of it done and realize you ran out of money and have no staff. I'm sorry to be so blunt but I'm sure many film-tech members would love to say, "I told you so!" You see Andrew, I'm not trying to be mean but you ask for advice and obviously never read what these knowledgeable people say or you wouldn't have written half of the things you did on your business plan. Amateur projectionist, that says it all! I started working in a theater when I was 13, I’m only 20 and I am considered young for what I do. Believe me, I DO understand! I think it would be a good idea for you to work in a theater before you try to run one. You see Andrew, I used to be a lot like you. I ALWAYS wanted to own a theater but I can honestly tell you that my perception of running a theater when I was 13 is a lot different at the age of 20. The smartest thing for anyone to do would be for the person that is considering opening ANY TYPE of business to first work in that type of business they want to open, not just to see if you like it but to see what its like. I believe that with your ambition you will someday open your own theater but you really do need help running one unless you learn how the business works, including what the correct pay for the employees should be!
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Andrew McCrea
Jedi Master Film Handler
Posts: 645
From: Winnipeg, Manitoba, Canada
Registered: Nov 2000
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posted 04-01-2001 10:11 AM
I asked Brad to post it because he asked me to send it a while back.
Also, Joe, did you have to take it up a step higher than it needs to go? And you know it's not Great Lesbian, It's Great Thespian. 
Also, Ian, I'll try the numbers... BTW, It's going to be a second run theatre! That's why the projectionist is an amateur. I understand what you've all said oven a over, but second run theatres can't pay a unionized projectionist. If I had a first run, I'd use unionized projectionists.
------------------
Andrew McCrea
"I'm Not Bad, I'm Just Drawn That Way!" - Jessica Rabbit
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William T. Parr
Jedi Master Film Handler
Posts: 823
From: Cedar Park, TX
Registered: Nov 2000
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posted 04-01-2001 11:47 AM
Hey Andrew sounds like you have a big ambition here. I sat down and did this on paper myself for my Dream 10 screen. I even drew out how I wanted the Auditorium to be situated, How many seats in each Auditorium, What type of Platters, Projectors, Processors,Amps etc I wanted. I even calculated screen sizes and lens sizes for all auditoriums. Then I went out on the Internet and priced my equipment using the cheapest prices I could find for what I wanted,Lenses included. By the time I was done with just that part of it, my project was at three quaters of a million US dollars.  That did not include paying to have the building built, just projection an sound equipment, and auditorium equipment. I have all of it on an Excel spreadsheet if you would like to see it.As to paying a projectionst $150.00/ week that is $600.00/ month and $7200.00/year. I do keep in mind that Andrew is in Canada, but that still sounds a bit under paid to me as well. As to having Amatuer becasue it is a Second Run theatre. I started out as a projectionist at a Cinemark Dollar house and I took great pride in giving the customers a first run expierence. Although projectionist made only slightly higher wages, we did have a veteran staff that had at least 5 yrs expierence in a booth teaching us newbies. When I went to work for UA I was only one of two people other than Mangement allowed to touch the projectors. Don't short change yourself on expierence in the booth, after all the presentation is what people are paying to see.
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Something tells me the wages would be every bit as lame, but I don't think there'd be a workplace on the planet that could be quite as lax. Of course, I'd take my movie watching privileges someplace else. Also, I'd revise the mission statement... by not having one. 
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