Keys to Success
Discuss about the Journal Of Advances In Business Management.
- Quality customer service
- Choosing the best films that work best for the selected audience
- Control of all the costs through careful management of internal finances
- Being consistent in the entertainment and product quality
- Sale over $400,000 in the first year, more than $900,000 by the third year.
- Net profits increasing after every year.
One Stop’s mission is to create a memorable theatre experience for all our clients so as to make regular visits to the theatre with more friends and family members. I believe in ensuring proper customer satisfaction that will make all the clients recommend the movie theatre to their friends and family members Chawla(2015). Our customers will enjoy high quality movies and quality food at a cheaper price.
- Company Summary
One Stop Theatre is a movie house with three screens and a maximum capacity of 600. It is located in downtown Wimberley, Texas near evening entertainment buildings and the shopping center.
One Stop Theatre will be fully owned individually with all the management and important decisions of the theatre made by a single person. The theatre will operate as a sole proprietorship but advisors will be hired to help in the smooth running of the theatre.
One Stop Theatre is an idea that I have had for many years and its operation will be a dream come true. I will be responsible for the management and handling all financial issues of the theatre. Margaret Hannington will serve the purpose of designing the theatre and ensure that it is always in good condition. The theatre will be located in a building that has been vacant for more than 5 years and the owner has agreed to rent the building for $1200 per month for the first 2 years Finch(2016). The building will have to be repaired so as to have the modern look of a theatre and all this costs will be incurred personally and all the estimates have been included in the start-up plan
|
Start-up Expenses to Fund |
$85,000 |
|
Start-up Assets to Fund |
$115000 |
|
TOTAL FUNDING REQUIRED |
$200,000 |
|
Assets |
|
|
Non-cash Assets from Start-up |
$30,200 |
|
Cash Requirements from Start-up |
$42,400 |
|
Additional Cash Raised |
$0 |
|
Cash Balance on Starting Date |
$42,400 |
|
TOTAL ASSETS |
$115,000 |
|
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 |
|
|
Personal Investment |
$100,000 |
|
Bank Loan |
$100,000 |
|
Additional Investment Requirement |
$0 |
|
TOTAL PLANNED INVESTMENT |
$200,000 |
|
Loss at Start-up (Start-up Expenses) |
($85,000) |
|
TOTAL CAPITAL |
$115,000 |
|
TOTAL CAPITAL AND LIABILITIES |
$115,000 |
|
Total Funding |
$200,000 |
Services
One Stop Theatre will have reclining seats for all the customers that will enable them to watch high quality second hand movies from the three screens. All the films will be selected based on the target audience that the theatre intends to serve. The afternoon section will be mainly for families who will come to watch movies like The Incredibles Karlsson(2009).This will be done four times in the afternoon. Evening section will mainly serve the young adults and they will have an opportunity to watch movies like The Insurgent. These shows will be done four times in the evening.
Our customers will be offered snacks and beverages that will keep them satisfied during the entire period. For this to be effectively done, I will only hire people who have vast experience in the hospitality industry.
Objectives
The theatre will be strategically located in an area with shopping centers and near evening entertainment buildings. Central location of the theatre makes it easily accessible by customers from all corners of the town. Once inside, the customers will have a feeling of the high definition screens showing the movies and a lot of food and beverages throughout the entire period. The people will save more than $50 as they will be fully satisfied with the latest movies and snacks offered by the theatre and thus preventing them from incurring transport costs to access theatres in the city.
- Young Adults
This group consists of people with 18-26 years and will mostly attend the evening shows. The young adults are basically interested in watching action movies and comedies and I believe they will have a memorable experience that will make them come back on a daily basis for more movies.
- Families
This section will focus on the parents and children who want to spend some time out watching a movie together. Many parents want to spend ample time with their children as this increases the bond they have to one another. Movies are a good way of strengthening the family bond and therefore One Stop Theatre will meet their needs.
|
MARKET ANALYSIS |
|||||
|
Potential Customers |
Growth |
Year 1 |
Year 2 |
Year 3 |
|
|
Families |
15% |
300,000 |
345,000 |
396,750 |
|
|
Young Adults |
10% |
100,000 |
110,000 |
121,000 |
|
|
Total |
13.75% |
400,000 |
455,000 |
517,750 |
The town of Wimberley has had to live without a theatre for close to 20 years after the closure of the only existing theater in the town. People had to travel for more than 60 miles to entertain themselves in the closest theatre around This theatre will solve all this issues and ensure that all the customers are satisfied.
Competition will come from all the sides and in Wimberley; the greatest competition will come from restaurants, entertainment establishments and pool halls. All this competitors offer indirect competition and the only direct competitor is located 60 miles away. This makes One Stop theatre the only theatre available in the town thus it is good for business.
In Wimberley town, majority of the population comprises of young adults and families. This is the reason why the theatre will specifically target this segment in order to serve majority of the population in the town.
I intend to succeed by providing affordable prices, entertainment of high quality and offering a combination of good food and beverages to the customers. By meeting the needs of the client through provision of affordable movie prices more and more people will like the theatre as they will end up saving more than they initially planned.
Mission
With a vast experience in management , I will ensure that the community is generally pleased with what the theatre has to offer.
Family members will also give a helping hand as my elder brother who is an accountant will take care of all the financial requirements including working on the counter and ticket booth.
Wimberley is not a very big town and it is very easy for anything to spread all over the town. People will get to know about the theatre once the renovation processes begin and the grand opening will be highly anticipated by all members of the community.
Showing the latest movies which are appealing to the audiences will be the main sales strategy that I will use.
As information about the movie house spreads from the town to the neighboring towns, the sales will automatically increase. The chart below shows the forecast of the theatre on a monthly basis Kawasaki(2014).
|
|||||||||||||||||||
|
Total Sales |
$245,188 |
$370,787 |
$490750 |
||||||||||||||||
|
Direct Cost of Sales |
Year 1 |
Year 2 |
Year 3 |
||||||||||||||||
|
Movies |
$70,196 |
$105,293 |
$157,940 |
||||||||||||||||
|
Concessions |
$21,059 |
$31,588 |
$67,382 |
||||||||||||||||
|
Subtotal Direct Cost of Sales |
$91,254 |
$136,881 |
$225,322 |
In the table below are all the details that show the important program milestones together with the date and budget of the entire process Plans(2018).
|
MILESTONES |
|||||
|
Milestone |
Start Date |
End Date |
Budget |
Manager |
Department |
|
Tables and Chairs |
04/4/2018 |
04/13/2018 |
$3,000 |
ABC |
Marketing |
|
Decorations |
04/4/2018 |
11/18/2018 |
$2,000 |
ABC |
Marketing |
|
Painting/reconstruction of Restaurant |
04/1/2018 |
05/22/2018 |
$25,000 |
ABC |
Web |
|
Food for Opening |
05/28/2018 |
05/29/2018 |
$1,000 |
ABC |
Web |
|
Production of Menus |
04/13/2018 |
05/16/2018 |
$400 |
ABC |
Department |
|
Buying Supplies for Kitchen |
04/16/2018 |
05/20/2018 |
$5,000 |
ABC |
Department |
|
Set Up Projection Equipment |
05/20/2018 |
05/28/2018 |
$40,000 |
ABC |
Department |
|
Establish Film Schedule |
04/1/2018 |
05/28/2018 |
$1,000 |
ABC |
Department |
|
Staff Hiring |
05/4/2018 |
05/22/2018 |
$0 |
ABC |
Department |
|
Staff Schedules |
05/25/2018 |
05/28/2018 |
$0 |
ABC |
Department |
|
Distribution of Advertising |
05/5/2018 |
05/1/2018 |
$0 |
ABC |
Department |
|
Totals |
$77,400 |
Management Summary
Once the theatre is up and running, I will be responsible for managing all the important tasks such as the marketing segment, selection of the film and hiring of personnel. My brother will take care of the financial section and a pool of experts will be hired to help run the theatre Ries (2011).
For the growth of the business, the customer should be satisfied. This is made possible through the employment of trained staff that will work effectively.
|
Personnel Plan Manager |
Year 1 $48,000 |
Year 2 $53,000 |
Year 3 $58,000 |
|
Hostess |
$36,000 |
$40,000 |
$44,000 |
|
Kitchen Staff |
$60,000 |
$64,000 |
$68,000 |
|
Cleaning |
$36,000 |
$38,000 |
$40,000 |
|
Servers |
$72,000 |
$72,000 |
$72,000 |
|
Total People Total Payroll |
11 $252,000 |
16 $267,000 |
20 $282,000 |
The break even analysis below shows the break-even point of every mont
The graph below shows the projected profit and loss of the theatre.
The theatre industry is doing quite well both at the local and national level. There are a number of theatres scattered all over the country and One Stop Theatre will soon join this group. With new movies coming up each and every day, movie lovers continue to visit the theatres thus contributing to the growth of the industry Quebec(2018).
Availability of a theatre 60 miles away from the town offers One Stop theatre a competitive edge as it is the only theatre closest to the town. This is good for business as most people will prefer the closest theatre that can be reached at any particular moment. There is limited direct competition to the movie house as no one else has any plan of opening a there are in the town. Sunder(2013).The only competition will be from indirect competitors who basically do not pose a great challenge to the theatre.
- Primary Target Market
Company Ownership
One Stop Theatre will target families and young adults between the ages of 18-26. Families and young adults make up the majority of the population in the town
- Marketing
One Stop Theatre will offer movie services to the people of Wimberley town. While watching the movies, snacks and beverages that keep customers seated will also be provide by the theatre.
Ticket prices will range from $5 for adults and $3 for children who are below 13 years of age. The snacks and beverage will be free of charge.
I will be responsible for collecting the latest movies from the city and airing them immediately they are released. This will ensure that the customers get to see what they want at the appropriate time.
I will have a countdown a few days to the opening day. This will be displayed on a screen set up outside the theatre. To go a step higher, I will make the advertisement of the theatre known to everyone through the local newspaper read by majority of the population. I will also create a website that will have all the information concerning the movie house including all the latest movies that will be shown and the exact date
- Financial Plan
I will invest $200,000 as capital for starting the theatre. $100,000 will be from my own personal savings and the remaining $100,000 will be from a bank loan. $200,000 will be enough to cover all the costs required for the running of the theatre until the time it will depend on its own income.
- Critical Risks
In order to make it a success I have come up with critical risks that can be undertaken to improve the profits gained from the sales.
- For the purpose of advertising the theatre to the community I will not charge any fee for the first 200 hundred people that visit the theatre during the first two weeks. With a good view of the market, I expect a high turnout during the first month and hope that the profits will continue to rise with time.
- Children under the age of 13 will be given free toys that will have the logo of the theatre. This marketing technique can be very costly but will go a long way in convincing the children to come back and watch movies. The projection is that the children will also try and convince their parents to visit the theatre whenever they are free thus getting back the money incurred in purchasing the toys
References
Barrow, C., Barrow, P. and Brown, R.,2015. The business plan workbook. London [u.a.]: Kogan Page.
Chawla, K.,2015. BUSINESS PLANNING ESSENTIALS: PREPARING A BUSINESS PLAN. Journal of Advances in Business management, 1(3), pp.93-99.
Finch, B.,2016. How to write a business plan.
Karlsson, T. and Honig, B.,2009. Judging a business by its cover: An institutional perspective on new ventures and the business plan. Journal of Business Venturing, 24(1), pp.27-45.
Kawasaki, G.,2014. The art of the start. New York: Portfolio.
Ljungbäck, H.,2018. From Art Gallery to Movie Theatre: Spectatorship in Julian Rosefeldt’s Manifesto. AM Journal of Art and Media Studies, (15).
Ljungbäck, H.,2018. From Art Gallery to Movie Theatre: Spectatorship in Julian Rosefeldt’s Manifesto. AM Journal of Art and Media Studies, (15).
Plans, S.,2018. Home – Smart Business Plans. [online] Smart Business Plans. Available at: https://www.smartbusinessplans.com.au/?gclid=Cj0KCQjw5-TXBRCHARIsANLixNzLcuK4HKPiOiKe1p6AYm-BeF_ewH0mVlHOARI1WEyXteclw_oAC0waArkZEALw_wcB [Accessed 14 May 2018].
Portalés, C., Casas, S., Vidal-González, M. and Fernández, M.,2017. On the Use of ROMOT—A RObotized 3D-MOvie Theatre—To Enhance Romantic Movie Scenes. Multimodal Technologies and Interaction, 1(2), p.7.
Québec, I.,2018. Movie theatre operating infrastructure. [online] Stat.gouv.qc.ca. Available at: https://www.stat.gouv.qc.ca/statistiques/culture/cinema-audiovisuel/infrastructure-exploitation/index_an.html [Accessed 14 May 2018].
Ries, E.,2011. ˜Theœ lean startup. Crown Publishing Group.
Sanders, D. and Sanders, S.,2013. The American drive-in movie theatre. New York: Crestline.
Smallbusiness.chron.com.,2018. How to Open a Movie Theatre. [online] Available at: https://smallbusiness.chron.com/open-movie-theatre-15654.html [Accessed 14 May 2018].
Teece, D.,2017. A Model for Success: A business model is more than just a business plan. Avoid future headaches by reviewing the key elements of good business model design. IESE Insight, (32), pp.6-6.
WikiHow. ,2018. How to Start a Movie Theater. [online] Available at: https://m.wikihow.com/Start-a-Movie-Theater [Accessed 14 May 2018].
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
