Business Plan - Assignment Sample PDF

1
One Stop Theatre Business Plan
Presented by
Affiliation
Supervisor
Date of Submission

2
Contents
1. Executive Summary.....................................................................................................................4
1.1 Keys to Success.....................................................................................................................4
1.2 Objectives..............................................................................................................................5
1.3 Mission..................................................................................................................................5
2. Company Summary.....................................................................................................................5
2.1 Company Ownership.............................................................................................................5
2.2 Start-up Summary..................................................................................................................5
3. Services........................................................................................................................................9
4. Market Analysis Summary..........................................................................................................9
4.1 Market Segmentation.............................................................................................................9
4.2 Service Business Analysis...................................................................................................11
4.2.1 Competition and Buying Patterns.................................................................................11
4.3 Target Market Segment Strategy.........................................................................................12
5. Strategy and Implementation Summary....................................................................................12
5.1 Competitive Edge................................................................................................................12
5.2 Marketing Strategy..............................................................................................................12
5.3.1 Sales Strategy................................................................................................................12
5.3.2 Sales Forecast...............................................................................................................12
5.4 Milestones............................................................................................................................14
6. Management Summary..............................................................................................................15
6.1 Personnel Plan.....................................................................................................................15
6.2. Break Even Analysis...........................................................................................................16
6.3. Projected Profit and Loss....................................................................................................17
7. MARKET ANALYSIS..............................................................................................................18
7.1 Industry Analysis.................................................................................................................18
7.2. Competition........................................................................................................................18
8. Primary Target Market..............................................................................................................18

3
9. Marketing...................................................................................................................................19
9.1 Product.................................................................................................................................19
9.2 Pricing..................................................................................................................................19
9.3 Distribution..........................................................................................................................19
9.4 Promotion............................................................................................................................19
10. Financial Plan..........................................................................................................................19
11. Critical Risks...........................................................................................................................20

4
1. Executive Summary
One Stop Theatre is a movie theatre like no other. While most movie houses focus on
showing movies, our focus is more than that. We will take care of young adults and family’s
movie desires by providing the best available movies for viewing. In addition, we will provide
reclining seats along with food and beverage service and hence movie lovers will eat and dine
without leaving their seat. The reclining seats will ensure that everyone is comfortably seated as
they watch they watch the movies thus reducing back problems that may arise.
The theatre will provide the residents of Wimberley with second hand movies that are
proven to be very popular with the target market. These movies will be sourced on a weekly
basis so as to ensure that we have the latest collections around. The theatre will be housed in a
historic building in the town built in 1956 and served as an old theatre building.
Having the necessary expertise and skills needed I will make this theatre one of the most
successful in history. This is so because of two factors that will surely guarantee that success of
the movie theatre Barron(2015).
 The strong bond with people in the film industry will be an added advantage in managing
the theatre as they will chip in whenever help is needed
 Margaret Hannington, my sister, is a well -known building designer and has designed
theatres all over the world and this is necessary in restoring the lost pride of the theatre.
From the market study and financial analysis of the business, a startup expenditure of
$200,000 can generate $400,000 in sales by the end year one and increase in the net profit after 3
years so long as the necessary measures are in place.

5
1.1 Keys to Success
 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
1.2 Objectives
 Sale over $400,000 in the first year, more than $900,000 by the third year.
 Net profits increasing after every year.
1.3 Mission
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.
2. 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.
2.1 Company Ownership
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.
2.2 Start-up Summary

6
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.
Year 1 Year 2 Year 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Sales
Gross Margin
Net Profit
START UP FUNDING
Start-up Expenses to Fund $85,000
Start-up Assets to Fund $115000

7
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

8
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

9
3. 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.
4. Market Analysis Summary
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.
4.1 Market Segmentation
 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

10
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
Young Adults
Families
Others
MARKET ANALYSIS
Potential Customers Growth Year 1 Year 2 Year 3

11
Families 15% 300,000 345,000 396,75
0
Young Adults 10% 100,000 110,000 121,00
0
Total 13.75
%
400,000 455,000 517,75
0
4.2 Service Business Analysis
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.
4.2.1 Competition and Buying Patterns
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.
4.3 Target Market Segment Strategy
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.

12
5. Strategy and Implementation Summary
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.
5.1 Competitive Edge
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.
5.2 Marketing Strategy
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.
5.3.1 Sales Strategy
Showing the latest movies which are appealing to the audiences will be the main sales
strategy that I will use.
5.3.2 Sales Forecast
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).

13
Sales Table
Sales Year 1 Year 2 Year 3
Family
movies
$121,661 $189,992 $234,988
Young adult
movies
$53,331 $75,497 $98,246
Concessions $70,196 $105,298 $105,298
Total Sales $245,188 $370,787 $490750
Direct Cost of Sales Year 1 Year 2 Year 3
Movies $70,196 $105,293 $157,940

14
Concessions $21,059 $31,588 $67,382
Subtotal Direct Cost of Sales $91,254 $136,881 $225,322
5.4 Milestones
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

15
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
6. 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).
6.1 Personnel Plan

16
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
6.2. Break Even Analysis
The break even analysis below shows the break-even point of every month

17
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Break Even Analysis
Break Even Analysis
6.3. Projected Profit and Loss
The graph below shows the projected profit and loss of the theatre.
Year 1 Year 2 Year 3 Year 4
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Chart Title
Column1

18
Year 1 Year 2 Year 3 Year 4
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Yearly Gross Margin
Yearly Gross Margin
7. MARKET ANALYSIS
7.1 Industry Analysis.
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).
7.2. Competition
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.
8. Primary Target Market
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

19
9. Marketing
9.1 Product
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.
9.2 Pricing
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.
9.3 Distribution
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.
9.4 Promotion
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
10. 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.

20
11. 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.

21
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].