Investing in a Movie Theater

!: Investing in a Movie Theater

You can put up a movie theater in your place in two ways: by buying a franchise or starting one on your own. Most business experts agree that franchising is more often advantageous than starting up a business from scratch because of the lower risk of failure. By franchising, you get to deal with a brand that has already been tried. If you decide on franchising, you can use the name of the movie company, get access to movies to screen, and participate in the studio's advertising scheme. But you have to abide by rules of those who own the theater and give them a percentage of the profits.

But if you have decided to experiment with a novel idea, and want to start a movie theater independently, you can buy or rent a property and build a movie theater clientele of your own. A precaution - as an independent operator, you might face difficulties in screening major Hollywood blockbusters. You would also need to establish the theme for your theater to establish an identifiable image.

To be successful, most often, an independent operator planning to start a movie theater would have to offer a viable alternative to what is being shown by mainstream operators, for example, independent films that most often get ignored by major theaters. Independent films offer the advantage of being easier and cheaper to show because they are often offered on a limited distribution basis, resulting in higher profit margins. But because these films are not widely advertised, the owner must do the hard work in marketing them.