Business Development and management Essay Writing Analysis Overview: Business plan for Gold class facility theatre

Executive Summary:-The business plan entails the setting up of a cinema theatre. The plan is to set up of three theatres overall .One of the theatres would be a Gold Class theatre having excellent seating arrangement .This Gold Class facility would also give the patrons the added advantage of ordering food and drinks from their seats .The Gold Class theatre will have seating arrangement of 50.Two of the remaining 3 will have a capacity of 100 and the other remaining theatre  will have a capacity of 150.It is believed that since the theatre is located having a catchment area that is has the demographics that the given multiplex can cater to this business proposal will have the requisite footfalls required to make up for the fixed costs to be incurred over a period of time. Since the Gold Class tickets will have the additional advantage of offering food and drinks. The plan would be to offer them a premium to make additional profit out of it.

Marketing Schemes: Since the theatre is itself to be located in a shopping complex, it is believed that not lot of money has to be spent on advertising budget. The footfalls in the shopping complex will itself generate the market required for the theatre. Added to that there would be consumer offers that would required to carry forward the necessary marketing required for the theatre complex. However appropriate money has to be apportioned for the printing expenses which would include printing leaflets , banners and posters for the entire marketing campaign,

Competitor Analysis and Market Analysis: The market for the given multiplex looks exciting. With a very dense catchment area it is a ripe market area to set up a multiplex. The multiplex thus does not look like having a difficult area to deal with. If one looks into the competitors involved there  are hardly any competitors in the given arena ,thus the market looks highly lucrative and can be easily tapped to good effect.

Financial Plan:The financial plan for the given programme has been aptly covered in the drawn balance sheet for the company .However what needs to be looked into is the loans to be structured .The debt and the return to be expected out of the debt holders is to be analysed The complete BS has been attached as a given excel sheet. The financial needs to be analysed in terms of the debt coverage ratio

One of the major sources of finance for the company is through the money to be made through the premium priced tickets and food and drinks so served to the theatre goers. Taking a closer look at the projected balance sheet we can see the following major items at the liabilities side ,it being the capital ,loans and accounts payable. The capital for the entire period of projection has  remain same throughout .The accounts payable has been calculated by the information given in the caselet as 10% of the sum of  payment to distributors , bar catering and advertising expenses.It has been duly projected over the course of 3 years. The loan has been duly calculated by taking into the inputs from the cash flow statements.

Looking into the assets side we can  make out that the screens have been depreciated at the rate of 10% as per information  given in the caselet

Operation: The operation of the current business plan can be explained through the Income Statement of the company. The income statement consists of  the following items

Income and Expenses. The major heads on income are as follows advertising , ticket revenues and bar income .The advertising income as per the given caselet increases by 10 % over each year within the time frame through which the case has to be studied.The advertising income has been duly calculated through a extract present in excel sheet.The ticket revenues have been projected as per the data given in the caselet.The entire income statement for the given operation in as follows given below as:-

The projections for the income statement have been based  upon certain calculations .The calculations are to be as given below.The calculations have also been based upon a certain set of assumptions

Year 0

Year 1

Year 2

The entire cash flows have been duly calculated as well taking into account the various assumptions given in the caselet.

Risks Involved:The given project has however certain risks involved in it.The risks being primarily that any new venture would face off.However ,the Balance Sheet and the cash flows for the business look very healthy for the enterprise to be invested in and should be seriously considered by an investor having interest in it.

The sales budget and other miscellaneous expenses can be duly factored in as the project advances.

MC19

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