SETTING UP VIDEO THEATRE

Introduction
This business idea is for setting up a video theatre. A video theatre is a place where films and soccer matches are screened and viewers pay a certain fee for the service. Football matches, sports events, music shows and drams can also be shown in video theatre.The project cost is estimated at US$ 8,931 per year, operational capacity is estimated at100 people per day and revenue is estimated at US$800 per year.

Production process
The chosen video tape is inserted into a video player which is connected to a television screen for showing films .The video player, decoder and television screen need an electrical supply in
order to function.

Market Analysis
The market is readily available throughout the year and there is high demand during soccer seasons and holidays. Market for this business is mainly in urban centres. The volume of patrons depends on the quality of service. There are so many Video Theatres spread all over the Country.

Capital Investment Requirements in US$

Capital investment item

Units

Qty

Unit cost

Amount

Screen

No.

1

750

750

Video player

No.

1

125

125

Decoder

No.

1

75

75

Air conditioners

No.

4

50

200

Chairs

No.

150

10

1,500

Computer

No.

1

300

300

LCD Projector

No.

1

600

600

Amplifier

No.

1

300

300

Table

No.

1

50

50

Total cost of machinery

3,900




 

Production and Operating Costs in US$

Cost Item

Units

Unit
cost/
day

Qty/
day

Prod
cost/
day

Prod
cost/
month

Prod
cost/
year

Video
CDS

No.

0.5

5

3

65

780

Subscription for Dstv

73

876





Sub-total

3

138

1,656




General costs(overheads)







Utilities(water and power)

150

1,800





Labour

100

1,200





Rent

200

2,400





Miscellaneous costs

75

900





Depreciation (Asset write off) Expenses

81

975





Sub -total

606

7,275





Total Operating Costs

744

8,931





Project Product Costs and Price in US$

Item

Period

Show
s per
day

Per
show
Cost

Per
show
value

Total
Costs

Total
Revenue

Movie

Per day

3

8.7

25

26

75

Per year

936

8.4

25

7,862

23,400


Soccer

Weekend

6

8.4

25

50

150

Per year

96

8.4

25

806

2,400


Total per year

1032

8,669

25,800




 

Profitability Analysis in US$

Profitability Item

Per day

Per month

Per Year

Revenue

83

2,150

25,800

Less production and operating Costs

29

744

8,931

Profit

54

1,406

16,869