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 |
Qty/ |
Prod |
Prod |
Prod |
Video |
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 |
Per |
Per |
Total |
Total |
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 |