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How to start a successful Cinema screening Business in Nigeria
A cinema or movie theatre is a place where a movies are shown on
large screens for a paying audience. Cinemas are usually
characterised by superior sound effects, high picture quality
and comfortable furniture. All these combine to give movie goers
an awesome movie viewing experience.
Analysts have placed the entire Nigerian movie industry at a
value of about $3 billion. This means that Nigerians have a very
healthy appetite for movies. One sure fire way of tapping into
the huge and still expanding movie industry is by going into the
cinema business.
Starting a local cinema business holds huge profit potentials
for start-ups in Nigeria. You don’t have to start a
multi-billion naira cinema business like Ben Bruce’s Silverbird
Cinema. You can start small and grow big over time.
In Nigeria today, the cinema business has grown to become a very
profitable and lucrative business, pulling record crowds to
movies viewings and generating massive profits for their owners.
To start a cinema business in Nigeria with minimal capital, you
would need at least N200,000 as an initial investment. This
amount allows you to set up a small local cinema business,
starting with basic facilities like a spacious area that can
accommodate around 100 seats, basic seating like wooden benches,
a couple of large TV screens, and a generator for power backup.
This setup focuses on providing a space for people to watch
sports and movies at a fee per view, with additional profits
from selling snacks.
The idea is to begin small and gradually expand, potentially
upgrading to more sophisticated equipment and facilities as the
business grows.
1. Location and Equipment: Choose a location with high foot
traffic and secure essential equipment like projectors and
comfortable seating. Ensure the space can accommodate at least
100 people.
2. Training and Preparation: Gain operational knowledge through
formal training or by visiting existing cinemas. Understanding
competitor operations can also offer valuable insights.
3. Legal Registration: Register your business with the Corporate
Affairs Commission (CAC) and the Nigerian Film and Video Censors
Board (NFVCB) to comply with local laws and industry
regulations.
4. Networking: Establish connections with film distributors and
directors to secure a consistent supply of films and possibly
exclusive screening rights.
5. Hiring and Marketing: Hire trained staff to enhance customer
service and develop a marketing strategy to attract and retain
patrons. Adding amenities like a snack bar can also boost
revenue.
• Starting Your Cinema Business under an Existing Franchise
You can get start your cinema by approaching one of the major
existing cinemas in the country and going into a partnership
with them. This partnership will enable you to start your own
cinema, while using the name of the existing company. The
advantage of this method is that you get to enjoy the popularity
of the existing brand and the relationship they have with movie
distributors, marketers and producers. This can go a long way to
attract customers to you. You will also benefit from their
wealth of experience.
The no so good side of this method is that it might tend to
hinder your own creativity because being a franchise, you have
to do things strictly according to the procedure and dictates of
the parent company. Running under a franchise also means that
you have to part with a portion of your income.
•
In this method you will have to start the entire business from
scratch. This method is encouraged if you have been previously
involved in running a cinema business and you really know what
you are doing. You will be required to market your own brand
name and establish your own contacts within the industry.
Despite the fact that you are free to do what you like at your
own pace, this method carries along with it a greater amount of
risk because there is no “big name” for you to start under and
learn directly from.
It is in your best interest to properly consider both options,
research on them and then determine for yourself which will be
best suited for you.
1. Select a Good Location
The location of your cinema business is probably the single most
important factor that will determine the success or failure of
the business. In selecting your location, you have to carry out
the proper research on the people living in that locality.
First of all, you should be able to determine using a market
survey if the residents in that locality have the need for a
cinema house around them. A good market survey will be able to
tell you if you will be able to attract customers to your
cinema.
Secondly, your location studies should also take the cost of
securing a structure into consideration. To guarantee
profitability, a cinema house requires a large hall that can
comfortably hold at least a hundred people at any given time.
Depending on the capital that you have at hand, you may decide
to rent a hall or build one yourself.
Thirdly, your location must be visible and accessible with ample
parking space. Locating your cinema in a busy area of your city
will go a very long way in giving you the much needed exposure
that will bring customers to your business.
2. Embark on Training
If you already have extensive experience on running a cinema
business then that is fine. If you do not, then it might be
advisable for you to embark on training that will help you to
know how to run a cinema.
Apart from going on formal training, it will also help to
patronise the cinema houses of your potential competitors. Pay
close attention to how they carry out their business and pin
point areas where you can improve on their services.
3. Register Your Business
It is an established law in Nigeria that all business places
have to be registered with the Corporate Affairs Commission
(CAC). Proper registration is also an important requirement when
you want to source for funds from any financial institution.
You will also need to be registered with and get permission from
the Nigerian Film and Video Censors Board (NFVCB). This is also
very important because the NFVCB has the sole responsibility of
regulating the movie industry in Nigeria. You can be heavily
fined or completely shut down if you go ahead to show films or
videos that have been banned by the board.
4. Engage With Distributors and Producers
The film distributors and producers are somewhat the life blood
of your business. This is because they provide you with your the
main commodity; the movie. Let it be stated here that it is a
huge offence to show a movie in the cinema without the
permission of the owners of the movie.
Establishing a good business understanding with distributors and
producers not only ensures that you get their movies for your
cinemas, it also means that you will get their movies on time.
Remember that the earlier you get a movie, the higher your
chances of getting a full house.
5. Purchase Your Cinema Equipment and Fittings
The next step will be to procure the appropriate equipment for
your cinema. Apart from your rent, this will be the other area
that will take a lot of your capital. Try to focus on the basic
equipment such as projectors, screens, lighting, and sound
systems.
You also need to get fittings for your cinema. Your cinema
should be fitted with the right furniture to maximise comfort.
You will also need to fit air conditioners to keep the place
cool.
You will need to buy a generator to power your equipment and
other electrical fittings in the event of power failure.
6. Create a Snack Stand
Apart from the movie ticket sales another major source of income
for a cinema is the sale of snacks and drinks. Most movie goers
cannot resist the urge to snack away while watching a movie.
Ensure that our snacks are fresh and your drinks are always kept
cold.
7. Employ Staff
You will need to employ staff to carry out the sale of tickets,
operate the projectors, lights and sound, sell snacks and man
the entrances. If you have the funds and lack the needed
experience, you can hire a cinema manager to help you with the
day to day running of the business.
8. Advertise Your Cinema Business
After putting all the above listed in place, it is now time to
blow the trumpet of your business. Explore as many means as
possible to let people know about your business. Do not ignore
the importance of social media in modern day advertising. The
social media will give you a much broader audience than
conventional media platforms.
Get our training guide on, how to start a successful cinema business in Nigeria.It also includes a number of case studies, from very large to very small venues, where you can hear the personal experiences, tips and insights of people who have actually done it.
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