Write a business plan. This is a very important part of your endeavor. You need to establish how much money you will need to begin your business. How you plan to run it should be established. You'll need to project the probable profit you'll be able to turn with your theater in increments of 6 months, 1 year, 2 years, and beyond. See the Small Business Association link in our Resources section for more information about business plans.
Set up a business account at a major banking facility. Inquire about business and construction loans if you will be financing the project yourself. Pitch your business plan to potential investors to secure the funding. Put all of this into your business account so you can easily track and take care of your accounting.
Acquire a property or piece of land. A movie theater is typically built from the ground up because of all the technical and spacial requirements.
Begin the project designs. Hire an architect or draw up the plans yourself. Decide how many individual theaters will there be, how many bathrooms and where the concession stands should be placed. Once this is completed, hire the construction crews and get to work. Be sure to obtain the necessary permits for construction before you start the physical work.
Decide how you would like to project the films; standard film reels or digitally. Also, decide on your sound and how you would like the films to be heard. You may choose surround sound, Dolby digital or something else. Purchase all the equipment for projection and sound from wholesale manufacturers. Then have it all installed to the correct specifications.
Contact studios and speak with the manager of distribution. Explain that you are a new vendor and would like to set up and purchase a distribution license to exhibit their films. Some studios do blanket licenses where they will send you what you request as available and others require a separate license for each film you wish to purchase or lease prints to. The manager will walk you through the process. The film prints will be shipped to your location a few days before each film is scheduled to premiere.
Create a tone and theme for your theater. You need it to stand out and have something different about it that will make people choose your theater for their Friday nights. Make your decor, employees and atmosphere special in some way.
Market your new theater. Have a free movie night with one of the hot new films. This will bring people to your theater, and you'll still make some money (off concessions). This can be a great chance to show everybody what the new place in town has to offer. Show everyone a good time, and you'll be off to a good start because word of mouth is extremely powerful. Follow up with coupons in the local papers and magazines. Also distribute postcards and mailers to get out the word.