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$ 10,846 per year, operational capacity is estimated at100 people per day and revenue is estimated at US$40,180 per year.
Production process
The chosen video tape is inserted into a video player which is connected to a television screen for showing films .The video player, decoder and television screen need an electrical supply in order to function.
Capital Investment Requirements in US$
| Capital investment item | Units | Qty | @ | Amount |
| Screen | No. | 1 | 800 | 800 |
| Video player | No. | 1 | 80 | 80 |
| Decoder | No. | 1 | 100 | 100 |
| Air conditioners | No. | 4 | 200 | 800 |
| Chairs | No. | 200 | 10 | 2,000 |
| Computer | No. | 1 | 320 | 320 |
| LCD Projector | No. | 1 | 500 | 500 |
| Amplifier | No. | 1 | 500 | 500 |
| Table | No. | 1 | 120 | 120 |
| Total cost of machinery | 5,220 |
Production and Operating Costs in US$
| Cost Item | Units | @/ day | Qty / day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
| Video CDS | No. | 0.6 | 8 | 4.8 | 124.8 | 1497.6 |
| Subscription for Dstv | 80 | 876 | ||||
| Sub–total | 4.8 | 204.8 | 2,374 | |||
| General costs(overheads) | ||||||
| Utilities(water and power) | 200 | 2,400 | ||||
| Labour | 150 | 1,800 | ||||
| Rent | 200 | 2,400 | ||||
| Miscellaneous costs | 75 | 900 | ||||
| Depreciation (Asset write off) Expenses | 81 | 972 | ||||
| Sub –total | 706 | 8,472 | ||||
| Total Operating Costs | 910.8 | 10,846 |
Project Product Costs and Price in US$
| Item | Period | Shows per day | Cost Per show | Per show value | TCs | TR |
| Movie | Per day | 5 | 4 | 35 | 20 | 175 |
| Per year | 936 | 4 | 3,744 | 32,760 | ||
| Soccer | Weekend | 4 | 4 | 35 | 16 | 140 |
| Per year | 212 | 4 | 848 | 7,420 | ||
| Total per yr | 40,180 |
Profitability Analysis in US$
| Profitability Item | Per day | Per month | Per Year |
| Revenue | 128.8 | 3,348 | 40,180 |
| Less production and operating Costs | 34.8 | 903.8 | 10,846 |
| Profit | 94.0 | 2,445 | 29,334 |
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 and rural areas. The volume of patrons depends on the quality of service
Sources of materials: Raw materials are available in urban centres.
Government Facilities and Incentives
Government set up a Communication Commission which liberalized communication operations. Uganda is a free and liberalized economy.
