Help me revive the arts in my comatose little town

February 25, 2009 12:03 PM

How should I go about buying/starting/running a small business?

So, there's this gorgeous old Streamline Moderne theater downtown that's fallen into dilapidation, and I want to buy it, renovate it, and make an indie/art theater out of it. The only problem is, I don't really know how. I've tracked down the current owner, who has been using the place as storage for the past decade or so. I've found gobs of info on the building's history, how it used to look, and so on. What I don't know (in order of ascending importance) is how to run a theater, how to get financing to buy one, how to go about renovating it, and most pressingly, how to broach the subject with the current owner. I've found sparse info here and there on the first two, but not much that applies well to my particular situation. Any other relevant advice on this cockamamie scheme is welcome, too.

posted by Spike to Work & Money (14 answers total)

Is it historic? You could try to contact a historical society, preservation, or community redevelopment organization. It is possible that they will give you some help, funding, or partnership.
posted by Vaike at 12:21 PM on February 25, 2009

Have you considered asking him if he plans on opening it as a theater in the future? Depending on that, he may open up to the idea of selling on his own or at your prompting. Theater and business operations aside, it's just an unused building. Just talk to the guy.

Also, given the economics of single-screen type theaters, you should look into the possibility of getting a liquor license.
posted by rhizome at 12:38 PM on February 25, 2009

Response by poster: I forgot to mention, it is on the National Register of Historic Places. Also, the current owner has in the past shown interest in downtown redevelopment through the local restaurant/microbrewery he owns, so hopefully he'll be sympathetic to my cause.
posted by Spike at 12:40 PM on February 25, 2009

Response by poster: Have you considered asking him if he plans on opening it as a theater in the future?

I haven't talked to him at all yet, just found his contact info this morning. But about half the sources my research assistant found say he wants to reopen it at some point in the future, while the rest just say he's using it as storage.
posted by Spike at 12:46 PM on February 25, 2009

Hmm. If he's already got skin in the downtown game it's entirely possible that his interest will extend only to having someone run the place after he gets the redevelopment agency to foot the rehab bill. At least, I would shape my strategy around that idea. Totally speculative and cynical, natch, but the basic point is that he may already have a predisposition to out-cockamamie you.
posted by rhizome at 12:53 PM on February 25, 2009

Any other relevant advice on this cockamamie scheme is welcome, too.

You'll really have to write a business plan that defends this scheme as profitable. The indie places I go to are either a step away from bankruptcy or part of a larger organization. I believe the Music Box has some kind of historical landmark protection that keeps its rents artificially low. Oh, there's facets, but thats just a small theater thats part of a larger video sales and rental organiztion.

Im not sure how things are in your area, but it seems like you'd be better off trying to restart this place as some kind of non-profit with the support of the city and with frequent fundraisers. Most, if not, all of your employees would be unpaid volunteers. You'll probably have to supplement ticket sales with movie sales/rentals. I think buying a place, fixing it up, and hoping ticket sales keep you afloat for such a niche market is going to be tough. Real tough.
posted by damn dirty ape at 12:53 PM on February 25, 2009

Sometimes it's a benefit to be on the historic register but it could result in stricter codes or renovation restrictions that make restoring it a hassle or more expensive than normal. Hopefully not, but keep that in mind.
posted by Bunglegirl at 12:53 PM on February 25, 2009

Response by poster: I think buying a place, fixing it up, and hoping ticket sales keep you afloat for such a niche market is going to be tough. Real tough.

That was one of my first big worries too. However, it is a college town with a relatively healthy art community, and there's definitely a niche to be filled here. I can't possibly be the only person in the area who drove 90+ miles to the nearest indie theater to see Milk, for example.
posted by Spike at 1:02 PM on February 25, 2009

Response by poster: If he's already got skin in the downtown game it's entirely possible that his interest will extend only to having someone run the place after he gets the redevelopment agency to foot the rehab bill.

He's had the place for a long time, though, and he hasn't done much with it. His restaurants keep him pretty busy these days I think, so maybe his desire to reopen it is more of a "gee, that could be nice" sort of thing. At least, that's what I'm hoping.

My biggest problem right now is that I'm just a film geek with a crazy dream, not a seasoned businessman. I don't know how to deal with a veteran small business guy, or how to talk with potential financiers.

Also, any tips/resources on how to make one of these fancy-schmancy "business plans"?
posted by Spike at 1:14 PM on February 25, 2009

Best answer: You aren't the first person to try to save a theater, and probably not the first without much or any business experience. I think some people have even succeeded. I'd start by searching for stories about people trying to save theaters and they try to contact some of the people involved. It would be useful to talk to people who have failed, as well as those who have succeeded. I'd guess many of them would have business plans that they'd be willing to share for inspiration. Realize though, that you'll have to figure out something that makes sense in the context of your community.

Not surprisingly, there are websites and organizations focused on historic theaters.
posted by Good Brain at 1:39 PM on February 25, 2009

A friend of mine did something similar with the Plaza Theatre in Atlanta. They're good peeps and would probably talk to you if you gave 'em a call. There's contact info on the web site.
posted by spilon at 2:26 PM on February 25, 2009

Best answer: Three main resources: your local Small Business Association for one. Two, your local library will have lots of books on running small business -- maybe even one on running a theater! Third, your local planning office will help you understand the zoning issues with the land and can tell you what kind of permits/work has been done on the place and if it falls under a historic design review.

And, yeah, go talk to the guy. Maybe look for other brewpub/theaters that are out there in the world now before you talk to him. Do a search for news articles about independent theaters, their marketing, etc. If your state/city doesn't have a brewpub/theater yet then maybe it's a niche that is ripe to be explored. Or, maybe it's so prohibitive that it would be impossible. If you have an idea of what your vision is, then that'll help you recognize red flags where they pop up.

Call up the guy, tell him that you're interested in the building and wondering if he has something in the works and/or is considering selling. Find out if he's already tried schemes that haven't worked.

There is a lot that goes into opening a safe and legal small business which also turns a profit. But, it's a fun thing to explore so just give it a run. You'll at the very least talk to some great people and learn some valuable things that will be applicable to any independent business venture you might get involved in. Honestly, though, picking up a copy at the library of "Small Businesses For Dummies" will net you better questions and better answers here. You're asking for a lot!
posted by amanda at 7:48 PM on February 25, 2009

I can't possibly be the only person in the area who drove 90+ miles to the nearest indie theater to see Milk, for example.

Never use anecdotes to support a business decision. You very well may be the only one who drove that far.

Then again, if Milk is considered an "indie" film in your town, you might very well be fulfilling a big niche.

I think buying a place, fixing it up, and hoping ticket sales keep you afloat for such a niche market is going to be tough

I believe most $ is made from concessions, not ticket sales. (liquor might be a good moneymaker as well?)
posted by Vaike at 7:58 PM on February 25, 2009

Best answer: If you get a really good feeling about the guy from talking with him, consider asking whether he'd be interested in a partnership of some kind. He already knows a fair amount about running a business (the brewpub), which is knowledge you'd like to have. It's possible he's a cynical local tycoon who wants to milk local redevelopment dollars and isn't all that interested in building something that benefits the community; but it's also possible he's a community-building businessman who just doesn't have enough hours in the day for both the brewpub and the theatre. Maybe he'd love a chance to mentor someone without having to commit to being completely at the helm of both businesses at once.
posted by kristi at 2:33 PM on February 26, 2009