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Movie theaters explore renting out their space to survive COVID

(BUSINESS NEWS) Movie theaters are getting creative by renting out private auditoriums to the public in hopes of outlasting the pandemic.

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Movie theaters glowing externally, open for rentals, but is it enough?

A lot of sectors are hanging on by a thread due to the Coronavirus pandemic. Festivals and events have either been postponed, canceled, or gone virtual. Broadway remains in the dark and isn’t set to open until Summer 2021. Hollywood is in a disarray, which has delayed filming schedules and movie release dates. As a result, movie theaters are struggling. And to stay afloat, they’re taking a more creative approach to bring in revenue.

AMC Cinemark, the largest theater chain in the U.S., is letting people rent out private theaters. Small groups of 20 people or less can rent out auditoriums to watch a movie or host a small celebration. Starting at $99 plus tax, this offer is currently available at around 600 locations nationwide.

According to a Variety article, the program was in beta for four weeks. During that time, the company received 110,000 inquiries. This number was four times higher than the total amount of private rentals AMC had the year before. While this is good news for AMC, will it be enough?

“I don’t think it’s going to be much from a cash flow perspective, but it’s certainly you know getting people back to coming to the theaters, which is what we need,” said Managing Director, Equity Analyst at Macquarie Securities Chad Beynon in an interview.

While private auditorium rentals may have eased some moviegoers’ minds and nudged them to come back and visit, what will, ultimately, hold back AMC and other theaters is available content. So far, 44 movies have been pushed back from 2020 to 2021. “Theaters are open. They’re waiting for the content,” Beyon said. “They’re just, you know, sitting and praying that there won’t be more delays.”

And, besides delays, another problem hurting movie theaters is the way the movie distribution model has begun changing. For instance, Mulan went straight to Disney Plus and never made it to the theaters. So, will other movie companies do the same?

Beyon said that about half of a studio’s earnings are gained during a movie’s theatrical release. For big companies like Disney, he doesn’t think direct-to-consumer will be permanent for them. However, this distribution model change could become more long-term for smaller mid-market movies that generate around $30 to $100 million.

So, are there any movie theaters that might stand a chance? Well, IMAX might. Although the company does rely a lot on blockbusters, it also does great with local content around the world. Also, it is viewed as a premium brand so people are willing to pay for it. “If they’re going to get out of their house, sit in one of these auditoriums, they want to see it in the best format, and that’s what IMAX offers,” Beyon said. But, not everyone is IMAX.

AMC has about $400 million in cash right now, and they are burning around $100 million each month. Beyon suggests AMC trim down its portfolio if it wants to stand a chance. “I think it’s going to be near impossible for them [AMC] to last without doing something else,” Beyon said. Blockbusters generate about $100 million domestically and account for about 60% of box office sales. With content being delayed or pushed straight to streaming services, private rentals might be creative, but not be sufficient for theaters like AMC to survive.

Veronica Garcia has a Bachelor of Journalism and Bachelor of Science in Radio/TV/Film from The University of Texas at Austin. When she’s not writing, she’s in the kitchen trying to attempt every Nailed It! dessert, or on the hunt trying to find the latest Funko Pop! to add to her collection.

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Business News

Keep your company’s operations lean by following these proven strategies

(BUSINESS) Keeping your operations lean means more than saving money, it means accomplishing more in less time.

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keeping operations lean

The past two years have been challenging, not just economically, but also politically and socially as well. While it would be nice to think that things are looking up, in reality, the problems never end. Taking a minimalist approach to your business, AKA keeping it lean, can help you weather the future to be more successful.

Here are some tips to help you trim the fat without putting profits above people.

Automate processes

Artificial intelligence frees up human resources. AI can manage many routine elements of your business, giving your team time to focus on important tasks that can’t be delegated to machines. This challenges your top performers to function at higher levels, which can only benefit your business.

Consider remote working

Whether you rent or own your property, it’s expensive to keep an office open. As we learned in the pandemic, many jobs can be done just as effectively from home as the workplace. Going remote can save you money, even if you help your team outfit their home office for safety and efficiency.

In today’s world, many are opting to completely shutter office doors, but you may be able to save money by using less space or renting out some of your office space.

Review your systems to find the fat

As your business grows (or downsizes), your systems need to change to fit how you work. Are there places where you can save money? If you’re ordering more, you may be able to ask vendors for discounts. Look for ways to bring down costs.

Talk to your team about where their workflow suffers and find solutions. An annual review through your budget with an eye on saving money can help you find those wasted dollars.

Find the balance

Operating lean doesn’t mean just saving money. It can also mean that you look at your time when deciding to pay for services. The point is to be as efficient as possible with your resources and systems, while maintaining customer service and safety. When you operate in a lean way, it sets your business up for success.

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Business News

How to apply to be on a Board of Directors

(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.

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board of directors

What?
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”

Why?
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.

We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.

Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:

1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.

As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.

When?
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).

The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.

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Business News

Average age of successful startup founders is 45, but stop stereotyping

(BUSINESS) Our culture glorifies (yet condemns?) startup founders as rich 20-somethings in hoodies, but some are a totally different type.

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startup founders average age is 45

There’s a common misconception that startups are riddled with semi-nerdy, 20-something white dudes who do nothing but sip Nitro Brews and walk around the open office showing off the hoodie they wore yesterday. It turns out that it’s extremely rare that startup offices resemble The Social Network.

However, the academic backdrop for the real social network story (AKA Harvard), produced statistics that will serve to put the aforementioned misconception to rest. According to the Harvard Business Review, the average age of people who founded the highest-growth startups is 45. Say what?! A full-fledged adult?!

In fact, aside from the age category of 60 and over, ages 29 and younger were the smallest group of founders that are responsible for heading the highest-growth startups. I guess you can accomplish a lot when you’re not riding around the office on a scooter all day.

The study also found that older entrepreneurs are more likely to succeed. The probability of extreme startup success rises with age, at least until the late 50s. It was found that work experience plays an important role.

Many will argue, “Well, what about someone like Steve Jobs?” You could easily argue right back that it took Jobs until the age of 52 to create Apple’s most profitable product – the iPhone.

The study continues to answer questions like, why do Venture Capitalist investors bet on young founders? This goes back to the misconception at the start, and there’s a notion that youth is the key for successful entrepreneurship. Wrong.

There is also the idea that younger entrepreneurs are likely working with less financial options, so it may be common for them to take something from a VC at a lower price. As a result, they could be viewed as more of a bargain than older founders.

“The next step for researchers is to explore what exactly explains the advantage of middle-aged founders,” writes Pierre Azoulay, et al. “For example, is it due to greater access to financial resources, deeper social networks, or certain forms of experience? In the meantime, it appears that advancing age is a powerful feature, not a bug, for starting the most successful firms.”

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