How to start a dance club business
How to Start a Nightclub
Start a nightclub by following these 10 steps:
- Plan your Nightclub
- Form your Nightclub into a Legal Entity
- Register your Nightclub for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Nightclub
- Get the Necessary Permits & Licenses for your Nightclub
- Get Nightclub Insurance
- Define your Nightclub Brand
- Create your Nightclub Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your nightclub. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a nightclub?
If you are starting on a limited budget the best way to get going is to make a deal with an existing nightclub as a “promoter” that gives you a certain night per month (or per week if it gets popular), to hold a special event at the club. The club may charge a minimum bar cost that you must pay for the night, so you can lose money if nobody shows up, but this is a modest way to see if you can attract a crowd for your party ideas.
If you cannot attract a crowd for one night at an existing club, you may need to rethink your ability to be in this business.
The second best way is to buy an existing club that is already successful. For this opportunity you will pay at least 10 times the annual profits to buy the club, not counting the costs of the real estate if it is included.
If you are going to start a new club the costs vary widely depending on where it is. A modest neighborhood club could be around $100,000 for the fixtures, supplies, and equipment needed to get started. Other clubs, like the biggest ones in New York, cost tens of millions of dollars to open.
The basic equipment needed is:
- Refrigerator(s) - $1,000 stand-alone style to $10,000 walk-in style
- Freezer(s) - $2,000 stand-alone style to $20,000 walk-in style
- Bottle Cooler(s) - $1,000 each
- Bar Cooler(s) - $1,5000 each
- Under-bar sink(s) - $900 each
- Draft beer equipment - $500 for each station
- Soda making equipment - $300 for each pouring station
- Ice Machine(s) - $2,500 each
- Glass racks and speed rails - $200 each
- Glass washing machine(s) - $1,400 each
- Bar Blender(s) - $250 each
- Glassware in various sizes - $25 per 24 glasses
- Bar ($4,000 to $10,000)
- Bar stools - $75 each
- Bar lighting - $1,000
- Bar supplies – Utensils, Condiments etc. $300
- Soda, beer, and liquor stock inventory - $10,000 to $50,000 (replaced daily as used)
Read our nightclub purchasing guide to learn about the materials and equipment you'll need to start a nightclub, how much to budget, and where to make purchases.
What are the ongoing expenses for a nightclub?
The ongoing expenses are the labor costs, food costs (if food is offered), beverage costs, rent, utilities, marketing, and insurance.
Who is the target market?
The best customers are the ones who have lots of money and do not mind spending it on a wild night out. A handful of these big spenders can make a club very profitable. Attracting famous people is very good because they attract others.
How does a nightclub make money?
Selling drinks, possibly food, charging for admission, and, where possible, for special seating and/or special services offered to the customers. These special services can be anything from “lap dances” at strip clubs to bottle service (customers buy a full bottle of liquor to be exclusively served to them for a special price) at VIP tables in the best spots right next to the entertainment.
How much can you charge customers?
Drinks sell at the lowest prices of $1 per glass for cheap beer or a shot of cheap liquor up to hundreds of dollars for a bottle of fine wine, expensive champagne, and “top-shelf” alcohol. In the main American cities, the average drink sale is $2.50 for a beer and $5.00 for liquor drinks. Blended drinks sell for around $10.00 each.
The key is to manage the “PC,” which stand for the percentage of cost. The lower the PC the more profits for the club. The typical PCs according to nightclub.com are, 17% for liquor, 23 to 25% for bottled beer, 21% to 22% for draft beer, 30% for wine, and 6% to 8% for sodas. The average PC is 21%. Based on the average, if the customer pays $3 for a drink the PC of 21% means that the contents to make that drink must cost $0.63 or less for the operations of the nightclub to normally make a profit.
The cover charge to enter a club can be a modest $5 to $10 per person with this money used to help pay the bands and/or the DJ. It can be much higher for special clubs like strip clubs that charge a $25+ entry fee and even higher for special live music/performance events, which sell out due to the limited seating/capacity.
How much profit can a nightclub make?
A typical smaller club will make its owner $1,000 to $5,000 per week ($50,000 to $250,000 per year). A large metropolitan club can make $50,000 profit in a single night.
How can you make your business more profitable?
Make it more popular and host a variety of events as well as get into some of the sideline businesses that are club related, such as:
- Comedy Night: Hosting comedian(s) is an additional source of revenue if you charge for tickets.
- Live Music: Getting famous bands to play in smaller venues and charge premium tickets prices to see them in an intimate setting is a great way to make money.
- Open Mike/ Karaoke Night – Allow the customers to provide the entertainment.
- Private Parties – Rent the nightclub out or part of it for private parties.
- Record Audio and Video of the Bands Performance – Offer live recording services to bands that perform at the club.
- Live Radio Shows – Associate with a local radio station and produce a live radio show.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Nightclub Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your nightclub is sued.
Form Your LLC
Read our Guide to Form Your Own LLCSelect Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict Of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Have a Professional Service Form your LLC for You
Two such reliable services:
- ZenBusiness ($49 + State Fees)
- LegalZoom ($79 + State Fees)
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Several state and local licenses will be needed to operate a nightclub.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
In order to play music in a nightclub, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP and BMI.
- Learn more about music licensing requirements.
Food and Liquor Licensing
If you sell food, you will need licensing from a local health department, which will require your business to pass a health inspection.
In addition, food establishments are randomly inspected by the local health department on a regular basis. These inspections will check for compliance with local health laws, typically related to prevention of food contamination.
- Tips for faring well on a health inspection
To sell alcohol at a bar, a liquor license will be required. The type of license that must be obtained will vary depending on the kind of liquor you intend to serve, whether or not you intend to sell food, the percentage of your sales that will come from alcohol vs. food, the average amount of people that will be served per night, the bar’s closing time, and whether or not consumers will be allowed to take their alcohol to-go. Licenses will also vary by state and individual state pages should be referenced during the application process.
More information on obtaining a liquor license can be found here
Certificate of Occupancy
A nightclub business is always run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a nightclub business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business’ location to ensure your Nightclub business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
Recommended: Learn what business insurance for your Nightclub will cost.
Business Insurance for
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a nightclub
The best promotion is word-of-mouth. Have successful events at the nightclub and everyone will tell their friends. Local advertising is modestly effective, such as putting up flyers. Internet marketing works for some clubs in tourist areas. Handing out cards and having others do this is very effective. These cards offer discounts, free drinks, free early entry, two-for-one specials, VIP treatment (no entry lines), and other incentives for people to come to a club.
For example, the Las Vegas strip is jam-packed with people handing out cards to the tourists that pass by. In Las Vegas, this type of marketing effort is oversaturated, but in other markets, these invitation cards work extremely well.
How to keep customers coming back
A cover may be modest on regular nights and it may not start until a certain time such as after 10 p.m. This means the customers that come early enough get in free. Putting on special events with famous bands is a way to attract attention. It is good to have the club located in the music scene area of the city, such as those areas found in Atlanta, the live music scene in Austin, Texas or Nashville, Tennessee.
Retaining customers is about treating people so special that they always feel like VIPs and then they will come back again and again. It is important to treat regular customers well, remember their names if they come back and if they return frequently give them the VIP treatment. This special treatment can be things like free drinks and invitations to exclusive private areas of the club that the general public is not allowed to enter.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
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How to Start a Nightclub Business | Small Business
In 2017, there were more than 62,602 nightclubs, bars and taverns in the U. S. The first two types of establishments generate about $24 billion in profits annually. If you're like most Americans, you probably going to nightclubs every now and then. But have you ever considered starting your own nightclub business? If this is what you want, your hard work can pay off.
Research the Nightclub Industry
Owning your own nightclub requires business acumen, attention to detail and long work hours. Not to mention the strict regulations governing this industry. The key to success is to know this business inside out, have a clear vision and plan things ahead. Also, make sure you get the math right – total startup costs for a nightclub range from $239,250 to $837,100 and up.
Start by researching the industry. A good source of information is the American Nightlife Association. It features a comprehensive market overview, industry standards, reports and industry-related news. Take the time to check the local market and see what other nightclubs are in your area.
Learn About Your Customers
Learn more about customers' preferences in terms of entertainment, food and drinks, music and so on. Consider their income and purchasing power. Define your target market, and tailor your business plan accordingly. Also, research the marketing strategies that work best in this industry.
Come Up With a Plan
A nightclub business requires meticulous planning. You can't simply jump into this industry, spend a small fortune and expect things to work out well. A business plan serves as a roadmap for management and articulates your vision. It also helps you set goals and gives you a better understanding of your financial needs.
This type of establishment is about 2,500 square feet to 10,000 square feet and can accommodate at least 200 people. Therefore, you will need to rent or lease a large venue in a popular area. Rent alone will cost you anywhere between $3,000 and $12,000 per month plus utilities. However, this investment is like to pay off soon. The average nightclub makes around $1,500 to $10,000 per night. Famous venues in big cities like Miami and Vegas generate over $80,000 a night.
Your business plan should include these aspects as well as other factors, such as seating capacity, concept and design, inventory, marketing expenses and legal fees. Consider the cost of audio-visual equipment, bar equipment and renovations and repairs. Determine how many people you'll hire and how much you'll pay them.
Do the Math
A nightclub is a lot more complex than it seems. You'll need more than a DJ, comfortable seats and a wide range of beverages. At the very least, you should have a commercial freezer and refrigerator, ice machines, glass-washing machines, bar coolers, lighting fixtures, blenders, glass racks and draft beer equipment. If you're planning to sell food, add commercial kitchen equipment and supplies to your list.
Search for food and beverage suppliers that fit your budget. With these things in mind, research your financing options, including bank loans, SBA loans, asset-based loans or merchant cash advances. Try to negotiate your lease and seek ways to reduce your expenses. Equipment leasing, for example, is a good option for entrepreneurs who don't have the money to buy equipment and supplies right from the start.
Get Licenses and Permits
Most nightclub owners register their business as an LLC or corporation due to the high risks of operating this type of establishment. If you register as a sole proprietorship and something goes wrong, you could end up losing your home and other personal assets. Choose a name and legal structure for your nightclub and register with the Secretary of State. Apply for an Employer Identification Number through the IRS website.
Research your state's laws related to alcohol. Regardless of your location, you will need a liquor license. This document will determine what types of alcoholic beverages you're allowed to sell. Contact the local Department of Alcoholic Beverage Control and the Alcohol and Tobacco Tax and Trade Bureau to find out what licenses are required in your state. To stay on the safe side, consider enrolling your staff in a Responsible Alcohol Service training program approved by the America Nightlife Association.
Each state has its own legal requirements for bars and nightclubs. Depending on the local laws, you may need a business license, health permit, building permit, signage permit and more. If your nightclub will sell foods and snacks, you may also need a food handler's permit and food service licenses. Beware that most states require a permit from the fire department too.
Promote Your Nightclub
Make sure you have enough money left to promote your venue. If you're short on cash, booking famous DJs and celebrities is not an option. Consider hiring club promoters to spread the word about your business. These professionals have connections in the entertainment industry and know how to reach out to potential clients and boost your exposure.
Don't overlook social media advertising. Promote your nightclub on Facebook and other social networks through pay-per-click ads, videos and sponsored content. Create a website that highlights your selling points. Design an event calendar and plan your marketing efforts accordingly.
Contests, live concerts, prize giveaways and themed nights are all great ways to attract large crowds. For example, you can have events targeting a different customer group every weekend. Give people the opportunity to win free stuff, such as free cocktails or cool T-shirts. Launch press releases and share event updates in the local media to increase your reach.
Night club business plan.Calculations for opening an institution in your city.
Entertainment establishments are quite a modern type of business. The fact is that such places for recreation have become especially popular in the last few years. A feature of such demand among visitors is that in the club you can not only dance and have fun, but also arrange various concerts of visiting stars and DJs, both Russian and foreign, arrange bartender shows and more.
Therefore, a nightclub is a very promising business that allows you to earn really good money, as well as gain authority in certain circles of young people. But business is far from easy. First of all, you should yourself be in the “topic” of how this type of institution works and functions. It is advisable to have experience as a bartender, DJ, security guard or nightclub manager before starting in this niche.
The importance of experience in the club is explained not only by the specifics of this activity. The fact is that a nightclub is a separate world, to do work in which it is those who love to dance, listen to modern music, are interested in new works of artists and more. The boss, who knows firsthand all the intricacies of working in the club, can at any time independently correct the shortcomings in the work, think over the design system, draw up the optimal menu and develop a competent show program.
Do you want to start a more classic business? Then read our article on how to open a restaurant from scratch and start making steel profits. This is a difficult, costly, but very interesting and profitable business.
It is impossible to open a night club without big financial investments. But they are just not the most important. Now it will not be difficult to take a profitable loan to start your own business or attract partners. One of the main problems is the location, in a favorable location and the concept of the institution as a whole. It is most desirable to find a place near universities, since such clubs are most popular at any time of the year. The second problem is that you should understand the main feature of your institution. It can be a direction in music, cooperation with famous musicians and DJs, show programs, a bright name and much more. Market analysis should be done by visiting competitors' establishments and identifying their weaknesses. Only having a clear nightclub business plan with a written concept, financial issues, location and other organizational issues in your hands will you be able to attract investors to your business.
Content of Article
- Business Format
- Office operating mode
- Bar and menu
- Organizational Moments
- How much money is needed?
- How much can you earn?
Such entertainment facilities can be divided into several groups.
The first group is nightclubs for young people. Here you have to pay an entrance fee, but the cost of all drinks and food is quite low. The main audience is students. Earnings due to a small price tag lies in the number of visitors and a well-thought-out marketing strategy.
The second type is elite establishments. They are designed for those who really have a "thick wallet" and are willing to pay for their comfort. Entrance to these clubs is expensive, and the cost of drinks and food is quite high, which makes them inaccessible to ordinary people. At the entrance, there is usually face control and clothing regulations.
The third option is specialized clubs for musical interests. In them, a special place is given to the performance of various types of music, such as jazz, rock or reggae. They are sharpened only for a certain group of visitors and themselves. However, they are the rarest, and therefore the most promising type of nightlife. The nightclubs themselves of this format are small and designed for a small audience, but at the same time they have a good base of regular customers.
The fourth option is seasonal establishments. Basically, they work only in summer (club on the beach, or in the open air) or in winter (club - ice rink). They bring a lot of income, but are fickle and depend on the time of year.
Always after considering all possible options, decide on your possible target audience. An assessment of the target audience will give a clear vector for building the concept of your institution. "Mixed clubs" - this is not the best option, since the combination of different areas of music will have a very negative impact on the overall quality of the services provided.
In order to carry out official activities, you will first need to complete all the documents.
Among what you will need:
- to open an individual entrepreneur or LLC.
- specify OKVED for activities. For Russia it is 55.40, 55.30. For Ukraine - 93.29.
- recruit staff.
- conclude a lease agreement for the premises or an act of sale.
- personnel must have medical books.
- permission from SES and fire service
- permission from local authorities and coordination of the establishment's work schedule.
You invest a lot of money in this establishment, so we recommend that you contact an experienced lawyer with these questions in order to protect yourself from large fines in the future.
If we talk about location, it is important to understand that if we are talking about opening a nightclub in a small town, then we should focus on premises in the city center, since all entertainment facilities are concentrated there. In a small town, you can choose options with a smaller area. From 300 sq.m. and higher.
If we are talking about a large city, then we need to start from the buildings and dormitories of universities and look for something near them. The area of such establishments should already be from 500 sq.m.
The room itself must be very spacious. It is advisable to build a building for the club again, however, if you do not have money to build from scratch, you can rent it. True, in this case, you should take a room in which any conflicts with neighbors will be reduced to a minimum. Also, it is also important that the dance floor in your club should be large and accommodate at least 100 - 150 people in one evening. It is desirable that the dance floor be raised above the rest of the club area in order to separate the bar area from the dance area.
An excellent marketing ploy would be to open an oxygen bar in your club with various drinks, this can be a feature that will set you apart from other competitors. More about this here - http://biznes-club.com/biznes-idei/kak-otkryt-kislorodnyj-bar.html.
After choosing a room, you should start designing. And here you can save a lot. The thing is that the club works at night, and there is also subdued light, so you can and should save on the quality of the exterior, well, at least at first! The design of the club needs to be worked out in such a way that an individual style is felt in the room, but at the same time it is comfortable. If you can save on the quality of wallpaper and painting, then you should not skimp on the quantity and brightness of the backlight. And one more very important but: in the process of construction and finishing works, it is necessary to hire those workers who already have experience in repairing entertainment facilities. The fact is that the complex of events in such institutions differs significantly from what is carried out in ordinary offices or apartments. Try to correctly think over the system of fire safety, ventilation and heating. By the way, it is desirable to exclude windows in the club, as well as the clock. But mirrors should not be abandoned, although they should be placed in such a way that no one inadvertently breaks them. Such an organization of the interior will help to immerse all customers in the atmosphere of the club, fun and relaxation.
The area of the club itself will need to be segmented into several rooms:
- dance area - 100 - 150 sq.m.
- bar area and places for visitors - 70 - 80 sq.m.
- kitchen - 30 - 50 sq.m.
- wardrobe and bathrooms - 40 sq. m.
- warehouse - 20 sq.m.
If we said above that it is possible to save money on the repair of the premises itself, then it is not at all worth doing this on the purchase of equipment. High-quality sound and light is a key component of any successful establishment in this niche.
Let's take a look at what you will need to open your own nightclub:
- DJ remote control and quality sound equipment.
- lighting system with the possibility of organizing a light show.
- furniture for bar, kitchen and visitors
- equipment for wardrobe and bathrooms and warehouse.
- ventilation, heating system and more.
You can make a complete list of equipment when developing your business plan.
Opening hours of the establishment
Another organizational point is to draw up the opening hours of your establishment.
It usually has the following format, especially if the club is located in a small town:
- Mon. - Wed. - Day off.
- Thu. – Sun. – Working days from 19:00 to 6:00.
This is the most suitable format for the establishment. But in big cities, it is possible to take only one or 2 days off on weekdays.
Let's move on to the staff. At the very beginning of your activity, do not forget to choose an experienced financier and lawyer. The first one will be able to draw up an estimate of expenses / income and find out how much and for what should be paid. A lawyer, on the other hand, will settle all controversial legal issues and settle all inconsistencies with the provisions of the regulatory framework. Also, in case of problems with various control bodies (fire inspection, police), a lawyer will help you competently get out of difficult situations.
When hiring employees, do not forget that your team must have a sound and lighting specialist. Both of these employees will debug and adjust all the problems and breakdowns that occur with the sound / light output systems. The light should be such that it does not hurt the eyes, but at the same time, create a feeling of illumination and brightness. Sound equipment should produce music of such quality that a rich and pleasant sound can be heard throughout the hall, and can be heard even in the toilet. These specialists can be hired on piecework wages, and if necessary, they can be involved.
Bar and menu
Another very important element of opening a nightclub business is the bar and the food. If everything is more or less clear with drinks, then the issue of food should be approached very carefully. The menu should include light snacks, salads and a few main courses. The lion's share of orders will still be made for various snacks for drinking and cocktails. Hire only professional bartenders and chefs. Impress your visitors with a professional cooking show and a bartending show is a performance that involves juggling and figuratively serving drinks in front of visitors. A culinary performance is a virtuoso cooking in front of visitors to your establishment.
The most important thing in a nightclub is a well-organized show program. The fact is that people go to a nightclub not only for dating and drinking, but also for entertainment and a real performance. Therefore, it is important to properly design the program that you will offer to your clients. To write a show program, you may need a talented holiday organizer, but if you yourself have an extraordinary imagination, you can do without such a specialist.
Of course, many clubs do not just arrange performances, but also invite visiting pop stars and DJs. Moreover, celebrities can be not only Russian, but also foreign. Such performers need to provide comfortable accommodation, and appropriate working conditions. But after all, tickets for such performances are sold at an inflated price, therefore, the profit from such concerts will be high, even with significant investments. Do not forget that if your club specializes in one particular musical direction, then it is your duty to follow all possible tours of stars in this direction of music, both domestic and foreign, and invite them to your institution.
Another important point is to organize rear work in such an institution. Do not forget about the security - they will not only help to resolve any conflicts, but also to remove those who "went through too much" in the club. Guards must be physically strong. It is also desirable to organize a patrol service call system using a call button. Equip your guards with good walkie-talkies - this will help them respond faster to problems that arise.
Don't forget about cleaners and cloakroom attendants. All these people, it would seem, are gray mice in the world of club recreation, they are engaged in a very important matter - maintaining the cleanliness and order of the club. Do not be lazy and do not skimp on decent wages for such employees. They provide a reliable cover for your work and the uninterrupted provision of services to your customers, and also form its reputation.
Naturally, maintain a good atmosphere in the team and try to peacefully resolve any conflicts or problem situations. Try to create such a situation in the team that people go to the club to work as if it were a holiday, and not hard labor. It's no secret that many clubs are full of rumors and gossip that greatly disrupt the work and unity of the team, from the bartender to the accountant, from the cleaner to the security guard.
How much money do you need?
Now consider the financial part of the nightclub business plan. After all, only by writing down all the items of expenses, you can determine how much it costs to open such an institution, and forecasting profits will help determine the approximate timing of the return on investment.
- cosmetic repairs and communications - from $200 per 1 sq.m.
- purchase of equipment, furniture and utensils - from $40,000
- paperwork - $500
- corporate identity - $300
- purchase of drinks and food - from $5000
- rent of premises - from $7 - $10 per 1 sq. m.
- utility bills - from 10% - 15% of the rent in winter.
- taxes - $600
- staff salary - from $250 per employee
- advertising - $70
- replenishment of the assortment of the bar and ingredients for the kitchen - from $ 2000
You will tailor this list to your needs and can either expand or shorten it. But these are the basic things to consider. This is the cost of opening a small club.
How much can you earn?
In order to estimate the average earnings in the club, it is important to take into account many points: paid passage, organization of events, bar and kitchen, etc.
The average cost of a ticket to enter a club in a small town is $3 - $4, but the costs are much lower there.
In large cities, the price tag is from $5 - $6. The average capacity of clubs is 150 - 200 people.
The mark-up for drinks and cuisine is 100% or more.
Business payback from 2 years.
Conclusions. Any business is problematic. Yes, such a thing as opening your own nightclub is a difficult task that requires a lot of capital investment. But we must understand that a truly purposeful person will never stop at small obstacles. The main thing is to set a specific goal for yourself and do everything to achieve it in stages. Do not be afraid of problems and the first failures - everything that does not kill us makes us stronger.
Do you have experience in this niche? Looking forward to your feedback in the comments below.
Business plan for a dance studio. How to open a dance studio
Rehearsal bases, dance halls, recording studios
Business plan for a dance studio. How to open a dance studio
At all times, each of the nations praised the art of dance. For example, two centuries ago, people from high society, the nobles, without fail hired a teacher in order to pass on to their children the ability to dance beautifully, do pirouettes and the most difficult steps. A little later, teachers were replaced by circles that opened at educational institutions, as well as in the Palaces of Culture. But today, this option is becoming a thing of the past, as everyone wants to learn the art of dance in a room specially equipped for this, where there is a separate dressing room, and sometimes even a shower. Without a doubt, the dance business can be a really promising and profitable undertaking. Where should you start your business? What is the best way to plan everything in order to “recapture” your investments in the shortest possible time and start making money?
Step 1. Market Research
work. Be sure to find out as much information as possible about which dance schools are nearby, the cost of classes in them, the time of the lessons, and also about the skill of the teachers. In addition, you will need to assess how competitors show advertising activity, because the success of many lies precisely in it.
Step 2. Choosing the main direction
When opening your dance school, you need to determine what its main concept will be. Choose the main dance style for the school, set the time for the classes. The target audience will mainly be working women who live nearby, which means they will want to attend classes in the evening. It is important to take the average income level of your visitors as a basis. Today, the most popular dance styles are strip dance, ballroom and classical, as well as oriental (for example, “belly dance”). In addition to classes in certain areas, the so-called “Dances for all". What are they? Everything is very easy - these are dances that are necessary for those people who absolutely do not know how, but madly want to learn how to move in order to participate with confidence in parties and go to clubs.
It is important to note that any school forms its own branded, individual program according to the “Dance for All” type. Basically, it includes the most modern styles, thematic and classical dances. With well-thought-out advertising, such programs very quickly capture the attention of a large number of people, because everyone wants to learn how to move well in just a few weeks. Your main goal is to make this opportunity a reality so that every student can notice the visible results of hard training in the shortest possible time. It is in this case that you will no longer need to advertise classes in your dance studio: word of mouth will already work here.
Opening a studio: where to start