Opening a night club is a business that attracts many entrepreneurs interested in the entertainment industry. As you know, such institutions, having become famous and popular, are able to bring fabulous money to their owners, as they are the venue for the most striking events. However, before making a profit from a night club, you will need to invest financial resources in it, and quite impressive ones.
The competition in this area is so high that most of these institutions open and close after a while, almost not noticed by anyone. This problem is especially relevant for large cities. After all, in them the number of such establishments for entertainment sometimes exceeds a hundred.
Or maybe it’s more profitable to open a nightclub in a small town? In this case, another problem awaits the entrepreneur. It concerns the low demand of such institutions, especially if four or five of them already work in a small town. After all, they well cover the needs of residents in night rest and dancing.
How to open a night club so that all the money and efforts spent on it are not wasted? To do this, you will need to first draw up a business plan where profitability calculations will be made, all the risks of the event and the amount of necessary starting capital will be considered.
Night Club Pros
An entrepreneur who is confident that his idea of opening an institution for entertainment will certainly be profitable, no doubt, you can try yourself in business. There are quite a lot of free niches on the market of this industry. However, before you open a night club, you will need to consider its main not only strengths, but also weaknesses.
The advantages of implementing this idea will be:
- The possibility of obtaining high profits. With a good business plan, which provides all the nuances of the organization, the night club will soon begin to bring its owner a good income. Even a small institution in just three days, starting from Friday and ending with Sunday, can attract from 500 to 600 customers. If the cost of entrance tickets will be 500-1000 rubles, then only from their sale the club owner will receive 250-600 thousand rubles.
- The ability to conduct concerts with the participation of stars, which will also allow you to get a good income.
Cons of a night club
Like every business, this idea has its drawbacks. First of all, they are, as mentioned above, in a high level of competition. In addition to similar entertainment establishments, bars with restaurants that operate at night are also involved. Another significant drawback of this idea lies in the need for an impressive start-up capital. Any entrepreneur who is thinking about how to open a night club from scratch should keep in mind that he is unlikely to save on opening this establishment.
Planning
How to open a night club from scratch? At the first stage of the realization of this idea, it will be necessary to conduct a small marketing research regarding the entertainment industry in the city where the institution will be open. In this case, the entrepreneur should receive answers to the following questions:
- Do night clubs work in the city? If so, how many are there? In what area of the city are they located?
- Which of the working institutions of this type are doing well and which are on the verge of bankruptcy?
- What is the secret to the success of profitable institutions, what are the mistakes of unprofitable ones?
- Have nightclubs been closed recently in the city? If so, what caused this?
When conducting such a study, it will also be useful to learn about those musical groups that work in existing nightclubs. This will determine what customers like best.
Concept selection
What do you need to open a night club from scratch? A business plan for developing such an idea should include a section regarding the choice of the institution's concept, high-quality and good music, as well as affordable prices. The last point is very important. After all, most visitors to nightclubs are not at all wealthy bohemians. The clients of such institutions are young people under 35, whose income is very modest. It is worth noting that the most visited nightclubs as their clients are seen mainly by teenagers and students. The number of this category of visitors reaches 80%.
Of course, the most profitable are considered elite expensive institutions. Their visitors are ready to pay impressive amounts for their vacation. The average check in such establishments is approaching $ 100. However, the opening of a new expensive club is a rather risky occupation. An entrepreneur may simply not have enough rich clients. The opening of an institution in a cheap segment will make it possible to earn at the expense of high speed. Democratic youth clubs have an impressive flow of customers, allowing them to make a profit of 50 to 65 thousand dollars in just one month.
Room
What do you need to open a night club? The first stage of the establishment of the institution will be the search for a suitable room that will need to be rented. Ideally, the building can be erected to the entrepreneur according to a previously developed project. However, before investing in new construction, it is worthwhile to find out if there are nearby abandoned cultural palaces or other similar buildings. In provincial cities, you can find a lot of them. Their acquisition will be the best option.
Consider the location of the night club in the business plan. Elite establishments should be located in the city center. As for democratic youth clubs, a building located on the outskirts is suitable for them. But in any case, the institution should be conveniently accessible by public transport.
Do not consider the option of premises for opening a night club on the 1st floor of an apartment building. And even if the entrepreneur manages to get permission from the local authorities and he performs work on arranging soundproofing, there will always be indignant residents who will not allow the institution to work quietly.
Room requirements
What do you need to open a night club? To do this, you need a separate room that meets certain requirements. Among them:
- sufficient area (the main hall with a dance floor should be at least 250 square meters);
- high ceilings (about 4 meters), which is important for the placement of sound and lighting equipment.
Required documents
How to open a night club? In order for the institution to work legally, its owner will need to draw up an impressive list of documents. It is also worth considering that it will take several months to receive some of these permits. That is why the preparation of documents should be done in advance. To open a night club you will need:
- Certificate confirming registration of a legal entity. IP in this case is not issued. After all, individual entrepreneurs do not have the right to sell alcohol.
- A project for the construction of a building or for its conversion. It is necessary that this document is approved by the Ministry of Emergencies and the Sanitary and Epidemiological Service. New facilities must also have a permit for operation.
- Fire safety declaration, registered in the prescribed manner.
- The developed fire safety instructions, as well as the evacuation plan for the facility.
- Rospotrebnadzor permission for this activity.
- Orders for sanitary events.
- Logs of disinfection of ventilation and disinfectants.
- The program for the control of production, which must comply with all modern sanitary standards and technological requirements.
- Certificates of quality for goods sold.
- Permission to trade in alcohol and tobacco.
- Treaty on the pest, disinfection and disposal of waste.
- Regulation on labor protection in a nightclub.
- Employment contracts with employees and their medical books, which record a physical examination and health education.
- An order appointing the director, chief accountant, as well as all employees.
- Staffing schedule.
- A certificate confirming the passage of specialized training of the official responsible for fire safety.
As you can see, the list of documents for opening a night club is quite impressive. It takes about 6 months to assemble the complete package. That is why it will be necessary to deal with this issue in advance, even when the room is undergoing repairs and its preparation for operation.
Range of Services
How to open a night club? To do this, you will need to determine the services that the institution will provide to its customers. For example, anyone planning to open a small night club can be limited to a dance hall with music.
In a large-scale institution, it is recommended to place:
- a restaurant;
- lounge for negotiations and negotiations;
- bar counter;
- karaoke room.
The list of services offered to visitors can be continued to expand, based on available capabilities and paying attention to visitors' requests.
Equipment purchase
How to open a night club? For the functioning of the institution you will need to purchase equipment. For the kitchen and bar, you need coffee makers and refrigerators, freezers, juicers and more. From lighting equipment, spotlights, lamps and mirror balls are needed. To provide musical accompaniment, you will need remotes and speakers, microphones and amplifiers, controllers, etc. In a nightclub, you must take care of the safety of visitors. This will allow the installation of metal detectors and video cameras. You will need to purchase radios for the guards.
Room decoration
It is impossible to say unequivocally about what the interior decoration of a night club should be like. For example, an entrepreneur who spent $ 2,000 on interior decoration may never wait for visitors. But sometimes full-time householders are those businessmen who have laid out for registration of the interior of their institution only a couple of hundred US dollars. The thing is that the entertainment industry attracts with its atmosphere. And only after that design, dishes and drinks are taken into account.
For example, today a fashionable trend is the use of rough wood. Such an interior will cost inexpensively, and will look quite attractive.
Finishing work will require the preparation of an appropriate project. That is why it is impossible to do without specialists here. Their services will be expensive (from 2 to 5 thousand dollars), however, these costs should still be included in the business plan being drawn up. Specialists will not only develop the concept of the institution, but will also help in the preparation of documents allowing its work.
Staff recruitment
The staff of the night club should include:
- Director
- manager;
- creative director;
- Administrators (1-2 people);
- waiters (6-8 employees);
- cooks (4-5 people);
- bartenders (2-4 people);
- 1-2 DJs;
- 2 abysses;
- 1-2 cloakroom attendant.
To ensure the safety of the institution and its visitors, you can conclude an agreement with a security company.
Financial part
The business plan for opening a nightclub should cover all upcoming costs. If the institution will operate in a small city, then from 10 to 15 million rubles will be needed to start it. This amount will include the following expenses:
- room - 5 million rubles .;
- design and repair - 0.5 million rubles .;
- obtaining the necessary documentation - 0.5 million rubles;
- purchase of equipment - 250-500 thousand rubles;
- staff salaries - from 3 to 4 million rubles. in year;
- marketing and advertising - 100 thousand rubles.
Receiving a profit
When developing a nightclub business plan, its income should include:
- sale of entrance tickets - 7 million rubles per year;
- profit from the sale of snacks and alcoholic beverages - 6-8 million rubles;
- income from additional services - 2-3 million rubles.
A certain share of the profits can bring sponsors. Due to the fact that advertising of tobacco and alcohol on television is prohibited, a nightclub will be a good place for it.
The approximate net profit for one year will be 17-18 million rubles. Such money can get the owner of the club, working in a small town. As for megacities, such establishments there will bring in income 2-3 times more. As a rule, such an institution is able to pay off in 6-8 months after its opening. That is why we can confidently say that the profitability of this business is quite high.