Nightclub & Bar FAQ | Guide to starting in the bar & nightclub business
Out with the fog... In with the facts

 

This FAQ addresses a few of the common questions sent to Nightclubbiz.com. Some of the answers are somewhat verbose, but that's better than vague/ ambiguous explanations. Other answers are shorter and more accurately addressed by speaking to us in person. We'll be adding to this FAQ periodically. Click on any question to see the answer:

 

 

 


I'm just getting started in the nightclub business. What do I need to know?

Know about what exactly? That's like saying I've never built a car before -what do I need to know? The problem with posting a generic startup list is that it's misleading. There's no such thing as 20-steps to getting started in the nightclub business, for if there were, we would have already written the book on it. Each startup and the priority of issues to consider are unique to the concept, marketplace, and goals of the entrepreneur.  The main site pages attempt to provide a general introductory to the nightclub business, but again... We really avoid anything that promotes a simple, all in one approach.

 

 

 

How do I go about determining what type of nightclub concept will work?

Nightclub concepts are often confused with 'décor schemes'. People are not going to flock to your nightclub, or show up week after week spending lot's of money because...  You've spent yourself silly on yet another out of this world interior theme, music no ones ever heard of before and endless screaming about how you're the hottest, new place on the block.  Please get over this...  It is SO done.

 

The actual concept is what matters. Are you attracting a sane ratio of males to females? Can you attract an audience 'beyond' clubbers, kids, and the traditional local nightclub following, which as typical… Is a meager, marginally profitable audience that 5 other similar venues are competing for as well?

 

Are people having a good time? Are people interacting with one another? Does the atmosphere make it easy for people to meet, romance, and eventually, well, you know… Can you establish an indistinguishable brand and identity, or will the local promoter be your flavor of the night?  If you can so much as manage to get these few things right, THEN you may actually have a chance of attracting an audience that actually shows up before midnight… Spends real money… And actually becomes loyal to your brand.

 

 

 

 

Should I hurry and compose great big business plan?

Probably not... 90% of aspiring nightclub operators are mistakenly led to believe that investing many thousands of dollars and countless hours of time into a nightclub business plan is one of the first steps to moving forward. In the vast majority of cases, the business plan ends up on the shelf. Since only a very very small number of nightclub proposals ever get funded, (and largely because they're premature), you may want hold off on this, or if you must, consider a 7 to 10-page executive summary instead. For more help on composing a nightclub executive summary, and or when to consider a full scope business plan presentation see this document.

 

 


Should I invest in an existing nightclub operation?

Generally no and for a host of reasons we're not going into here. In short, nightclubs are not high mileage machines. They reach their prime early in the game. After that, they usually take a gradual or sharp downward slope. Some operators sell as soon as this prime is reached. To the layman nightclub investor, the past 12-months of searing revenue performance can create the illusion of a turnkey cash cow with many great miles left. Maybe, but not likely… You see, in this business, everything is not always as it seems. Before you cut that check for $750,000 to 3.5-million, speak to us first. We'll work with you in determining the actual merits of the offering. As always… Everything in this business looks great on first impression and on paper too.

 

 

 

My nightclub is about to be shut down. Can you help?

Indeed… Nightclubs do have a habit of getting themselves into trouble, but what matters is that you're reading this, which means you've taken the first step to admitting a problem in the operations model. How do we know this is where the problem is? Easy… Because nightclubs do not get into trouble through bad luck or unfortunate happenstance -there's always a 'cause and affect' factor no matter how much many operators claim they're being unfairly targeted.

 

Fixing a nightclub in trouble is not always easy, depending on how deep its dug itself in. And contrary to misguided belief, fixing a distressed nightclub is rarely as simple as changing one single thing, and or other silly nonsense, such as bringing in promoters, DJ's, or spending yourself silly on gimmick based ideas. Before you begin writing checks, or committing to someone's grandiose (I can fix your nightclub) sales pitch, consider speaking with us first. It'll cost you a lot less money.

 

 

 

I need help in finding a nightclub investor. Can you help?

Maybe… Nightclub investors are few and far between. This is due to the high failure rate resulting from many mom and pops diving into the business head first with (what they believe) is the cash cow concept of a lifetime. 75% says it'll fail within the first 12-months and sure enough, it usually does. Sadly, some poor investor/s have lost a substantial amount of money and as the result of putting their faith into some amateurs ill thought out idea. Sounds mean? Perhaps… But it's also cold, hard, reality and… This is why you here at Nightclubbiz.com :)

 

In case anyone's wondering… Nightclubs rarely fail because the market had no interest in nightclub entertainment -they fail because the entrepreneur and or management FAILED to understand the innate characteristics of the unique marketplace, thus how to provide a product that was actually appealing to them.

 

Consequently, investors are somewhat leery on risking their dollars on yet another (great idea gone south) nightclub venture. Additionally, investors have become the wiser to understanding nightclub investments, and most notably proposals /business plans that are so cookie-cut it's almost comical. One prime example excerpt… We're serving exotic cocktails, in a mind-blowing themed out lounge, with big name DJ's, promoters, and blah blah blah… We're projecting year-1 revenue of 4-million. Year two… 6-million, and so fourth. Yawn… Looks like the last 300-nightclub proposals we've looked over. Dull, boring, and predictable… Again that may sound pretty cold, but investors are MUCH colder and not terribly forgiving. Why should they be?

 

At any rate, attracting the interest of lenders for a nightclub venture is becoming increasingly difficult. The high return on investment is most certainly there, however the talent to do so is often not! If you've hit a dead end regarding issues, consider speaking to Nightclubbiz.com personally and at very least we can steer you away from the disasters, which will render your nightclub proposal DOA.

 

 

How is Nightlubbiz.com really that different?

 

  • The objective of Nightclubbiz.com is not purely monetary.  It is our hope that even if you do not use our services, some of the content here will inspire you to think twice, but more importantly, steer you away from approaches, which are just plain idiotic.   We’re not guaranteeing anything because… There is no such thing as guaranteed success in any business venture, no matter how many hype based tales suggest otherwise.   At times… We do indeed wonder if Pinocchio himself was a former nightclub expert :)
  • Here at Nightclubbiz.com, substantial efforts (over the past 16-years) have been invested into building a resource, which is designed to enlighten you on "what you didn't know", as opposed to the painfully obvious.
  • More quality information, knowledge, and advice 'specific' to the issues that are directly related to you, your marketplace, and your entertainment concept.
  • Insight into the many newer, emerging facets of a highly demanding 21st century entertainment marketplace
  • We may, in some cases… Actually talk you out of pursuing a nightclub venture :)