opening budget

[Travish]

Ok so I buy this building that is 150wx100d on 4.5 acres as an investment. My wife and I are at a lounge in Cheyenne and she says to me. We should turn that into a nightclub. We have looked at small bars in the past but never found anything we were willing to purchase. We are current business owners and previously I managed a large retail company for 12 years. Ok heres the question.

1. I have never owned a club but have worked in them. (years ago)
2. I read that the failure rate is high. (80%) WHY and how did you come up with that stat.
3. What are the ups and downs of owning a nightclub. What is your biggest problem?
4. How do I come up with a proforma. Ok 500 people in the club, how much do they drink and what it the profit margin per drink etc. What big expenses will I miss. Example, can i just dj music or do we have to have a license for that? I know the answer to that but have no idea of cost.


5. So I am trying not to sound like some flybynight kid. I am just looking into this and may or may not do it.



Thanks for all your help.

[ministry]

normally i trash the new guy with dumb questions but yours really arent that crazy. first you need to hire a EXPERIENCED manager ( not a bartender or a guy who has always loved to own a bar) you having no expeirence, he or she will save your ass more times than you will ever know. pay them well !
2. they fail because people who don't know how to run bars run them, oh ya and tend to drink alot.
3. ups and downs ? you name it. biggest problem ? lawyers and theft.
4. each music format drinks differently. ravers drink water, rockers drink beer, yuppies drink fofo crap. each has its own ratio. got to what the masses want. remember this bar isnt for you it is for your customers.
5.just do you home work and know what you are getting into.