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octobomb
01-12-2007, 07:49 PM
From The Islands of Hawaii

I was thinking that we have a discussion of making a Newbie Bible for all of those interested in this type of business. After reading every single friggin post, and i mean every single one... a ton of them ask is 20k enough? hells no, or... they ALL want teen clubs at. Some 15-18 year old wants to make a club with almost nothing in the bank! god... what kinda people do you think run these places? anyways... I figure as a group...a message board... and as a community. We can all pull together to try and fill in the Newbie nightclub Bible. Im kind of a newb as well... so this would help me as well... i worked at the club only for 2 years, and i was the one mixin it up. CDX turntables if any of you are wondering. This is a list of things i got from all of you great posters over the long time i have been reading but never posted. There are a ton of missing parts, including legal, inventory,rules, security, etc. Missing techniques of making a bar unique, design theories... marketing events which helped all of your own ventures as well as what one goes through to make an effective business plan. For all of you who have no experience with business plans... theres a great program called Business Plan Pro 2007. I hope you all contribute to this thread. Thanks for reading ya all!
__________________________________________________ _______________
Opening a Club

Quote "So you're opening a club, huh? Yeah, you and the last 100 guys, buddy."
Clubs shut down quickly because anyone thinks they can open a club. WRONG

Most clubs are poorly managed because none of them ever thought business was involved.

Start Up costs
people say its $300,000-$1,000,000
How do we get this number? Really? We should make a Newbie list!

Demographics? What does it do? How do I use it to my advantage?

How much should I be Paying in rent per Square foot?

Location is important! However… whats the risks of going into uncharted no club has gone before territory?

BMI, ASCAP, and SESAC Licensee? Why do we pay them? Any more licenses?
Does this effect restaurants? Bars? Lounges? Or only Clubs?

Suggested Ownership? LLC? Sole Proprietorships, etc?

Its all about the Inspection Baby!
So what is it they want? How much does it cost? Not exactly, just in the ball park. Some people said Sprinklers, Handicap Stuff… and a few others
__________________________________________________ ______________

Places to Buy List:
http://www.libbey.com/ (Glassware & World Tableware)
http://www.servu-online.com/ (Furniture, Kitchen Supplies, Bar Supplies)
http://www.barproducts.com/index.php (Bar Products to Spice Up the Night)


__________________________________________________ ______________
Getting them there
1. Newness (flyers, radio advertising, word of mouth)

Keeping them Coming
2. Atmosphere, Service

Thoery: Build it and they will come
__________________________________________________ _______________
Marketing: Lets people know about your club
Flyers: Colleges, Dorms, Highschools (Billboards in general)
-dedicated clubbers get VIP: They send out flyers for VIP status-
Radio: broad range of people at random times hear your club
Word of Mouth: Takes the longest but most effective
(people must know about your club before they can tell people about it)

Joe’s Tip:
Advertise by brand: “discover what it is your customer reads, wears, listens to downloads, and align yourself with it. For example, Maxim Magazine, Abercrombie, MTV2, Dave Chappell, whatever it may be get creative and involve those brands in your promotions”

Database marketing
Begin from day one at your front door swipe or capture of every ID that's presented..
It's supposedly 60% easier and less expensive to sell to someone who’s already shown an interest in your product. It’s a new position for the database manager, but the returns are unbelievable and will help keep your ad budget in check.

Scheduled shift by incentive:
The staff members who get the most people through the door weekly whether through coupon or passes or some other way to identify that the customer was invited by them.

You'll find the staff far more eager to make new concepts and promotions works if they have a direct control over their own incomes.

Davids Tip: “Target Market changes about every 3-4 years
It is often defined by age, gender, geography”
__________________________________________________ ______________
What are you? (these are only assumed times from various CA locations)
Lounge club? Hours 5:00pm-10:00pm
Pattio club? Hours 10:00am-9:pm
Dance Club? 10:00pm-4:00am
Sports Bar?
Strip Club?

Cheek “Hmmmm.... More naked chicks. Yup, for sure, more naked chicks.”
__________________________________________________ _______________
Everyone looks at
1. Previous experience or sales history.
2. Estimated cash flow.
3. Risk at large.
Older you go, less Fights and less Drugs
14-17
18+
21+
23+
__________________________________________________ ______________
Elements: of The Quality of Your Nightclub or Bar
Lights- how does it work? Why? How much? What would you get?

Event Guy: Says ”Lighting gets over looked time and time again because operators tend not to think it's as important as a sound system or the bar.”

Bar- how does it work? Why? How much? What would you get?
Drinks: what kinds? How many?

Sound System- how does it work? Why? How much? What would you get?
Design & Décor- how does it work? Why? How much? What would you get?

Kitchen- Would you get one? Why is it worth it? How much? What would you get for yours?
Menu- what is the most common items? Large menu? Or small menu?

Payment: Should I use Credit Card machines? Registers? Is there a better way I don’t know?
__________________________________________________ _______________
Elements: of The Workings of Your Nightclub or Bar
Security-
BigMo_Atlanta “Most bouncers are poorly or not even trained at all, and this is a huge liability.”

Create a Security Plan- Question: how?

Licenses & Permits-
Liquor License- how does it work? Why

__________________________________________________ _______________
Music Genre is based off of Area, People, Demand
Common Club Choice: Hip Hop, House, R&B
Dance Club: Rap, Techno, Trance, Country, Rock, Alternative, etc
Lounge Club: Mushroom, Swing Jazz, Newage, Soundtracks, Environment, etc
__________________________________________________ _______________
The Way of Davids Hiring:
Items that will immediately disqualify you from employment.

1. Any Felony, no time limit.
2. Habitual offender status on anything.
3. Assault and Battery, no time limit.
4. More than one D.U.I

Interview all potential employees in person at least three times.

The first interview is used to weed out the undesirables.
The second interview is used to establish a report with the remaining individuals.
The third is used after all references have been checked out. Within the law of course.

But, as we all know, we are limited on what we can ask their references. Ask your employees what they have heard on the street about potential candidates. They will usually have all of the info that you need.

I have even hired people to shop the final candidates at their current place of employment. I give them a list of things to look for.

* Attitude towards the customers
* Attitude towards their fellow employees
* Attitude towards the Management on shift
* Efficiency and Proficiency
* Honesty and Integrity
* Last but not least, ability to converse with the customers at the bar and the customers reaction to Him/Her

Mrclubscenes Questionaire:
- A fight breaks out w/multiple people involved. What do you do?
- A bartender is pissed off at a nagging customer and the customer is complaining that the bartender apologize or she will never vist again. Whats the solution?
- Friday happy Hour (7pm) is in full swing? Barbacks tell you that the ice machines just crapped out and the toilets in the ladies room are backed up? Plan of action?
- You think one of the bartenders is stealing? Your way of dealing with it.
- A draw is short ~$83, and bartender is like i dunno what happened. Whats your response?
- You have a special guest DJ/Artist scheduled for 1AM. Everyone is there to see her but as per overbooking, she cancels. How do you inform the crowd that she not coming?
- You know you are packed over the limit? Firemarshall is on his way. Plan of action?

Mystery
How people Make Ice Bar-tops (originators- Red Square Vodka Bar)

Securitygeek
01-13-2007, 09:15 AM
Since David ordered me to "get to work," I will pop the cherry on this one. :)

Different people will tell ya that their area of expertise is the single most important aspect of starting a new club. Their right. But, since I work in the Nightclub security industry and have for 16 years I believe that, while not the most important area, but certainly in the top five is security.

Step one: Hiring a security manager/ head of security/ security director (titles vary)
A. Must have knowledge of your states Alcohol Control Laws.
B. Must have knowledge of local Alcohol ordinances. (i.e. city and/or country regulations.)
C. Must not be overly aggressive. (I train security by saying that our job is 90% communication, 8% intimidation, and 2% confrontation. The intimidation comes into play when explaining to a guest the consequences of his/her actions if they persist in doing something prohibited either legally or by the club/bar/lounge.)

D. Must be able to effectively train, schedule, and supervise a security staff.
E. Must know when to involve the police. (Their are instances when it is better to call the police than try to handle the situation internally - knowing when to do this is a good way to avoid lawsuits and also helps out in the event of an ABC review.)

** Note ** ABC is Alcoholic Bevarge Control board, This state organization varies on what it is called in some states, for example in Oklahoma it is called ABLE (not sure what it stands for) in Texas it is TABC for Texas Alcoholic Beverage Control, etc, etc...

F. Should be safety concious (sp?).

Thats all I can come up with right now as it is 9:14 a.m. and I need sleep before working tonight. :) Need More? I'll add more later if something comes to me.

octobomb
01-13-2007, 02:29 PM
thanks for your input security Geek! security is definitely one of the including factors to making your club work correctly!

Jroz
01-14-2007, 06:55 PM
This is a great thread, lots of good scenarios and information. Can anyone add to this :o

octobomb
01-14-2007, 07:56 PM
Opening a Club

Quote "So you're opening a club, huh? Yeah, you and the last 100 guys, buddy."
Clubs shut down quickly because anyone thinks they can open a club. WRONG

Ministry- “anyone who think's they know everything is going thru life with blinders on !”

Most clubs are poorly managed because none of them ever thought business was involved.

Start Up costs
people say its $300,000-$1,000,000

How do we get this number? Really? We should make a Newbie list!

Demographics? What does it do? How do I use it to my advantage?

How much should I be Paying in rent per Square foot?

Location is important! However… whats the risks of going into uncharted no club has gone before territory?

The Price
Cover- over 5$ and its not as good as a party as they thought

Drinks and Food- cheaper price wont get them there, because no one wants to hang out at a empty place. But if it’s a fun place it will increase word of mouth and more people being Loyal for the Price.

The Event-
People will pay almost any price (within reason) to go to a kick-ass party with lots of people.

Safety & Atmosphere-
The type of Atmosphere will determine your audience. Your Safety will determine if people can party and feel their protected, and if you stay in business :D
__________________________________________________ _____________-


We Pay Them to play music Publicly. How much you pay them depends on the

-Nights of operation
-How many of those nights you use DJ's
-How many nights you have bands
-If you have a jukebox or not
-If you have a cover charge
-If you show programming on televisions (dance videos or similar video entertainment)
-If you allow dancing

average 300 person occupancy costs

SESAC: $256 / year
BMI: $424/ year
ASCAP: $1620/ year

Operating Expenses


DJ Pay- 12$/h average

Bouncer Pay-

Bar Tender Pay-
__________________________________________________ _______________
Where to Find Music Videos

Music Videos-
*PM / Top Hits
* TM Century
* Promo Only
* The Source for Music

Kane99 “if you can swing some kind of promo with one of their products on special Ask distributors about a discounted purchase rate and/or promo help”


Suggested Ownership? LLC? Sole Proprietorships, etc?

Its all about the Inspection Baby!
So what is it they want? How much does it cost? Not exactly, just in the ball park. Some people said Sprinklers, Handicap Stuff… and a few others
__________________________________________________ ______________
Places to Buy List:
http://www.libbey.com/ (Glassware & World Tableware)
http://www.servu-online.com/ (Furniture, Kitchen Supplies, Bar Supplies)
http://www.barproducts.com/index.php (Bar Products to Spice Up the Night)
http://www.kardwell.com/ (Casino & Club Supplies)
http://www.wunderbar.com/ (Bar Technology)

http://www.frostworx.com/about.html (for show glass Frosting)
http://www.decorativenovelty.com/ (Displays)

__________________________________________________ ______________
Getting them there
1. Newness (flyers, radio advertising, word of mouth)

Keeping them Coming
2. Atmosphere, Service

Thoery: Build it and they will come
__________________________________________________ ______________
Marketing: Lets people know about your club
Flyers: Colleges, Dorms, Highschools (Billboards in general)
-dedicated clubbers get VIP: They send out flyers for VIP status-
Radio: broad range of people at random times hear your club
Word of Mouth: Takes the longest but most effective
(people must know about your club before they can tell people about it)

Joe’s Tip:
Advertise by brand: “discover what it is your customer reads, wears, listens to downloads, and align yourself with it. For example, Maxim Magazine, Abercrombie, MTV2, Dave Chappell, whatever it may be get creative and involve those brands in your promotions”

Database marketing
Begin from day one at your front door swipe or capture of every ID that's presented..
It's supposedly 60% easier and less expensive to sell to someone who’s already shown an interest in your product. It’s a new position for the database manager, but the returns are unbelievable and will help keep your ad budget in check.

Scheduled shift by incentive:
The staff members who get the most people through the door weekly whether through coupon or passes or some other way to identify that the customer was invited by them.

You'll find the staff far more eager to make new concepts and promotions works if they have a direct control over their own incomes.

Davids Tip: “Target Market changes about every 3-4 years
It is often defined by age, gender, geography”

What are you? (these are only assumed times from various CA locations)
Lounge club? Hours 5:00pm-10:00pm
Pattio club? Hours 10:00am-9:pm
Dance Club? 10:00pm-4:00am
Sports Bar?
Strip Club?

Cheek “Hmmmm.... More naked chicks. Yup, for sure, more naked chicks.”
__________________________________________________ ______________
Everyone looks at
1. Previous experience or sales history.
2. Estimated cash flow.
3. Risk at large.
Older you go, less Fights and less Drugs
14-17
18+
21+
23+
Elements: of The Quality of Your Nightclub or Bar
Lights- how does it work? Why? How much? What would you get?

Event Guy: Says ”Lighting gets over looked time and time again because operators tend not to think it's as important as a sound system or the bar.”

Bar- how does it work? Why? How much? What would you get?
Drinks: what kinds? How many?

Sound System- how does it work? Why? How much? What would you get?
Design & Décor- how does it work? Why? How much? What would you get?

Kitchen- Would you get one? Why is it worth it? How much? What would you get for yours?
Menu- what is the most common items? Large menu? Or small menu?

Payment: Should I use Credit Card machines? Registers? Is there a better way I don’t know?

Elements: of The Workings of Your Nightclub or Bar
__________________________________________________ _______________
Security- (Security Geek)
BigMo_Atlanta “Most bouncers are poorly or not even trained at all, and this is a huge liability.”

Step one: Hiring a security manager/ head of security/ security director (titles vary)
A. Must have knowledge of your states Alcohol Control Laws.
B. Must have knowledge of local Alcohol ordinances. (i.e. city and/or country regulations.)
C. Must not be overly aggressive. (I train security by saying that our job is 90% communication, 8% intimidation, and 2% confrontation. The intimidation comes into play when explaining to a guest the consequences of his/her actions if they persist in doing something prohibited either legally or by the club/bar/lounge.)

D. Must be able to effectively train, schedule, and supervise a security staff.
E. Must know when to involve the police. (Their are instances when it is better to call the police than try to handle the situation internally - knowing when to do this is a good way to avoid lawsuits and also helps out in the event of an ABC review.)

** Note ** ABC is Alcoholic Beverage Control board, This state organization varies on what it is called in some states, for example in Oklahoma it is called ABLE (not sure what it stands for) in Texas it is TABC for Texas Alcoholic Beverage Control, etc, etc...

F. Should be safety conscious (sp?).
__________________________________________________ _____________

Music Genre is based off of Area, People, Demand
Common Club Choice: Hip Hop, House, R&B
Dance Club: Rap, Techno, Trance, Country, Rock, Alternative, etc
Lounge Club: Mushroom, Swing Jazz, Newage, Soundtracks, Environment, etc
__________________________________________________ ______________
Promotionals
Somewhereinaug
”Give something; get a Survey asking name, e-mail, and basic promotional questions and marketing questions”

Giving something example
Discounted Cover Price
Discounted Drink Cost (one time use)

MySpace.com for $25/month
Radio Stations $100.00 - $400.00 for a 60 second spot

how they first heard of the club
what is their favorite club other than this one
what radio station do they listen to
do they read the local newspaper or alternative magazine
Fav: drinks, food, music
Just to name a few.

Common Sense (that’s just Not So Common Anymore)
-Every job will want experience, not necessarily education…
-Skills taught in class mean nothing unless applied
-Do universities that charge $60,000 guarantee you a job? or hold your hand through the process?
-I think it's extremely naive to think that for $60,000, with zero industry experience, anyone is going to be able to go out and get you a job.
-If you really were motivated to break into the industry
-You would have tried the time and put those practices into action and work your way up.
-A School can’t teach you can't teach you work ethic

Money From the Bar: How fast you can serve those drinks
Tips from your People: Your Courtest in which you serve
__________________________________________________ _______________

The Way of Davids Hiring:
Items that will immediately disqualify you from employment.

1. Any Felony, no time limit.
2. Habitual offender status on anything.
3. Assault and Battery, no time limit.
4. More than one D.U.I

Interview all potential employees in person at least three times.

The first interview is used to weed out the undesirables.
The second interview is used to establish a report with the remaining individuals.
The third is used after all references have been checked out. Within the law of course.

But, as we all know, we are limited on what we can ask their references. Ask your employees what they have heard on the street about potential candidates. They will usually have all of the info that you need.

I have even hired people to shop the final candidates at their current place of employment. I give them a list of things to look for.

* Attitude towards the customers
* Attitude towards their fellow employees
* Attitude towards the Management on shift
* Efficiency and Proficiency
* Honesty and Integrity
* Last but not least, ability to converse with the customers at the bar and the customers reaction to Him/Her
__________________________________________________ _____________
Mrclubscenes Questionaire:
- A fight breaks out w/multiple people involved. What do you do?
- A bartender is pissed off at a nagging customer and the customer is complaining that the bartender apologize or she will never vist again. Whats the solution?
- Friday happy Hour (7pm) is in full swing? Barbacks tell you that the ice machines just crapped out and the toilets in the ladies room are backed up? Plan of action?
- You think one of the bartenders is stealing? Your way of dealing with it.
- A draw is short ~$83, and bartender is like i dunno what happened. Whats your response?
- You have a special guest DJ/Artist scheduled for 1AM. Everyone is there to see her but as per overbooking, she cancels. How do you inform the crowd that she not coming?
- You know you are packed over the limit? Firemarshall is on his way. Plan of action?
__________________________________________________ _______________
Asking for Freebies

Drink Suppliers- “Will you help support me with selling your product?”
Aka “ask them what they can do, it never hurts to ask.”
-when you sell 1 case a week (you get no crap from them)
-when you sell 80 cases a week (it opens up some eyes)