New Club in a town that will soon grow: Questions

[Simple]

Hey everyone,

Two friends and myself are looking to open a night venue in our town and I wanted to run some things by everyone, ask some questions, and get some feedback. So here goes:

The town I live in has a pop. of about 37k and a college with a pop. of about 17k. In the last few years a new university president has led to tremendous growth (when I started 4 years ago it was at about 11k) expecting 20k+ in the next two years. Additionally, the town which is very conservative and enjoys its small town feel has traditionally been very hostile to the growth of the university, and alcohol for that matter (the county has only been wet for a few decades at best). As a result the university is a prime "suitcase college" and no one stays in town. However, recently the city prepared a 20/20 master plan outlining plans for expansion in the city. The chief of these was to make the town square (which right now is predominately law offices and antique shops and about 2-3 blocks from the majority of univ. housing) a cultural and entertainment district which is more hospitable to college students. This entails first changing the drinking time from 12 (I know...) to 2 which is a bit better and standard with surrounding counties to keep tax dollars in town. Second, this is supporting the start of night venues on the square -- this is us.

We found a great spot that is actually almost ready to go. It's in this little pocket just off the square (around the block). There is a very narrow entrance and looking in it seems VERY small. However, once you go inside about 30 feet it opens up to a large open area on the right (it's behind the business next door) and a bit farther back there is door leading to another area on the left. There is a back patio which is level with the building though the ground below drops steeply to provide a good view of what the landlord hopes to eventually make a park. There is an entrance to this patio from both the main area and the room on the left. It already has bathrooms and a good size room for barbacks. The majority of the narrow center I was talking about already has this beautiful bar installed. There is nothing but the actual bar (no plumbing, wells, etc) but the bar itself is there. It has never actually served alcohol but was installed by a previous owner from another bar because he didn't want to get rid of it. Pretty much the entire place is ready to go except for some minor aesthetics, lighting, outfitting the bar, and a sound system (the acoustics by the way are phenomenal). The ceilings are high with beautiful wood rafters to match the bar. Total the capacity is probably 300 max. So that's about it. What does everyone think? Does it sound good so far?

Okay, so the first question I know is experience...

I have been bartending for three years at two places in town. One is a pool hall which was a dive but had one very good bartender I learned a lot from. Second, and my current job, is at the largest night club in town (of 2...) hosting a 2k capacity. It however is C&W and owned by a man who is a very good bar owner... for the 80's... Also, he has definitely never been a bartender so our bars aren't made in a way to exactly cater to efficiency.

I have two partners, one has about a year bartending experience. Additionally, he is one of two people who host popular open mics in town. He and the other guy will both be bringing their crowds to our place.

The other partner has no bartending experience but has worked several years with sound, audio, and video and is focusing on the atmosphere.

Lastly, though not a partner I have recruited a friend of mine to work as the second bartender (until we need to hire more). He has about 5 years experience. The hope is that in due time we will start another place (perhaps a shot bar) and he will run that as a partner.

We have a host of potential investors that have knowledge in electronics, construction, interior design, and law among other things. We also have a friend and former roommate who just got his CPA.

As far as the scene we are hoping to cater to the large number of liberal arts majors at the university predominately. We hope to have both local and up and coming bands, host a strong open mic, a spoken word night (which is currently held on campus), and an electronica night among other things. The main room and open area on the right will be energetic with a lounge in the room on the left.

Alright, so that's what I have. What are everyone's thoughts?

ps. thanks a lot for taking the time to read all of that!

[JamStar]

Your lighting and sound are an important aspect of your venue. But since your just beginning and are in a small population town it is important to budget yourselves for the unexpected.

In regards to your lighting, check out our website www.jamstarlighting.com and give us a call. We manufacturer the entertainment lighting you will need for your venue. Because we are the manufacturer you can save up to 50% on your lighting costs when compared to purchasing from traditional dealers and distributors. Best of luck on your venture!

[Simple]

so does the lack of replies by anyone imply that my thoughts on this is crazy? Anyone?

[owneroper]

number of replies is not a judge, there are a couple of posters who could answer well and may be along soon.

go back and read some threads on partners, most will vote against them, I personally would not want a partner especially a friend. Which would you rather lose more a friend or a partner. Too many variables, my guess is you all are young, which would prove to be another problem. Silent investors yes, silent partners maybe, talking partners never


as for the building if I am reading it correct its pretty cut up and people are funny about where they want to sit. For example I have some games about 30 feet from the "popular area" of the bar nobody would play them, had 2 games and tables between them, when we have bands it was the last table chosen. So I got the bright idea to raisse the tables, instead of chairs they now use stools so people could see the band, well dont you know the games are now a hit. It struck me as odd but it now makes sense.
my point is you might have trouble getting people to these other areas in your bar, everybody wants to be close to the center of the action/the bar. The patio maybe but only if I can get a drink easily, Some much wiser folk will be along soon to help you I am sure

[teenclub]

sounds like you have a lot of ideas

sounds like there is potential over the YEARS as growth takes place (Im sure you know these changes are not going to happen over night, people still have the habit of going elsewhere, and growth in general takes time)

some of your "partners", should probably be just employees

I didn't hear much about any of them having management level experience. which is important for running your business...as well as putting people in those postions as owners.

you need people and business management experience...otherwise you will end up with a business that acts EVERYDAY like the few times when there is no owner/manager around.

not sure if I missed it though, did you have a specific question?

[king]

Ok, i'm a bit concerned. Although i think its great that you guys are all very enthusiastic about the project, i think you need to be careful when involving so many friends or "partners". Don't get me wrong I'm all for tapping every resource out there for help, ideas, etc. but it could get very complicated and end baddly.

I suggest that you sit down and discuss what each and every persons role will be in the club. What their title is, their duties, responsibilities, etc. and once that is determined have them stick to it. Organization is key and when that many friends are involved, tension can mount if everyone is all over the place trying to do too much at once, tell people what to do, etc.

Also i think teenclub hit the nail on the head. Someone has 100% got to have vast management experience. Bartending a year or two is not the same as owning/managing a club. It is a business and it needs to be run correctly and efficiently to maximize all potenial.

Keep at it and let us know how things progress. Best of luck. Hope some of this helps...

[davidgold]

great post by King...

I've been involved owning a venue with a few too many friends and it ended bad. Everyone wants to say they own a bar/club but few want to do the work that's required. once they are owners, they sit back and want to just drink free and meet girls without doing the work it takes to make the place a success.

Clearly define everyone's roll and make sure you don't have people that are not needed.

Also, don't be afraid to hire people with more experience and knowledge than you. (like a manager)

[Securitygeek]

Aside from the partner issue which I believe is a bad idea, I would close off the extra room for the time being and concentrate on the main area of the club. Maybe later after you are running smoothly (heh smoothly for a club that is) then open your lounge area. Also I saw nothing about security, you mention a 30 foot hallway? how wide? This could lower your occupancy because of local fire codes. The idea is sound but don't expect overnight success. You will probably have a large opening crowd if you promoted it right, but will the crowd still be there in six months? Thats up to you, your partners, your security, and your staff. I wish you good luck and am willing to answer any questions you shoot my way.

[Simple]

I would close off the extra room for the time being and concentrate on the main area of the club. Maybe later after you are running smoothly (heh smoothly for a club that is) then open your lounge area.
I definitely agree with closing off the extra room and opening it later. There are actually two parts (the lounge and VIP) that could be opened later.


Also I saw nothing about security
The expectation is that between the barback and the door guy security won't be much of an issue. After working in two places around this town people really don't cause that much of a fuss. Additionally, the police station is a block away.


you mention a 30 foot hallway? how wide? This could lower your occupancy because of local fire codes.
I forgot how wide we measured for the hallway but I do know that one part (right at the beginning of the bar before it opens up into the main room) it is about 7.5'. However, that is only for about 5 feet. Other than that the hall is plenty wide. I talked to the building inspector the other day and based on door capacity it's 340. As a whole the place is 3200+ ft. and he mention anything about that pinch being an issue.

[Securitygeek]

I talked to the building inspector the other day and based on door capacity it's 340. As a whole the place is 3200+ ft. and he mention anything about that pinch being an issue.


Its the Fire Marshall who sets capacity in most places I would double check with him.

[Simple]

in my town those two positions are basically synonomous. I've had both in, the fire marshall first and he told me that the head inspector will make the final decision

[David]

All of the people involved are good to a point. Sometimes too many people spoil the project. Will there be a majority shareholder? Someone needs to be the boss. How will each of the partners delegate work and responsibility?

Other then that, it sounds like you have done your research and have a fairly good game plan in place.

Your next step is to construct a business plan so that you have everything on paper. You will need to have a solid idea of what you are doing and the costs involved. Don’t forget to have all of you partner agreements and job descriptions in writing and what the benefits and rewards will be.