Opening a nightclub.

[collegestation]

Hey guys,

My name is DJ and like a lot of the people that are coming into here. I have a nightclub that Im considering trying to open in Clarksville, Tn. I'm 31 and I have been working in the bar and nightclub scene off and on since I was 18. I have done everything from working security to bartending to managing. Now I will be honest, it hasnt been consistent. I will work in it for a few years, then get out, but no job compares to how I feel when I am in the nightclub scene. I know the hours involved, the hard work that is involved, the planning that is involved, and most of all the dedication. I have been reading these postings for weeks, before becoming a member and enlisting assistance with my questions. I have the theme, the idea, still have not found a suitable location (but have 2 possibilities). I am going to school to get my AA in business, because I know that will help me understand the bigger picture, and I know nightlcubs are a risk and require a lot of time, effort and experience. I have worked at places that thrived and places that have bombed. Im ready to use what I have seen work for me, and learn from what I saw didnt work.

My main question? Where is the best place to start? As I said, I have work for people in them, but never owned my own. Im willing to take any and all advice, and please be brutally honest. The military made sure I can take it.

[excellentbars]

My name is DJ and like a lot of the people that are coming into here. I have a nightclub that Im considering trying to open in Clarksville, Tn.

Hey DJ I have a small ownership still in a few bars in Nashville :( If you can can you go and get my money from my Partners (@&*$&#*) Welcome to the business.

I am experienced with Nashville, first off the cost of a Liquor License is cheap $1,500 :D. Next They love to drink.....and Live music is Hot and I would recommend a Bar/Pub/Sports bar combination as this seems to last longer.


I have the theme, the idea, still have not found a suitable location (but have 2 possibilities).

I would start to pound the pavement and as you are in a small city I would be my own broker. this will save both you and the landlord from paying a commission. I would look for a spot with a Kitchen because you will need to sell food to get your Liquor License....Unless it is different than Nashville.


I am going to school to get my AA in business, because I know that will help me understand the bigger picture,

Ummm If you feel you have a lack of business sense then this is a good idea.....But I would focus my energy on learning the business and figuring out how to raise capital.....I recommend you get your edjucation as something to fall back on!



I know nightlcubs are a risk and require a lot of time, effort and experience. I have worked at places that thrived and places that have bombed. Im ready to use what I have seen work for me, and learn from what I saw didnt work.

Risk is relative! the Most Risk comes from the very beginning of every deal....And making the Bad deal will kill your end most venues from succeding.

1-Bad Lease -payment to high, No TI's, Killer NNN and Maintenance fee's
2-Under funded :(
3-Lack of experiance :confused:
4-Bad Location :eek:
5-Bad concept for area of demographic :cool:
6-And the #1 Deal Killer (Partners) :p


My main question? Where is the best place to start?

1-Make a small business plan
2-Find a Location
3-Make a Full Business plan with financials and estimated Costs for the entire project
4-Concept Development Time (This is where you sharpen your concept)
5-Raise $$$$$$


As I said, I have work for people in them, but never owned my own. Im willing to take any and all advice, and please be brutally honest. The military made sure I can take it.

This business has a formula that every business seems to have to create a successful product.

Low overhead-Good Funding-Quality Product-Good Service-Consistency-Exit strategy=Success

Of course the 1 million small details and things you need to know and do to get to this are the small hitch! :D

[collegestation]

Thank you for your time and advice. I actually just looked at your site and am getting ready to purchase your book. I know the clubs you have worked with in LA, and I have even been to one of them. I had a great time and the layout was good. The only reason I was getting my degree was to assist me to know the in and outs of the business aspect, I thought it might help any potential investors with a piece of mind. I have run a few places, where the only thing I didnt do was pay the bills. I do appreciate the advice and thoughts that you have given me. I have actually been doing a lot of the stuff myself. Doing all the research on license, permits, codes, and all that fun stuff. Im currently going to have to build my own building, because there is no place in Clarksville, Tn that will fit what I want to do. I have been to a few clubs in Nashville, its about an hour north of me on I-24.


DJ.

[rootsreality]

My advice....figure out what type of place the market will support as well as what type of place you want to run. Will your place be a cozy neighborhood hangout, a dive bar, martini bar, college bar, biker bar, etc. Do you want to serve only drinks, or do pub grub or a full service restaurant? Do the research to be sure that you'll have the business base for the concept. Figure out the approximate patronage.....be reasonable, not overly optimistic.

Now go to the local city and county authorities, the zoning department, the fire department, health department, liquor control authorities, etc. Find out what their requirements will be. Tell them you are looking for a location and hope to serve whatever drinks and whatever food during whatever hours with an occupancy of about whatever. You need to know how their requirements will dictate locations for a location.

Get all this info before you look for a location so that you know exactly what will be needed in the way of modifications, etc. Realize that even if a location was previously a bar or restaurant, it may not be up to current code. You may have to do extensive upgrades before the authorities will allow you to open.

Things that may be an issue:
ADA accessibility
Bathrooms - size, layout, # of stalls, etc.
Type of flooring in food areas and bathrooms
Type of wall finishes in food areas and bathrooms
Sinks (bar, prep, mop, hand)
Drains
Power capabilities
Types of doors and their locking devices
Configuration of emergency exits
Lighting
Sound abatement
Hood systems
Grease control
Garbage control

After you have learned all about the construction side of the business you can start worrying about licensing, negotiating a lease, inventory, staffing and employee management, taxes, etc. Make sure you have funding for your start up costs as well as about 6 months worth of operating expenses. When does the fun start???

[collegestation]

I have been doing marketing research for the last 6 months. I have been walking around asking different age groups what kind of music they like to listen to or where them and their friends like to go and hang out and drink. Sadly most of the travel an hour or so to go to clubs, because our city doesnt have one that fits what they want. That is how I got the idea for what I want to do. I have already talked with all the city officials to get the required permits and codes that I would need to meet in order to have a place that was up to par.

I want to open a place that will be a restaurant during the day serving lunch and dinner, then at 8, we turn it into a night club. The idea I have is 5 clubs in one place with a live stage. Everyone I have talked to has been saying the same thing when it come to music and stuff. Its the same thing they are driving an hour away for, why not build one here and keep the money local.

I know there is a lot to know, and I thank everyone for their advice. I do appreciate it.

[excellentbars]

I want to open a place that will be a restaurant during the day serving lunch and dinner,then at 8, we turn it into a night club.
This Is great and I would urge you to create the atmosphere aqs if it where a Pub/Sports Bar style venue this will allow you to serve a wide variety of foods from Bar food to nicer fare and this will allow you to measure your customers needs.
I would also recommend this as it will be easier to flip into a Rockin Bar/Club




The idea I have is 5 clubs in one place with a live stage.

As for this If you look in my book I recommend dividing on venue into multiple venues, this will hedge your beat with your investment.
I would warn you against a venue that is to large as the over all costs to open this and your monthly nut will be huge...
I recommend that you start with 2 then expand into the 3rd and 4th as a way to keep the momentum going.....

Cheers
Chris

[rootsreality]

You mentioned having to build from the ground up.......

You might consider designing the building so that you could sublet a portion of it to another tenant while the club builds up a reasonable base, and expand into the extra space in phases. Or frame it out but block it off and leave it as a vacant skeleton until you are ready. That will minimize expenses and let you amass extra capital over time.