My First Club - Investor Business Plan

[parker]

First let me give you the details. Nothing has been purchased or signed yet. I'm at stage 1. I have found a location in a town with a population of 40,000. Its the only club in town. It has a small college of about 2,500 students and a tech school with about 600 students. Its surrounded by 6 counties and none of the counties have a club that can produce 200 people on a normal night. The combined population within the counties is 120,000. That's a 35 mile radius around my club. I'm not looking to spend no more than $30,000 on this project starting up. I know that seem cheap but this is not the city. I'm on page 7 of my business plan to purpose to my investors. I was using a business plan I found online to guide me but I been easing away from it and making it into my own. I'm doing the start up cost and the weekly cost of supplies right now. I know there are holes in it and some things are vague but what do you really see that I'm doing wrong so far?

I did it in Microsoft word so I know my tables look ruff on this forum



Start Up Cost

Start Up
Rent 9,000 6 Months 1500 per month
Interior Design 2,500
Bar Equipment 1,000 Bar, Sink, Shelves, Kegs, Glasses, Cups
Alcohol Stock
Liquor $500
Beer $250
Fee’s & Permits
Liquor, Wine, Beer License 4,200 City License City Application 100
Bathroom Installation Labor $300
Womens $614.78 Urinals, Sinks, Toilets
Mens $495.52 Urinals, Sinks, Toilets
Initial Marketing $680 1st Month of Flyers and Poster (5000 each week)
Opening Salaries $1000 1st Month
Waste Containers 32 Gallon (Costco) $192 6qty – $32 each


Mens Bathroom Breakdown
Mens Bath Room QTY Price Total
Urinals 2 122.63 245.26
Model Number HomeDepot - 6581.015.020
Sinks 2 34 68
Model Number HomeDepot - Model 90400
Toilet 1 174.68 174.68
Model Number HomeDepot - K-4330-7
Door Hinges 2 3.79 7.58
Model Number HomeDepot - HN0011C-W-C
Total – 495.52

Women Bathroom Breakdown
Mens Bath Room QTY Price Total
Sinks 2 34 68
Model Number HomeDepot - Model 90400
Toilet 3 174.68 524.04
Model Number HomeDepot - K-4330-7
Door Hinges 6 3.79 22.74
Model Number HomeDepot – HN0011C-W-C
Total - $614.78

Supplies Purchased Weekly
Tissue Price QTY Per Box Cost Per Item Items Used Per Night Cost Per Night
Cups 12oz Clear 78.13 500 .15 500 78.13
Item # (Costco) Item # 117087
Wristbands 13.99 500 .02 300 6.00
Item # http://wristbandsonline.com Product Code: 1022-3-4

Can Liners 33gal 50.98 250 .20 9 $1.80
Item # (Costco) Item # 117330
Paper Towels 36.08 30 1.2 2 2.4
Item # (Costco) Item # 117141
Bleach 12.99 6 2.17 1/8 .43
Item # (Costco) Item # 117101
Mean Green 1.99 1 1.99 ½ 1.00
Item # Any location
Total Per Week 89.76



Amount of Items Kept in Stock by Box
Cups Wristbands Liners Paper Towels Bleach Mean Green
3 6 1 1 1 4



Alcohol Purchased Weekly











Beer Purchased Weekly






Amount of Supplies and Alcohol needed in stock
Item Weeks Stock Cost
Alcohol
Beer
Supplies

[parker]

I just got done with my first diagram on the club. If you guys know of any software so I can give it a 3d look please let me know. The club is 3600 sqft and the dance floor is 1500sqft so I hope my drawing is close. If there is anything you would change please express your opinion. The dance floor use to be a garage where large trucks could drive in so there are roll up doors on each side. I'm going to build the DJ stage on the outside of the door and connect it to the building leaving the roll up door installed.

I do have a major question. On the other side of the dance floor I was thinking about building another DJ area in case we have two DJs or building a pool for foam and bikini night. What would you do on that in? I will have picture of the actual building in a few days

[Michael Black]

My first quick thoughts are that the dance area is a huge portion of fairly small space and with the pool table area and layout there is not enough room for drinker$ and good flow. I would probably reduce that dance area at least to half if not a third, remove the pool tables, and get at least another smaller bar in there to service those drinking customers.

[H2HMedia]

My first quick thoughts are that the dance area is a huge portion of fairly small space and with the pool table area and layout there is not enough room for drinker$ and good flow. I would probably reduce that dance area at least to half if not a third, remove the pool tables, and get at least another smaller bar in there to service those drinking customers.

I dont mean to step on any toes, or question anyones wits. But i have been throwing parties for a few years in a few different venues and i can say big dance floors are a plus, if you have a good DJ. Also pool table are ok if they are in a high end environment. If you are building a hole in the wall type bar, local town type thing, i would not include pool tables as this will bring in drug dealers.

Just my $0.02.

[LaneTheElector]

I personally like the layout....reminds me of an existing place. wish you had some dimensions though....

[Ruben]

My first quick thoughts are that the dance area is a huge portion of fairly small space and with the pool table area and layout there is not enough room for drinker$ and good flow. I would probably reduce that dance area at least to half if not a third, remove the pool tables, and get at least another smaller bar in there to service those drinking customers.

Well the dance floor i think is fine BUT!!!! Your not maximizing your potential profits! You have no bars on the dance floor because people get tried and need a drink. Like Michael mentioned the flow right now isn't that great. Right now if you were to work that layout, you'd only have 1 bar making money. You could even have just a small cash bar on the corners just to make you some extra money. The seating in the one bar get rid of it! Your making a nightclub not a sit down bar you want your bar to be packed. People sitting down get in the way of others ordering.

Thats my stand point on the whole layout you made out.

[Ruben]

I attached your layout with some updates.

1. Look at where you have the entraces for the bathrooms... in the flow of TRAFFIC. You dont want the flow of people trying to get into the dance floor being blocked by people wanting to go to the washrooms. I'd change your washrooms to where the pool table area is. Making the entraces of the washrooms facing the dance floor. Same with the pool table room. Don't make the pool table room a closed room with dry wall! close only the walk way side not the lounge/bar area. this way it makes the place look bigger.

2. Remove the seating from the bar. Unless its like a mon-thursday when your serving to a low amount of people just a lounge feeling.

3. Dj booth WAY TO BIG!

4. Put 2 cash bars on the dance floor just to help generate more $ because that 1 bar won't be enough. You wouldn't have to run bar lines to that area if you didn't want to but always a option.

[Michael Black]

Ruben is right about the washrooms- I assumed they had to be there because the exist already and the plumbing situation. If not, definitely move them for better flow. I would also consider getting them away from the high traffic dance area all together and up by the front lounge and picture booth area. The office area may also be able to be reduced- I've seen some top smaller clubs with very small rough offices! If you did that, you could go all the way across with the bar lounge area and the narrow hallway all the way down may not be needed. You may be able to do a central island bar in that lounge are for better flow and service. Yes, usually seating should be removed from the bar on high volume days but it depends on the concept and place. Maybe part of that large dj area could be for vips. Where do the stairs go and I assume you have no basement? I love a large dance floor too, but in a larger place. Sorry, but it looks like about 40% of the entire space and that is just too much unless you plan on charging very high cover and having relatively lower drink sales, making it all about the dancing. By adding the 2 bars, you help the flow and drink sales and take away some of the actual dancing of that space. I would think you would need a separation rail and some space in front of those bars. I would also consider having a raised perimeter around that whole dance area with drink rails and making the actual dance floor a pit maybe 24-30 inches deep. You would have at least 2 cut ins and a step in the center on each side, one in front of the rear exit and one across. This way you have flow around and through the dance floor without pushing the drinkers at the bar and allowing them to drink and view the action. In this situation that actual dance area will probably be cut at least in half as I suggested. Another option is to have the dance floor raised to separate the flow from the drinkers, but in this situation, I like the pit better. If you want to be a big dance club, it usually requires a larger space. I understand that you want to offer much, but it may require a larger area or you could also do what Chris did with Dirty and be a club like lounge encouraging dancing everywhere like on table boxes, etc.. Maybe clubdesign will chime in with his experience.

PS: maybe you can store one pool table and only use it on slow nights in the bar lounge area, but imo, if you are going to market yourself as a dance club, the pool tables do not belong there.

[Ruben]

Ruben is right about the washrooms- I assumed they had to be there because the exist already and the plumbing situation. If not, definitely move them for better flow. I would also consider getting them away from the high traffic dance area all together and up by the front lounge and picture booth area. The office area may also be able to be reduced- I've seen some top smaller clubs with very small rough offices! If you did that, you could go all the way across with the bar lounge area and the narrow hallway all the way down may not be needed. You may be able to do a central island bar in that lounge are for better flow and service. Yes, usually seating should be removed from the bar on high volume days but it depends on the concept and place. Maybe part of that large dj area could be for vips. Where do the stairs go and I assume you have no basement? I love a large dance floor too, but in a larger place. Sorry, but it looks like about 40% of the entire space and that is just too much unless you plan on charging very high cover and having relatively lower drink sales, making it all about the dancing. By adding the 2 bars, you help the flow and drink sales and take away some of the actual dancing of that space. I would think you would need a separation rail and some space in front of those bars. I would also consider having a raised perimeter around that whole dance area with drink rails and making the actual dance floor a pit maybe 24-30 inches deep. You would have at least 2 cut ins and a step in the center on each side, one in front of the rear exit and one across. This way you have flow around and through the dance floor without pushing the drinkers at the bar and allowing them to drink and view the action. In this situation that actual dance area will probably be cut at least in half as I suggested. Another option is to have the dance floor raised to separate the flow from the drinkers, but in this situation, I like the pit better. If you want to be a big dance club, it usually requires a larger space. I understand that you want to offer much, but it may require a larger area or you could also do what Chris did with Dirty and be a club like lounge encouraging dancing everywhere like on table boxes, etc.. Maybe clubdesign will chime in with his experience.

PS: maybe you can store one pool table and only use it on slow nights in the bar lounge area, but imo, if you are going to market yourself as a dance club, the pool tables do not belong there.

Those are very good points! Especially your ps..... What are you trying to call your place? Actually Mike there was a club here in toronto Cantina Charlies that is a nightclub and had pool tables in the club :/

[titansgs]

Well the dance floor i think is fine BUT!!!! Your not maximizing your potential profits! You have no bars on the dance floor because people get tried and need a drink. Like Michael mentioned the flow right now isn't that great. Right now if you were to work that layout, you'd only have 1 bar making money. You could even have just a small cash bar on the corners just to make you some extra money. The seating in the one bar get rid of it! Your making a nightclub not a sit down bar you want your bar to be packed. People sitting down get in the way of others ordering.

Thats my stand point on the whole layout you made out.

I dont like the bar on the dance floor, it creates a lot of crowding. You will have a pile up of dancers and no way for people to get drinks without hitting someone. The location of the bar is fine, however the bathroom location is horrible. I would personally find an 4th year architect student to do my floor design of a club for young adults. They could probably use it for their finals. Before I throw down thousands of dollars to put together a club, I would make sure it is done right, in case I will have to sell it.

[Ruben]

I dont like the bar on the dance floor, it creates a lot of crowding. You will have a pile up of dancers and no way for people to get drinks without hitting someone. The location of the bar is fine, however the bathroom location is horrible. I would personally find an 4th year architect student to do my floor design of a club for young adults. They could probably use it for their finals. Before I throw down thousands of dollars to put together a club, I would make sure it is done right, in case I will have to sell it.

So what you saying is you want 1 bar only CRAMMED while theres potential of making a lot more money with like a second or 3rd bar?

I dont know but i would i think id be speaking on behalf of everyone....MAXIMIZE YOUR POTENTIAL PROFIT! Why you would want to lose out on making money? Don't put the bar in the middle of the dance floor on the sidelines. I guess we all have different mind sets :/ some with the needs to make more to cover a slow night or just make more money and others just to break even :/ I personally think that since it would be his first time opening this club he is in the hole right now with money. He wants to break even as soon as possible to start pocketing money and also doing changes throughout the club. like i said everyone can think differently but many would go with maximize $ and make sure people enjoy and keep coming

[Tamy]

Most people don't take drinks to the dance floor, they dance on the dance floor. Those that do typically end up with spilled drinks. Set up a drink rail, tables around the edges and send severs and shot girls out but don't encourage a mess that leaves you liable for accidents. I would plan a bar in the future VIP area.

[Ruben]

Most people don't take drinks to the dance floor, they dance on the dance floor. Those that do typically end up with spilled drinks. Set up a drink rail, tables around the edges and send severs and shot girls out but don't encourage a mess that leaves you liable for accidents. I would plan a bar in the future VIP area.

I'd have to disagree with you on this. Many people come out to a nightclub to drink and dance at the same time. Many people will go buy and drink or two and go back to the dance floor to dance. Of course they spill it and when the dance floor or crowded then chances are its going to be falling all over the place. It will become a sticky mess but as long as it gets people buying drinks at the bar at the end of the night the dance floor mess was worth it.

[vido]

I'm totaly new here. But wanted to recomend software for drawing 3D pictures.
It is google scetch, free software. It has tutorial. Altough you might spend lots of time on drawing. Also, might be difficult to download and view for others.
I didn't finish reading all postings but a small idea poped in my head. Did anyone offere or think it would be good to have a smoking area?
I've in clubs and people smoke outside, that will create more flow back and forth. what if you will build a room out side of dancing floor. Behind the exiting door or roll up door.
I really would like to know what people think about that.

[clubdesign]

not to rain onthe parade but what about thecost of finishes? The floors, walls,etc
the dance floor should be about 300-450 sf to maximize proft for a venue this size.
The office seems large perhaps combine the office and make the ticket booth only large
enough for a person to make change. Try and get a bar closer to the main entrance
do you have any updated drawings? if you can send me one with dimensions and I'll give you my 50 cents worth with some ideas for changes to improve $$$ return

[Warehouse]

To get a 3D view of your project, try "Sketch-up" - you can get it through GOOGLE. I've used it , and it's worked pretty well ..... also it's FREE.
Concerning your start-up costs, you have alocated $1500 a month for rent ; Almost any lease I've seen also calls for first and last two or more months rent up front + a security deposit equal to at least one month's rent.
You need to figure on various insurances .....liquor liability is a big one!
Workmans' comp. also
If I understand correctly, you are only showing $300 for plumbing work?
It will probably be your single largest expense!
Any how, it will be a great adventure! Best of luck.
Don