What is a ballpark figure for startup costs for a nightclub?

[boxsey]

I live in a college town that has one VERY small club and since i've moved here i often thought that i could make a great business here with a club/bar. I worked for 6 years as a kitchen manager and have a good understanding as to what is neccessary to survive in this kind of environment. Do you think i could open a place up for under $100,000 start up? I know that the rent etc. plays an important factor into it, also liquor license's. Thanks for any info.

[Cheek]

no, under 100,000 just wont do

Ths is a very general question. Are you doing major renovation?, do you even have a placed picked out or at least an idea of a location? You will need furniture, bar equipment, inventory, liquor license, ice machines, coolers, glassware, sound and/or video system, insurance premiums, all the drywares (napkins,straws,etc etc), bar supplies(mats, towels etc), decorations, advertising, and thats just a short list. That doesn't include the cost of remodeling and getting a building up to proper codes for your needs. On top of that you will need capitol for operating costs for a good while in case the business doesn't pour in like you thought it would.

I think with $100,000 and a really good business plan you may find an investor or a bank to help you out.

If everything went your way and you found a decent building and used equipment/furniture and were looking to get into a very modest bar I would think anywhere from $300,000-$500,000. This is really a total guess though.

[Shock G]

The answer to your question can vary widely. A couple of key things:

1. Size of club - Naturally, as the club or bar gets bigger, the building requirements get more extensive. (Fire supression, safety, bathrooms, etc.

2. Was it a club previously? - If your remodeling, it can save a truckload of money. New construction can cost a lot more than reconcepting a building that was previously a bar.

3. What are you trying to accomplish? - I recently spent $120,000 in a 850 square foot space. It is an extremely upscale concept attached to an existing restaurant that I have. You can easily spend up to $200 per sqare foot or more to open. On the flip side, I have a friend that spent $40K to re open a failed club, but he failed within 6 months himself.


CASH is key - you need to be able to ride out the bad moments in anticipation for the good ones. Also, to maximize efficiency, you need to have your facility set up properly. Believe me, your $100,000 can get spent very quickly, and it isn't near enough to open a full scale "nighclub" over 1500-2000 square feet - to make the numbers work these days you need at least 5000-6000 square feet to accomodate enough volume to ROI within 36 months.