Business plan of night club

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Business plan of night club

Rotation of clubs in the capital market impresses: almost from one hundred night institutions approximately the one fifth part annually is closed and opens again. The annual turnover of the market, by rough estimates, makes about one hundred millions dollars. However, thus it practically doesn't increase: the avalanche growth fell on three post-crisis years

The average volume of investment, necessary for full work of night club in Kazakhstan, is estimated by experts at 500 thousand dollars, profitability -- at 20-50%. That is interesting, often profitability of such institutions isn't connected with the volume of investments in any way: the club constructed for 50 thousand dollars can be super-successful, and in what the one million is invested, will quickly burn through. club administrator entertainment

How to choose the room?

In most cases right choice of a site defines success of night club or a disco. The fashionable capital club calculated on a middle and highest class surely has to be in the downtown, and city suburbs quite will be suitable for simpler, democratic institutions (inhabitants of neighboring houses happen their visitors often). And one more important condition -- has to be convenient to reach youth clubs not only land transport, but also by the subway.

At a room choice from the very beginning it is necessary to exclude the first floors of residential buildings from the list. If local authorities also allow to place there a noisy night institution (that, in Moscow, for example, is impossible), then to you for anything the indignant residents won't allow to work normally. And even provided that your sound insulation is perfect, for certain there will be a couple - another of the active grandmothers capable to spoil any party, simply having several times called a police squad. Therefore from the very beginning it is necessary to be guided by separate uninhabited buildings.

The room has to satisfy to a number of criteria: to have rather big area (experts advise to do the main dancing hall not less than 250 sq.m in size) and the high ceilings suitable for a hinge plate of the light and sound equipment (from 4 m).

The interesting tendency was in the early nineties observed: for the organization of clubs and discos were actively used former or still working at home and palaces of culture, the foyer of movie theaters and concert halls. So far all didn't sort them. But it is still possible to find the similar buildings vegetating without owner in regions. From the middle of the 90th the former shops of idle plants started being reconstructed actively. Their main advantage -- the big area at quite acceptable prices (for example in Moscow -- from 200 dollars for 1 sq.m). Similar options, unlike construction "from scratch", demand much smaller expenses: you will need only to dismantle machines or old chairs, to equip a locker room and bar, to develop modern design, and, above all -- to install the light and sound equipment. The cellar quite will be suitable for the small or closed club.

As practice shows, as early as years so five it was rather easy to find the room in Almaty back. And here now -- it is already serious problem constraining development of club business.

As for internal furniture then the general recipes don't exist. It is possible to spend 2 thousand dollars for 1 sq.m, having created ultramodern design, but to you nobody will go, and it is possible to be limited to only one hundred dollars on meter, and in club always there will be a notice. The matter is that such institutions sell first of all the atmosphere, and only in addition to it there are an interior, dishes, drinks and so forth. For example, fashionable (and, by the way, economical, allowing not to buy expensive furniture) a tendency of the last years -- use of a rough tree.

Before starting organizational construction works, it is necessary to make the competent project. And here not to do without professionals. And it is necessary to begin with development of the general concept. It will allow to avoid the excess expenses, constant miscalculations and alterations which are repeatedly increasing the estimate. Besides, experts will analyze the place chosen by you regarding compliance of its arrangement of the chosen concept. They will help to receive the list of all allowing documents which are required for normal work of club. Consultants, as a rule, take for the services from 2 to 5 thousand dollars.

And here organizing functions can quite be assigned to the main club person who will be responsible for all concept of an institution (and not just for its program as still mistakenly consider many) -- the promoter.

Main club person

According to many experts, the success or a failure of any entertaining institution depends on the promoter for 80%.

And actually, the majority of closings of clubs is connected just with unprofessional of the administrator. The specialty "promoter" can't be received at one institute, it can learn only in the course of work. The main objective of the promoter -- to attract visitors. For this purpose it has to direct activity of an institution to the course of the developed concept accurately. As Andrey Fomin (the promoter, famous in Moscow, and the showman, the founder of an annual ceremony of Night Life Award defining the best night clubs of year) claims, the promoter is responsible for the concept of club, beginning from musical style and finishing the organization of special parties. And the main task of this person -- to create every evening a holiday.

According to Harry Chaglasyan, one of the most eminent Russian promoters (the organizer of XIII club), "in the West club only the room in which every night any new promoter organizes the party is considered. In Russia still simply don't understand how it on Tuesday can play a rap, on Thursday -- trip hop, and on Saturday -- progressive house. Now in our clubs the owner often is both the managing director, and the art director, and the promoter in one person, and after all it doesn't promote business at all".

Orientation of club

Statistically to 70% of profit regular customers make for club. Therefore, the first phase of development of the concept is necessary to determine who would be calculated your institution: "gold" youth or adolescents with margin, respectable businessmen or rockers, members of sexual minorities or straight. The target audience is entirely dependent interior, music, drinks, and even the price level of service.

The main visitors of night places - young people up to 35 years. But it varies by age, income, hobbies, outlook on life. Conditionally all clubs can be divided into three main categories: expensive, democratic youth (more similar to the discos) and target highly specific. The latter are usually distinguished by genre: jazz, rock, pop, and so on. There are also clubs for women, gays, etc. If you are going to open the night institution, it should be borne in mind, if you try to do something alien to itself it is difficult to hope for success.

"Gold" youth

To work with bohemia and "gold" youth, the most tempting visitors of expensive clubs, most difficult. Besides creation of similar institutions has the specific. Unlike opening of elite restaurants where a fantastic sum leaves on repair, registration of an interior, purchase of expensive furniture and ware, night club for "gold" boys and girls doesn't demand special material investments. This statement perfectly confirms success opened in 1998. "Jazz cafe" -- the club organized by the Yugoslavian promoter Sinish Lazarev, at which a vast experience of promotion of similar institutions in Belgrade and the Italian cities. Organizers of "Jazz cafe" strongly saved on repair, furniture and the equipment, and the advertising item of expenditure in general lowered. They concentrated all attention on creation round an institution of a situation of mystery, a Bohemianism, a selection and an elitist

The second example -- XIII club. As the promoter Harry Chaglasyan approves it, "the comfort, novelty, aspiration to unostentatious luxury and a decadence, and also dynamically changing atmosphere when one evening isn't similar to another is important for our visitors". In similar clubs it isn't accepted to take money for an entrance, and the profit goes only at the expense of bar. Prices corresponding: a coffee cup -- 10 dollars, cocktails -- from 50 dollars. Basic principle of similar club such: I bought, for example, a tequila bottle for 20 dollars, and I sold in flood already for 400. At a large number of the realized bottles the profit can be enormous. The average visitor in similar places spends 100-200 dollars in a night, i.e. only at one hundred clients (this average of visitors of one party) the institution gains 10-20 thousand dollars.

Interesting feature of expensive clubs -- the short term of existence (no more than two years). When the place "becomes boring", the owner simply closes club to open it in a new place and under the new name. Still option: the club is closed on reconstruction, and then again opens in the same place (usually it occurs because of a lack of rooms). However, he, most likely, will never not repeat former success any more.

But the institutions which are cut out by the principle of an elitism have one essential shortcoming -- a small number of potential clients, especially in the province. And in Almaty the target audience of expensive clubs, by some estimates, doesn't exceed 5 thousand people.

Noisy town

The widest target audience at democratic youth clubs. According to the estimates of experts, only in Almaty it is about 100 thousand people, generally from 15 to 25 years, i.e. school students and students. Usually they aren't inclined to get binge in the bar so the payment undertakes the entrance ticket. Its ceiling -- 3000 tenge. This money also makes the main income of youth clubs.

And here such subtleties as the identity of the promoter and the strengthened face control on an entrance, don't matter any more. The success of a "large-format" institution depends on the light and musical equipment, the size and capacity of the room, and, above all -- on advertising volume. If music sounds loudly, the light equipment sparkles brightly, and on streets flyers - invitation with advertising are distributed, inflow of visitors is provided.

Here, as well as in the first case, expensive design isn't required, the main part of expenses lays down on purchase of the sound and lighting equipment corresponding on power. As for monthly expenditure then the main share is the share of payment of the invited DJs (DJ): from 50 to 150 dollars in an evening. If, of course, it not a star which can earn and to 500 dollars for performance.

In management of such institutions the main thing -- to adhere to flexible price policy. During week-end there are more than persons interested to have a rest and good time therefore it is necessary to appoint the maximum entrance fee on Friday, Saturday and Sunday. On Monday, after a rough week-end, flow falls down, and the majority of clubs either suit day off, or do an entrance free. Experts claim that at the institution working according to such scheme, profitability keeps at the level of 20-50%.

Light + sound

Independently the inexperienced person can't pick up and install the light and sound equipment suitable on a format of club. At a choice experts are guided by such parameters as the area, a perimeter form, height of ceilings, and also an arrangement of little tables, a scene and bar counter; special value has style of music which will sound in club.

At creation of qualitative light and a sound in an institution with sizes of the main dancing hall in 150-200 sq.m it is quite possible to keep within 15 thousand dollars from which two thirds is necessary on light, and one third -- on a sound (light devices are more expensive and more difficult to establish them).

If height of ceilings is limited to four meters, it is possible to save on purchase of the equipment: honor the devices lighting at most 4 m one third cheaper more powerful, capable "to overcome" 8 m. If in your club any performances of show collectives are planned, the scene will demand special lighting. For full work of all lighting system it is necessary to pay attention first of all to a number of hours of trouble-free operation of lamps.

According to Nikolay Oganesyan, the director of the company X-Light, installation of the light and sound equipment it is necessary to make at a stage of draft works. However many customers start its selection of how all main works are finished that is quite misleading. And from such improvidence known and expensive clubs suffer even.

10-15% of equipment cost are usually spent for installation, and on time it takes week. The main light devices without which not to do to any club: so-called "central" (1,5-2 thousand dollars) with a set of effects, fastens to a ceiling; scanners (500-1500 dollars); the rotating heads (from 700 dollars); stroboscopes (70-250 dollars); UF-lamps (20 dollars); a smoke the car (in the developed smoke light beams -- from 80 dollars are most clearly visible); a mirror sphere for the disco music (40-100 dollars); lasers (from 2 thousand dollars). And having grown rich, you can get devices on production of soap bubbles or generators of artificial snow (500-1000 dollars).

Now only in Moscow about one hundred firms specializing on deliveries of the light and sound equipment works. Upon purchase of a large consignment of equipment it is possible to count on a discount to 10-15% of an overall cost. To the checked clients who regularly paid the first purchases, the companies suppliers can offer a payment form by installments without charge of percent.

Success bases

The price of the entrance ticket -- only visible part of an iceberg of profit of club. The main money, however, not in democratic institutions, becomes at work of bar, after all the margin on drinks is capable to reach 200-300%.

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