Any entrepreneur will face and should accept a level of risk in any new business venture. Starting a nightclub, however, has anywhere between a 70 and 80 per cent failure rate within the first year. This is an uphill battle from the beginning that only the lionhearted and those experienced in at least a similar field should not attempt. Large sums of money and a dream alone will not lead to profitability and longevity. Serious thoughts of starting a nightclub should start from a vision, or concept to fill a niche in either a large crossover of demographics or leaning toward a segmented audience. Whatever idea sets the wheels in motion, it needs to be geared toward a focus group as a niche to be filled.
The days of the next club having more flashing lights and louder speakers are of a bygone period. There has to be reasons for repeat customers and those that join them. The club should stand out from the crowd. Carry that vision in choosing a location. The average club ranges in size between 3,500 and 7,000 square feet. The least expensive, and neighbourhood friendly venue would be an old club that closed and had no negative community backlash. Other successful reformed sites include warehouses and retired firehouses, among others. Zoning laws, security, and the easy access of desired patrons should be considered. Turning that dream into reality will involve careful planning on many fronts. The foundation is a detailed business plan. This plan will determine funding by either investors or banks.
They need to feel a level of comfort in even the smallest arenas. It will take either experience in the field, or assistance from a reliable source to complete this task in a favourable note. This extensive document should encompass everything from beginning capital needs to real continued operating expenses. The ability to obtain all licensing, permits and business insurance is necessary to bolster your case for financing, and a need to be met for any further consideration of your dream. Hiring contractors, suppliers, and staff should be done with great attention to reliability. The addition of a promoter can be usurped by a strong knowledge of marketing in this field. Meeting and exceeding the expectations of clientele is needed for not only starting a nightclub, but seeing it last. From the grand opening on, the success of this business entails a labor of many hours and lasting dedication.