Success in the Night Club Industry

I have been working on a business plan for starting my own live entertainment venue. The location will serve as a full bar and host a variety of national musical acts. When working on this project I have discovered just how profitable this industry is. I discovered that the average drink at a bar is based off a 300% price mark-up, and according to the Distilled Spirits Council: "The distilled spirits industry generates around $100 billion in U.S. economic activity annually,"


According to Entrepreneur.com: "Successful new bars can be in the black within the first six months, and they can go on to recover their initial investment within three to five years."


However, like any new business, many bars fail. There are many reasons a nightclub can fail including, poor location, lack of capital to keep business going, and the owner having lack of knowledge about the business. Entrepreneur.com says that "you have to look at yourself in the mirror and decide if your the type of person who can run a bar."


Both of my grandfathers owned restaurants when I was growing up. Ever since us grandchildren could walk, we were busing tables, washing dishes, serving water, and greeting guests. This industry is in my blood. Another thing that will help is the fact that I am a night-owl. I am the most productive after midnight and have no problem working late hours. I am young, single, and don't plan on starting a family any time soon. This lends itself to being able to commit long and late hours to my business. 


I have been a musician my whole life. I have played live concerts and attended shows for the past 10 years. I know how to run a concert and I know what types of concerts are profitable. I feel that with this business I am combining my passion for nightlife, music, and money. After thinking hard and long, I believe that I am the type of person that can succeed in this industry. 

While my youth could be a huge advantage, it could also become a disadvantage. I am not nieve enough to think I know everything about the nightclub industry. When seeking an investor for my business, I plan to seek out someone who has succeeded in the hospitality industry, more specifically the restaurant or bar industry. They will not only be able to provide me with capital, but hopefully act as a business partner and mentor. 




http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article41460.html