| Author | Message | ||
| Taek-Ho Kwon (Stickanddice)
Junior Member Username: Stickanddice Post Number: 81 Registered: 11-2002 |
If you have your business plan done you should know how much capital you need and what your burn rate is going to be. Then people will be able to give you a little better advice as to what channels to go about to attain your funds. How much investment are the partners putting in and how much is left over? Keep in mind that if anyone is going to invest in your venture they're going to want a seasoned club/bar/lounge/pub manager at the reigns. Especially if a small business loan won't cut it. I've done dabbled in investment banking and venture capital a bit and although I mostly agree with Jerry W. I do disagree when he says no bank will finance a venture like this. I have worked with people who invest exclusively in restaurants, bars, etc. If done properly it is very profitable. Unfortunately for Reno, it is mostly profitable for the financial institution, and not the owner(s). Unless most of the capital is going to be raised by owners. If you are already partnering up with 4 other people, your cut (assuming equal share) is already only going to be 20%. Throw in a bank that will front all funding and your share is probably going to be in the low single digits for a good amount of time. Can your nightspot stay popular for that long? Most investments in nightlife are a quick "break even, make some cash, and sell off". The business cycle is quite short. Unless of course you are a big player in that industry already. Then you might get away with changing decor, name, etc and open a fresh place. Hope that helps and best of luck. As an entrepeneur I do hope everything works out for you should you go ahead with this. Just keep in mind, that a positive attitude and hard work will only get you so far. Get a professional's opinion (the best you can afford). It will prove to be a small investment in the long run and it might save you a lot of money and grief. | ||
| Reno (Bdiddy)
New member Username: Bdiddy Post Number: 9 Registered: 2-2003 |
Hey John could you maybe hook me up with the guy who owns Exit so I could pick his brain if he wants to let it get picked?  | ||
| Tim N (Timn88)
Intermediate Member Username: Timn88 Post Number: 2466 Registered: 6-2001 |
The guys that own those clubs do have riduculous money. A friend of mine who has a club management/security business estimated that when it was in it's prime, sound factory was grossing over $250k a weekend. I dont feel to comfortable in that place, which is why ive only gone there once. if you give the wrong person a bad look by accident, you could wind up with 2 broken arms. It is a cool place though, but its not classy. Have you ever noticed that right before those clubs get remodeled, they have mysterious fires that completely destroy ONLY the rooms that were planned to be remodeled? ie. exit 2 yrs ago. edit- i know the guy who used to manage exit a while ago. | ||
| John (Modenaf1fan)
Junior Member Username: Modenaf1fan Post Number: 157 Registered: 11-2002 |
i dont know about sound factory but the russian mob does not own exit. I know the owner of exit and his got cash up his also i will never go to exit again cus it sucks big time | ||
| Reno (Bdiddy)
New member Username: Bdiddy Post Number: 8 Registered: 2-2003 |
Actually John Im more concerned with the Russian mafia. They own alot of the big clubs, like Sound Factory and Exit. I dont think Ill have any pull even though my gf is Russian :P. One of my friends said if the Russians start giving you problems, you just call me... Just great. All I want is a club and he wants to start a mob war. :P Any way it works out Im ready to take on a new challange. Im visualizing the managment aspect of this club as being a bit easier than an insurance office. A little less personal managment of people and a bit more hands on. Obviously I will be dealing with the people that work there, but Im seeing it as being alot easier doing intrapersonal stuff than in an office. But I could be wrong. I cant wait to get this done. Thanks for the advice guys, but Im hitting this 1000% | ||
| djmonk (Davem)
Junior Member Username: Davem Post Number: 190 Registered: 1-2002 |
Reno. The first concern i would have as mentioned before is the partnership. Im guessing all of you are friends now, hopefully you have all worked together at some point to witness each others work ethic. Some of my best friends i would never want to work with let alone be partners with. Its important to identify each partners strength an commit thier responsibilities to paper. That aside running an insurance agency an a niteclub are completely diffrent. Controlling cash, liquor an the kind of people attracted to your club whether they be customers or employees will be a new challenge. Wish you luck Dave | ||
| John (Modenaf1fan)
Junior Member Username: Modenaf1fan Post Number: 156 Registered: 11-2002 |
Reno, if your ok with the wiseguys in ny getting their share if your club is successful then go ahead and good luck In NY the only clubs that are successful are the ones that play hiphop and techno for the druggies o yea, if you need any dj's let me know. | ||
| Reno (Bdiddy)
New member Username: Bdiddy Post Number: 7 Registered: 2-2003 |
Well the managment aspect Im taking care of. Being that I managed and turned around an insurance office for 2 and a half years with no prior experiance tells me that I can easily manage a nightclub. Both Wayne and Jerry's concerns have already been addresses. DJs, licencing, promoting, bands, managment, security are all taken care of. The business plan is already down on paper. I just dont want to put them up as I dont want them stolen, no offense. This is really just a money issue. And now I have learned how to go about that. | ||
| Tim N (Timn88)
Intermediate Member Username: Timn88 Post Number: 2464 Registered: 6-2001 |
you just have to have a good manager to run the place and make you money. It helps to have good promoters too. MAnagers usually handle the security, DJ's, promoting, and pretty much everything else,. | ||
| Jerry W. (Tork1966)
Member Username: Tork1966 Post Number: 494 Registered: 7-2001 |
I agree with Wayne. Being a business owner myself, I can't see how fresh college grads are going to have the know how to run a business. 4 other people is a lot of partners. Odds are that at least one of them will end up being an anchor, drunk, lush, etc. Which partner is going to handle what task? Which one of you is the financial guy? Which one is the marketing guy with the outgoing personality? Are you all planning on being married to this place....because you will be there 10-12 hrs. per day and even more in the beginning. Do you have a marketing plan to get people in the door? Which one is going to bartend? You'd better plan on at least one of you doing this job, at least for a few years. How are you going to control people from skimming off the till? What is going to set your club apart from the other 200 bars in Manhattan? Did you check into dram shop insurance? Is there a liquor license even available in this area? If so, what are the criteria for obtaining it and at what price? Do you have a building picked out? If so, what will be the maximum number of patrons allowed by the fire marshall in this particular X thousand sq. ft. building? Will the floor need to be reinforced to carry the load of this number of patrons? Is it up to codes (fire, electrical, plumbing, etc.)? If not, this could be VERY costly. Are you planning on serving food? To be brutally honest with you, there is no bank that is going to loan you money for this venture. Why would they? If you renig on the loan, how will they get repaid? Selling off your assets in the bar will get them 30 cents on the dollar. I don't mean to rain on your parade, but you need a dose of reality. Unless you have a rich (and nieve) relative, this dream will remain just that. | ||
| L. Wayne Ausbrooks (Lwausbrooks)
Member Username: Lwausbrooks Post Number: 972 Registered: 8-2002 |
"I have the whole thing planed. Bars, alcohol, stage, sound system, interior design the whole 9 yards." Sorry to rain on your parade, Bdiddy, but the "whole 9 yards" that you have planned out is really nothing at all. How about planning how this thing is going to turn a profit and putting that plan to paper? Do any of you have any experience managing/running a nightclub? Get experience. Get a business plan. Worry about the sound system and interior design later. Or, simply go into business designing interiors/sound systems for other club owners if that's what you're good at. God, I must be bored! | ||
| Jordan Witherspoon (Jordan747_400)
Member Username: Jordan747_400 Post Number: 387 Registered: 12-2002 |
Need a good string quartet? haha just jk | ||
| Reno (Bdiddy)
New member Username: Bdiddy Post Number: 5 Registered: 2-2003 |
you and everyone else wants on "the list." Haha. Music wise Im planing on doing it all. Some nights Ill be doing house/trance stuff. That was the gf's suggestion. I know NOTHING about that kind of music, but Im learning. Other nights, hip/hop and rap just because. And then again on other nights rock music since Im a rocker through and through!!:P So yes you can come perform at the club. | ||
| DES (Sickspeed)
Intermediate Member Username: Sickspeed Post Number: 2305 Registered: 8-2002 |
Ah, i'm fresh out of advice right now (read: i have absolutely no business sense, whatsoever)- but i'll come and perform at the club... Are we talking hip hop/night club type of thing or will this a be a jazz/smokey room/raspy voices/hot older women type of joint...? Any chance you could put my name "on the list"...? | ||
| Reno (Bdiddy)
New member Username: Bdiddy Post Number: 4 Registered: 2-2003 |
Like the title says. Ive got everything BUT the money issue set up. I want to open up a lounge/club in NYC. I have the whole thing planed. Bars, alcohol, stage, sound system, interior design the whole 9 yards. What kind of loan can I get or should I try to get? A small business loan wont cover it. Venture capital? or is it too large? What is my best option? Im doing this with about 4 other people. The 4 of them will have graduated college this year. I took time off and am still finishing up. Will this make a differnce? I see the biggest obsticle being who is going to give some wet behind the ears college grads and one non grad a bunch of money? Suggestions? I think the odd thing is that I have planed what most would consider the hardest part and dont even know where to go for a loan or how to get the funding for it. |