Anyone own a Bar/Club?

[Evidence]

I'm looking into buying a bar or smaller club in the next couple of months.

I have no experiance in this type of establishment so any insight from anyone would be alot of help.

Pros/ cons? Thoughts, Anything.

Thanks

[snowgoose]

i dont know how old you are, but there might be age laws on bar / club ownership as in the UK you must be 21+ to own one.

Other than that thats all i can tell you.

If you post specific questions i can search the net when im free later today and have a look for you.

Jake

[Evidence]

I'm 22, Not worried about the law, but Thanks jake^

I was really looking for just general experiances from anyone who owns/owned one. Just to shed some light on what day to day life is like running one. Things to look out for, what to expect.

Right now I own a Franchise, and i'm sure its going to be 100% different.

[BusinessAdviser]

I have not yet owned one myself, but I have consulted others in bar ownership, and I have developed business plans for two other such establishments (though I am waiting for the right time to pursue them).

The type of advice you seek is generally too broad and all-encompassing to get a decent response here. I would advise asking specific questions on the forum, but hiring a consultant or researching yourself to help lay the foundation for a venture of this sort.

[jasaunders]

If you have never worked in a bar, or at least the hospitality industry, I would not suggest buying one or starting one. Work in one first to find out what is involved. The nightlife/bar/club industry is incredibly difficult, most never make it out alive; the ones that do often don't make a profit until their third or fourth try.

[faint]

I've always wanted to open up my own nightclub or lounge of that aspect. Im sure its a great experience but a solid investment is a must. There was a reality series show before on TV it was about club ICE in Las Vegas and it showed all the sides of management and operations. Im sure If I had about 1 mill saved up I would invest in the idea.. especially here in New York.. you're guaranteed exposure

[Dioniusa]

I operate a restaurant business, but not a bar or a small club

[criniit]

I have not yet owned one myself, but I have consulted others in bar ownership, and I have developed business plans for two other such establishments (though I am waiting for the right time to pursue them).

How can you write a business plan if you do not know the location of the business? The location determines everything, from the concept all the way down to labor costs.

Just read your post and was wondering how you would conceive a business plan like that.

[jason_sullivan1983]

I've always thought that clubs would be cash cows.. Imagine how much you can make on alcohol in one of those things.

[BusinessAdviser]

I've always thought that clubs would be cash cows.. Imagine how much you can make on alcohol in one of those things.

I agree. The problem is that most individuals who have an interest in owning a bar or club are those who are least likely to know how to run a business properly. They either have marketing, management, financial, or decision-making, or some other issues which a competent business owner could overcome. I am often amazed at some of the bars and clubs that run themselves out of business when they are packed every weekend.

[jasaunders]

They can be cash cows, but they live and die very quickly. Even the most popular clubs don't stay in business long. Fads and trends come and go. The popular places die as people find a new 'hot' place to go. There is no stability. Plus, it is an extremely large investment to start a club, and it is very hard to get funding. Most banks won't loan to restaurants and clubs if the person looking for financing does not have a successful background in the industry. Too risky!

That being said, people who gain experience, mostly through trial and error, and have the persistance to keep trying can do very well in the industry. I went to a meet and greet/speech with Billy Dec, who is a very successful owner in Chicago (and soon to be Las Vegas). He now owns nine nightclubs, he opened his first one when he was 20. The first three he opened all lost money. It wasn't until his fourth try that he got things right and he has been slowly tweaking his system to increase profitability and repeatability of his success ever since.

[The_auto_God]

I looked into purchasing a very successful nightclub in MA last year and I can tell you that whatever you expect, you're going to be unbelievably wrong on every account.

If you're purchasing from someone else that's not a major respectable corporation, 1st assume that the books are cooked. Outrageous writeoffs, income not being claimed anywhere, every employee pocketing cash somewhere along the line.

Next you have to deal with the fact that bars and nightclubs are like gravity for trouble. Violence, sexual assault, theft, etc.

There are many factors to consider when opening or purchasing a bar, but one of the largest ones I didn't consider until very late in the game was parking.

Also, if you do have a successful bar/club there are a lot of shady dealings that you will have to worry about including corrupt officials, drug dealers and other powerful night club owners in the area.

It's a lot of money to get started and you will have a very hard time finding financing without 50% down.

Best of Luck,
Matt

I'm looking into buying a bar or smaller club in the next couple of months.

I have no experiance in this type of establishment so any insight from anyone would be alot of help.

Pros/ cons? Thoughts, Anything.

Thanks

[baldwinb]

it is a very intriguing industry and one that i am interested in. i have done a lot of research in it and had a few meet and greets and a lot of what has been said is extremely true...it is a very risky industry and all i will add is that there is a 90% chance of failure, the highest of any industry!

[Evidence]

I looked into purchasing a very successful nightclub in MA last year and I can tell you that whatever you expect, you're going to be unbelievably wrong on every account.

If you're purchasing from someone else that's not a major respectable corporation, 1st assume that the books are cooked. Outrageous writeoffs, income not being claimed anywhere, every employee pocketing cash somewhere along the line.

Next you have to deal with the fact that bars and nightclubs are like gravity for trouble. Violence, sexual assault, theft, etc.

There are many factors to consider when opening or purchasing a bar, but one of the largest ones I didn't consider until very late in the game was parking.

Also, if you do have a successful bar/club there are a lot of shady dealings that you will have to worry about including corrupt officials, drug dealers and other powerful night club owners in the area.

It's a lot of money to get started and you will have a very hard time finding financing without 50% down.

Best of Luck,
Matt

This was the type of stuff i was looking for. Thanks Matt

[pentupentropy]

The other matt is totally right. I too am looking to get into this scene, but fortunately for me, I have 3 different people who have all had experience running successful nightclubs/bars and/or food establishments before. One was a night manager for a very high society place in the NYC meat market (I don't know if I should name the place specifically).

My point in mentioning that is that I have experience in management, I have experience in marketing and I have worked in many hospitality-based establishments myself, but have no experience actually running one. If I didn't live in a place where the economy constitutes $15/hour being a more-than-fair wage for a manager, I wouldn't even consider getting into it. As little as you seem to know, I have to wonder if you have this same thing in mind.

Also, are you prepared to spend a great deal of money promoting yourself? It may be two years before your cash register turns over enough money to actually spend any of it promoting yourself so you should figure that into the budget.

As with any business, and ESPECIALLY with businesses that deal directly with entertainment/hospitality, it really helps to know people. What resources will you be able to offer in exchange for something someone else may have that can benefit you? This does NOT mean getting your friend's band that he seems to think is "totally awesome even though no one else will give them a forum" to play your opening night. Network, find people, people who know people. Is there someone who has something going on at some time close to when you would want to be opening? Do you know anyone who is or may know an event planner to help you get things going? One that's somewhat reputable, btw. Someone who you can browse a portfolio on.

That's about all I can think of to help you with now.