Want to start up a Nightclub in NYC

**masterstanf2k** · 05-23-2008 08:26 AM

There are plenty of these in NYC but I want to have a nightclub that serves a special kind of drink. Should I spill the idea here? Should I patent it first, or what? I'm not sure how to act. Additionally, I read about reuters.com/article/oddlyEnoughNews/idUSPAR64994620070606 - Powdered Alcohol, claimed to be legal to sell to minors. Could this be made available to US minors (served in our club), or which minors? Sure it may be immoral but the real reason for the drinking age is supposed wiser decisions of whether to drive or not after a drink, and I strongly oppose the need to be 21 as any idiot will choose to drive after drinking regardless of age. I'm sure we could form the term and conditions upon entry to remove liabilities and such.
I'm currently well linked with over club promoters and bouncers so getting people to "work" the place won't be an issue.
Anyways, the drink that I don't want to spill the beans on has been claimed as a GREAT idea by many (trustworthy) people I've told this idea to. I just don't know how to develop it (on my own: lack of capital) and how to state it here.

**jasaunders** · 05-23-2008 09:02 AM

Nightclubs are a tough business, especially in NYC. The best advice I could give you is to learn more about the industry by talking to people who already own nightclubs. Find ways to network with people who have experience in this area and learn as much as you can from them.

It sounds like you have two different concepts - a nightclub and a drink. It might be wise to seperate these into two different "projects." Otherwise, your risk increases as your success hinges on two things instead of one. Is this a drink that could be sold in liquor stores or grocery stores? If it's a health type drink, I know of a VC fund that is in the functional beverage industry that this might be of interest to.

**masterstanf2k** · 05-23-2008 09:18 AM

It's not a tough business at all. I'm a club hopper myself and do a lot of promoting for exclusive clubs, album promotion parties, model promoting, etc.
The (type of) drink will be served IN the club. It is NOT mentioned above.
The purpose of the powdered alcohol I spoke of is to possibly cater to a younger target market for a nightclub. Wanted to get feedback on this.

**Gaulkin** · 05-23-2008 09:41 AM

Actually it is a very tough business because people get bored very easily. My friends dad owned a club called qwench in Miami and was very successful for awhile but soon after things went down hill and he sold it. Now he owns two clubs in Jacksonville Florida called the twisted martini and those so far are doing great.

**rogercbryan** · 05-23-2008 09:52 AM

Originally Posted by masterstanf2k

It's not a tough business at all. I'm a club hopper myself and do a lot of promoting for exclusive clubs, album promotion parties, model promoting, etc.
The (type of) drink will be served IN the club. It is NOT mentioned above.
The purpose of the powdered alcohol I spoke of is to possibly cater to a younger target market for a nightclub. Wanted to get feedback on this.

Eeek... your comment above scares me... this is a very tough business to be SUCCESSFUL in.. you are right anyone could get a club up and running if they wanted too (almost anyone)... the problem is people do it for all the wrong reasons. A club at its heart is a business... if you treat it like anything else you could loose everything.

I see 2-3 business plans a month now from people who want to open a club. So far this year I have yet to see one that had a solid realistic financial plan. If you do not have a business plan that includes realistic financials then you should take a step back and get that done.

People always underestimate start-up costs and operating expenses and then they over estimate income. This is why most clubs have a life cycle of 6-18 months while using a break even point at 36-60 months. If you do the math.. thats not a good scenario.

**Fanatik** · 05-23-2008 11:21 AM

Very well put, Roger. I agree that it's not an "easy" business to be successful in. If you look at Vegas, for instance, the avg life span is even shorter. NYC is a different breed, but the same concept applies as is stated above. As for the "powder" drink, you're going to open a whole can of sh*t with that one. Once you start legalizing any type of alcohol-related recipe to minors, you're opening the doors for a lot of wrath. Whether it's boycotts on your club, disagreements over your practices, etc - it may not be worth it to play with that fire.

That said, you need to realize how long the lifespan of your club can/could be. Will you be changing the business model after the initial "honeymoon" phase of the club? Why will people be intent on coming back? You can have all the best people working there, but if you have no one coming to your club - you'll flop. You may take-off initially, but if your lifespan runs out, like most clubs, you're left with a piece of property and no interest.

There are some clubs out there that last quite a while, and it'd be beneficial for you to contact those owners. Although you may get some resistance in NYC, you could try other large cities, ask those club owners, and gain some insight. Saying it's not difficult is just a blind assumption. "If you build it, they won't necessarily come." let alone, come back.

**Gaulkin** · 05-23-2008 12:24 PM

Why not just go straight to the source of profit in a nightclub and just open a liquor store.

**masterstanf2k** · 05-23-2008 08:50 PM

you guys are undeniably understimating the effectiveness of night club promoters. The reason I'm looking to offer (2) new product(s) is to present something novel in the relatively saturated industry already.
Let me ask you guys something... explain to me how clubs like Webster Hall and Pacha (for those from NYC) are still alive when they charge ridiculous cover fees like $30-$40. That's MUCH worse than the all-exclusive nightclubs Tenjune, Stereo, Plumm and Marquee at which I personally partied with Lil Jon, Flo-Rida, Lindsay Lohan, Paris Hilton, Ashlee Simpson, and other well-known entertainers. Webster Hall is grimey, I'm sorry for lovers of this venue, but it is very outated in the scene, yet it is very alive. I may be wrong but the reason I feel it survives is because it appeals to all kinds of people. Music at these places ranges from HipHop, Rap, Trance, Techno, Reggaeton, Bachata, Salsa, etc. The real indicator of success in the scene is wide-appeal because it clearly leads to longevity. Hence, opening up something simliar and offering new products.

**Gaulkin** · 05-23-2008 10:18 PM

$30-40 is normal here in Miami and everything here is cheaper then in NYC. For someone that knows nothing about clubs except assumptions, don't you think your a little ahead of yourself? Sure you can say your a promoter and you've been in so many clubs, ive been in Walmart quite a few times but that doesn't mean i can open something similar to Walmart and be successful.

**Mega B** · 05-24-2008 03:17 AM

Gaulkin that bought a smile to my face,very witty about Walmart

**masterstanf2k** · 06-04-2008 10:29 PM

So, how do I go about introducing my novel drink idea to a possible business partner or investor?

**JohnnyBudZ** · 06-05-2008 03:14 PM

Originally Posted by masterstanf2k

you guys are undeniably understimating the effectiveness of night club promoters. The reason I'm looking to offer (2) new product(s) is to present something novel in the relatively saturated industry already.
Let me ask you guys something... explain to me how clubs like Webster Hall and Pacha (for those from NYC) are still alive when they charge ridiculous cover fees like $30-$40. That's MUCH worse than the all-exclusive nightclubs Tenjune, Stereo, Plumm and Marquee at which I personally partied with Lil Jon, Flo-Rida, Lindsay Lohan, Paris Hilton, Ashlee Simpson, and other well-known entertainers. Webster Hall is grimey, I'm sorry for lovers of this venue, but it is very outated in the scene, yet it is very alive. I may be wrong but the reason I feel it survives is because it appeals to all kinds of people. Music at these places ranges from HipHop, Rap, Trance, Techno, Reggaeton, Bachata, Salsa, etc. The real indicator of success in the scene is wide-appeal because it clearly leads to longevity. Hence, opening up something simliar and offering new products.

I have to agree with you on the Pacha statement. Even on TEEN night they will fill the club.

**Charles of 5DPI** · 06-05-2008 04:41 PM

Originally Posted by masterstanf2k

you guys are undeniably understimating the effectiveness of night club promoters. The reason I'm looking to offer (2) new product(s) is to present something novel in the relatively saturated industry already.
Let me ask you guys something... explain to me how clubs like Webster Hall and Pacha (for those from NYC) are still alive when they charge ridiculous cover fees like $30-$40. That's MUCH worse than the all-exclusive nightclubs Tenjune, Stereo, Plumm and Marquee at which I personally partied with Lil Jon, Flo-Rida, Lindsay Lohan, Paris Hilton, Ashlee Simpson, and other well-known entertainers. Webster Hall is grimey, I'm sorry for lovers of this venue, but it is very outated in the scene, yet it is very alive. I may be wrong but the reason I feel it survives is because it appeals to all kinds of people. Music at these places ranges from HipHop, Rap, Trance, Techno, Reggaeton, Bachata, Salsa, etc. The real indicator of success in the scene is wide-appeal because it clearly leads to longevity. Hence, opening up something simliar and offering new products.

Clubs survive based on the management team. It's a chemistry between prices, music (talented DJ's), promoters, marketing strategies, venue locations, and the kind of people that ultimately come. It's not easy.

I see more profitability in your drink than a club. Why? More money, less risk, more of a chance of out living a club lifespan.

You are a promoter. Promote your drink. Reap the rewards with little overhead (compared to a club). Enjoy way less headaches.

**Charles of 5DPI** · 06-05-2008 04:48 PM

Originally Posted by masterstanf2k

So, how do I go about introducing my novel drink idea to a possible business partner or investor?

Name It (something easy and memorable)
Design the logo, prepare a presentation with the drink.
Trademark the logo, patent the formula.
Use your contacts or any other means to introduce it to perspective venues/stores/distributors.
Repeat step 4 about a million times.

**masterstanf2k** · 06-05-2008 04:58 PM

Let me rephrase. It's a type of drink. It's something mixed with alcohol to impart a loss of the "taste" of alcohol.
The reason this needs further examination is because I'm interested in a process for serving this drink and this can't just be half-assed. It's as much the presentation as the functionality ("backend and frontend") of it.

The money to be made is all in the drinks, indeed. however, I want to have my own venue for serving it. There will be special training for the bartenders, special hours for serving this without alcohol (to induce appeal to minors), and further ways to make my venue unique.