'Nightclub' - Start Up

[Celtic Traveller]

Hi guys,

New to posting on the forum, but I tend to read around a lot.

I've located a brilliant business opportunity in South Wales to start up a Nightclub. I've no background experience in running or operating them, I have people in the industry and friends who would manage it. I'm looking to start it up.

Works out that a safe £15,000 to £18,000 would be ideal. But my original figure was £10,000 - though with clubs they're often a hell of a lot higher.

The obvious problems start where I only have £3,000. Banks don't lend to opportunities like this, I have a bad credit rating, and had to resign from my last job four weeks ago.

I've scouted around. Low credit means no real loan, I have no property to my name or guarantors. I'm debating whether it's worth giving up before it's ever begun. I've looked into things like CrowdCube and Crowdfunder, Angels, and so forth. But haven't tried any of it.

What's your thoughts on Shares?

Natural response (If I get one at all) I'm expecting is 'don't do it', but it's something I'm quite passionate about. Got the personal license and support available, just no start up.

Any constructive advice would be appreciated.

Thank you.

 

[businessfunding]

Natural response (If I get one at all) I'm expecting is 'don't do it', but it's something I'm quite passionate about. Got the personal license and support available, just no start up.

Any constructive advice would be appreciated.

Thank you.

Don't do it. Seriously - the failure rate is unbelievably high.

Your budget on the other hand seems unbelievably low. What have you costed into that?

Get a job in the trade and learn about it.

If you insist, you will need to get funding from friends and family (perhaps an informal equity fund) - there is zero chance of any sort of foremal / insitutional funding for this.

Sorry, but I have seen far too many crash and burn.

 

[Celtic Traveller]

I choose the clubs because originally it was going to be a tied pub with Admiral or Enterprise, but figured the opportunity was there for a free of tie club instead, so is the demand. Though I've heard recently clubs are on the decline, understandable really - but still profitable.

Everything's factored into that. From insurance to plumbing, furnishings to stock etc. I've worked in bars before, and it seems I can always point out where the flaws are in the poor operation of the premises. What seems obvious to one probably isn't to another. Just happen to have no experience running one.

There really is a truly, stupidly low chance then?
I thought so.

What's your take on the pub industry, because that feels like an even worse opportunity.

Thanks for your feedback.

 

[businessfunding]

There is still money to be made in the pub industry if you do it right (I guess there is still money in clubs, but proportionately more get it wong and spend tends to be higher).

In almost every case, ingoing tenants or owners underestimate spend required - this is very problematic when you are effectively starting an insolvent business.

Look at your projections and be very-, very strict with yourself - if you are still convinced that the model works start thinking about who can support you, perhaps as a business partner and investor.

I still wouldn't personally

 

[WJP]

A quick way to lose a lot of money fast if you don't know what you're doing. There's a reason most successful clubs are run by people who've been working in the industry for years.

 

[LeasingEval]

There is also a reason that many nightclubs have no problem losing money hand-over fist - just like taxi firms they are an idealic vehicle for money laundering.

 

[Duke Fame]

Night clubs struggle unless you get lucky & are very good at it. If you watch 24 hour party people, there is a line where he explains why the Hacienda failed. Basically the club can't officially sell drugs and you'll not make a fortune selling water for 2 nights a week. Unless it's a student area, the club has to make a weeks takings in one or two nights. You need to get a big clientele who are prepared to drink a lot and do so every night of the week.

Whilst there is difficult money in clubs, think live music venue, food, comedy or even lap dancing.

Your start up costs seem ridiculously low.

 

[Celtic Traveller]

The only competitor is one street away earns £12k on average, per week. Primarily on there Friday and Saturday, complimented heavily by there entry fee. A couple of pub's, and that's all. It's a very high density student area, with a lot of musical talent around. The previous big club only closed down because the owner passed away. It's a scorching deal. I believe the moneys there, the demand is also. I believe in it, but it's not enough without the initial capital. This isn't for a high end wine bar, it's second hand furnishings of leather sofa's & chairs. It's an Indie/Alternative club with 80% of it still intact. From disco lights right through to the cellar. I think it just requires someone with creativity, initiative and some balls. But It's time to accept that there's not much hope in finding the money, and will start to look at other opportunities out there! Thanks all.

 

[Duke Fame]

If you are confident of those figures and can present it without any holes in the plan, someone will invest if it's 'only' 18k.

If your figures are right, the start up costs are paid for in 2 weeks. That seems too good to be true.

 

[90DC]

As others have said, successful nightclubs are ran by people who have lived the industry for a number of years. However, with the correct expertise, anybody can set up.

I know a bloke in Chester who runs a pub with live music playing most evenings, pool tables and all, gets great trade and he set up on next to nothing. It's loud, the beer isn't cold, you get a double vodka served in a pint glass, it doesn't appeal at all to the wine drinking middle classes, but somehow, it is highly popular.

 

[megamuel]

As others have said, successful nightclubs are ran by people who have lived the industry for a number of years. However, with the correct expertise, anybody can set up.

I know a bloke in Chester who runs a pub with live music playing most evenings, pool tables and all, gets great trade and he set up on next to nothing. It's loud, the beer isn't cold, you get a double vodka served in a pint glass, it doesn't appeal at all to the wine drinking middle classes, but somehow, it is highly popular.

Out of curiosity what pub is that? I'm from Chester and also in the pub trade!

 

[90DC]

Out of curiosity what pub is that? I'm from Chester and also in the pub trade!

I can't remember the name if I'm honest. Pretty sure it's on the A51 just outside of the main City Centre and 5 minute walk from Premier Inn.

Googled it and not found anything that shouted out at me, but definately not Bar69, but near there. Sorry.

Which one are you associated with? I've been in a few around there. Chester, for a while, was like a fourth home to me, must go again.

 

[megamuel]

Not this place is it?

http://maps.google.co.uk/maps/place...ed=0CBMQ-gswAA&sa=X&ei=iiWOT5e0N8TZ8QPKkLisDQ

The Chester Hangman? It used to be called 'Last Orders' and before that 'Jones's'. It seems to match the description you gave and is also near a premier inn although not sure if it is the premier inn you are referring to. Bar 69.... Oh dear! I actually work about 6 miles away from Chester (I will PM the name for reasons I'll explain!) but I drink in Chester regularly. There are some great new bars, you should visit again!

Sam.

 

[megamuel]

Not this place is it?

http://maps.google.co.uk/maps/place...ed=0CBMQ-gswAA&sa=X&ei=iiWOT5e0N8TZ8QPKkLisDQ

The Chester Hangman? It used to be called 'Last Orders' and before that 'Jones's'. It seems to match the description you gave and is also near a premier inn although not sure if it is the premier inn you are referring to. Bar 69.... Oh dear! I actually work about 6 miles away from Chester (I will PM the name for reasons I'll explain!) but I drink in Chester regularly. There are some great new bars, you should visit again!

Sam.

 

[90DC]

It could well be the Chester Hangman. It certainly looks familiar.

The pub in question has a pool table on the left as you walk in and in an almost seperate (Think you may have to walk down a couple of steps) bit on the right, there is a stage and area for people to watch the acts. (Not best at describing things!) They tend to do grungy types of music and the floors tend to be sticky, but it's a quite friendly pub.