Starting a Club Business
Choose Location and Crowd
Before starting a club, the prospective owner has to have a good idea of the crowd that she is seeking to attract. This will help guide all of the owner’s future decisions about set up and promote the club. The type of crowd also gives the club owner an idea of where the club should be located. For instance, if a business person wants to open a club for cost-conscious college students, it would probably choose a location within walking distance to a college campus, offer cheap beers, and advertise beer specials.
Insure the Business
You cannot operate a nightclub (and sleep at night) without having full nightclub insurance coverage for the club. Nightclub insurance can be fairly expensive compared to other insurance options, but it is worth every penny when you think of the money that a night club owner can lose if things go awry. Nightclub insurance includes property, casualty, and liquor insurance. So if there is any type of loss at the club, the business is covered.
A dance club would be nothing without supplies, including liquor, beer, and food. The prospective club owner has to quickly develop relationships with liquor and food distributors in the area for regular deliveries.
Design the Club
Once the club owner settles on a location, the next step is bringing in a crew to take care of the club design, including the floors, walls, and bar. The bar is the central part of the club—besides the bathroom, the bar is one of the first places that people visit when they enter a club. The club designers or owner will also be responsible for purchasing bar stools, tables, chairs, and other items.
When a new club or bar is opening, the owners will usually hold a recruiting session for bartenders, barbacks, waiters, bouncers, DJs, and kitchen staff. These employees need to be hired well in advance of the club opening so that they can be trained.
The main goal of a new club owner is to bring as many people into the club on opening night (and beyond) as possible. To do this, the owner will hire promotional teams who are responsible for getting the word out about the club to the local and extended community with flyers, radio campaigns, and word of mouth advertising.