New Club Venue Business Plan

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Executive Summary

Club Name is a new nightclub that will primarily focus on attracting the female students of local universities and high schools. The universities combined have a student population that exceeds 80,000 plus students and growing by 3% each year. The population of Houston is million with more than 25 % being between 18 and 35-year age range, which is our target audience. The nightclub will be located in a central location between all campuses. The area has bars and small nightspots that have been thriving for the past 10 years. Each establishment has very long lines every weekend and many customers are left outside in the parking lot. Recently, commercial space has become available in the central researched location between the campuses when two businesses relocated. Club Name will consolidate this space into a 15,000 square foot nightclub. The demographics for a 3 mile radius around this area are as follows; population 175,077; the average income $92,000, and the traffic count is about 35,000.

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New Club Venue Business Plan

  1. 1. Executive Summary Objectives Mission Keys to Success Company Summary Company Ownership Start-up Summary Products and Services Market Analysis Summary Market Segmentation Strategy and Implementation Summary Competitive Edge Sales Strategy Sales Forecast Management Summary Management Team Personnel Plan
  2. 2. 1.2 Mission Successful Night Clubs are based on an accurate understanding of the core customers. The mission of Club Name is to create an environment that satisfies the changing tastes and expectations of our core customers; i.e. college-age women. If the women come, the men will follow. In order to achieve this goal, we must constantly improve our response to the customers' entertainment needs. 1.3 Keys to Success  Provide exceptional service that leaves an impression with our core customers.  Consistent entertainment atmosphere and product quality.  Managing our internal finances and cash flow to enable upward capital growth.  Strict control of all costs, at all times, without exception.
  3. 3. Start-up Summary Club Name has three owners, Club Owner 1, Jr., Club Owner 3 and Club Owner 2, who will invest $5,000 together. Start-up Expenses Legal $2,000 Furniture $10,000 Sign $3000 Stationery etc. $500 Administrative Technology/Supplies $12,000 Insurance $6,000 Rent $18,500 Refit $25,000 Equipment $20,000 Audio/Lighting $20,000 Bar Equipment $10,000 Fees and Permits $7,000 General Upgrades $112,000 Marketing $10,000 Salaries Pre-Opening and first month $18,000 Total Start-up Expense $274,000 Cash Balance on Starting Date $136,000 Long-term Assets $230,000 Total Assets $366,000 Total Requirements $640,000 Funding Investment Club Owner 1 Jr. $1,250 Club Owner 3 $2,000 Club Owner 2 $1,750 Total Investment $5,000
  4. 4. Market Analysis Summary Club Name will focus on college-age women who are looking for a high energy, fun bar environment to socialize and dance. Of course, we are also focused on college-age men but it has been our observation that the club scene is driven by where women choose to spend their money when they go out with friends. At present, none of the local nightclubs create an environment that is responsive to the entertainment demands of this core customer group. This also extends to the areas surrounding the universities that we expect will attract new customers to Club Name. A high growth area, such as Houston, has an annual influx of new residents from many other parts of the country. This trend is true of Texas in general. Many new residents, as well as many existing ones, are members of clubs in other markets. Club Name is a place for all. The enabling technology will be an inherent part of Club Name's image. Advertising budgets and event promotion are ongoing processes of management geared to promote the brand name and keep Club Name at the forefront of the dance theme establishments in Houston’s marketing area. We depend on radio advertising as our main way to reach new customers. Our strategies and practices will remain constant, as will the way we promote ourselves:  Advertising -- We'll be developing a core-positioning message.  Grand Opening -- We will concentrate a substantial portion of our early advertising budget towards the 'Grand Opening Event.'  Direct Marketing -- We'll directly market to local hotels surrounding the powers and the local airport. The Nightclub will create an identity-oriented marketing strategy with executions particularly in radio media, alongside print ads, and in-store promotions. A grand opening event will be held to launch the Nightclub in the summer of 2004. A radio-advertising blitz will precede the event for three weeks, with ambiguous teasers about an "event like no other" in the city's history and the forthcoming opening date. Contests will be held on the target radio stations giving away V.I.P. passes (coupons) to the event while at the same time, creating excitement about the opening. We will leverage our relationship with the Sports Team Cheerleaders to be present on the night of the grand opening. The opening date is tentative at this point and dependent upon construction completion. The budget for the event will be $10,000, and the milestone date will parallel the available opening date, currently June of 2004.
  5. 5. Houston Texas Population (Harris County) Total population 3,400,578 100.0 SEX AND AGE Male 1,693,882 49.8 Female 1,706,696 50.2 Under 5 years 281,361 8.3 5 to 9 years 281,427 8.3 10 to 14 years 266,174 7.8 15 to 19 years 254,828 7.5 20 to 24 years 252,608 7.4 25 to 34 years 573,939 16.9 35 to 44 years 562,437 16.5 45 to 54 years 436,575 12.8 55 to 59 years 139,393 4.1 60 to 64 years 98,941 2.9 65 to 74 years 146,123 4.3 75 to 84 years 81,199 2.4 85 years and over 25,573 0.8 Median age (years) 31.2 (X) 18 years and over 2,416,022 71.0 Male 1,189,757 35.0 Female 1,226,265 36.1 21 years and over 2,267,881 66.7 62 years and over 308,823 9.1 65 years and over 252,895 7.4 Male 103,898 3.1 Female 148,997 4.4
  6. 6. We can't just market and sell another dance club; we must actually deliver on our promise of quality, service and a unique guest experience. We need to make sure we have the fun and service intensive staff that we claim to have. Competitive Edge There are three elements to Club Name's competitive edge. The first is the location, which is in easy driving distance for the entire university community. The area around Club Name is already a regular place for students gather to socialize in the evening. The second is the exceptional management team that has extensive experience and success managing nightclubs and bars. The third is our focus on attracting our core customer in every aspect of our planning. Club Name will have the following to attract and retain our core customers:  A larger ladies room area. Beyond its traditional uses, it’s also a place of social gathering and conversation. As a result, we will add additional square footage to this part of the venue including a couch, TV, music, and plenty of social space.  Floor design. No doubt, females are more observant of design, and the impression it conveys, than males are. Therefore, careful consideration will be put into everything from colors, to fabrics, and materials.  Music. This is a critical one. We will hire DJs who have the best satisfaction rate with the female clientele. Sales Strategy There will be a grand opening weekend in the summer of 2004, which the cover charge will be waived for all women customers. We will then establish a traditional Ladies Night, every Thursday. The cover charge will be $15 for ages 18 to 21 and $10 for 21 and up after 9pm. Customers will get in free before 9pm. These charges will take affect after the first full month of operation. This is cheaper than the downtown clubs. Our sales strategy is to open earlier and provide entertainment to bring in an early crowd before 10 P.M. Comedians and Comedy Acts will be booked into the early evening time slots and also pull in a diverse crowd by offering poetry recitation for the artistic and poetic that want exposure. Also Club Name will become a sports lounge where we will sell snacks and beers and front row seats to any Pay per View event or major sporting event. Along with these small promotions we will also bring live concerts with popular artist to boost sales. There will be a website made that will email our customers with
  7. 7. Daily Revenue Forcast This table illustrates our daily revenue forecast for 7500 total square feet. We are assuming a seating capacity for said space of 750 guests. In addition, we expect just less than one complete rotation of this space for food and beverage guests alike. Daily Revenue Breakdown ** Mon Tue Wed Thu Fri Sat Sun Weekly Total Guests Charged Admission 0 0 325 475 675 775 300 2,550 Average Admission Fee $7 $7 $7 $10 $10 $10 $7 $ 58.00 Total Admission Sales $0 $0 $2,275 $4,750 $6,750 $7,750 $2,100 $147,900 Total Bar Guests 0 0 350 550 775 1,100 200 2,975 Average Drinks per Person 0 0 3 3 3 3 3 15 Average Beverage Sales per Guest $0.00 $0.00 $10.00 $12.50 $12.50 $12.50 $12.50 $ 60.00 Average Price per Drink $0 $0.00 $3.75 $3.75 $3.75 $3.75 $3.75 $ 18.75 Total Beverage Sales $0 $0 $3,500 $6,875 $9,688 $13,750 $2,500 $178,500 Total Admission and Beverage Sales $0 $0 $5,775 $11,625 $16,438 $21,500 $4,600 $326,400 Total Food Guests 0 0 30 50 70 100 20 270 Average Food Sales per Guest $5.00 $5.00 $7.50 $7.50 $7.50 $7.50 $5.00 $ 45.00 Total Food Sales $0 $0 $225 $375 $525 $750 $100 $12,150 Misc. Sales (10% of Gross Sales) $0 $0 $578 $1,163 $1,644 $2,150 $460 $32,640 Total Revenue $0 $0 $6,578 $13,163 $18,606 $24,400 $5,160 $371,190 **based on 750-person capacity
  8. 8. Interviews for a general manager, operations manager, and all other personnel will be conducted under the advisement of Consultant. The co-presidents, Club Owner 1 and Club Owner 2, will make final decisions for each position. These gaps will be filled as the opening date draws closer. The Personnel Plan reflects the objective of providing an ample amount of service personnel. Our headcount will remain at thirty unless any unforeseen demands dictate otherwise. Assume a burden rate of 17%. Daily Staffing Hourly Staff Day Position Quantity Rate Avg Hrs Sub Total Burden Total Monday Staff Cost/Mon 0 $0.00 0.0 $0.00 $0.00 $0.00 Tuesday Staff Cost/Tues 0 $0.00 0.0 $0.00 $0.00 $0.00 Wednesday Waitress 2 $5.15 6.0 $61.80 Bartender 2 $3.50 6.0 $42.00 Security/Bouncer 2 $8.00 7.5 $120.00 Bar Backs 1 $6.00 5.5 $33.00 Doorman 1 $8.00 5.0 $40.00 Police Detail 1 $20.00 0.0 $0.00 Misc $15.00 0.0 $0.00 Staff Cost/Wed $296.80 $50.46 $347.26 Thursday Waitress 2 $5.15 6.0 $61.80 Bartender 6 $3.50 6.0 $126.00 Security/Bouncer 5 $8.00 7.5 $300.00 Bar Backs 2 $6.00 5.5 $66.00 Doorman 2 $8.00 5.0 $80.00 Police Detail 1 $20.00 0.0 $0.00 Misc $15.00 0.0 $0.00 Staff Cost/Thurs $633.80 $107.75 $741.55 Friday Waitress 2 $5.15 6.0 $61.80 Bartender 7 $3.50 6.0 $147.00 Security/Bouncer 7 $8.00 7.5 $420.00 Bar Backs 2 $6.00 5.5 $66.00 Doorman 2 $8.00 5.0 $80.00 Police Detail 1 $20.00 3.0 $60.00 Misc $15.00 0.0 $0.00 Staff Cost/Fri $834.80 $141.92 $976.72 Saturday Waitress 2 $5.15 6.0 $61.80 Bartender 7 $3.50 6.0 $147.00 Security/Bouncer 9 $8.00 7.5 $540.00 Bar Backs 2 $6.00 5.5 $66.00
  9. 9. Excellent quality product adds to our reputation. Good management skills that will contribute to a well-run business Good ability to extract information that can better our control of the business Weaknesses of the Business Being a new player. Credibility problem may affect initial sales Lack of systems which means that the company needs to develop systemized operational & sales techniques or sacrifice profits Opportunities in the Marketplace Add-on products such as Dinner Plates Which means that A potentially enormous market for Club to tap into by serving food. Growing market segments. We should target these segments. Location and Space available Our prime location, and our ability to fill club to max capacity every week Threats in the Marketplace Increasing supplier prices, resulting in reduced profitability. Declining size of the 1st segment. Need to focus on growing segments to spread the company's portfolio
  10. 10. The major task objectives for each area of the organization, together with responsibilities and timings are detailed in the Roll-Out Plan. Marketing Plan MARKETING OBJECTIVES Sales Objective To achieve sales by 25% to $100,000 Sales Objectives by Market Segment. #1 Segment: To achieve sales to $100,000 #2 Segment: To achieve sales to $170,000 #3 Segment: To achieve sales to $200,000 Other: To achieve sales to $30,000 PROMOTIONAL STRATEGIES Print Advertising Develop an entertainment flyer. June 200A Advertise in local publications Jan 200A Advertise monthly in magazines that are specifically targeted to the 1st and 3rd segments. Jan 200A Advertise monthly in magazines that are aimed at the general industry. Jan 200A Lead Generation Program Conduct monthly on-going lead generation program. Send out monthly direct mail leaflets with response coupons. Oct 200A
  11. 11. PRICING STRATEGIES Price Level Maintain price level in all segments at 5% higher than competitors to reinforce the quality image. Jul 200A Discounts Offer ½ off discount for VIP members. Jul 200A GENERAL MARKETING STRATEGIES Competitor Profile Keep updated competitor profile. Jun 200A Marketing information system Document on every enquiry "How did you hear about us?" Jul 200A Produce monthly sales reports by product, by market segment, by territory and by street promoter. Mar 200B
  12. 12. Wages Pay all wages on a monthly basis instead of weekly. Jan 200A Payback Ensure a payback on new equipment through sales of one year. Jun 200B Rent Negotiate new terms on the premises and reduce existing payments by 10% Aug 200B Bank Charges Renegotiate with the bank and consolidate some outstanding loans with lower interest rates. Aug 200B Organizational Plan ORGANIZATIONAL AND MANAGEMENT Next Year's Objectives Budget To not exceed the payroll budget of $300,000 Staff To employ or re-deploy a total of 10 full-time and part-time staff over the next year. HUMAN RESOURCE STRATEGIES Organizational Draw organizational chart. Aug 200A Develop incentive scheme related to job requirements. Aug 200A
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