Market research is a key success factor for a nightclub business idea.
Opening a nightclub without first conducting market research means taking on unreasonably high risks. This is due to the fact that the key condition for the success and popularity of a nightclub is the right choice of the target audience.
Night club: target audience
Depending on who the night club is designed for, you need to select the interior of the room, and the theme of the evening, and DJs, and the list of services offered. The definition of the target audience must be done based on the study of the surrounding area, the presence of higher educational institutions nearby, the method of conducting surveys, studying competitors.
Many entrepreneurs, betting on the opening of elite nightclubs, are often forced to compete for a very limited contingent of golden youth, who very often change their taste preferences, depending on fashion. As a result, having invested a lot of money in the creation of a nightclub, the entrepreneur does not have time to recoup it before the next fashionable institution appears.
It seems more practical to create a mid-level nightclub that offers a number of other entertainment in parallel. For example, equipping a bowling alley under the same roof as a nightclub allows you to have an influx of visitors not only in the evening, but also during the day, which increases the overall profitability of the establishment.
Night club: assortment and services
Marketing research and definition of the target audience will tell you how the nightclub will receive the bulk of the income.
For example, a mid-income nightclub can generate the bulk of its revenue from entry fees, with a low mark-up on drinks.
Another approach is free entry and a high markup on the menu offered. True, in this case it is necessary to pay more attention to the safety of visitors. Nightclub security costs under this option may exceed revenues from the sale of services.
Where is the nightclub located?
Determining the target audience as a result of marketing research will also help you choose the right place for the nightclub. The premises of a nightclub should be large enough to provide freedom for a large number of visitors, good sound, and organization of light shows.
The area of the main hall of the nightclub should be at least 300-500 square meters.
Very important conditions are high ceilings, and good cleaning and air conditioning. The location of a nightclub should provide for a car park and convenient access to the club.
In connection with the well-known events, rather high requirements are imposed on nightclubs in terms of safety, especially fire safety. Therefore, when opening a nightclub, it is necessary to take into account the costs of obtaining various permits from supervisory authorities.
Starting investments when opening a nightclub
The initial costs of organizing a nightclub will be the sum of the costs of acquiring, repairing and decorating the premises; for the purchase of specialized acoustic and lighting equipment, furniture, utensils, and so on; on the organization of protection; to the original advertising company.
The current costs of a nightclub consist of staff salaries, utility bills, rent, payment for security services, transportation costs, purchase of products and consumables, expenses for decorating the club’s premises for themed parties, and advertising campaigns.
The profitability of a nightclub business idea is highly dependent on the popularity of the establishment; the number of visitors; the list of services offered by the nightclub; margin levels, and so on.
Taking into account the many parameters that affect the profitability of a nightclub makes calculating the profitability of a project a rather complicated process, so we suggest you order services for the calculation and preparation of a high-quality business plan on our website .