ENTREPRENEURIAL SERIES part 3 - NIGHT CLUB BUSINESS

 Night clubs

 While anyone can afford a decent bottle of beer at a regular parlour or bar, most night clubs target a much richer and luxurious market. Drinks in clubs (depending on their location and sophistication) can sell for up to 10 times their regular price in bars.

In the upscale parts of Lagos (Nigeria) for example, night clubs make a killing from major wine and champagne brands like Cristal, Dom Pérignon, Moet et Chandon, Veuve Clicquot etc. Prices at these clubs can vary widely, with a standard bottle of Moet & Chandon sold at N 38400, while bottles of Cristal go for as high as N 320,000 or more.

And many bottles of these expensive bubbly are sold on most club nights.

While clubs can make an entrepreneur a lot of money in a short time if managed properly, it usually requires a lot of money to start up and promote.

A lot of investment will be needed to get a prime location in a part of the city that attracts the kind of customers you’re looking for.

Other capital intensive areas include putting the interior design and architecture together, quality sound systems, a great DJ and well trained staff.

How to get started in the business of bars and night clubs in Nigeria – Some important things you need to consider…

During our research for this article, we found some key elements of a bar and nightclub every entrepreneur needs to consider before diving into this business.

Here they are…

(a) Location
Location is extremely crucial to the success of a nightclub; and can mean the difference between success and failure.
Your preferred location should be in an area with huge potential for customer traffic – such as densely populated middle- to high-income communities.
A nightclub or bar located beside a church may attract a smaller clientele than one located beside a shopping mall or residential area. This should be pretty obvious, I guess.
Also check out the presence of competition in the area, and whether the location may be able to absorb more bars or nightclubs who may want to come in after you’ve started. Never underestimate the power of new competition to easily put you out of this business!
(b) Entertainment and Fun 
Most people who visit bars and night clubs want to have fun, relax and be entertained. What’s your plan to keep them satisfied and loyal to your bar?
Depending on the environment and the tastes of your market, popular forms of providing entertainment include live bands and performances, DJs,

Emcees, Comedians, sports and games on TV, theme-based parties (like masks and costumes), and gaming facilities such as pool tables, darts, video games or pinball machines.
Some nightclubs, particularly in Asian countries, even provide special rooms for karaoke singing. Find out what works (or will work) in your location and use it to your advantage!
(c) Layout of the bar/club 
A growing number of bars and nightclubs are targeting various audiences, which requires different rooms and layout in the club.
A nightclub can have an elaborate dance floor in the center with a DJ booth. Spectator seating can be provided to accommodate anywhere from 30 to 500 guests depending on the size of the club. Many clubs also offer private party seating such as cordoned-off VIP areas or private rooms intended for special events.
Some nightclubs also have bars and dining room areas for those who prefer a more relaxing atmosphere.
(d) Distinctive design features 

The right decor can often spell the difference between a filled-to-the-brim nightspot and an empty one.

The decor embodies the concept of the nightclub. It will set the tone for the type of the club you are and the kind of customers you want to attract.
A mahogany and leather designed club may be targeted at upper class patrons, while a mirror-and-smoke designed club will attract the young, hip and dance aficionados. Many clubs are also going for the high-tech look with video screens, as well as state-of-the-art lighting and lasers.
(e) Exceptional service 
Quality of service is a critical success ingredient of every bar and nightclub. Customers demand attention and friendly service, while feeling safe and protected inside your premises.
If you want your bar or nightclub to be known for the quality of its service, you need to have an adequate-to-high ratio of service personnel to customers (one service personnel to every 15 customers, or even better). You must also provide continuous training to your staff with regards to customer management and relationships.
(f) Quality food and drinks 
Quality is also essential to the success of a bar/nightclub that serves food. You can offer a simple menu with traditional bar appetizers while customers drink, dance and enjoy themselves. Some nightclubs even go as far as offering food similar to that found in conventional dining restaurants.

Bars and Night clubs in Africa remain an interesting business opportunity

As you look forward to running an exciting bar or night club business, you will have to consider the huge commitment and long hours of work that come with this venture. You many never be able to spend your own holidays or weekends with friends and family due to the high volume of business during these periods.
While this may be no problem to some people, entrepreneurs who have a family (or are planning to have one) need to consider the impact of operating this kind of business which often involves very late night activity (night clubs) and sexual temptations. This can often take its toll on relationships with your family and friends.
Unless you can hire experienced and professional management from the outset, it’s often good sense to be involved in the early stages of running the bar/night club so you can become familiar with the business. When things start to settle, you could gradually allow trained staff and management to take over the day-to-day running of the bar/club.
If you believe this type of business could cause problems for you or your family, it’s wise to pass up this idea and choose from many other amazing business ideas in the Business ideas section of this website.

Recommended reading…

In the course of our research for this article, we came across a number of interesting resources that will provide you with further detailed information about starting your own bar or restaurant.
How to Start a Nightclub Business sheds more light on the subject and things you need to look out for.
Nightclub Business Plan is a full sample business plan for setting up a nightclub, just in case you plan to pitch to investors.
We would love to hear from you about your successes, challenges, advice and questions. Do not forget to leave a comment in the section below and share this opportunity with your friends using the Facebook, Twitter and Google+ buttons below.
To your success!
 

yugoboss

Research credits: www.smallstarter.com