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| Out with the fog... In with the facts |
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| Monday, 08 February 2010 08:29 |
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This FAQ addresses a few of the common questions sent to Nightclubbiz.com. Some of the answers are somewhat verbose, but that's better than vague/ ambiguous explanations. Other answers are shorter and more accurately addressed by speaking to us in person. We'll be adding to this FAQ periodically. Click on any question to see the answer:
Know about what exactly? That's like saying I've never built a car before -what do I need to know? The problem with posting a generic startup list is that it's misleading. There's no such thing as 20-steps to getting started in the nightclub business, for if there were, we would have already written the book on it. Each startup and the priority of issues to consider are unique to the concept, marketplace, and goals of the entrepreneur. The main site pages attempt to provide a general introductory to the nightclub business, but again... We really avoid anything that promotes a simple, all in one approach.
How do I go about determining what type of nightclub concept will work? Nightclub concepts are often confused with 'décor schemes'. People are not going to flock to your nightclub, or show up week after week spending lot's of money because... You've spent yourself silly on yet another out of this world interior theme, music no ones ever heard of before and endless screaming about how you're the hottest, new place on the block. Please get over this... It is SO done.
The actual concept is what matters. Are you attracting a sane ratio of males to females? Can you attract an audience 'beyond' clubbers, kids, and the traditional local nightclub following, which as typical… Is a meager, marginally profitable audience that 5 other similar venues are competing for as well?
Are people having a good time? Are people interacting with one another? Does the atmosphere make it easy for people to meet, romance, and eventually, well, you know… Can you establish an indistinguishable brand and identity, or will the local promoter be your flavor of the night? If you can so much as manage to get these few things right, THEN you may actually have a chance of attracting an audience that actually shows up before midnight… Spends real money… And actually becomes loyal to your brand.
Should I hurry and compose great big business plan? Probably not... 90% of aspiring nightclub operators are mistakenly led to believe that investing many thousands of dollars and countless hours of time into a nightclub business plan is one of the first steps to moving forward. In the vast majority of cases, the business plan ends up on the shelf. Since only a very very small number of nightclub proposals ever get funded, (and largely because they're premature), you may want hold off on this, or if you must, consider a 7 to 10-page executive summary instead. For more help on composing a nightclub executive summary, and or when to consider a full scope business plan presentation see this document.
Generally no and for a host of reasons we're not going into here. In short, nightclubs are not high mileage machines. They reach their prime early in the game. After that, they usually take a gradual or sharp downward slope. Some operators sell as soon as this prime is reached. To the layman nightclub investor, the past 12-months of searing revenue performance can create the illusion of a turnkey cash cow with many great miles left. Maybe, but not likely… You see, in this business, everything is not always as it seems. Before you cut that check for $750,000 to 3.5-million, speak to us first. We'll work with you in determining the actual merits of the offering. As always… Everything in this business looks great on first impression and on paper too.
My nightclub is about to be shut down. Can you help? Indeed… Nightclubs do have a habit of getting themselves into trouble, but what matters is that you're reading this, which means you've taken the first step to admitting a problem in the operations model. How do we know this is where the problem is? Easy… Because nightclubs do not get into trouble through bad luck or unfortunate happenstance -there's always a 'cause and affect' factor no matter how much many operators claim they're being unfairly targeted.
Fixing a nightclub in trouble is not always easy, depending on how deep its dug itself in. And contrary to misguided belief, fixing a distressed nightclub is rarely as simple as changing one single thing, and or other silly nonsense, such as bringing in promoters, DJ's, or spending yourself silly on gimmick based ideas. Before you begin writing checks, or committing to someone's grandiose (I can fix your nightclub) sales pitch, consider speaking with us first. It'll cost you a lot less money.
I need help in finding a nightclub investor. Can you help? Maybe… Nightclub investors are few and far between. This is due to the high failure rate resulting from many mom and pops diving into the business head first with (what they believe) is the cash cow concept of a lifetime. 75% says it'll fail within the first 12-months and sure enough, it usually does. Sadly, some poor investor/s have lost a substantial amount of money and as the result of putting their faith into some amateurs ill thought out idea. Sounds mean? Perhaps… But it's also cold, hard, reality and… This is why you here at Nightclubbiz.com :)
In case anyone's wondering… Nightclubs rarely fail because the market had no interest in nightclub entertainment -they fail because the entrepreneur and or management FAILED to understand the innate characteristics of the unique marketplace, thus how to provide a product that was actually appealing to them.
Consequently, investors are somewhat leery on risking their dollars on yet another (great idea gone south) nightclub venture. Additionally, investors have become the wiser to understanding nightclub investments, and most notably proposals /business plans that are so cookie-cut it's almost comical. One prime example excerpt… We're serving exotic cocktails, in a mind-blowing themed out lounge, with big name DJ's, promoters, and blah blah blah… We're projecting year-1 revenue of 4-million. Year two… 6-million, and so fourth. Yawn… Looks like the last 300-nightclub proposals we've looked over. Dull, boring, and predictable… Again that may sound pretty cold, but investors are MUCH colder and not terribly forgiving. Why should they be?
At any rate, attracting the interest of lenders for a nightclub venture is becoming increasingly difficult. The high return on investment is most certainly there, however the talent to do so is often not! If you've hit a dead end regarding issues, consider speaking to Nightclubbiz.com personally and at very least we can steer you away from the disasters, which will render your nightclub proposal DOA.
How about all this free "how to start a nightclub" info floating around on the web? Hmm… How about all this "make a million laying in bed" info and get rich schemes floating around the web? LOL So you want to discuss free stuff… Well actually, Nightclubbiz.com "outside of its 22,000 page knowledge base" packs more free and "useful" information on its main pages than anyone in this arena.
Pages upon pages of redundant information, which is as canned as it gets. Canned meaning, "here's a generic way to open a nightclub." Here's what the bouncers do… Here's what the bartenders do… And you need is music, DJ's, lights, and promotions… DUH! Most 12-year olds could tell you this. Sort of like saying, to build a car, you need to know about the gas peddle, breaks, wipers, and the muffler. Shakes head...
A few other clowns have hacked excerpts of information from nightclubbiz.com in a fool heartedly attempt to create 10-step guide to opening a nightclub. You read through several pages, which are designed to get you excited. WOW! I know about the spark plugs... Now I'm ready to build a 9.5 second car.
And no big surprise... After a few more clicks, you're pitched on books and guides, which promise to get you well on your way to launching a high cash flow entertainment venture. Sigh… We find it hard to believe that anyone would actually take any of this nonsense seriously. But then again… Many want to believe that getting into the nightclub business is really that easy. Well… Just remember where the industry failure rate stands…
Other sites offer a combination of idealistic approaches and pedantic babble, largely based on someone's single-minded perspective of 'life in a nightclub'. Unfortunately, they fail to provide any information that's useful in figuring out how to proceed in a 'specific' marketplace, but foremost… How to beat the 75% odds of becoming another nightclub failure.
Finally there are the ultra hyped sales sites. Yeah.. We've all seen these ones. PICK US… PICK US… We're the nightclub experts!! Generally the tackiest looking sites on the web, which are riddled in claims, pitches, and promises of having all the solutions to your problems. We're not sure what's worse… The Grade five structure and grammar observed on a number of these sites, or the web design, which looks as if it were made from a program on a CD ROM, given away in a Cornflakes box. And these supposed experts are going to advise people on a $500,000 to 3-million dollar business venture?
After much reading through these sites, one particular question continues to come to mind, which is who exactly are these people and what's the extent of their operations background? Titles, portfolios, and million dollar success stories disregarded… You need tangible evidence to backup those claims with.
More disillusioning is the increasing amount of ambiguity being conveyed through success stories and even portfolios, which appear to be nothing more than a red herring -a means to divert attention away from the real issue, which is the 'scope of real operations background' and whether the entity is actually qualified to be giving advice on an exceptionally high risk business venture.
The problem with claims or success stories in the nightclub business is that…. They could never be verified with any degree of certainty in a million years. Nightclubs frequently change hands, expire, or disappear into the night so to speak, thus rendering references and testimonials somewhat moot. The reason for this is simple: Anyone, such as a friend, family member, or the man in the moon for that matter can be coached to endorse these claims upon receiving the inquiring phone call from a prospective buyer.
But is there anyway at all to verify claims and success stories? In theory yes: Success stories and portfolios would need to be accompanied with P&L statements, cash balance sheets, and or 'certifiable' copies of 1040, 1065, 1099, or W-2 returns, which certify the gross and net income of the business, and or individual.
Additionally, those claiming award-winning success stories in nightclubs they've supposedly consulted would 'also' need to quantify those claims through a "Before and After" disclosure of the above financial statements. THEN we'd have a means to actually measure their success, as opposed to little more than (take my word for it) claims. Financial performance… At the end of the day, this is all that really matters! Dreams and bedtime stories don't pay bills…
We're not accusing these individuals of grossly exaggerating or telling fibs -All we're saying is to put your money where your mouth is. If you're going to claim you can make people rich in the nightclub business overnight… Then BE PREPARED to back up those claims with incontrovertible proof -not talk! How about Nightclubbiz.com? We don't make grandiose assertions like that, nor do we utilize blatantly deceptive tactics, which are really designed to shift readers attention away from the real issues they need to consider.
In conclusion, the very idea of comparing Nightclubbiz.com to the increasing amount of doo doo's now appearing on the web is something we consider insulting. You get what you pay for, and if the opening price of $69.95 to too much to swallow, then how you're going to seriously pursue a $500,000, to 5-million dollar business venture is anyone's guess. Just remember that about 99% of proposed nightclub ventures do not move much beyond that of a dream on paper.
The focus of Nightclubiz.com is to work with operators in designing social entertainment concepts that attract a money spending demographic, as opposed to the proverbial (here today, gone tomorrow) crowd.
The shear volume of nightclubs that literally pull down their pants and bend over in desperate attempts at filling a room is beyond unfathomable at times. The indisputable truth is this: Nightclubs can generate unbelievably large amounts of income, and are quite likely the highest cash flow business next to casinos. You do however; need the concept and experience to attract people who will actually spend money. That's the hard part…
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| Last Updated on Saturday, 27 February 2010 19:48 |