5 Mistakes New Nightclub Owners Make

Mistake a New Nightclub Owners Make

Nightclubs can be an extremely profitable venture for aspiring owners, just take a look at the Nightclub & Bar Top 100 List to see the record-breaking revenue brought in by top nightlife venues across the country.

However, many nightclub businesses go under in their first year.  Here a just a few major mistakes those owners make, ultimately, putting them out of business.

Over Ordering: With the large selection of beverage choices, investing in to many products that you can’t move ties up valuable financial resources. The actual number of spirit choices will vary depending on the establishment, however looking at similar businesses and competitors in the area will give a good idea of how many options should be available to you customers. Sometimes less is more.

Mismanaging and Training Issues: New owners might hire the right people but if they don’t properly train or manage their new employees the potential for the business to go under significantly increases.  You staff should be able to interact with customers well, ensure that service standards and safety procedures are being met, and practice responsible alcohol service.

Neglecting Design Functionality: Insufficient setup will greatly hinder the ability of your staff to execute standard functions properly. When planning the layout of your nightclub make sure that the bar, VIP areas and service stations are both aesthetically pleasing and functional.

Underestimating the Power of Marketing: In addition to a comprehensive business plan a well-structured and thorough marketing plan needs to be established in order to succeed. We could go in depth about marketing for nightclubs but the main thing new owners need to understand is that they need to differentiate themselves.  A few key areas include: brand awareness, creative and profitable promotions, and embrace internet marketing.

Spreading Resources to Thin: Spreading your resources too thin creates major pitfalls. The most common and obvious culprit is financing. If you don't start with enough capital or you spend it on the wrong things. The financial woes of this industry can snowball at any time, so be prepared with backup capital. You should have enough to withstand the first few months. 


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