Term Paper on "Business Planning for a Nightclub"

Term Paper 6 pages (1642 words) Sources: 1+

[EXCERPT] . . . .

Prospective Business Plan

Suite 16"

This business plan lays the framework for a proposed upscale nightclub establishment to be named "Suite 16" and is to be located in the South Kensington area of London. The South Kensington area is one of considerable wealth and boasts numerous businesses both in South Kensington as well as in the surrounding areas of Knightsbridge and other parts of Kensington. There are a plethora of "Four- and Five-Star" restaurants and hotels. Tourists frequent these establishments as well as do local residents. At present there is only one nightclub existing in the Knightsbridge area, which goes by the name of "Wellingtons." The proposed nightclub "Suite 16" will be located a mere five-minute cab ride from Wellingtons while all other nightclubs nearby are at least twenty-minutes travel distance from Wellingtons and the location of the proposed "Suite 16" nightclub. Due to the distance in traveling to the downtown area accredited to the problematic traffic and parking in downtown London it is believed that the "clubbers" will gravitate between these two establishments and being fully entertained and accommodated will represent a market that is cultivated in the immediate area between the two clubs.

Objectives

The objective is one in which focus is toward the start-up of a nightclub establishment named "Suite 16" and to cultivate the local market and exploit that market for building a desirable clientele and over a period of time through "slow but stable growth" to build that clientele. The business will capitalize on a low number of competing restaurants in the same geographic area

Mis

Continue scrolling to

download full paper ⤓

sion

The stated mission is to open and assume business under the named "Suite 16" within the balance of the proposed investment and to provide to the public both tourists and local residents, a upscale nightclub with a relaxed atmosphere with uniquely exotic decor and amenities such as VIP rooms.

Company Summary

The company will be composed of prospective owner one and his father whose development company is involved in the project through development and funding.

Advertising and Promotional Activities

The following advertising and promotional methods will be used:

Email advertising

Clustered nightclub initiative advertising promotion between local clubs.

Website advertising quality public relations firm

Advertising though other clubs assistance in advertising, word of mouth, etc.

Evening Standard Newspaper

Membership Dues and Fees

After six months there will be a paying membership policy to begin. The fees for membership will be as follows:

300 pounds (150 pounds for Wellingtons club members)

After a year the membership fees will rise and will be in the amount of 500 pounds a year and 250 pounds a year for Wellingtons club members.

Members will be allowed VIP access on the nights of Thursday, Friday, Saturday and Sunday.

There will also be no entrance fees, which will normally be 15 pounds for non-guest and 10 pounds per those on the guest-list.

Business Days and Hours of Operation

The following days and hours are proposed for the hours of business operation of "Suite 16" Nightclub.

Monday night - Closed

Tuesday & Wednesday nights - Private parties could be scheduled to be held by public relations, companies, corporations, fashion houses (especially during London Fashion week), film companies, television companies, and could be scheduled as well for dance lesson clubs and other social clubs of public formation in the Kensington and surrounding area.

Thursday, Friday, Saturday and Sunday nights - Open for business.

(Note: a great public relations move would be to donate three or four nights a year to some charity in the area)

Music Format

The stated choice of music format by the prospective owner of "Suite 16" nightclub is that of "disco to rub." Legal licensing is required for this type of music format and may be obtained through city hall.

Business Funding for Start-up

The developing company and father of the prospective owner will provide 50,000 pounds in start-up funds with another projected 350,000 pounds to be procured through banking institution loans. Approximately one-half of this amount has been reserved for renovation and restoration of the nightclub which is inclusive of furnishing, decor but does not include whisky, champagne or wine stock and also in not inclusive of glassware or any other type of business stock.

Other start-up expense will include:

Fees licensing alcohol serving by establishment.

Staff - salary and wages

Staff- licensing fees for serving alcohol.

Labour - wages

Licenses- business operating license.

License - for playing of recorded music.

Sales Strategy

The sales plan is structured in working in coordinated effort with other club owners, specifically Wellingtons as well as three or four downtown London establishments in promotion of free memberships to Wellingtons club members for the first six months and then increasing membership fees after a year and depending upon the growth and popularity of the nightclub.

Competitive Advantage

Suite 16" is fully expected to hold a competitive advantage over the London downtown nightclubs in it's location, parking amenities, promotions for membership, upscale atmosphere, exotically furnished rooms as well as artful use of lighting throughout the club complete with tiled floors, polished brass and glass bar-back with mirrors and plants throughout the establishment. It would be a great business initiative to provide 'mini-banquet' services and accommodations during the holidays and for business meetings and conventions on a seasonal basis such as already mentioned during the London Fashion House week.

Market Segmentation & Analysis

The Totally London campaign was launched to encourage visitors-both Londoners and other tourists back into the capital' attractions. Following on from the success of this campaign, further activities are being planned. Leisure activities in London have grown by approximately 30% between the years of 1995 to 2001. " Stated is that: "Leisure activities employ nearly 300,000 people. These are significant figures on any reading and will become more important still." Further stated is that London has particular strength sin dining, theatre and cinema and visitor attractions." Furthermore the provision in jobs that extends from this business sector in both entry level and part-time jobs are "vitally important in giving the widest possible range of job opportunities to Londoners.

This report was done for identification of the opportunities and constraints that face the leisure sector. This is important the work states in "the way we support the visitor and tourist industries and provide leisure services for Londoners." (London's Mayor Livingston, 2003) Leisure activities are divided into six activities: drinking, dining, entertaining, sport, gambling and visiting. GLA Economics made estimates that leisure adds to London's economy of 9.5 billion pounds per year and 139 billion pounds per year to the economy nationally. The mayor states in his article that, "On these figures, London has a quarter of Britain's leisure economy, significantly more than its share of national GDP, which indicates a strong competitive advantage when it comes to leisure." and; "London's bars employ 58,000 people and have sales of up to £2.4 billion. Fifteen thousand people work in London's visitor attractions and the market is worth £380 million." (Livingston, 2003) Sales in London bars are roughly 2.4 million pounds employing approximately 58,000 individuals. (Livingston, 2003)

Visitors in London spend around 380 million pounds on an annual basis stimulating employment positions for over 15,000 individuals. Leisure is stated to be, "one of the fastest growing sectors in London." Although visitor rates are stated to "be falling" as of 2003. (Livingston, 2003) the licensing law of 2003 changed the outlook of the business relaxing restrictions on certain regulations. The population is experiencing rapid expansion with the age group of 25-34 being the group experiencing the most growth. The population of London is stated as being roughly 7.2 million with a 4.6% increase nationwide. The group that will live a longer life and will live more years in productive retirement characterizes the population growth. London is stated to be "overwhelmingly a… READ MORE

Download Full Paper

Write a New Paper for Me

Quoted Instructions for "Business Planning for a Nightclub" Assignment:

“

Question:

Maximum: 1500 words

Need to develop a business concept statement where the idea is made more tangible. To do this, you will need the following four questions:

1. What is the product or service being offered?

2. Who is the customer?

3. What are the benefits?

4. How do we get the product or service to the customer?

It needs to be demonstrated that the chosen industry and market have been researched so that the findings can be applied to the above questions.

I want my idea incorporated into the above mentioned assignment:

Basic ideas:

I want to start a nightclub in the South Kensington area of London. It is an area of considerable wealth with numerous types of businesses in the nearby surrounding areas of Knightsbridge and other parts of Kensington. Lot of hotels and restaurants of 4/5 star quality in the nearby. These areas are very frequently visited not only by residents but also by tourists. With there being only one renowned nightclub in the Knightsbridge area called Wellingtons, I thought this area would be the perfect opportunity to exploit this market. And with the prospective nightclub being only a 5 minute cab ride away from Wellingtons, this would mean clubbers who are at the Wellington would have another option to stay in the area instead of hitting other clubs in central London (downtown) which are further away and this way they would not have to be involved in the rush and traffic in going to clubs in central London which would be a further 15/20 minutes in taxi. Not only that there would be nearby parking amenities, if necessary.

Check the internet for demographics, further info about the area or email me.

I would be working in conjunction with the family business as the property of the prospective nightclub would be owned by my father’s real estate development company. Hypothetically I am going to say that my fathers company will provide me with £50,000 to start up this business; however I will need at least a further £350,000 from the bank. Hence the need for a business plan.

N.B CASH FLOW STATEMENTS WILL NOT BE NEEDED IN THIS ASSIGNMENT JUST GIVE A FEW BASIC FIGURES OF HOW MUCH WILL GO INTO RENOVATING THE PROPERTY AND TURNING IT INTO NIGHTCLUB, FEES FOR ALCOHOL, STAFF, labour, LICENCE FEES…………….

Personally I think just under half can go on renovation as the look and feel of the club will be extremely important. The type of club I want to be described is exotic looking, loungie type, with chilled out vibe.

max number of people 600, with 3 vip rooms.

(look at this website: http://www.finestclubs.com/index2.asp

http://www.belugablues.com/index.php

to get a feel for the type of place I want you to describe) WANT SOMETHING LIKE le Cabret in Paris. Minimalist therefore should not be expensive to renovate.

We could also work with the above mentioned companies to create publicity. Sure they would require a certain fee, this way members of the following websites would get info about SUITE 16.

club name: suite 16

TYPE OF MUSIC PLAYED: Rnb to disco

I want to work together with other top clubs/bars in London possibly3 to 4 but mainly with Wellington club. I can offer some sort of promotion eg free membership to Wellington members for first 6 months then slowly increase club membership fees depending on how popular the club is.

Advertising can be done in the evening standard newspaper. Creating hype. There will be no drinks promotion as the club is catering generally for wealthy who don’t really care how much they pay for drinks. Drinks prices will be virtually similar to other exclusive members clubs.

Also numerous number of member clubs whose lets say owners I know can advertise.

Advertising can also be done via email, ie creating a website, getting email addresses of people by attending other clubs and getting researcher(Public relations company: top quality) to ask promote new club in other club with permission.

Initial process will be slow, like most new businesses won’t be busy for first few months however as word of mouth get around, and if the initial impression set is positive it should get a lot busier. With people going out wanting change after a year. They don’t want to visit the same club year in year out.

When the paying membership policy starts after 6 months. Club will offer free £70 with caviar to new members.

There will be various types of champagne, whiskeys, cocktails………. available.

Initial Membership: Free

6 months later: £300 (Wellington Club members: 150

After a year : £500 ( Wellington club members: 250.

Members will also be allowed vip room access in club nights which should be on:

Thursday, Friday, Saturday and Sunday night

Also they will not have to pay entrance fees which will be set at around £15 for non guestlist or £10 for guest list

Monday night closed, Tuesday night and Wednesday night we could offer private parties to be held by PR companies, corporations, fashion houses(especially during London fashion week), film and tv companies……………………. At cheaper rate than competitors.

TO THE *****: IF YOU HAVE ANY SORT OF IDEAS, PLEASE PUT THEM FORWARD.

WHAT I NEED IS THE IDEAS I HAVE PUT FORWARD TO BE STRUCTURED IN AN EXCELLENT AND COHERENT BUSINESS PLAN. A LOT OF RESEARCH WILL BE NEEDED. PLEASE DON’T HESISTATE TO CONTACT ME IF YOU HAVE QUESTIONS. REMEMBER ITS ONLY 1500 WORDS.

How to Reference "Business Planning for a Nightclub" Term Paper in a Bibliography

“Business Planning for a Nightclub.” A1-TermPaper.com, 2005, https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379. Accessed 28 Sep 2024.

Business Planning for a Nightclub (2005). Retrieved from https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379

A1-TermPaper.com. (2005). Business Planning for a Nightclub. [online] Available at: https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379 [Accessed 28 Sep, 2024].

”Business Planning for a Nightclub” 2005. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379.

”Business Planning for a Nightclub” A1-TermPaper.com, Last modified 2024. https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379.

[1] ”Business Planning for a Nightclub”, A1-TermPaper.com, 2005. [Online]. Available: https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379. [Accessed: 28-Sep-2024].

1. Business Planning for a Nightclub [Internet]. A1-TermPaper.com. 2005 [cited 28 September 2024]. Available from: https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379

1. Business Planning for a Nightclub. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/prospective-business-plan-suite-16/4820379. Published 2005. Accessed September 28, 2024.

Related Term Papers: