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BUSINESS PLAN WILD OASIS
1039 Thurman Avenue Cliff, Massachusetts 01862
The Wild Oasis nightclub provides a local solution to the lack of dance and live music venues in a medium-sized market, and will help keep late-night entertainment expenditures within the region. The company's good grasp of how to market a nightclub adds to the plan's attractiveness.
ORGANIZATIONAL PLAN MARKETING PLAN MANAGEMENT PLAN
Photo by: DWP
FINANCIAL DOCUMENTS
ORGANIZATIONAL PLAN Industry Description Dance clubs in the 1990s have significantly impacted cities from coast to coast. Los Angeles Hollywood, New York's Times Square, and Seattle's Pioneer Square are just a few examples. Dazzling their audiences with high-powered lights, sound, and music, these venues are still one of the highest cash flow businesses in the world. Studies have shown that the average person will spend three to four hours per weekend in an entertainment environment and will spend an average of 20 to 50 dollars in that timeframe. This trend also shows no signs of declining. The typical dance club is open from 9:00 P.M. to 2:00 A.M. (/knowledge/AM.html), and within this span of five hours, the venue can achieve gross revenues anywhere from $5,000 to $35,000 nightly. The primary sources of revenue in a nightclub are high-volume traffic, coupled with nominal spending. In addition to alcohol revenues, a nightclub also generates substantial revenues from door charges that can typically range from five to ten dollars per person. For example, a 1,000-person capacity nightclub will typically accommodate approximately 1,500 people in the five-hour span of operation. A $5 door charge, in addition to a conservative figure of $12.25 collected from each patron in alcohol sales, would generate approximately $30,000 in nightly revenue. Nightclubs in the late 1980s and early 1990s focused on spectacular light shows and energetic dance music. This relatively simple concept is still quite popular today. However, these concepts have greatly evolved with society. In recent years this industry has become more sophisticated with the availability of new technology. Larger metropolitan areas have taken this technology to new heights with sound and lighting designs that create an exciting and memorable experience. Fortunately, no one in the downtown Cliff area has capitalized on this specific segment of the industry to date. Additionally, the nightclub industry is shifting towards a more entertainment-oriented concept. Guests of these clubs are not only offered a dynamic place to dance, but also a place to participate in the entertainment through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as possible. Nightclubs and other drinking establishments rely heavily on their primary suppliers. The primary suppliers are the various beverage distributors that provide the establishment with both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and liquor) are the primary sources of income in this industry. Other beverage suppliers also play a crucial role by providing non-alcoholic beverages. These are either served alone or mixed with alcohol. In the Cliff area, all major brands of alcoholic beverages are available, in addition to several regional brands of beer. Initial research shows that the major distributors in the market have a high rating in both product availability and delivery.
Business Description The resurgence of the downtown Cliff area represents a unique opportunity for a high-energy dance club. The city's central location, demographics, and lack of direct competition are major advantages to this project. The proposed club—tentatively named "Wild Oasis"—will provide a local solution to the lack of dance and live music venues geared toward the 21 to 35 age group in the Noble County area and will help keep late night entertainment expenditures within the region. The development of the University of Waters Cliff campus has been, and will continue to be, a major catalyst in bringing people to the area. With current enrollment of over 1,300 students, the year-and-a-half old campus is slated for steady expansion through 2010 when enrollment is expected to hit 6,000 students. Additional surrounding educational institutions (two universities, two community colleges) also contribute to the potential customer base. Other proposals in the area such as the Multiplex Theatre and shopping center will also greatly impact the city's traffic flow and nightlife. The new nightclub will specialize in high-energy dance music with a quality light show, and will offer beer, wine, and an array of liquors and mixed drinks. In addition, the club will sell non-alcoholic beverages such as soft drinks, juices, and bottled water. A small food menu consisting mostly of appetizers and small entrees ranging in cost from $6 to $9 will also be available. The initial hours of operation will be 8:00 P.M. to 2:00 A.M. Wednesday through Saturday. The club will draw primarily from the Cliff market while attracting guests from the area's other major cities in the state.
Club Design Our goal is to provide a comfortable and welcoming environment as well as a unique, exciting nightclub experience. This dance club will feature high ceilings and a contemporary look with dynamic upscale decor, furnishings, and color scheme modeled after a big city loft. The central area of the club will consist of a large dance floor with cocktail (/knowledge/Cocktail.html) seating along the perimeter and a large bar located nearby. A VIP lounge (/knowledge/Airport_lounge.html) for special guests is also being explored. The focus of the club's design will be to create a highly social atmosphere. This will be achieved through the placement of couches, booth seating, and a quieter lounge area located away from the dancing and music. State-of-the-art (/knowledge/State_of_the_art.html) sound and lighting will round off the club's environment. A RMS point-of-sale system will be put into place and will serve as a sales, labor, and liquor/inventory control system. This system will ensure an accurate, secure, and efficient control over labor costs, as well as day to day inventory, thus minimizing the possibility of loss or theft.
MARKETING PLAN Area Analysis The geographic target market for this nightclub is all of Noble County, which includes the city of Cliff and many others. Current population of the county is over 680,000 people, 26% of whom fall into the proposed age demographic (21 to 35) for the club. This number is expected to rise significantly over the next decade. Cliff, the city in which the proposed club will reside, is Noble County's largest city, accounting for 28% of the total population, and the third largest city in the state. The 51-square-mile city has been nationally recognized for its outstanding quality of living in national consumer magazines. There are several contributing factors behind the emergence of the downtown area of Cliff. The $70 million redevelopment of the University of Waters Cliff campus has been the largest stimulus for economic growth in the area to date. Various other projects, including a multiplex theater, shopping center, marina, numerous restaurants, and residential housing, have been proposed or are currently in development. Growth in the area is also attributable to the expansion or relocation of major corporations representing the computer, sportswear, and aircraft production industries. Many of these companies have created new, higher-technology jobs in the areas that have welcomed in a younger and more affluent workforce. Cliff was chosen as the location for the new club for several reasons. First, the city is an emerging market with lower real estate rates and at the same time high levels of commercial development. Second, Cliff lacks direct competition from other dance clubs. The next major city, which is over 45 minutes away from downtown Cliff, maintains a highly competitive nighttime entertainment market yet poses little threat to the development of a Cliff dance club.
Site Analysis The proposed location for the venue is at 1039 Thurman Avenue on the first and second floors of the Pfeiffer Building. Thurman Avenue is the downtown area's primary commercial business street, and has excellent freeway and back street access. The club would occupy approximately 7,300 square feet (5,500 downstairs and 1,800 upstairs) of the building. This location is centrally located to many existing and proposed attractions in downtown Cliff. Its second-story addition provides for an excellent nighttime view of parts of the city and the Mark Anthony Waterway. The site and the proposed club are a perfect fit. The Pfeiffer Building is the creation of its current owner, a prominent local developer responsible for downtown's newest office complex, the Maximus (/knowledge/Maximus.html) Building. His experience with renovation of historic buildings will facilitate the development of the nightclub. Additionally, the Pfeiffer Building resides in one of downtown Cliff's busiest intersections with access to the city's major interstate freeways. Plans for the building include installation of high-speed Internet connections in an effort to attract technology companies. Thus far, a technology firm as well as a local recruiting company already have agreed to lease space.
Target Market & Demographics The primary target market for this venue is the age group of 21 to 35. Market research indicates that the demand for a new dance club in Cliff among this demographic is very high. Most are tired of the existing scene and are looking for a local place to dance, meet people, and have a good time. Currently, high-energy dance clubs are only found in the next largest city, but the 45-minute drive north discourages much of Noble County's market from frequenting these venues. This, coupled with the tremendous current and forecasted growth throughout the region, indicates that the time is perfect for such a venture in Cliff. The market research study included men and women within the target market that do, or would, support the downtown Cliff nightclub entertainment industry. The most common responses and comments regarding existing venues in the area were: Not enough room to dance Tired of the existing sports bar/tavern (/knowledge/Tavern.html) atmosphere Existing venues play the same music every night; no variety Low quality light and sound Lack of energy and excitement; too low key Therefore, the venue being proposed will address all of these concerns. It will maintain a heavy focus on dancing—offering the largest dance floor in the downtown area—and will offer a high-energy, very social atmosphere for the prospective market. The interior will be designed with an upscale decor and the lighting and sound will drive the ambience. Most of all, the music will be consistent, but not played out. DJs will be responsible for playing a variety of music our patrons like, from Top 40 to remixed techno to hits from the 1970s and 1980s. Demographic data obtained from Noble County's web site demonstrates that the region contains over 175,000 individuals within our target market, 26% of the total population. Estimates indicate an expected 3-4% annual growth over the next 10 years.
Population Estimates for 1999 Noble County Total Population
682,450
Total Males (by age) 21 to 25
27,733
26 to 30
27,431
31 to 35
35,756
Total Males (21 to 35)
90,920
Total Females (by age) 21 to 25
24,667
26 to 30
26,802
31 to 35
35,347
Total Females (21 to 35)
86,816
Total Target Demographic
177,736
Percentage of Total Population
26.04%
Promotions Promotional efforts are critical to the proposed club's success. Accordingly, the venue will offer nightly, weekly, and monthly promotional specials. These promotions will help to stimulate excitement for the new club, thus leading to high traffic and exposure. The main idea is to offer a new entertainment experience night after night. This is the key ingredient for success and profitability, as well as longevity, in the nightclub industry. Proposals include: Prize giveaways Nightly dance floor and stage contests Cooperative promotions with local radio stations Entertainment will be provided by charismatic disc jockeys featuring a blend of current Top 40 and dance music. During the week, special theme nights and promotions will be used to attract a more diverse crowd, and to increase the number of customers who frequent the dance club. These theme nights will change as popularity and demand dictate. The market will be targeted and reached via the following primary vehicles: advertisements (/knowledge/Advertisements.html) in local print media, strategically broadcast radio spots, and an Internet web site. Advertisements printed in the local and college newspapers, as well as broadcasts (/knowledge/Broadcasting.html) over the local radio stations will provide exciting club information on current promotions and specials. A more "grass roots" marketing campaign also will be employed. This includes club representatives and spokespersons attending area events, postering of college campuses, a "prize patrol" van, and other person-toperson marketing efforts.
Competition The new nightclub will meet a demand in the Cliff area that is not currently being served. We will provide a high quality, energetic nightclub while maintaining a safe, secure atmosphere for guests to enjoy themselves and the surroundings. Providing a safe nightclub is essential to maintaining customer loyalty and growth. Therefore, security at the new club will be top priority. Currently, nighttime competition in the area is limited to mostly bar/tavern facilities including McArthur's, Lucky Six, Jubilee, The Harbor, and Westside Elite. Only Jubilee and The Harbor offer large-scale dancing facilities. The proposed club will be the largest dance facility in the downtown area. While the proposed club will be in direct competition with these other facilities, it also will attract a different clientele of individuals seeking a superior dance venue which can currently only be found in the next largest city in the state, 45 minutes away. Our review of the market concludes that there are four entertainment venues that can be considered direct competition to the proposed new venue. We do realize that the proposed venue will also compete indirectly for every entertainment dollar spent in the Cliff area.
McArthur's
Hours of Operation: 5:00 P.M. - 2:00 A.M.
Wednesday - Saturday
Capacity: 300
344 W. 5th Ave.
Dance Floor: 450 square feet Wed. College Night ($1 beers)
This nightclub appeals to a college crowd seeking cheap drinks The club is known for being dingy and dirty
Jubilee
Hours of Operation: 10:00 A.M. - 2:00 A.M.
Monday - Sunday
Capacity: 400
422 Main St.
Dance Floor: 700 square feet Thurs. College/Ladies' Night
This club appeals to 25- to 35-year-olds Pool and video games are central focus. Dancing is pushed to the back of the club
The Harbor
Hours of Operation: 6:00 P.M.- 2:00 A.M.
Wednesday - Saturday
Capacity: 250
3rd and Broadway
Dance Floor: 500 square feet Varies week to week
This club's target customer is 25 to 45 years old / middle class or above This club is known for its older, dressed up crowd and cramped space
Lucky Six
Hours of Operation: 11:00 A.M.- 2:00 A.M.
Monday - Sunday
Capacity: 350
23rd and Republic
Dance Floor: 325 square feet Varies week to week
This club's target customer is 25 to 45 years old This club is known for live jazz and blues entertainment, and their draught beers
MANAGEMENT PLAN Ed Tiller will fulfill the role of Owner/Operating Partner of this venture. He is currently the president of XTZ. Mr. Tiller's background is largely within the scope of business development and project management as well as commercial and residential construction. His fields of expertise will be utilized in this venture via his direct responsibility for the overall business management structure and personnel. Additionally, he will assume the public relations and marketing roles for the club. XTZ has contracted entertainment industry specialists, SVC Nightclub and Bar Services, Inc. Their involvement will exist in several facets, most notably, through providing assistance in launching this nightclub venue. SVC has over 12 years of experience in the nightclub industry and has assisted many first-time club operators in getting their proposed venues off the ground successfully. SVC will assist in the development of the design, concept, and strategies of the new nightclub. SVC is also a full-service advertising agency and will assist in all production and placement of all advertisement for the new venue. In addition, they will assist in the hiring process of the management staff, disc jockeys, bartenders, waitresses, and security staff. They will also provide educational services (/knowledge/For_profit_education.html) for management-level personnel who will be responsible for the day to day operations of the club. Interviews for a general manager, bar manager, and all other personnel will be conducted by Joe Sorge of SVC. Final decisions for each position will be made by Mr. Tiller.
FINANCIAL DOCUMENTS Summary of Financial Needs 1. The company is seeking a loan for start-up purposes for a new nightclub venue in Cliff, Massachusetts. 2. Funds needed to accomplish goal referenced above will be $200,000. Applicant will require the entire $200,000 to finish project build-out.
Loan Funds Dispersal Statement We will utilize the anticipated loans in the amount of $200,000 to renovate the approximate 7,200-square-foot space and purchase equipment necessary for the startup of a new nightclub venue.
Capital Expenditures Audio & Lighting Lease Program Includes: amps, speakers, all wiring, installation, equipment, and labor.
$2,700.00
Bar Equipment Includes: 3 compartment sinks, liquor racks, reach in coolers, installation, and labor.
$17,500.00
Bar Supply (Opening Inventory) Includes: all liquor, beer, wine, and consumables for opening.
$7,000.00
Cash Reserves/Operating Capital Operating Capital and contingencies
$74,550.00
Exterior Signage Includes: neon, design, artwork, installation, and labor.
$2,500.00
Fees and Permits Includes: all relevant fees.
$3,500.00
FFE Includes: all furniture, fixtures, equipment, i.e.; carpet, tables, chairs, etc.
$44,000.00
Impact Fees Includes: charges by utilities for upgrades to usage.
$0.00
Initial Marketing Includes: initial campaign, design, artwork, audio, video, production, and labor.
$17,450.00
Interior Refit Includes: demolition, actual construction of bars, walls, floors, mezzanine, etc.
$11,500.00
Kitchen Upgrade Includes: purchase of equipment (used), installation of hood and equipment, and labor.
$1,250.00
Legal Includes all legal fees (/knowledge/Attorney_s_fee.html): Accountant, Attorneys, Engineers, Architects.
$2,500.00
Opening Salaries & Deposits Includes: deposits on all accounts, opening salaries, special purchases.
$12,500.00
Paper Products Includes: purchase of all paper type operating supplies
$750.00
Point of Sales Systems Includes: purchase, installation, and labor for entire sales system
$1,300.00
Restroom Refit Includes: purchase of fixtures, existing demolition, installation, and labor.
$1,000.00
Total Capital Expenditures
$200,000.00
Revenues The estimated revenues are based on a 350 capacity nightclub venue, with an average daily incoming traffic ranging from approximately 225 to 325 guests Wednesday through Saturday. These forecasts are considered somewhat conservative based on the size and scope of the market. Additionally, each guest is forecasted to spend an average of $8 to $13 on beverages, depending on the night. The total door covers are less than the bar covers, due to special promotions and VIP passes. Door cover charges are anticipated to be five dollars.
Daily Revenue Breakdown *based on 350-person capacity
Mon
Tue
Wed
Thu
Fri
Sat
Sun
Weekly
Total door covers
0
0
225
225
325
325
0
1,100
Average cover charge
$0
$0
$0
$5.00
$5.00
$5.00
$0
$3.98
Total admission sales
$0
$0
$0
$1,125.00
$1,625.00
$1,625.00
$0
$4,375.00
Total bar covers
0
0
375
425
455
455
0
1,710
Average drinks per person
0
3
3
4
4
4
3
3.03
Average beverage sales per person
$0
$0
$8.00
$10.75
$13.00
$13.00
$0
$11.34
Average price per drink
$0
$3.75
$3.75
$3.75
$3.75
$3.75
$3.75
$3.75
Total sales on beverages
$0
$0
$3,000.00
$4,568.75
$5,915.00
$5,915.00
$0
$19,398.75
Total admission and beverage sales
$0
$0
$3,000.00
$5,693.75
$7,540.00
$7,540.00
$0
$23,773.75
Food sales (5% of adm. and bev. sales)
$0
$0
$150.00
$284.69
$377.00
$377.00
$0
$1,188.69
Misc. sales (0.0% of gross sales)
$0
$0
$0
$0
$0
$0
$0
$0
Gross sales
$0
$0
$3,150.00
$5,978.44
$7,917.00
$7,917.00
$0
$24,962.44
Expenses Based on local industry averages, publications from ALPHA Nightclub & Bar Services, and Entrepreneur Magazine 's Bar/Nightclub Start-up Guide, we have generated the following expense figures. These figures are based on an approximate 7,200 square foot venue with a capacity of 350 guests. The following page illustrates the staffing scenario for the new nightclub venue.
Daily Staffing Breakdown (*based on 350-person capacity) Hourly Employees WEDNESDAY
POSITION
QUANTITY
RATE
AVG HOURS
Waitresses
2.5
$6.00
7
$105.00
Security
4
$8.50
7
$238.00
Bartenders
2.5
$6.00
7
$105.00
Barback
1
$6.00
8
$48.00
Cook / Misc
1
$8.00
8
$64.00
SUBTOTAL
Total Staff Cost for Wednesday
BENEFITS & TAXES (17%)
TOTAL
$560.00
$95.20
$655.20
SUBTOTAL
BENEFITS & TAXES (17%)
TOTAL
$602.00
$102.34
$704.34
SUBTOTAL
BENEFITS & TAXES (17%)
TOTAL
$602.00
$102.34
$704.34
SUBTOTAL
BENEFITS & TAXES (17%)
TOTAL
THURSDAY POSITION
QUANTITY
RATE
AVG HOURS
Waitresses
3
$6.00
7
$126.00
Security
4
$8.50
7
$238.00
Bartenders
3
$6.00
7
$126.00
Barback
1
$6.00
8
$48.00
Cook / Misc.
1
$8.00
8
$64.00
Police Detail
0
$8.00
7
$0.00
Total Staff Cost for Thursday FRIDAY POSITION
QUANTITY
RATE
AVG HOURS
Waitresses
3
$6.00
7
$126.00
Security
4
$8.50
7
$238.00
Bartenders
3
$6.00
7
$126.00
Barback
1
$6.00
8
$48.00
Cook / Misc.
1
$8.00
8
$64.00
Police Detail
0
$8.00
7
$0.00
Total Staff Cost for Friday SATURDAY POSITION
QUANTITY
RATE
AVG HOURS
Waitresses
3
$6.00
7
$126.00
Security
4
$8.50
7
$238.00
Bartenders
3
$6.00
7
$126.00
Barback
1
$6.00
8
$48.00
Cook / Misc.
1
$8.00
8
$64.00
Police Detail
0
$8.00
7
$0.00
Total Staff Cost for Saturday
$602.00
$102.34
$704.34
TOTAL WEEKLY STAFFING COSTS - HOURLY EMPLOYEES
$2,366.00
$402.22
$2,768.22
SALARIED EMPLOYEES SALARY: YEARLY
POSITION
WEEKLY
BENEFITS & TAXES (17%)
Manager 1 - Oper Prtnr
$50,000
$798.08
$163.46
Manager 2 - General Mgr
$50,000
$798.08
$163.46
Manager 3 - PR Mgr
$0
$0.00
$0.00
Manager 4 - Bar Mgr
$22,500
$359.13
$73.56
Manager 5 - Asst.
$0
$0.00
$0.00
Entertainment
$44,000
$846.15
TOTAL WEEKLY STAFFING COSTS SALARIED EMPLOYEES
$2,801.44
TOTAL
$400.48
$3,201.92
TOTAL WEEKLY STAFFING COSTS - OVERALL
$5,970.14
Pro Forma Cash Flow Statement - First Year Page 1 (Month 1 - 6, plus six-month total)
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
SIXMONTH TOTALS
Cash Sales - Admissions
$21,875
$17,500
$17,500
$17,500
$21,875
$17,500
$113,750
Cash Sales - Beverage
96,994
77,595
77,595
77,595
96,994
77,595
504,368
Cash Sales - Food
5,943
4,755
4,755
4,755
5,943
4,755
30,906
TOTAL CASH AVAILABLE
$124,812
$99,850
$99,850
$99,850
$124,812
$99,850
$649,023
Cost of Goods Sold Beverage
$22,309
$17,847
$17,847
$17,847
$22,309
$17,847
$116,005
Cost of Goods Sold - Food
1,664
1,331
1,331
1,331
1,664
1,331
8,654
Hourly Wages & Benefits
13,841
11,073
11,073
11,073
13,841
11,073
71,974
Total Variable Expenses
$37,814
$30,251
$30,251
$30,251
$37,814
$30,251
$196,632
Management Salaries
16,010
12,808
12,808
12,808
16,010
12,808
83,250
China, Silver, Glassware
123
98
98
98
123
98
638
Point of Sale
583
583
583
583
583
583
3,498
Audio & Lights
1,750
1,750
1,750
1,750
1,750
1,750
10,500
Equipment Rental
0
0
0
0
0
0
0
Licenses & Permits
216
173
173
173
216
173
1,125
Linens/Uniforms
481
385
385
385
481
385
2,500
Janitorial
2,163
1,731
1,731
1,731
2,163
1,731
11,250
Supplies
1,202
962
962
962
1,202
962
6,250
Miscellaneous Direct Op. Exp.
721
577
577
577
721
577
3,750
Total Direct Operating Expenses
23,249
19,066
19,066
19,066
23,249
19,066
$122,761
Music and Entertainment
2,404
1,923
1,923
1,923
2,404
1,923
12,500
Advertising and Promotion
8,654
6,923
6,923
6,923
8,654
6,923
45,000
Credit Card Commission
624
499
499
499
624
499
3,245
Liquor Taxes
0
0
0
0
0
0
0
Professional Fees
481
385
385
385
481
385
2,500
Insurance
721
577
577
577
721
577
3,750
Admission Taxes
1,094
875
875
875
1,094
875
5,688
Excise Taxes
15,602
12,481
12,481
12,481
15,602
12,481
81,128
Property Taxes
0
0
0
0
0
0
0
Miscellaneous
962
769
769
769
962
769
5,000
Expenses
30,540
24,432
24,432
24,432
30,540
24,432
158,811
Management Fee
2,704
2,704
2,704
2,704
2,704
2,704
16,226
Rent
9,000
9,000
9,000
9,000
9,000
9,000
54,000
Repairs and Maintenance
417
417
417
417
417
417
2,500
Utilities
2,000
2,000
2,000
2,000
2,000
2,000
12,000
Long-Term Loan Repayment
3,605
3,605
3,605
3,605
3,605
3,605
21,630
Total Fixed Expenses
$68,811
$58,520
$58,520
$58,520
$68,811
$58,520
$371,701
C. Interest
0
0
0
0
0
0
0
D. Taxes (39.45%)
3,992
3,992
3,992
3,992
3,992
3,992
23,951
TOTAL CASH PAID OUT
$110,617
$92,763
$92,763
$92,763
$110,617
$92,763
$592,284
CASH FLOW
$14,195
$7,087
$7,087
$7,087
$14,195
$7,087
$56,739
CUMULATIVE CASH FLOW
$14,195
$21,283
$28,370
$35,457
$49,652
$56,739
For Year 1 GROSS SALES
EXPENSES A. Variable Expenses
B. Fixed Expenses Direct Operating Expenses
General and Admin. Expenses
Total General and Admin.
Page 2 (Month 7 - 12, plus twelve-month total)
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
YEAR END TOTALS
Cash Sales Admissions
$21,875
$17,500
$17,500
$21,875
$17,500
$17,500
$227,500
Cash Sales Beverage
96,994
77,595
77,595
96,994
77,595
77,595
1,008,735
Cash Sales - Food
5,943
4,755
4,755
5,943
4,755
4,755
61,812
TOTAL CASH AVAILABLE
$124,812
$99,850
$99,850
$124,812
$99,850
$99,850
$1,298,047
Cost of Goods Sold Beverage
$22,309
$17,847
$17,847
$22,309
$17,847
$17,847
$232,000
Cost of Goods Sold Food
1,664
1,331
1,331
1,664
1,331
1,331
17,307
Salary & Benefits
13,841
11,073
11,073
13,841
11,073
11,073
143,947
Total Variable Expenses
$37,814
$30,251
$30,251
$37,814
$30,251
$30,251
$393,264
Salaried Employees
16,010
12,808
12,808
16,010
12,808
12,808
166,500
China, Silver, Glassware
123
98
98
123
98
98
1,275
Point of Sale
583
583
583
583
583
583
6,996
Audio & Lights
1,750
1,750
1,750
1,750
1,750
1,750
21,000
Equipment Rental
0
0
0
0
0
0
0
Licenses & Permits
216
173
173
216
173
173
2,250
Linens/Uniforms
481
385
385
481
385
385
5,000
Janitorial
2,163
1,731
1,731
2,163
1,731
1,731
22,500
Supplies
1,202
962
962
1,202
962
962
12,500
Miscellaneous Direct Op. Exp.
721
577
577
721
577
577
7,500
Total Direct Operating Expenses
23,249
19,066
19,066
23,249
19,066
19,066
245,521
Music and Entertainment
2,404
1,923
1,923
2,404
1,923
1,923
25,000
Advertising and Promotion
8,654
6,923
6,923
8,654
6,923
6,923
90,000
Credit Card Commission
624
499
499
624
499
499
6,490
Liquor Taxes
0
0
0
0
0
0
0
Professional Fees
481
385
385
481
385
385
5,000
Insurance
721
577
577
721
577
577
7,500
Admission Taxes
1,094
875
875
1,094
875
875
11,375
Excise Taxes
15,602
12,481
12,481
15,602
12,481
12,481
162,256
Property Taxes
0
0
0
0
0
0
0
Miscellaneous
962
769
769
769
962
769
10,000
Expenses
30,540
24,432
24,432
30,348
24,625
24,432
317,621
Management Fee
2,704
2,704
2,704
2,704
2,704
2,704
32,451
Rent
9,000
9,000
9,000
9,000
9,000
9,000
108,000
Repairs and Maintenance
417
417
417
417
417
417
5,000
Utilities
2,000
2,000
2,000
2,000
2,000
2,000
24,000
Long-Term Loan Repayment
3,605
3,605
3,605
3,605
3,605
3,605
43,260
Total Fixed Expenses
$68,811
$58,520
$58,520
$68,619
$58,712
$58,520
$743,402
C. Interest
0
0
0
0
0
0
0
D. Taxes (39.45%)
3,992
3,992
3,992
3,992
3,992
3,992
47,902
TOTAL CASH PAID OUT
$110,617
$92,763
$92,763
$110,424
$92,955
$92,763
$1,184,568
CASH FLOW
$14,195
$7,087
$7,087
$14,388
$6,895
$7,087
$113,478
CUMULATIVE CASH FLOW
$70,935
$78,022
$85,109
$99,497
$106,391
$113,478
CASH RECEIPTS
CASH PAYMENTS A. Variable Expenses
B. Fixed Expenses Direct Operating Expenses
General and Admin. Expenses
Total General and Admin.
Three-Year Income Projection Year 1
Year 2
Year 3
Total 3 Years
Cash Sales - Admissions
$227,500
$241,150
$248,385
$717,035
Cash Sales - Beverage
1,008,735
1069,259
1,133,415
3,211,409
Cash Sales - Food
61,812
65,520
69,452
196,784
Gross Sales
$1,298,047
$1,375,930
$1,415,251
$4,125,227
Cost of Goods Sold - Beverage
232,009
238,969
246,138
717,117
Cost of Goods Sold - Food
17,307
17,827
18,361
53,495
Gross Margin
$1,048,730
$1,119,134
$1,186,751
$3,354,615
Hourly Wages & Benefits
$143,947
$148,266
$152,714
$444,927
Total Variable Expenses
$143,947
$148,266
$152,714
$444,927
Management Salaries
$166,500
$171,495
$176,640
$514,635
China, Silver, Glassware
1,275
1,313
1,353
3,941
Audio & Lights
21,000
21,000
21,000
63,000
Point of Sale
7,000
7,000
7,000
21,000
Equipment Rental
0
0
0
0
Licenses & Permits
2,250
2,318
2,387
6,955
Linens/Uniforms
5,000
5,150
5,305
15,455
Janitorial
22,500
23,175
23,870
69,545
Supplies
12,500
12,875
13,261
38,636
Miscellaneous Direct Op. Exp.
7,500
7,725
7,957
23,182
Total Direct Operating Expenses
$245,525
$252,051
$258,772
$756,348
Music and Entertainment
$25,000
$25,750
$26,523
$77,273
Advertising and Promotion
90,000
92,700
95,481
278,181
Credit Card Commission
6,490
6,685
6,885
20,061
Professional Fees
5,000
5,150
5,305
15,455
Insurance
7,500
7,725
7,957
23,182
Admission Taxes
11,375
11,716
12,068
35,159
Excise Taxes
162,256
167,124
172,137
501,517
Property Taxes
0
0
0
0
Miscellaneous
10,000
10,300
10,609
30,909
Total General and Admin. Expenses
$317,621
$327,150
$336,964
$981,735
Management Fee
$32,451
$33,425
$0
$65,876
Rent
$108,000
$112,320
$116,813
$337,133
Repairs and Maintenance
5,000
5,150
5,305
15,455
Utilities
24,000
24,720
25,462
74,182
Long-Term Loan Repayment
43,260
43,260
43,260
129,780
Management Fee
0
0
0
0
212,711
218,875
190,839
$622,425
Total Fixed Expenses
$775,857
$798,075
$786,575
$2,360,508
TOTAL OPERATING EXPENSES
$919,805
$946,341
$939,289
$2,805,435
EARNINGS BEFORE INT, DEPREC, AND TAXES
$128,926
$172,793
$247,462
$549,180
Interest
0
0
0
0
EARNINGS BEFORE DEPREC AND TAXES
$128,926
$172,793
$247,462
$549,180
Depreciation
7,500
7,500
7,500
22,500
EARNINGS BEFORE TAXES
$121,426
$165,293
$239,962
$549,180
Taxes (39.45%)
47,902
65,208
94,665
207,775
EARNINGS AFTER TAXES / NET PROFIT
$73,523
$100,085
$145,297
$318,905
Net Profit (Loss) (as a percentage of Sales)
5.7%
7.3%
10.0%
7.7%
INCOME
VARIABLE EXPENSES
FIXED EXPENSES Direct Operating Expenses
General and Admin. Expenses
Extended Cash Flow Analysis REVENUE:
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Cash Sales Admissions
$227,500
$241,150
248,385
$255,836
$271,186
$279,322
Cash Sales Beverage
1,008,735
1,069,259
1,133,415
1,167,417
1,237,462
$1,274,586
Cash Sales - Food
61,812
65,520
69,452
71,535
75,827
$78,102
Cash Sales Miscellaneous
0
0
0
0
0
$0
TOTAL REVENUE
$1,298,047
$1,375,930
1,451,251
$1,494,788
$1,584,476
$1,632,010
Cost of Goods Sold Beverage
$232,009
$238,969
246,138
$253,523
$261,128
$268,962
Cost of Goods Sold Food
17,307
17,827
18,361
18,912
19,480
$20,064
Cost of Goods Sold Miscellaneous
0
0
0
0
0
$0
Hourly Wages & Benefits
143,947
148,266
152,714
157,295
162,014
$166,875
Management Salaries
166,500
171,495
176,640
181,939
187,397
$193,019
China, Silver, Glassware
1,275
1,313
1,353
1,393
1,435
$1,478
Audio & Lights
21,000
21,000
21,000
21,000
21,000
$21,630
Point of Sale
7,000
7,000
7,000
7,000
7,000
$7,210
Equipment Rental
0
0
0
0
0
$0
Licenses & Permits
2,250
2,317
2,387
2,459
2,532
$2,608
Linens/Uniforms
5,000
5,150
5,305
5,464
5,628
$5,796
Janitorial
22,500
23,175
23,870
24,586
25,324
$26,084
Supplies
12,500
12,875
13,261
13,659
14,069
$14,491
Miscellaneous Direct Op. Exp.
7,500
7,725
7,957
8,195
8,441
$8,695
Music and Entertainment
25,000
25,750
26,522
27,318
28,138
$28,982
Advertising and Promotion
90,000
92,700
95,481
98,345
101,296
$104,335
Credit Card Commission
6,490
6,685
6,885
7,092
7,305
$7,524
Liquor Taxes
0
0
0
0
0
$0
Professional Fees
5,000
5,150
5,305
5,464
5,628
$5,796
Insurance
7,500
7,725
7,957
8,195
8,441
$8,695
Admission Taxes
11,375
11,716
12,068
12,430
12,803
$13,187
Excise Taxes
162,256
167,124
172,137
177,301
182,620
$188,099
Property Taxes
0
0
0
0
0
$0
Miscellaneous
10,000
10,300
10,609
10,927
11,255
$11,593
Rent
108,000
112,320
116,813
121,485
126,345
$130,135
Repairs and Maintenance
5,000
5,150
5,305
5,464
5,628
$5,796
Utilities
24,000
24,720
25,462
26,225
27,012
$27,823
Management Fee
32,451
33,425
Long-Term Loan Repayment
43,260
43,260
43,260
43,260
43,260
43,260
TOTAL OPERATING EXPENSES
$1,169,121
$1,203,137
1,203,789
$1,238,933
$1,275,178
$1,312,135
NET OPERATING INCOME
$128,926
$172,793
247,462
$255,855
$309,298
$319,874
Less Interest
0
0
0
0
0
$0
TAXES
128,926
172,793
247,462
255,855
309,298
$319,874
Less Depreciation
7,500
7,500
7,500
7,500
7,500
$7,500
NET INCOME BEFORE TAXES
$121,426
$165,293
239,962
$248,355
$301,798
$312,374
Less Taxes (39.45%)
47,902
65,208
94,665
97,976
119,059
$123,232
NET INCOME
$73,523
$100,085
145,297
$150,379
$182,739
$189,143
EXPENSES:
NET INCOME BEFORE DEPREC. &
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