General characteristics of nightclubs in Russia
Opening a club is the dream of many entrepreneurs interested in the entertainment industry. Everyone knows that famous clubs bring fabulous profits to their owners and become centers of attraction and venues for the most exciting events.
On the other hand, before you expect profit from your own establishment, you need to invest in it. And quite significant.
The competition in this area is so intense that most clubs open and close without being noticed. This is especially true for fairly large cities, where the number of such clubs and restaurants exceeds a hundred.
In small towns, there is another problem - low demand for this kind of establishment. Especially if the city already has 4-5 clubs that cover the needs of residents for dancing and nightlife. Is it worth spending money and effort on creating your own establishment?
The competition in this area is so intense that most clubs open and close without being noticed.
Pros and cons of opening a nightclub
If an entrepreneur is still confident that his nightclub idea will work, he can try it. There is still enough room in the market for truly high-quality establishments. But before analyzing how to open a nightclub, it is useful to assess what strengths and weaknesses a business has in this area.
Advantages
- High profit. With good planning and high-quality organization, a night club will quickly begin to bring high income to the owner through the sale of tickets, drinks, and food. In just one weekend (Friday, Saturday, Sunday), even a small club can gather 500-600 clients. With an entrance price of 500 to 1000 rubles, income from tickets alone will range from 250 to 600 thousand rubles.
- The opportunity to become the center of city life and organize concerts with guest stars.
- The opportunity to realize your own dream by creating a unique conceptual establishment.
Flaws
- Very high competition. In the entertainment sector, bars and restaurants that operate at night compete with nightclubs. Nowadays, virtually every city has at least 2-4 nightclubs catering to the needs of local residents.
- Big investment. Opening a popular nightclub from scratch is very expensive. Unfortunately, it is unlikely that you will be able to save money on opening. We will consider an approximate business plan for a nightclub with calculations in a special section.
Financial plan
The main types of taxes payable are reflected in Table No. 2:
Type of tax | Tax base | Period | Interest rate |
Income tax | Incoming profit | Month | 20% |
Property tax | Estimated value of property | According to the payment schedule | 2,2% |
VAT | Added value | Month | 18% |
Income tax | Payroll fund | Month | 13% |
Social payments | Payroll fund | Month | 34% |
An approximate plan for the volume of services provided is shown in Table No. 3:
Period | Type of service | Sales volume per month | Price | Profit |
1-12 month | Visit to the club, bar services | 3000 people | from 500 to 2000 rub. | 1,500,000 - 6,000,000 rub. |
13 - 24 months | Visit to the club, bar services | 6000 people | from 600 to 2500 rub. | 30,000 rub. |
The first stage is club planning
Before starting to develop a project, it is necessary to conduct a small marketing study of the entertainment industry in the city where the establishment is planned to open. Find answers to the following questions:
- Are there other nightclubs in the city, how many are there? In what part of the city are they located?
- Which establishments are doing well and which are failing (as observed)?
- What is the secret of the success of the former and what mistakes do the latter make?
- Have any nightclubs closed in the city recently? For what reasons?
It will be useful to study reviews in groups of existing nightclubs to understand what customers like and what is in demand. Try organizing a vote on the topic of the new establishment: is it needed, what format is interesting to guests, and so on.
We are hiring staff
When you have already purchased the necessary equipment for your nightclub and taken care of the interior of the room, you need to move on to recruiting staff. You need to form a staff for the successful operation of your establishment; it should consist of:
Job title | Quantity | Salary in total |
Club directors | 1 | RUB 30,000 |
Creative director | 1 | RUB 30,000 |
Venue manager | 1 | 25.000rub |
Administrator | 2 | RUR 50,000 |
Cook | 5 | 115.000rub |
Waiter | 6 | RUR 120,000 |
Bartender | 2 | 40.000rub |
DJ | 1 | 25.000rub |
Cleaning woman | 2 | 20.000rub |
Wardrobe attendant | 2 | 26.000rub |
Total: | RUR 481,000 |
To protect your bar, you can create your own security service or invite specialists from a security company. Security guards must ensure a calm and safe stay in the club for your clients, also maintain order and prevent the sale of drugs in your bar.
Of course, the selected personnel should already be trained or have experience in such activities. It is also necessary that the appearance of the staff matches the level of your club.
Security in the club
Nightclubs usually host entertainment and sell alcohol, so the security of such an establishment must be given special attention.
Your establishment's security guards must do the following:
- maintain order in the club;
- carefully allow visitors to enter;
- prevent fights in your establishment;
- remove particularly aggressive visitors from the club, etc.
Some club owners create their own security service, others hire specialists from security companies, concluding an appropriate agreement with them.
Security guards at your club should not allow the sale of drugs in your establishment, for example, Klondike, which drug dealers often try to smuggle into nightclubs. Security guards should constantly check all areas of your nightclub to prevent this from happening.
In addition to security guards, for the safety of your clients, you will need surveillance cameras, which should be connected to a common monitor for easy monitoring of all visitors and staff.
It is also necessary to take care of installing metal detectors at the entrance to the club to exclude the possibility of bringing bladed weapons into your establishment.
Of course, you will have to pay for all security measures, but they are necessary.
Why is the club concept important?
Experience shows that only establishments that offer guests something special, including a unique concept, remain on the market for a long time. It can be expressed in the interior of the club, its promotions or events, atmosphere, menu. There are a lot of options. The task of the opening establishment is to create something special that will attract customers and ensure profit.
Only establishments that offer guests something special remain on the market for a long time.
What is needed to create a nightclub
Let's consider a typical nightclub project, or rather the list and amount of financial costs:
- Rental and renovation of premises. Renting a large area in a part of the city with good infrastructure will require from 150 to 700 thousand rubles. It is not necessary to locate the club in the center, but the outskirts or residential areas will definitely scare off some clients.
- Interior design, including the purchase of a bar counter and furniture. Depending on the complexity and exclusivity of the interior, costs can reach up to 1 million (or even more). This column includes:
- furniture (bar counter, tables, armchairs or chairs, sofa);
- lighting, including light music;
- installation of sound equipment and DJ console;
- dance floor design.
- Registration of permitting documentation - about 500 thousand rubles.
- Advertising campaign and promotion on social networks - from 100 thousand rubles and above (for the first 5-6 months).
- Staff compensation is about half a million rubles for the first months, and approximately 3 million rubles per year. This amount does not need to be included in full in the estimate, since most workers will receive their salaries from the cash register.
So, how much does it cost to open a club? For these purposes, about 3 million rubles will be required, and for a more complex project - much more. Unfortunately, without significant financial investments, it will not be possible to open and compete in the entertainment industry.
What permits are required to open a nightclub?
To ensure the legality of an establishment’s presence on the entertainment services market, its owner is required to draw up a very significant list of documents. Also keep in mind that receiving some documents takes several months, so you should start processing all the paperwork in advance .
- Certificate of registration of a legal entity. A nightclub can only be registered as a legal entity, since individual entrepreneurs are prohibited from selling alcohol.
- A project for the construction of a building for an entertainment facility or a refurbishment project. Must be approved by the sanitary-epidemiological service and the Ministry of Emergency Situations (State Fire Service). For new facilities - an operating permit.
- Registered fire safety declaration.
- Fire safety instructions at the site and evacuation plan.
- Permission for the type of activity from Rospotrebnadzor.
- Orders on sanitary measures.
- Logbooks for recording disinfectants, as well as disinfection of ventilation.
- Production control program that meets modern technological requirements and sanitary standards.
- Quality certificates for all products sold.
- Permission to trade in alcohol and tobacco products.
- Agreements for waste disposal, disinfection and deratization.
- Regulations on labor protection.
- Employment contracts with employees, as well as medical books with a recorded medical examination and sanitary training.
- Orders on the appointment of the general director, chief accountant and all employees.
- Staffing schedule.
- Certificate of completion of specialized training for the person responsible for fire safety.
As you can see, the list of documents is quite impressive. It will take about six months to complete all permitting documents. It is better to start receiving them in advance, at the same time when repairs and preparation of the premises for operation begin.
It will take about six months to complete all permitting documents.
Stages of organizing this business
It is advisable to register a night club in the form of a limited liability company.
The process of legal registration of a nightclub is fraught with a number of difficulties and bureaucratic obstacles. For example, it is not at all easy to obtain permits from Rospotrebnadzor that would allow a nightclub to be located in a particular building. To begin with, the founder(s) of a nightclub needs to write a corresponding application to the Federal Tax Service office of his city, pay a state fee, provide copies of the constituent documents of the future LLC, and also select the type of activity in OKVED. The opening of a nightclub corresponds to the following OKVED codes:
- 93.29 “Other entertainment and entertainment activities.”
- 93.29.2 “Activities of dance floors, discos, dance schools.”
- 93.29.9 “Other entertainment and entertainment activities, not included in other groups.”
- 56.30 “Serving drinks.”
Upon completion of registration of the nightclub, a record of the creation of a new legal entity is made in the Unified State Register of Legal Entities. You can proceed to further stages of organizing this business.
How to choose a room
A well-chosen location of the club in combination with a well-renovated and decorated premises will make up half the success of the entire establishment. It is reasonable to find an area in the central part of the city and in an area with developed infrastructure. Opening an establishment in a residential area will most likely lead to losses.
The location of the future nightclub should be chosen taking into account its specifics and target audience. For example, if an entrepreneur plans to open an “image” establishment for people with high incomes, he will have to spend money on renting a large area in the city center. If the target audience is students, you can limit yourself to more remote areas with good transport accessibility.
It is a bad idea to rent the first or basement floor of a residential building for premises. Loud music and dancing noise will definitely provoke conflicts with residents. For a good establishment you need an area of about 250 square meters with high ceilings (at least 4 meters).
Repair and equipment
The renovation and decoration of a nightclub should be given maximum attention, since the interior is the face of the club. It should attract visitors, reflect the concept of the establishment, be stylish, comfortable and cozy. And here everything matters: the style of furniture, the design of the dance floor, bar, entrance area, sanitary facilities. So you shouldn’t skimp on renovations, furniture and decoration.
A high-quality ventilation and air conditioning system is of great importance for an entertainment venue where people actively move and drink. It is also worth taking care of it in advance and installing powerful equipment that can provide a constant flow of fresh air and a stable temperature in the room.
The most important issue for a nightclub is sound and lighting equipment. It should only be selected by a professional, based on the technical parameters of the room and equipment. And the larger and more varied the equipment, the better, since with its help it will be possible to create original light installations and sound effects.
In addition, you will need to purchase the necessary equipment for the bar, dishes (and if you also have a cafe or restaurant, then production equipment for the food department - kitchen), a supply of alcoholic beverages, uniforms for service personnel, security systems, CCTV cameras, computer and office equipment for organizing work.
What kind of employees are needed for a nightclub?
Only a fairly large team of professionals, which includes:
- Director (manager) - this role can be played by the entrepreneur himself or a hired specialist with management experience.
- Administrators or managers, responsible shifts - 3-4 people.
- Bartenders, waiters, hostesses - 8-10 people.
- DJs - 1-2 people.
- Cooks - 3-4 people.
- Cleaners, wardrobe attendants - 2-3 people.
- Creative director or SMM specialist.
How to promote a nightclub
The flow of customers, and therefore the entire profit, depends on the quality of promotion and advertising of a new establishment. Therefore, we need to approach this issue comprehensively. The following types of advertising can be beneficial:
- Outdoor. Rent several billboards, advertising stands or other structures for 3-4 months. This type of advertising attracts the attention of a very large number of people, some of whom will definitely become your clients.
- Distribution of leaflets. Distributing printed materials such as leaflets or flyers (especially ones that entitle you to a discount) is a very good idea. This way you can attract many students and young people to the club. It is better to distribute leaflets in the area of technical schools and universities, as well as in shopping centers.
- Internet advertising. A promising option would be contextual and targeted advertising - these methods show your ad only to a target audience selected by personal information (gender, age, location) or search history.
- Accounts on social networks. A separate way to promote your own establishment, which, with the right approach, will ensure constant interest from customers. Register club pages on all social networks, set up synchronization between them and regularly update information about promotions and events. This will help you constantly attract attention.
Users love beautiful photos, videos and stories , so invite a professional photographer to every party. Also, do not forget to provide all publications with a set of hashtags, including the name of the city and establishment.
Now entertainment establishments have appeared on the Russian market and have launched the sale of their own franchises.
Selection of services provided
Most often, when creating a business plan, club owners focus on the following services that will be provided in their establishment:
- restaurant;
- bar;
- disco;
- performances by famous and popular artists, as well as DJs;
In addition, some establishment owners seek to add additional zest to their club by adding a few more services.
The most popular additional services are:
- billiards;
- hookah;
- bowling;
- availability of entertainment machines;
- private communication rooms;
- reservation of tables;
In addition, it is important to ensure that the club has a high-quality kitchen that can present a small but high-quality assortment of dishes. In addition, each guest should be able to go to the bar and choose any alcoholic or non-alcoholic drink to their liking.
Is it worth buying a nightclub franchise?
Now entertainment establishments have appeared on the Russian market and have launched the sale of their own franchises: “Contrast”, “Contact Bar”, “Nebar”, “TheBarXXXX” and others. The advantages of buying a franchise include assistance with opening and recruiting personnel, recommendations on paperwork, and the ability to attract clients with a well-known name. But is it profitable?
The costs of opening a club will be very significant in any case, and paying a lump sum fee will increase them by 30-40%. The average amount of this one-time payment is 500 thousand rubles. Also, do not forget about royalties - a monthly payment for the right to work under a brand - 3-7% of profits.