Free «Nightclub Business Plan» Essay

Nightclub Business Plan

Plus One is a new club in Tallahassee, Florida that will be a high energy premier entertainment setting that will provide a dance and social night club that will primary cater for the college students from Florida A&M University and Florida State University, with other local universities and colleges around the city serving as potential clientele as well. The student and regional population exceed 30,000 people and are estimated to be growing at a rate of 8% annually. Plus One will be located two blocks away from the city’s commercial centre, which is an appropriate vantage point to capture the working class bracket in the city as well. The region already has two premier nightclubs that have enjoyed success in the past 7 years. Recently, rental commercial space has become available where two adjacent commercial establishments relocated. The nightclub will consolidate these locations on the main Tennessee Street mostly used by the students from Florida State University.

Once the nightclub is operational, it will be run under the guidance of an excellent management team. The club’s owners are Ibrahim Alyami and his brother Hussein Alyami. Management of the club will be under Warren Cash, a former manager of Coyote Ugly, a popular downtown bar or University students for the last 8 years. Warren is also a co-proprietor of Rambozi’s, an Italian restaurant/pub bar that has dominated the city’s eatery and bar business for the last 5 years.     

Company Overview

Mission statement: It is not the beer; not the music; not the food. It’s the People!

It is widely regarded that the most successful club businesses are based on the understanding of the primary customer needs (Ireland, 2008). The mission of the Nightclub is to create an environment and atmosphere that satisfies the varying tastes and preferences of our primary clientele, i.e. college going adults, especially the women. If the female clientele visit Plus One, then male clientele will surely follow, a strategy advocated by Coe (2010). If this goal is to be met, then the Plus One must constantly improve the customer response to the customers need for entertainment and satisfaction.

Keys to Success

  • Ø Strict control of costs;
  • Ø Provision of consistent offering of quality products and services;
  • Ø An ambient environment for entertainment;
  • Ø Provide an exceptional service for core customers;
  • Ø Managing internal finances and cash flow for capital growth.


  • Take advantage of an excellent location opportunity;
  • Maintain stringent cost control through diligent management and establishment of     internal control systems;
  • Strong marketing campaign starting with a well publicized grand opening in Year 1;
  • Maintain liquor costs below 30% of liquor revenue;
  • Maintain food costs below 25% of food revenue.

Company Summary

The Key Elements of Plus One are:

  1. Location: One major advantage that Plus One will have over its competitors will be its location on the main Tennessee Street, which offers direct contact to the FSU main campus facilities.
  2. College women: The Nightclub will focus on the attracting the female clientele through focusing on design and dance themes that appeal to the college-age ladies. This will subsequently attract the male clientele as well.
  3. Service provision: Plus One will provide exceptional, friendly and attentive service to customers in a bid to offer and maintain a unique image of value or money.

Product and Service

Plus One represents a unique opportunity to create a primer dance and entertainment venue that will primarily cater to the collage-going students. The development of its central location and lack of major competition in the area are major advantages for this venture. The new nightclub will offer an array of mixed drinks including bar, wine soft drinks and other non-alcoholic beverages. A “laid-back” menu consisting mainly of appetizers and entrees will also b available. The initial hours of operations will be between 6:00 P.M. and 2:00 A.M., for selling of liquor. However, the kitchen will close at11.00 P.M. Plus One will be operational four nights a week. Plus One will draw its clientele primarily from the student population at FSU while attracting visitors from the city as well.       

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Competitive Edge              

Plus One has three main competitive elements over its competition.

The primary asset is the location which as a short distance from the University community. The area around Plus One is already a regular social gathering place for students in the evenings.

The second element is an exceptional management team with extensive management skills and experience in administration over club operations.

The third is the focus on attracting and retaining the primary customers in every aspect in our planning. Music is a critical aspect in planning. The project will be headlined by professional DJs ho have the best satisfaction rate with the young clientele.

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Sales Strategy                                                                                                     

Plus One will host a grand opening party on January 18, 2012, where the women customers’ cover charge will be waived. The Club will establish a traditional Ladies night every Thursday evening weekly in a bid to create a core and regular clientele of women.

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Additionally, Plus One aims to attract more college students by provide shuttle services to the nearby colleges for patrons who cannot drink and drive. Road safety and client wellbeing is an important element in the operation of Plus One.

The cover charge will be $15 per head. Women patrons will receive a waiver on this fee on condition that they arrive at the Club before 9.00 P.M. 

The club will open earlier than the rest in the region in a bid to bring in an early crowd before 9.00 P.M. The door will open at 7.00 P.M on weekdays and at 6.00 P.M on Fridays and Saturdays.

Plus One will hold will hold weekly drinking games which are popular with college students on the last Friday night of each month, with the option of making it a bi-monthly affair if it is well received by the clientele. 

Start-Up Summary

Plus one will have three primary sources of capital. Ibrahim Alyami and Hussein Alyami will jointly contribute $400,000 of the capital to form a partnership, with an additional loan fund of $400,000 from the local bank creating a capital base of $800,000.  

Management Summary

The three man management personnel is a strong one. The team hare a unilateral vision for the business: to provide a unique entertainment experience though excellent service provision.

The forecasted personnel need over the next three years is shown below.

Personnel Plan                                                 Year 1 $             Year 2 $            Year 3 $

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Manager                                                          50000                  60000                 68000

Bartenders                                                       100000               100000               100000

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DJ                                                                    20000                 25000                 30000

Waiters                                                             50000                60000                 70000

Cleaning                                                           35000                 37000                 40000

Cooks                                                              65000                70000                 75000











Total Personnel                                                    15                         15                        18

Total Payroll                                                  $ 320000            $ 352000            $ 383000

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The number of employee for the first two years will be 15 employees, with the option of increasing this number to 18 employees in the third year. The staff will include Bartenders (2), Promoters (2), Security personnel (4), Kitchen Staff (4), Waiters (3)

Financial Plan

Projected Income Statement                                                                                                           

                                                             Y      Year 1      Y        Year 2          Year 3
       Sales 560000 875000 1050000
       Direct Cost of sales 130000 192000 257000
       Gross profit margin 430000 683000 793000
       Gross profit % 76.78571 78.05714 75.52381
         Taxes 52000 58000 62000
         Payroll 320000 352000 383000
         Utilities 3600 3600 3600
         Insurance 12000 12000 12000
         Rent 48000 40000 45000
        Sales and marketing 22000 25000 27000
      Total operating expenses 457600 490600 532600
       Profit Before interest and tax -27600 192400 260400
       Interest expense 50 200 0
        Taxes 0 32685 58463
         Net Profit -27650 159515 201937
        Net Profit/Sales % -4.9375 18.23029 19.2321



  • Location
  • Top experienced and skilled management team
  • Capital
  • Design
  • Exceptional service provision


  • Lack of experiences staff
  • Reputation of college bars
  • Lack of competitive strength


  • Expansion over the next three years
  • Niche target market
  • Major contacts
  • Partnership for distribution


  • Financial and credit pressures
  • Change in legislations
  • Competition in the area

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