Running a nightclub can be one of the most profitable endeavors an entrepreneur can undertake, but you need to stay focused and understand the market. Too often businessmen get into the nightclub racket thinking they can make a quick buck for a limited investment only to find out that they’ve gotten themselves in way over their head. Like any business, it is important to do your research and pick out a good location to have your bar or nightclub where there will be a good demographic and plenty of patrons to keep you in business.
Some people looking to get into the nightclub business aren’t looking to start their own from scratch but rather buy one that is a turnkey operation and ready to start making profits. Even if you’ve looked at the books thoroughly and checked with all the liquor vendors to see if there are outstanding debts, you still may be disappointed with the amount of work it takes to generate your profits with the business as is. Fortunately, there are many areas of your nightclub business that you can look at to try to increase your profits, and we will discuss some of the best places to start so you can get off on the right foot.
Offer Bottle Service and Promotions
Bringing in new clientele and boosting the amount of money each guest spends at your nightclub is one of the best ways to bring in new profits without spending a lot of time refining your business or crunching tons of numbers. Try finding promotions for your more expensive spirits such as offering bottle service with the added flare of bottle sparklers lighting up the bottles as they’re delivered to the tables. People love feeling special and will certainly spend the extra cash to get noticed by everyone in the club. Also focus on other marketing and promotion ideas that will bring in more people to earn as much as possible.
Overhead costs can really eat up your profits in a big hurry. When running a nightclub, there are operating expenses everywhere you look including your entertainment, liquor costs, and even the cost of electricity from outdated lighting and signage. Eliminating the most burdensome of these expenses is the best way to get headed in the right direction and start earning higher profits.
When you take over a turnkey operation, there are always people who will try to take advantage of the situation. Your DJs and bands will ask for more money, so make sure you do a thorough review before you agree to pay anything. Also, old neon lighting and light up signage can really eat up money each day, so have a professional come in and analyze your electrical system for deficiencies. Lastly, try to stop carrying liquor brands that don’t sell well because they tie up capital that could be used elsewhere. You need to carry certain brands regardless of how popular they are, but there are plenty of specialty bottles you can ditch to free up extra profits.
Theft is always a burden that businesses are forced to contend with, but no type is worse than employee theft. If you don’t have a camera system yet, consider installing one to keep your staff honest. Hopefully, you won’t have a problem with employee theft, but you can never be sure unless you have eyes on the cash register at all times.