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Starting a nightclub business may seem easy. You hangout in a nightclub, party for awhile.. Watch the DJ's and waitresses... Party with friends and so fourth. Pretty soon you see that cash flowing, and the notion strikes. HEY... I CAN DO THIS!!! This is perhaps the most dangerous aspect of the nightclub business. To the classic laymen, it seems too good to be true... Sell booze, play music, and higher a promoter. Now let the good times roll and the cash flow!!! Has never happened that way yet...
The more likely scenarios are being empty within 90-days of opening, or losing control of the club, resulting in lawsuits, a mandatory closure, or answering to a number of serious criminal charges. Based on the obscene rate of bankruptcies, and or disastrous outcomes flooding the headlines, there appears to be an awful lot of operators who "thought" they knew what they were doing. Arrogance is a huge and unfortunate part of the nightclub industry. I don't need education... I don't need to read... And I don't listen to anyone. Well… That mentality is why this sector of leisure entertainment continues to remain in the dark ages, while the 'broader level' leisure entertainment industry has moved ahead two generations. You may not want to hear it, but statistics speak for themselves.
Largely directed at new startups, you people may want to take the following into consideration before going any further. Put on your hard hat!
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You most likely do not know as much as you think you do about the social entertainment trade
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You most likely do not understand your marketplace or its potential as well as you may think you do
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You may think you understand the essence of entertainment product -there's a 75% chance you do not
- You believe you have the idea that will surpass all? So did the last 99 entertainment venues that failed...
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A nightclub is not a shortcut to a 6-digit income for the lazy or less educated...
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Business plans are only as good as the paper they're written on -not a quick ticket to procuring investor participation
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The consumer public is not easily fooled, no matter what you were led to believe
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The majority of self-acclaimed nightclub experts, are in fact experts (within the confines of their own minds).
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Bullshit baffles brains and there's no shortage of it in this industry
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Fights, shootings, under age infractions, and city mandated closures are not simply bad luck -they're the direct result of operator ineptitude
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Incompetence is second nature to this industry, thus the endless slew of resulting fiascos
- You may understand the elementary aspects of the day-to-day operation or administrative tasks --So what... That does not mean you understand the business of entertainment product, or how to keep a room full of "profitable" people 3 to 4 nights a week.
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You can't outsource nightclub entertainment product
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You can't hire 3rd party entities to fill in the blanks for your lack of operational know-how
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No 3rd party entity, no matter what the pitch /promise can make you forever successful
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Everybody wants a piece of your action and will go to amazing lengths to get it
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Using a big city concept in an intermediate sized marketplace is like jamming a square peg into a round hole
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There are no single trends, promos, gimmicks, or magic solutions that turn any nightclub into a multi million dollar success story
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Each marketplace encompasses its own 'unique combination' of social nuances. If you can determine this combination, you'll enjoy success and profitability.
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Choose to wild guess your marketplace and say hello to bankruptcy
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The nightclub is actually a business -not a fast track to fame, fortune, chicks, and effortless profits
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Investors invest in concepts -not promises, projections, idealistic thinking, or cookie-cutter business plans...
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Consumers pay $$$ for experience --not childish antics and lame gimmicks...
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Close down in 6-months or run strong for 3 to 4-years. The choice is yours...
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