How to Research on Opening a Nightclub

A stocked bar is key to a nightclub.

It takes a lot more than just renting out some space, putting in a bar and hiring a bouncer to make a nightclub work. The nightclub owner must know a laundry list of items, from laws on local permits to requirements on security to market data.

Instructions

1. 

   Deejays and music selection are important components of a successful nightclub.

   Know the market. Basically, a good nightclub will fill a void in the market. For example, there may not be a nightclub that plays a steady list of Top 40 and urban R & B in a community where there is a rodeo, a dirt track and five country/western bars on a one-mile strip. However, the demand for this nightclub may not exist either. Learn the market by either hiring a firm to perform market research, or simply drive around to the various clubs and night spots already in the community. Ask patrons what they feel is needed.

2. 

   There may be a lot of rules to follow when opening a club.

   Check with the local city or county government about what fees, permits and restrictions are in place for nightclubs. This can be done by visiting the agency's business license department and possibly the legal department. Some areas will simply let a person file a license, pass a fire inspection and open the doors. Others may require the business owner to go before a zoning board or government panel to prove the business's merit. City staff should be able to answer all questions. Make sure to ask about things such as hours of operations, noise ordinances, legal obligations for customers, smoking bans and parking laws.

3. Call the local law enforcement agency to find out about security details. Some cities and counties have stringent laws on security and may require a nightclub to have off-duty officers working events. Ask for the public affairs officer in larger agencies or for the chief/sheriff in smaller agencies.

4. Find out about alcohol permits through the state. Most states handle the sale of beer, wine and liquor either through their revenue departments or state alcohol licensing agencies. Remember to ask if a special permit is needed to serve past midnight and on Sundays. In addition, some states may send a business owner back to the local county and municipality for extra alcohol licenses such as serving on sidewalks.

5. 

   Keeping a club stocked is a critical part of the business.

   Learn about the distributors for alcohol. Most beer, wine and liquor wholesalers can be found in a phone book. Call each of them to compare prices to keep your club stocked. Remember, cost is not the only issue. A club owner will want a distributor who can make timely deliveries and meet the needs of the establishment.

Tips & Warnings

• Remember to think about advertising. Target your demographics to help differentiate your club from others.

References

• Earthbar.org
• Business Plan world
• Bar Management Ideas

Resources

• U.S. Chamber of Commerce Small Business
• National Bar and Restaurant Management Association