Nightclub Business Plan - Organizational Plan, Marketing Plan, Management Plan, Financial Documents

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Nightclub

BUSINESS PLAN WILD OASIS

1039 Thurman Avenue

Cliff, Massachusetts 01862

The Wild Oasis nightclub provides a local solution to the

lack of dance and live music venues in a mediumsized

market, and will help keep latenight entertainment

expenditures within the region. The company's good grasp

of how to market a nightclub adds to the plan's

attractiveness.

ORGANIZATIONAL PLAN

MARKETING PLAN

MANAGEMENT PLAN

FINANCIAL DOCUMENTS

ORGANIZATIONAL PLAN

Industry Description

Dance clubs in the 1990s have significantly impacted cities from coast to coast. Los Angeles Hollywood, New York's Times

Square, and Seattle's Pioneer Square are just a few examples. Dazzling their audiences with highpowered lights, sound,

and music, these venues are still one of the highest cash flow businesses in the world. Studies have shown that the average

person will spend three to four hours per weekend in an entertainment environment and will spend an average of 20 to 50

dollars in that timeframe. This trend also shows no signs of declining.

The typical dance club is open from 9:00 P.M. to 2:00 A.M., and within this span of five hours, the venue can achieve gross

revenues anywhere from $5,000 to $35,000 nightly. The primary sources of revenue in a nightclub are highvolume

traffic, coupled with nominal spending. In addition to alcohol revenues, a nightclub also generates substantial revenues

from door charges that can typically range from five to ten dollars per person.

For example, a 1,000person capacity nightclub will typically accommodate approximately 1,500 people in the fivehour

span of operation. A $5 door charge, in addition to a conservative figure of $12.25 collected from each patron in alcohol

sales, would generate approximately $30,000 in nightly revenue.

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Nightclubs in the late 1980s and early 1990s focused on spectacular light shows and energetic dance music. This relatively

simple concept is still quite popular today. However, these concepts have greatly evolved with society. In recent years this

industry has become more sophisticated with the availability of new technology. Larger metropolitan areas have taken

this technology to new heights with sound and lighting designs that create an exciting and memorable experience.

Fortunately, no one in the downtown Cliff area has capitalized on this specific segment of the industry to date.

Additionally, the nightclub industry is shifting towards a more entertainmentoriented concept. Guests of these clubs are

not only offered a dynamic place to dance, but also a place to participate in the entertainment through interactive

contests, theme nights, and other events. We intend to heavily utilize entertainmentoriented marketing in an effort to

withstand the perpetual shift in trends and cater to as large a client base as possible.

Nightclubs and other drinking establishments rely heavily on their primary suppliers. The primary suppliers are the

various beverage distributors that provide the establishment with both alcoholic and nonalcoholic beverages. The

alcoholic beverages (beer, wine, and liquor) are the primary sources of income in this industry. Other beverage suppliers

also play a crucial role by providing nonalcoholic beverages. These are either served alone or mixed with alcohol.

In the Cliff area, all major brands of alcoholic beverages are available, in addition to several regional brands of beer.

Initial research shows that the major distributors in the market have a high rating in both product availability and

delivery.

Business Description

The resurgence of the downtown Cliff area represents a unique opportunity for a highenergy dance club. The city's central

location, demographics, and lack of direct competition are major advantages to this project. The proposed club—

tentatively named "Wild Oasis"—will provide a local solution to the lack of dance and live music venues geared toward the

21 to 35 age group in the Noble County area and will help keep late night entertainment expenditures within the region.

The development of the University of Waters Cliff campus has been, and will continue to be, a major catalyst in bringing

people to the area. With current enrollment of over 1,300 students, the yearandahalf old campus is slated for steady

expansion through 2010 when enrollment is expected to hit 6,000 students. Additional surrounding educational

institutions (two universities, two community colleges) also contribute to the potential customer base. Other proposals in

the area such as the Multiplex Theatre and shopping center will also greatly impact the city's traffic flow and nightlife.

The new nightclub will specialize in highenergy dance music with a quality light show, and will offer beer, wine, and an

array of liquors and mixed drinks. In addition, the club will sell nonalcoholic beverages such as soft drinks, juices, and

bottled water. A small food menu consisting mostly of appetizers and small entrees ranging in cost from $6 to $9 will also

be available. The initial hours of operation will be 8:00 P.M. to 2:00 A.M. Wednesday through Saturday. The club will

draw primarily from the Cliff market while attracting guests from the area's other major cities in the state.

Club Design

Our goal is to provide a comfortable and welcoming environment as well as a unique, exciting nightclub experience. This

dance club will feature high ceilings and a contemporary look with dynamic upscale decor, furnishings, and color scheme

modeled after a big city loft. The central area of the club will consist of a large dance floor with cocktail seating along the

perimeter and a large bar located nearby. A VIP lounge for special guests is also being explored.

The focus of the club's design will be to create a highly social atmosphere. This will be achieved through the placement of

couches, booth seating, and a quieter lounge area located away from the dancing and music.

Stateoftheart sound and lighting will round off the club's environment. A RMS pointofsale system will be put into

place and will serve as a sales, labor, and liquor/inventory control system. This system will ensure an accurate, secure, and



efficient control over labor costs, as well as day to day inventory, thus minimizing the possibility of loss or theft.

MARKETING PLAN

Area Analysis

The geographic target market for this nightclub is all of Noble County, which includes the city of Cliff and many others.

Current population of the county is over 680,000 people, 26% of whom fall into the proposed age demographic (21 to 35)

for the club. This number is expected to rise significantly over the next decade.

Cliff, the city in which the proposed club will reside, is Noble County's largest city, accounting for 28% of the total

population, and the third largest city in the state. The 51squaremile city has been nationally recognized for its

outstanding quality of living in national consumer magazines.

There are several contributing factors behind the emergence of the downtown area of Cliff. The $70 million

redevelopment of the University of Waters Cliff campus has been the largest stimulus for economic growth in the area to

date. Various other projects, including a multiplex theater, shopping center, marina, numerous restaurants, and

residential housing, have been proposed or are currently in development. Growth in the area is also attributable to the

expansion or relocation of major corporations representing the computer, sportswear, and aircraft production industries.

Many of these companies have created new, highertechnology jobs in the areas that have welcomed in a younger and

more affluent workforce.

Cliff was chosen as the location for the new club for several reasons. First, the city is an emerging market with lower real

estate rates and at the same time high levels of commercial development. Second, Cliff lacks direct competition from

other dance clubs. The next major city, which is over 45 minutes away from downtown Cliff, maintains a highly

competitive nighttime entertainment market yet poses little threat to the development of a Cliff dance club.

Site Analysis

The proposed location for the venue is at 1039 Thurman Avenue on the first and second floors of the Pfeiffer Building.

Thurman Avenue is the downtown area's primary commercial business street, and has excellent freeway and back street

access. The club would occupy approximately 7,300 square feet (5,500 downstairs and 1,800 upstairs) of the building. This

location is centrally located to many existing and proposed attractions in downtown Cliff. Its secondstory addition

provides for an excellent nighttime view of parts of the city and the Mark Anthony Waterway.

The site and the proposed club are a perfect fit. The Pfeiffer Building is the creation of its current owner, a prominent local

developer responsible for downtown's newest office complex, the Maximus Building. His experience with renovation of

historic buildings will facilitate the development of the nightclub. Additionally, the Pfeiffer Building resides in one of

downtown Cliff's busiest intersections with access to the city's major interstate freeways. Plans for the building include

installation of highspeed Internet connections in an effort to attract technology companies. Thus far, a technology firm as

well as a local recruiting company already have agreed to lease space.

Target Market & Demographics

The primary target market for this venue is the age group of 21 to 35. Market research indicates that the demand for a new

dance club in Cliff among this demographic is very high. Most are tired of the existing scene and are looking for a local

place to dance, meet people, and have a good time. Currently, highenergy dance clubs are only found in the next largest

city, but the 45minute drive north discourages much of Noble County's market from frequenting these venues. This,

coupled with the tremendous current and forecasted growth throughout the region, indicates that the time is perfect for

such a venture in Cliff.



The market research study included men and women within the target market that do, or would, support the downtown

Cliff nightclub entertainment industry. The most common responses and comments regarding existing venues in the area

were:

Not enough room to dance

Tired of the existing sports bar/tavern atmosphere

Existing venues play the same music every night; no variety

Low quality light and sound

Lack of energy and excitement; too low key

Therefore, the venue being proposed will address all of these concerns. It will maintain a heavy focus on dancing—offering

the largest dance floor in the downtown area—and will offer a highenergy, very social atmosphere for the prospective

market. The interior will be designed with an upscale decor and the lighting and sound will drive the ambience. Most of

all, the music will be consistent, but not played out. DJs will be responsible for playing a variety of music our patrons like,

from Top 40 to remixed techno to hits from the 1970s and 1980s.

Demographic data obtained from Noble County's web site demonstrates that the region contains over 175,000 individuals

within our target market, 26% of the total population. Estimates indicate an expected 34% annual growth over the next

10 years.

Population Estimates for 1999

Noble County

Total Population 682,450

Total Males (by age)

21 to 25 27,733

26 to 30 27,431

31 to 35 35,756

Total Males (21 to 35) 90,920

Total Females (by age)

21 to 25 24,667

26 to 30 26,802

31 to 35 35,347

Total Females (21 to 35) 86,816

Total Target Demographic 177,736

Percentage of Total Population 26.04%



Promotions

Promotional efforts are critical to the proposed club's success. Accordingly, the venue will offer nightly, weekly, and

monthly promotional specials. These promotions will help to stimulate excitement for the new club, thus leading to high

traffic and exposure. The main idea is to offer a new entertainment experience night after night. This is the key ingredient

for success and profitability, as well as longevity, in the nightclub industry. Proposals include:

Prize giveaways

Nightly dance floor and stage contests

Cooperative promotions with local radio stations

Entertainment will be provided by charismatic disc jockeys featuring a blend of current Top 40 and dance music. During

the week, special theme nights and promotions will be used to attract a more diverse crowd, and to increase the number

of customers who frequent the dance club. These theme nights will change as popularity and demand dictate.

The market will be targeted and reached via the following primary vehicles: advertisements in local print media,

strategically broadcast radio spots, and an Internet web site. Advertisements printed in the local and college newspapers,

as well as broadcasts over the local radio stations will provide exciting club information on current promotions and

specials. A more "grass roots" marketing campaign also will be employed. This includes club representatives and

spokespersons attending area events, postering of college campuses, a "prize patrol" van, and other persontoperson

marketing efforts.

Competition

The new nightclub will meet a demand in the Cliff area that is not currently being served. We will provide a high quality,

energetic nightclub while maintaining a safe, secure atmosphere for guests to enjoy themselves and the surroundings.

Providing a safe nightclub is essential to maintaining customer loyalty and growth. Therefore, security at the new club will

be top priority.

Currently, nighttime competition in the area is limited to mostly bar/tavern facilities including McArthur's, Lucky Six,

Jubilee, The Harbor, and Westside Elite. Only Jubilee and The Harbor offer largescale dancing facilities. The proposed

club will be the largest dance facility in the downtown area. While the proposed club will be in direct competition with

these other facilities, it also will attract a different clientele of individuals seeking a superior dance venue which can

currently only be found in the next largest city in the state, 45 minutes away.

Our review of the market concludes that there are four entertainment venues that can be considered direct competition to

the proposed new venue. We do realize that the proposed venue will also compete indirectly for every entertainment

dollar spent in the Cliff area.



McArthur's Hours of Operation: 5:00 P.M. 2:00 A.M.

Wednesday Saturday Capacity: 300

344 W. 5th Ave. Dance Floor: 450 square feet

Wed. College Night ($1 beers)

This nightclub appeals to a college crowd seeking cheap drinks

The club is known for being dingy and dirty

Jubilee Hours of Operation: 10:00 A.M. 2:00 A.M.

Monday Sunday Capacity: 400

422 Main St. Dance Floor: 700 square feet

Thurs. College/Ladies' Night

This club appeals to 25 to 35yearolds

Pool and video games are central focus. Dancing is pushed to the back of the club

The Harbor Hours of Operation: 6:00 P.M. 2:00 A.M.

Wednesday Saturday Capacity: 250

3rd and Broadway Dance Floor: 500 square feet

Varies week to week

This club's target customer is 25 to 45 years old / middle class or above

This club is known for its older, dressed up crowd and cramped space

Lucky Six Hours of Operation: 11:00 A.M. 2:00 A.M.

Monday Sunday Capacity: 350

23rd and Republic Dance Floor: 325 square feet

Varies week to week



This club's target customer is 25 to 45 years old

This club is known for live jazz and blues entertainment, and their draught beers

MANAGEMENT PLAN

Ed Tiller will fulfill the role of Owner/Operating Partner of this venture. He is currently the president of XTZ. Mr. Tiller's

background is largely within the scope of business development and project management as well as commercial and

residential construction. His fields of expertise will be utilized in this venture via his direct responsibility for the overall

business management structure and personnel. Additionally, he will assume the public relations and marketing roles for

the club.

XTZ has contracted entertainment industry specialists, SVC Nightclub and Bar Services, Inc. Their involvement will exist

in several facets, most notably, through providing assistance in launching this nightclub venue. SVC has over 12 years of

experience in the nightclub industry and has assisted many firsttime club operators in getting their proposed venues off

the ground successfully. SVC will assist in the development of the design, concept, and strategies of the new nightclub. SVC

is also a fullservice advertising agency and will assist in all production and placement of all advertisement for the new

venue. In addition, they will assist in the hiring process of the management staff, disc jockeys, bartenders, waitresses, and

security staff. They will also provide educational services for managementlevel personnel who will be responsible for the

day to day operations of the club.

Interviews for a general manager, bar manager, and all other personnel will be conducted by Joe Sorge of SVC. Final

decisions for each position will be made by Mr. Tiller.

FINANCIAL DOCUMENTS

Summary of Financial Needs

1. The company is seeking a loan for startup purposes for a new nightclub venue in Cliff, Massachusetts.

2. Funds needed to accomplish goal referenced above will be $200,000. Applicant will require the entire $200,000 to

finish project buildout.

Loan Funds Dispersal Statement

We will utilize the anticipated loans in the amount of $200,000 to renovate the approximate 7,200squarefoot space and

purchase equipment necessary for the startup of a new nightclub venue.

Capital Expenditures



Audio & Lighting Lease Program

Includes: amps, speakers, all wiring, installation, equipment, and labor.$2,700.00

Bar Equipment

Includes: 3 compartment sinks, liquor racks, reach in coolers, installation, and labor.$17,500.00

Bar Supply (Opening Inventory)

Includes: all liquor, beer, wine, and consumables for opening.$7,000.00

Cash Reserves/Operating Capital

Operating Capital and contingencies$74,550.00

Exterior Signage

Includes: neon, design, artwork, installation, and labor.$2,500.00

Fees and Permits

Includes: all relevant fees.$3,500.00

FFE

Includes: all furniture, fixtures, equipment, i.e.; carpet, tables, chairs, etc.$44,000.00

Impact Fees

Includes: charges by utilities for upgrades to usage.$0.00

Initial Marketing

Includes: initial campaign, design, artwork, audio, video, production, and labor. $17,450.00

Interior Refit

Includes: demolition, actual construction of bars, walls, floors, mezzanine, etc.$11,500.00

Kitchen Upgrade

Includes: purchase of equipment (used), installation of hood and equipment, and labor.$1,250.00

Legal

Includes all legal fees: Accountant, Attorneys, Engineers, Architects.$2,500.00



Opening Salaries & Deposits

Includes: deposits on all accounts, opening salaries, special purchases.$12,500.00

Paper Products

Includes: purchase of all paper type operating supplies$750.00

Point of Sales Systems

Includes: purchase, installation, and labor for entire sales system$1,300.00

Restroom Refit

Includes: purchase of fixtures, existing demolition, installation, and labor.$1,000.00

Total Capital Expenditures $200,000.00

Revenues

The estimated revenues are based on a 350 capacity nightclub venue, with an average daily incoming traffic ranging from

approximately 225 to 325 guests Wednesday through Saturday. These forecasts are considered somewhat conservative

based on the size and scope of the market. Additionally, each guest is forecasted to spend an average of $8 to $13 on

beverages, depending on the night. The total door covers are less than the bar covers, due to special promotions and VIP

passes. Door cover charges are anticipated to be five dollars.

Daily Revenue Breakdown

*based on 350person capacity

Mon Tue Wed Thu Fri Sat Sun Weekly

Total door covers 0 0 225 225 325 325 0 1,100

Average cover charge $0 $0 $0 $5.00 $5.00 $5.00 $0 $3.98

Total admission sales $0 $0 $0 $1,125.00 $1,625.00 $1,625.00 $0 $4,375.00

Total bar covers 0 0 375 425 455 455 0 1,710

Average drinks per person 0 3 3 4 4 4 3 3.03

Average beverage sales per person $0 $0 $8.00 $10.75 $13.00 $13.00 $0 $11.34

Average price per drink $0 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75

Total sales on beverages $0 $0 $3,000.00 $4,568.75 $5,915.00 $5,915.00 $0 $19,398.75

Total admission and beverage sales $0 $0 $3,000.00 $5,693.75 $7,540.00 $7,540.00 $0 $23,773.75



Food sales (5% of adm. and bev. sales) $0 $0 $150.00 $284.69 $377.00 $377.00 $0 $1,188.69

Misc. sales (0.0% of gross sales) $0 $0 $0 $0 $0 $0 $0 $0

Gross sales $0 $0 $3,150.00 $5,978.44 $7,917.00 $7,917.00 $0 $24,962.44

Expenses

Based on local industry averages, publications from ALPHA Nightclub & Bar Services, and Entrepreneur Magazine 's

Bar/Nightclub Startup Guide, we have generated the following expense figures. These figures are based on an

approximate 7,200 square foot venue with a capacity of 350 guests.

The following page illustrates the staffing scenario for the new nightclub venue.

Daily Staffing Breakdown (*based on 350person capacity)

Hourly Employees

WEDNESDAY

POSITION QUANTITY RATE AVG HOURS SUBTOTAL BENEFITS & TAXES (17%) TOTAL

Waitresses 2.5 $6.00 7 $105.00

Security 4 $8.50 7 $238.00

Bartenders 2.5 $6.00 7 $105.00

Barback 1 $6.00 8 $48.00

Cook / Misc 1 $8.00 8 $64.00

Total Staff Cost for Wednesday $560.00 $95.20 $655.20

THURSDAY


Waitresses 3 $6.00 7 $126.00



Security 4 $8.50 7 $238.00

Bartenders 3 $6.00 7 $126.00

Barback 1 $6.00 8 $48.00

Cook / Misc. 1 $8.00 8 $64.00

Police Detail 0 $8.00 7 $0.00

Total Staff Cost for Thursday $602.00 $102.34 $704.34

FRIDAY


Waitresses 3 $6.00 7 $126.00

Security 4 $8.50 7 $238.00

Bartenders 3 $6.00 7 $126.00

Barback 1 $6.00 8 $48.00

Cook / Misc. 1 $8.00 8 $64.00


Total Staff Cost for Friday $602.00 $102.34 $704.34

SATURDAY


Waitresses 3 $6.00 7 $126.00

Security 4 $8.50 7 $238.00

Bartenders 3 $6.00 7 $126.00

Barback 1 $6.00 8 $48.00

Cook / Misc. 1 $8.00 8 $64.00


Total Staff Cost for Saturday $602.00 $102.34 $704.34

TOTAL WEEKLY STAFFING COSTS HOURLY EMPLOYEES $2,366.00 $402.22 $2,768.22

SALARIED EMPLOYEES

POSITION SALARY: YEARLY WEEKLY BENEFITS & TAXES (17%) TOTAL

Manager 1 Oper Prtnr $50,000 $798.08 $163.46

Manager 2 General Mgr $50,000 $798.08 $163.46

Manager 3 PR Mgr $0 $0.00 $0.00

Manager 4 Bar Mgr $22,500 $359.13 $73.56

Manager 5 Asst. $0 $0.00 $0.00

Entertainment $44,000 $846.15



TOTAL WEEKLY STAFFING COSTS SALARIED

EMPLOYEES$2,801.44 $400.48 $3,201.92

TOTAL WEEKLY STAFFING COSTS OVERALL $5,970.14

Pro Forma Cash Flow Statement First Year

Page 1 (Month 1 6, plus sixmonth total)

For Year 1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6SIXMONTH

TOTALS

GROSS SALES

Cash Sales Admissions $21,875 $17,500 $17,500 $17,500 $21,875 $17,500 $113,750

Cash Sales Beverage 96,994 77,595 77,595 77,595 96,994 77,595 504,368

Cash Sales Food 5,943 4,755 4,755 4,755 5,943 4,755 30,906

TOTAL CASH AVAILABLE $124,812 $99,850 $99,850 $99,850 $124,812 $99,850 $649,023

EXPENSES

A. Variable Expenses

Cost of Goods Sold Beverage $22,309 $17,847 $17,847 $17,847 $22,309 $17,847 $116,005

Cost of Goods Sold Food 1,664 1,331 1,331 1,331 1,664 1,331 8,654

Hourly Wages & Benefits 13,841 11,073 11,073 11,073 13,841 11,073 71,974

Total Variable Expenses $37,814 $30,251 $30,251 $30,251 $37,814 $30,251 $196,632

B. Fixed Expenses

Direct Operating Expenses

Management Salaries 16,010 12,808 12,808 12,808 16,010 12,808 83,250

China, Silver, Glassware 123 98 98 98 123 98 638

Point of Sale 583 583 583 583 583 583 3,498

Audio & Lights 1,750 1,750 1,750 1,750 1,750 1,750 10,500



Equipment Rental 0 0 0 0 0 0 0

Licenses & Permits 216 173 173 173 216 173 1,125

Linens/Uniforms 481 385 385 385 481 385 2,500

Janitorial 2,163 1,731 1,731 1,731 2,163 1,731 11,250

Supplies 1,202 962 962 962 1,202 962 6,250

Miscellaneous Direct Op. Exp. 721 577 577 577 721 577 3,750

Total Direct Operating

Expenses23,249 19,066 19,066 19,066 23,249 19,066 $122,761

General and Admin. Expenses

Music and Entertainment 2,404 1,923 1,923 1,923 2,404 1,923 12,500

Advertising and Promotion 8,654 6,923 6,923 6,923 8,654 6,923 45,000

Credit Card Commission 624 499 499 499 624 499 3,245

Liquor Taxes 0 0 0 0 0 0 0

Professional Fees 481 385 385 385 481 385 2,500

Insurance 721 577 577 577 721 577 3,750

Admission Taxes 1,094 875 875 875 1,094 875 5,688

Excise Taxes 15,602 12,481 12,481 12,481 15,602 12,481 81,128

Property Taxes 0 0 0 0 0 0 0

Miscellaneous 962 769 769 769 962 769 5,000

Total General and Admin.

Expenses 30,540 24,432 24,432 24,432 30,540 24,432 158,811

Management Fee 2,704 2,704 2,704 2,704 2,704 2,704 16,226

Rent 9,000 9,000 9,000 9,000 9,000 9,000 54,000

Repairs and Maintenance 417 417 417 417 417 417 2,500

Utilities 2,000 2,000 2,000 2,000 2,000 2,000 12,000

LongTerm Loan Repayment 3,605 3,605 3,605 3,605 3,605 3,605 21,630

Total Fixed Expenses $68,811 $58,520 $58,520 $58,520 $68,811 $58,520 $371,701

C. Interest 0 0 0 0 0 0 0

D. Taxes (39.45%) 3,992 3,992 3,992 3,992 3,992 3,992 23,951

TOTAL CASH PAID OUT $110,617 $92,763 $92,763 $92,763 $110,617 $92,763 $592,284

CASH FLOW $14,195 $7,087 $7,087 $7,087 $14,195 $7,087 $56,739

CUMULATIVE CASH FLOW $14,195 $21,283 $28,370 $35,457 $49,652 $56,739



Page 2 (Month 7 12, plus twelvemonth total)

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12YEAR END

TOTALS

CASH RECEIPTS

Cash Sales Admissions $21,875 $17,500 $17,500 $21,875 $17,500 $17,500 $227,500

Cash Sales Beverage 96,994 77,595 77,595 96,994 77,595 77,595 1,008,735

Cash Sales Food 5,943 4,755 4,755 5,943 4,755 4,755 61,812

TOTAL CASH AVAILABLE $124,812 $99,850 $99,850 $124,812 $99,850 $99,850 $1,298,047

CASH PAYMENTS

A. Variable Expenses

Cost of Goods Sold Beverage $22,309 $17,847 $17,847 $22,309 $17,847 $17,847 $232,000

Cost of Goods Sold Food 1,664 1,331 1,331 1,664 1,331 1,331 17,307

Salary & Benefits 13,841 11,073 11,073 13,841 11,073 11,073 143,947

Total Variable Expenses $37,814 $30,251 $30,251 $37,814 $30,251 $30,251 $393,264

B. Fixed Expenses


Salaried Employees 16,010 12,808 12,808 16,010 12,808 12,808 166,500

China, Silver, Glassware 123 98 98 123 98 98 1,275

Point of Sale 583 583 583 583 583 583 6,996

Audio & Lights 1,750 1,750 1,750 1,750 1,750 1,750 21,000

Equipment Rental 0 0 0 0 0 0 0

Licenses & Permits 216 173 173 216 173 173 2,250

Linens/Uniforms 481 385 385 481 385 385 5,000

Janitorial 2,163 1,731 1,731 2,163 1,731 1,731 22,500



Supplies 1,202 962 962 1,202 962 962 12,500

Miscellaneous Direct Op. Exp. 721 577 577 721 577 577 7,500

Total Direct Operating

Expenses23,249 19,066 19,066 23,249 19,066 19,066 245,521


Music and Entertainment 2,404 1,923 1,923 2,404 1,923 1,923 25,000

Advertising and Promotion 8,654 6,923 6,923 8,654 6,923 6,923 90,000

Credit Card Commission 624 499 499 624 499 499 6,490

Liquor Taxes 0 0 0 0 0 0 0

Professional Fees 481 385 385 481 385 385 5,000

Insurance 721 577 577 721 577 577 7,500

Admission Taxes 1,094 875 875 1,094 875 875 11,375

Excise Taxes 15,602 12,481 12,481 15,602 12,481 12,481 162,256

Property Taxes 0 0 0 0 0 0 0

Miscellaneous 962 769 769 769 962 769 10,000

Total General and Admin.

Expenses 30,540 24,432 24,432 30,348 24,625 24,432 317,621

Management Fee 2,704 2,704 2,704 2,704 2,704 2,704 32,451

Rent 9,000 9,000 9,000 9,000 9,000 9,000 108,000

Repairs and Maintenance 417 417 417 417 417 417 5,000

Utilities 2,000 2,000 2,000 2,000 2,000 2,000 24,000

LongTerm Loan Repayment 3,605 3,605 3,605 3,605 3,605 3,605 43,260

Total Fixed Expenses $68,811 $58,520 $58,520 $68,619 $58,712 $58,520 $743,402

C. Interest 0 0 0 0 0 0 0

D. Taxes (39.45%) 3,992 3,992 3,992 3,992 3,992 3,992 47,902

TOTAL CASH PAID OUT $110,617 $92,763 $92,763 $110,424 $92,955 $92,763 $1,184,568

CASH FLOW $14,195 $7,087 $7,087 $14,388 $6,895 $7,087 $113,478

CUMULATIVE CASH FLOW $70,935 $78,022 $85,109 $99,497 $106,391 $113,478

ThreeYear Income Projection



Year 1 Year 2 Year 3Total

3 Years

INCOME

Cash Sales Admissions $227,500 $241,150 $248,385 $717,035

Cash Sales Beverage 1,008,735 1069,259 1,133,415 3,211,409

Cash Sales Food 61,812 65,520 69,452 196,784

Gross Sales $1,298,047 $1,375,930 $1,415,251 $4,125,227

Cost of Goods Sold Beverage 232,009 238,969 246,138 717,117

Cost of Goods Sold Food 17,307 17,827 18,361 53,495

Gross Margin $1,048,730 $1,119,134 $1,186,751 $3,354,615

VARIABLE EXPENSES

Hourly Wages & Benefits $143,947 $148,266 $152,714 $444,927

Total Variable Expenses $143,947 $148,266 $152,714 $444,927

FIXED EXPENSES


Management Salaries $166,500 $171,495 $176,640 $514,635

China, Silver, Glassware 1,275 1,313 1,353 3,941

Audio & Lights 21,000 21,000 21,000 63,000

Point of Sale 7,000 7,000 7,000 21,000

Equipment Rental 0 0 0 0

Licenses & Permits 2,250 2,318 2,387 6,955

Linens/Uniforms 5,000 5,150 5,305 15,455

Janitorial 22,500 23,175 23,870 69,545

Supplies 12,500 12,875 13,261 38,636

Miscellaneous Direct Op. Exp. 7,500 7,725 7,957 23,182



Total Direct Operating Expenses $245,525 $252,051 $258,772 $756,348


Music and Entertainment $25,000 $25,750 $26,523 $77,273

Advertising and Promotion 90,000 92,700 95,481 278,181

Credit Card Commission 6,490 6,685 6,885 20,061

Professional Fees 5,000 5,150 5,305 15,455

Insurance 7,500 7,725 7,957 23,182

Admission Taxes 11,375 11,716 12,068 35,159

Excise Taxes 162,256 167,124 172,137 501,517

Property Taxes 0 0 0 0

Miscellaneous 10,000 10,300 10,609 30,909

Total General and Admin. Expenses $317,621 $327,150 $336,964 $981,735

Management Fee $32,451 $33,425 $0 $65,876

Rent $108,000 $112,320 $116,813 $337,133

Repairs and Maintenance 5,000 5,150 5,305 15,455

Utilities 24,000 24,720 25,462 74,182

LongTerm Loan Repayment 43,260 43,260 43,260 129,780

Management Fee 0 0 0 0

212,711 218,875 190,839 $622,425

Total Fixed Expenses $775,857 $798,075 $786,575 $2,360,508

TOTAL OPERATING EXPENSES $919,805 $946,341 $939,289 $2,805,435

EARNINGS BEFORE INT, DEPREC, AND TAXES $128,926 $172,793 $247,462 $549,180

Interest 0 0 0 0

EARNINGS BEFORE DEPREC AND TAXES $128,926 $172,793 $247,462 $549,180

Depreciation 7,500 7,500 7,500 22,500

EARNINGS BEFORE TAXES $121,426 $165,293 $239,962 $549,180

Taxes (39.45%) 47,902 65,208 94,665 207,775

EARNINGS AFTER TAXES / NET PROFIT $73,523 $100,085 $145,297 $318,905

Net Profit (Loss) (as a percentage of Sales) 5.7% 7.3% 10.0% 7.7%

Extended Cash Flow Analysis



REVENUE: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Cash Sales Admissions $227,500 $241,150 248,385 $255,836 $271,186 $279,322

Cash Sales Beverage 1,008,735 1,069,259 1,133,415 1,167,417 1,237,462 $1,274,586

Cash Sales Food 61,812 65,520 69,452 71,535 75,827 $78,102

Cash Sales Miscellaneous 0 0 0 0 0 $0

TOTAL REVENUE $1,298,047 $1,375,930 1,451,251 $1,494,788 $1,584,476 $1,632,010

EXPENSES:

Cost of Goods Sold Beverage $232,009 $238,969 246,138 $253,523 $261,128 $268,962

Cost of Goods Sold Food 17,307 17,827 18,361 18,912 19,480 $20,064

Cost of Goods Sold Miscellaneous 0 0 0 0 0 $0

Hourly Wages & Benefits 143,947 148,266 152,714 157,295 162,014 $166,875

Management Salaries 166,500 171,495 176,640 181,939 187,397 $193,019

China, Silver, Glassware 1,275 1,313 1,353 1,393 1,435 $1,478

Audio & Lights 21,000 21,000 21,000 21,000 21,000 $21,630

Point of Sale 7,000 7,000 7,000 7,000 7,000 $7,210

Equipment Rental 0 0 0 0 0 $0

Licenses & Permits 2,250 2,317 2,387 2,459 2,532 $2,608

Linens/Uniforms 5,000 5,150 5,305 5,464 5,628 $5,796

Janitorial 22,500 23,175 23,870 24,586 25,324 $26,084

Supplies 12,500 12,875 13,261 13,659 14,069 $14,491

Miscellaneous Direct Op. Exp. 7,500 7,725 7,957 8,195 8,441 $8,695

Music and Entertainment 25,000 25,750 26,522 27,318 28,138 $28,982

Advertising and Promotion 90,000 92,700 95,481 98,345 101,296 $104,335

Credit Card Commission 6,490 6,685 6,885 7,092 7,305 $7,524

Liquor Taxes 0 0 0 0 0 $0



Name: Type the code shown:

Professional Fees 5,000 5,150 5,305 5,464 5,628 $5,796

Insurance 7,500 7,725 7,957 8,195 8,441 $8,695

Admission Taxes 11,375 11,716 12,068 12,430 12,803 $13,187

Excise Taxes 162,256 167,124 172,137 177,301 182,620 $188,099

Property Taxes 0 0 0 0 0 $0

Miscellaneous 10,000 10,300 10,609 10,927 11,255 $11,593

Rent 108,000 112,320 116,813 121,485 126,345 $130,135

Repairs and Maintenance 5,000 5,150 5,305 5,464 5,628 $5,796

Utilities 24,000 24,720 25,462 26,225 27,012 $27,823

Management Fee 32,451 33,425

LongTerm Loan Repayment 43,260 43,260 43,260 43,260 43,260 43,260

TOTAL OPERATING EXPENSES $1,169,121 $1,203,137 1,203,789 $1,238,933 $1,275,178 $1,312,135

NET OPERATING INCOME $128,926 $172,793 247,462 $255,855 $309,298 $319,874

Less Interest 0 0 0 0 0 $0

NET INCOME BEFORE DEPREC. &

TAXES 128,926 172,793 247,462 255,855 309,298 $319,874

Less Depreciation 7,500 7,500 7,500 7,500 7,500 $7,500

NET INCOME BEFORE TAXES $121,426 $165,293 239,962 $248,355 $301,798 $312,374

Less Taxes (39.45%) 47,902 65,208 94,665 97,976 119,059 $123,232

NET INCOME $73,523 $100,085 145,297 $150,379 $182,739 $189,143

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Mack Jul 10, 2009 @ 9:09 am

biz plan for the mack night club inc to help organize better than before

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Nightclub Business Plan - Organizational Plan, Marketing Plan, Management Plan, Financial Documents

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