a zillion questions...ownership?
hello there--has anyone toyed with the idea of owning their own club? i know lots of lady's these days are taking over the world of porn, why not club ownership too? i am in the "information gathering stage" right now. i plan on doing this i just need to become knowledgeable, and find the tools to become all that i can be! please let me know all you gals know...i realize that i do not want to compete with or within areas owned by "organizations( you know what i am referring to)...i need all encompassing hurdles, licencing requirements, and how to access all books, websites(knowledge) about the topic. all replies will be greatly appriciated!!! --winter
Re: a zillion questions...ownership?
The Reasons it's hard for anybody to open a club are:
1. Zoning laws- No matter where you are the Zoning laws, usually forbid you opening a club.
2. Location- Unless your club is located in the middle of nowhere, all the desirable locations are usuallly covered by #1.
3. It the first two rules weren't true, I'd be a club owner right now and so would a bunch of other people.
4. Those rules don't always apply to clubs either. I'ved lived in a city where trying to open any highclass restaurant with full bar or beer and wine licence is impossible. Unless of course your a huge "family oriented" corporation (i.e. Chucky Cheese's pizza). Our city council doesn't understand the differance between high class restuarant and a place to take the kids. Therefore they drive money making restuarants out of the city, and still complain about "our lack of high class eateries" So if your looking for locations it's usually good to talk to people in the "hospitality industry" (bar, club, and restuarant owners) to see how much red tape from the city and county your going to deal with, before committing to anything. Because opening any bar, club or strip club is a huge task, requiring alot of money. So try to get as much info as you can to create a realistic budget, and minimize costly suprises.
What your doing on this board is good start, but keep researching.
Re: a zillion questions...ownership?
:)thank you madgrad, i appriciate all information/input on this subject. in the least we can all become more educated in all matters surrounding the club scene ;). i was discussing this a bit with Melonie on another forum site(she's very helpful)too. i have many options open now, just the faster i narrow down a plan the better(obviously ::))!
Re: a zillion questions...ownership?
Also, I forgot to tell you.
Any Restuarant, Bar, or Club that you decide to open, will need alot of cash upfront to the vendors as a deposit in order to get anything done. i.e. water company, electric company, beverage company, liquor sales, and other vendors you will need.
Because anything in the hospitality industry has a good chance of going broke with in the first year [8 out of 10 places that open fail] and vendors want thier money.
Try to avoid serving food(except popcorn, chips, jerky, and stuff like that). The profit you make off food is in penny's. You don't want a situation of the profits you make from alcohol going to support your failing food costs from the kitchen. Many clubs, and restuarants have gone broke this way.
Don't let your ego get in the way of your profit. If you start making buisness decisions because of ego, instead of common sense; you will not make money and be put into debt. [I had a friend whose buisness partner continued to destroy profits by "drinks on the house" -weekely, giving other club owners "attitude" , trying to get laid by offering inexperianced girls jobs bartending, letting "friends" come in and drink topshelf for free on a nightly basis. All this just to be " the big man"] You don't ever want to be "the bigman" you want to be "the smart buisness owner"
It's all right to treat friends once in awhile, but don't carried away with it. Also set the boundrys with your friends so they won't get carried away.
If a vendor provides good service to you, stay with him. The service alone is worth more than the money saved.
If you frequently jump ship to the other vendors because something is cheaper. You become labled as a "Cherry Picker".
"Cherry Pickers" always get served last and given the worst products. Vendors know you have no loyalty, nor give them any profit, and therefore they won't waste time with you or help you out in an emergency if you need thier services.
Never be pennywise, be poundwise. If it cost's you $1.00 to save an penny. You will spend more time working against yourself earning money than actually making money.
Good luck with your buisness!!
Re: a zillion questions...ownership?
:) thank you once again! no worries on the "give-a-ways", i am a firm believer if you teach a man to fish....
anywhoo--it's always good to keep perspective! i was actually thinking i would put my friends in need to work, and i have a few who own, well they are fairly well off; and i have known them for 20+ years(childhood friends) and would hit them up to invest! of course i must first locate a club that needs to refirbish itself/rep and what not, redecorate with my theme(sorry not revealing ;D!) well, wait i jumped ahead of myself....i will take my time with this! i will talk with local business owners and the like, keeping your suggestions/facts in mind...please write back if you think of anything else~same goes for anyone reading this~
thanx--winter 8)
Re: a zillion questions...ownership?
I actually asked my manager how much it would cost to buy the club....he said about $4 mil.
There are other clubs in the neighborhood which are waaaaaay run down compared to mine. I think the idea of having two decent clubs next to each other isn't a bad idea....kinda the same basic idea as a mall. Even though the stores are in competition with each other, they bring more business as a whole because that's where you go when you think you want to shop.
Re: a zillion questions...ownership?
Emily--that is a wonderfully valid point! gives me more to chew on!!!!
~thank you~
Re: a zillion questions...ownership?
Yes alot of big businesses use the concept of locating next to or near their competitors - the idea of getting spillover business.
But I think you can definitely have too many clubs in one area / city. The amount of business for anything is finite, like a pie, which can only divided so many ways before someone starts going hungry. Seems like everybody wants to own a stripclub these days....
Re: a zillion questions...ownership?
I don't want to own one. I was just curious how much they were selling it for because I know the owner is sick of it....gee, wonder why!
Re: a zillion questions...ownership?
Oh I'd love to own one later on....but my comment was about industry outsiders who think it'd be a really cool way to have lots of babes and free-flowing cash.
Re:a zillion questions...ownership?
clubs are gold mines, but they are expensive...I have seen club owners sell for 1.4 to 10 mill..and start up costs (zoning and variances alone are often over a million with court costs)
Not to say don't do it...just know it
I like your idea to rehab a club
as a producer who has done photo/video for many girls and clubs..the biggest thing in running one (besides the girls) is friendly staff and reasonable prices on drinks..etc. That's not where the $$ is, its in the girls!