Business Overview

The characteristics of this space will largely be defined by the type of crowd the owner is able to attract based on the target market and the owner’s tastes. The club can offer a certain type of music, such as those that play only country western music or their niche could offer different services, like a gentleman's club. Nightclubs can have live music, feature DJ music, or both. Contemporary DJs have become performance stars now as well. The most important feature of any successful nightclub is the ability to attract enough paying customers to pay the rent and occasionally “pack the place,” to make tremendous profits.

Who is this business right for?

A nightclub business is for people who do not mind hard work, yet also want to have fun.

It can be very lucrative depending on the club’s size, its location, and its popularity. Nightclub owners have to be “night” people. This means they like staying up all night and sleeping in the day. They also need to be very popular and know many other people who are able to attract customers to their club.

What happens during a typical day at a nightclub?

Getting out of bed after a wild night is the hardest part. As a nightclub owner, you will need to be awake during some of the regular business hours to take care of the things that normally happen only during the daytime, such as ordering supplies, making bank deposits, and getting change from the bank.

Your main job is to find trustworthy people to help you and then watch them very carefully to prevent stealing. You will find this very difficult to do because there are dozens of way people will steal from the club and it is the owner’s job to catch them and replace with, hopefully, a more honest person.

If you have a good club manager to run the operations who does not take more than his or her fair (and agreed upon) share, then you will be able to enjoy this business. Your other main job is to promote the club. Most night club owners become somewhat famous in the city where the club is located because they go around town constantly inviting people to come to their club. At the club, they are often the life of the party. This sounds great to some people; however, you need to have a super-human stamina to party every night, which is what is required for this business.

What is the target market?

The best customers are the ones who have lots of money and do not mind spending it on a wild night out. A handful of these big spenders can make a club very profitable. Attracting famous people is very good because they attract others.

How does a nightclub make money?

Selling drinks, possibly food, charging for admission, and, where possible, for special seating and/or special services offered to the customers. These special services can be anything from “lap dances” at strip clubs to bottle service (customers buy a full bottle of liquor to be exclusively served to them for a special price) at VIP tables in the best spots right next to the entertainment.

What is the growth potential for a nightclub?

Fortunes have been made (and lost) in the nightclub business. A nightclub can be a simple place that caters to a niche target market, such as a modest nightclub on the outskirts of a small rural town or a nightclub can be a multi-million dollar extravaganza in the heart of New York City or at the most popular hotel/casinos in Las Vegas that cater to the rich and famous party-goers, such as the Palms (where Paris Hilton and many Hollywood stars hang out) and others.