Opening your own nightclub can be a very lucrative endeavor, but for any novice in the nightlife industry there are things they need to know. No matter what type of business you get into, there are trade secrets and general rules to success, and as a newbie you can easily overlook these things and find yourself on the losing end of a bad balance sheet. To help you get started, here are 4 things that all new nightclub owners should know so you can get started with your best foot forward.
Theft Kills Profits
As is the case with most types of businesses, theft is a major concern in nightclubs and almost always occurs within your staff. Employee theft makes up for 42.7% of all theft in the business world, so keeping a tight leash on your business practices is crucial to success. Many bartenders will over-pour drinks for regular customers to get a better tip, or sometimes not even ring up the sale at all! I’ve even seen employees walk out the backdoor of one of my nightclubs with a case of liquor, so staying on top of things is of the utmost importance. Make sure you install cameras and only give access to people who actually need it to do their job in addition to hiring trustworthy and qualified staff members to operate your nightclub.
Beyond just securing your product and cash, you also need to secure your customers. If your nightclub gets a bad reputation for being dangerous or filled with unsavory clientele, you will instantly see your occupancy bottom out along with your profit sheet. Make sure you have cameras throughout your club and hire competent doormen to ensure each of your customers has a fun and safe experience while at your club.
Tap Into Bottle Service
Bottle service used to be a fringe concept that very few nightclubs offered, but now it is essential to keep customers coming back and your profit sheet in the black. Not only do you need a great selection of bottle service packages available, but you need to decorate the bottles using bottle sparklers or some other form of eye-catching gimmick. If you can’t use bottle sparklers inside your club due to local ordinances (as is the case in New York City), there are plenty of safe alternatives to bottle sparklers such as glow sticks or led devices that will produce the same effect. If you aren’t offering bottle service to your customers, you’re missing out on a huge chunk of profit.
Sink or Swim with Advertising
Lastly, you need to wake up every morning thinking about how you advertise your nightclub if you want to stay competitive. The good old days of just having a website and posting things on Facebook are over; you need a real marketing strategy to compete in the 21st century advertising world. Though it may seem like a big expense, you really need to consider hiring a marketing specialist on full time for your nightclub. Overlooking the importance of advertising is one of the biggest mistakes that new nightclub owners make, so taking the necessary steps to market your club can mean the difference between failure and complete success.