Costs of setting up a nightclub in a warehouse...

coinxoperated

It's crazy idea.... But I want to do it anyway!

The idea is to rent a warehouse unit. A pretty basic one! Empty it,

Get a large sound system, bar, booze and install proper toilets and run a club night.

The 'theme' as such, will be a rock club with gigs on some days and also allow it to be 'rented out' once it's up to spec for parties / events.

Obviously I would need marketing and licences..... How much do you think all of this would cost to set up?

keithdc

coinxoperated wrote: »

It's crazy idea.... But I want to do it anyway!

The idea is to rent a warehouse unit. A pretty basic one! Empty it,

Get a large sound system, bar, booze and install proper toilets and run a club night.

The 'theme' as such, will be a rock club with gigs on some days and also allow it to be 'rented out' once it's up to spec for parties / events.

Obviously I would need marketing and licences..... How much do you think all of this would cost to set up?

Sound system- open your car doors and use your car stereo- £0

Booze- 30 bottles of white lightening- £60. Token bottle of Tesco value coke- 50p

Toilets- 4 buckets from poundland- £4.

Total: £64.50. Probably more pleasant than most nightclubs I've been to in recent years.

tanith

Insurances would be a huge cost which you don't seem to of thought of..

keithdc

My serious answer....

In my experience, people generally go to pubs first and on to clubs later. Therefore, nightclubs tend to be in places with lots of pubs.

Warehouses tend to be in industrial areas- have you considered whether geography may be limiting your potential audience.

Obviously... some warehouse clubs do exist, but they generally rely on being very cheap or having amazing music/ offering something slightly different.

SailorSam

I think you'd be signing a blank cheque.
Have you got any experience of this type of business.

http://www.ehow.com/video_4755466_start-nightclub.html

spacey2012

Start as a glass collector, then a bar hand, then a manager, then an area manager, then a club manager then you will know the answers.

AP007

coinxoperated wrote: »

It's crazy idea.... But I want to do it anyway!

The idea is to rent a warehouse unit. A pretty basic one! Empty it,

Get a large sound system, bar, booze and install proper toilets and run a club night.

The 'theme' as such, will be a rock club with gigs on some days and also allow it to be 'rented out' once it's up to spec for parties / events.

Obviously I would need marketing and licences..... How much do you think all of this would cost to set up?

This is not the 90's where raves were wide spread in warehouses!

You need a liquor licence, council permission for it to be a club(change of use etc with the plannind dept), firechecks, police checks, installation of proper loos, fire escapes etc need I go on?

Where are you planning on doing this? Clubs/pubs and bars are not doing too well in this double dip you know.

coinxoperated

I am aware of the need for insurance / planning permission etc etc as mentioned

The area in which I live has a very successful similar club, which is too small. You can wait for almost an hour and half to actually get in as they reach maximum capacity by about 10.

It's clearly a gap in the market. The owners of the current club have approached me with some ideas where we could do it together, so I'm considering that as an option also.

I do have previous experience of bar management, it's not something I would have difficulty with. It's estimating the overall cost for set up and running for around 2-3 months while marketing takes first priority. I was just wondering if anyone on here had done something similar.

Also, warehouses are ideal for a club event. It certainly does not mean it'll be 'how it was in the 90s' - people want space, be cooler, and more importantly, there moneys worth. Various things such as area and locality to public transport I have already considered. I've found a pretty much ideal space...

AP007

coinxoperated wrote: »

It's clearly a gap in the market. The owners of the current club have approached me with some ideas where we could do it together, so I'm considering that as an option also.

I do have previous experience of bar management, it's not something I would have difficulty with. It's estimating the overall cost for set up and running for around 2-3 months while marketing takes first priority. I was just wondering if anyone on here had done something similar.
.

If its a good idea why are these club owners talking to you and not doing it themself?

What do you think it wil cost you? Have a guess?

I know to refit a bar in London you are looking at over 250k!

tombruton87

This is such an open question, as it all depends on where you are in the UK, the size of the warehouse, the local council and licencing's view on it. Lets say your going low end but all about the music and you want it to do well. with capacity of 800

PA system 30k
Bar/bars 10k/20k
other decor seating/decoration 20k
legal fee 10k (fairly uneducated guess)
stock 5K (need more money on hand though)
3 months rent 8k
3 months wages plus security 8k
marketing 10k

id say for lowend fitout on a budget you could start it with 150k however you would have about a 95% chance of going bust in 3 months, realisticly id say you would need to add another 100k onto this, plus a good rainy day fund

nightly taking though can be good

800 on door for big act in a sub genre 6400
minus hire of dj 1k plus 10k at bar, takings for the nights £15400

do that 2 nights a week plus bread and butter could take a healthy 50k, so 2.5 million a year. not bad that is very unlicky tho. you are going to get lulls like january and acks that you though would be popular but just aint.

Can you get decent funding or is it a pipe dream?

If you are serious, find a warehouse find out its rental cost? have a look round, get the costs for bars and stage, find out cost of printing for flyers. you got the contacts to do a big launch? just remember night clubs is a hard business and you can loose money very quickly.

also hiring big acts also is a massive gamble hire a dj for 10k you have to fill the club

coinxoperated

Thanks for all the info Tom! All taken on board and received with thanks