Have you been dreaming of opening your own nighttime hotspot? Whether it’s a high-end club featuring martinis and entertainment or a dressed-down bar with a casual dance floor, this type of business can be very profitable. Of course, not every nightclub is a success—but knowing the ins and outs of purchasing one can help ensure that your decision is a wise one.
If you’re thinking of buying a nightclub, here’s what you should know…
Location really matters
Deciding where to get set up is no small matter, and the choice you make could make or break your business. Choosing a central area with a lot of foot traffic usually pays off, but it typically also entails a more sizable investment. You’ll also want to consider the competition—and whether nearby businesses enjoy steady, year-round popularity or an influx of seasonal visitors.
Opting for up-and-coming areas may also be a good bet, and (luckily) an experienced business broker can help you spot them. It goes without saying that different locations will draw their own unique crowds. For this reason, it makes sense to identify your ideal patron early on. Knowing who’s most likely to frequent your nightclub will help you select the right location and market your business successfully down the road.
Are brewpubs more your style? Learn what you need to know about opening one here!
There are benefits to buying an existing business
Should you purchase a nightclub business or lease a space and start from the ground up? For some, the idea of bringing their own vision to life is incredibly important. For others, taking over a business that’s already proven successful and making it feel like their own is satisfying in its own right.
If you fall in the latter camp, you can enjoy a pre-existing customer base, strong industry connections, and possibly even skilled employees who know their roles (if they’re willing to stay on). Building on what works is often a lot easier—not to mention less risky and expensive—than starting from scratch.
Choosing whether to purchase a nightclub business or start your own is a big decision, so think it through and ask relevant experts for information and advice!
Your business plan should be thorough
It’s amazing how many aspiring business owners don’t bother creating a complete and solid plan before taking action. The idea is to have a document to guide you—something you can refer back to when you’re caught up in small details and need to regain your focus.
This document should address who your target demographic is, how you’ll meet their needs, and the steps you’ll take to reach them. It should also go into how you’ll execute your plan, from obtaining financing to marketing to the metrics you’ll use to measure success. Lastly, don’t forget that this document should be somewhat flexible (after all, things rarely go exactly as we expect).
Searching for the right nightclub business to purchase? Find some current opportunities here! Interested in creating your business from the ground up? Start by finding the right commercial space for purchase here or the ideal one to lease here.
There will be a lot of red tape
From insurance requirements to zoning and noise restrictions, there’s a lot to learn about any location you’re considering. For an existing business, you’ll also want to make sure you look into licensing. For example, can a current, favourable liquor license be transferred to you? Make sure you understand the logistics involved in how your prospective business operates.
On the whole, it’s important to do your due diligence on any nightclub business you’re thinking of buying. That means reviewing all the documents you’re entitled to with your lawyer to ensure that all your bases are covered.
Covid has changed everything
Needless to say, recent lockdowns were bad news for nightclubs. While some businesses have had to close permanently, others have survived. Now that Ontario’s economies have opened back up, owners have welcomed patrons in—but those who don’t want to run into trouble must be cautious.
Be aware that when you open your nightclub, the onus will be on you to keep up with legislative shifts. Sure, if you start working towards establishing a business today, it won’t be open for a while. That said, it’s also true that the pandemic will be a part of our lives for quite some time—so be ready to keep track of rules around capacity, vaccination records, and mask mandates.
Looking to purchase a nightclub business—or find the right space where you can build one from the ground up? We can help! Get in touch to take the first step.
