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What Investors Need To Know About The Nightclub Business

June 6, 2017Experts in Hotels and Restaurants BlogBy PGAuthor
nightclub business

A nightclub never goes out of style. Ever since the first nightclub business and bars were built, people have been going to establishments where they can dance to music, meet and interact with others, enjoy some drinks, and generally have a good time. Even the worst recessions have not killed the industry; sure, many doors have closed, but the nightclub sector as a whole has survived and is still thriving.

 

Because of the industry’s resilience, investors believe that putting money in the nightclub business is one of the best ways to grow their wealth. While this is generally true, what many don’t know is that simply throwing money at a nightclub is not enough. To succeed in this sector, nightclub investors need to know how to run a business that stands out from its competitors and attracts customers time and again. If you’re planning to invest in a nightclub, you can start by taking these steps:

 

Identify your theme — and stick to it

Most, if not all, successful nightclubs have a concept. Some work hard to be one-of-a-kind; Alux Caverna in Mexico, for example, is located in a 10,000-year-old cave, while Subsix in the Maldives is located 20 feet underwater and allows guests to view manta rays and tropical fish while enjoying their drinks. However, not all nightclubs have to be this “unique”; simply finding your niche and building up on it are usually enough.

 

Create a sense of exclusivity

Most people nowadays, particularly millennials, look for exclusive nightclubs. They don’t want to hang out in a place where virtually anyone can go to; they want to spend their time in a nightclub that makes them feel special and extraordinary.

 

Two ways to create this type of nightclub atmosphere is to 1) have guidelines that guests should follow and 2) be strict and consistent with enforcing these guidelines. Having a dress code, requiring guests to come in groups with mixed genders, preventing guests from getting in if they arrive beyond your opening time — these are just some of the “rules” that you can enforce. Don’t worry if they seem ruthless; they’ll drive away the wrong demographic while attracting the right type of people.

 

Another tip: don’t open every day. Pick three or four days a week to operate, then close the club during the rest of the week. It might go against every entrepreneurial bone in your body, but remember: the nightclub business is built on quality, not quantity. Opening for a few days only creates more “exclusivity” and allows you to focus your energies on creating the best customer experience.

 

Value guests’ privacy

Hotels don’t reveal the identity of their guests, and neither should nightclubs. Once your business starts to pick up and attracts celebrities, it would be tempting to announce to the world that this actor or that singer frequents your place. But don’t give in to the temptation: respect the privacy of these celebs, and they’ll reward you by coming back again and again.

 

Invest in the right staff

Nowadays, people don’t just go to nightclubs to drink or dance; they go to nightclubs to have an experience. And one of the biggest factors that affect their experience is the service that they get from the club staff. Hire the best people in the industry, and spend enough time and resources on training them to do the best possible job.

 

 

Keep these in mind to succeed in the nightclub industry and ensure your investment pays off.

 


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