The name of this business will be Good Life night club. The business belongs to bar and night club industry. Bar and night club industry is a very competitive industry, with competitors from similar businesses or from similar businesses like services, beer, wine and liquor stores, brewers, restaurants and cafes.
The target customers for this business will be all individuals above the age of eighteen residing or working in Queens Astoria and other surrounding areas. As stated earlier, this is a very competitive industry. Good Life will face potential competitors like Quays pub, Irish Rover, Firdos Grill, Cronin and Phelan’s, Crescent Vine, Crescent Lounge, Sweet Afton, Christos Steak House, DiWine and Gilbey’s.
The objectives of the business include; provide customers with high quality alcoholic and non alcoholic rinks, health and nutritious food to our customers, high quality entertainment which is appropriate for a wide range of age groups, comfortable and quality place where customers can spend their night, suitable and high quality recreational activities and ensure safety for our customers.
Good Life night club is a start up business with the major products being alcoholic and non alcoholic drinks and healthy and nutritious foods. Before the start of the business legal documents like food license, beer license and entertainment license will be acquired. The main unique and differentiating factor for our products will be quality. To market our products free samples, discounts and posters will be utilized.
Products to sell will be from manufacturers who are known to produce high quality products. The management team will consist of a chief executive officer, overall manager, assistant overall manager and then departmental mangers. There are risks which are associated with night clubs like accidental fires, fight and accommodation of underage individuals. The total capital required is $25,000 which will be from personal savings and banker’s loan.
Industry Description (Longenecker, Justin and others)
The business to be started is a night club. This business belongs to the bar and night club industry. This industry is not very well exploited in Queens Astoria. It is one industry which has very strict rules and regulations especially those pertaining individuals under the age of eighteen. It is accompanied by aspects from entertainment industry. This is due to the fact that a night club without entertainment can never succeed. Other related industries include; winemakers, taxi and limousine services, beer, wine and liquor stores, brewers, restaurants and cafes among others. This industry is very marketable because there are so many people spend most of their recreational time in night clubs.
Target customers (Longenecker, Justin and others)
The night club business is going to target all individuals both young and old. This is because; it will have different sections for different age groups and customers will have to choose which section they would want to be. The night club will be targeting individual from the surrounding work places and the surrounding residential areas. This is based on the fact that not many people like walking long distances to spend their day out in night clubs.
Competitor Analysis (Longenecker, Justin and others)
Bar and night club industry is full of competition (Abrams, Rhonda & Kleiner Eugene). Competition if from other night clubs and other businesses related to this like winemakers, taxi and limousine services, beer, wine and liquor stores, brewers, restaurants and cafes among others. The night club to be opened in Queens Astoria is going to face competition; that is why measures must be taken to ensure that competitive advantage is attained.
One competitor will be Pirata Bar and Lounge which single location and a drinking place for alcoholic beverages. Other entertainment and drinking places which are likely to cause competition to Good Life night club include; Quays pub, Irish Rover, Firdos Grill, Cronin and Phelan’s, Crescent Vine, Crescent Lounge, Sweet Afton, Christos Steak House, DiWine and Gilbey’s. These are likely to bring a lot of competition because people know them and are used to their services. However Good Life night club will be set in a way that it contains everything which customers need during a night out like healthy and nutritious food, good drinks both alcoholic and non alcoholic for those who do not drink and warm water just incase someone needs to take a birth before they go home. Good Life night club will also gain its competitive advantage through its location. It will be located in a place which is inhibited by a diverse crowd and is also easily accessible for every one.
Company Description (Longenecker, Justin and others)
Company Objectives (Longenecker, Justin and others)
The major objects of the company will be;
• To provide customers with high quality alcoholic and non alcoholic rinks
• To provide health and nutritious food to our customers.
• To provide high quality entertainment which is appropriate for a wide range of age groups
• To provide comfortable and quality place where customers can spend their night.
• To provide suitable and high quality recreational activities
• To ensure safety for our customers
Nature of the Business (Longenecker, Justin and others)
Good Life night club will be of entertainment and recreational nature. It will be in such way that people get entertainment from music and dance, get recreational services like bull’s eye and pool, and it will also from provide resting place for those who feel sleepy.
Primary Products and Service (Longenecker, Justin and others)
The major products which will be provided at Good Life night club will be wines, beers, and non alcoholic drinks like juices, sodas among others. Nutritious foods will also be provided both ready and upon ordering (Abrams, Rhonda & Kleiner Eugene). The foods will include meats, sandwiches, spaghetti, pasta vegetables and fruits of all kinds. Recreational services provided will be pool games and buy’s eye. Entertainment consisting of music and dance will also be available. Accommodation for those who want to sleep will also be available.
Current Status of the Company (Longenecker, Justin and others)
Good Life night club is a start up business. It is starting for the first time as an original idea of the owner.
Legal Form of the Organization (Longenecker, Justin and others)
For Good Life night club to operate legally, it will get different licenses to be used. The licenses which will be required include; food license, beer and liquor license, and entertainment license. Before starting the business, care will also be taken to ensure that the location zone is legal for situating the business. All these licenses will be necessary to avoid any problems with the law. Entertainment license will give permission for music to be played at Good Life night club.
Product/Service Plan (Longenecker, Justin and others)
Target customers are likely to buy our products because their product will be exceptional. Bear and win will be of the highest quality and offered on affordable prices. Foods provided at Good Life will be healthy and nutritious to complement empty calories which are available in beers. The products will be in such a way that they complement the nutritional value of each other (Abrams, Rhonda & Kleiner Eugene). Safety provided at Good Life will also be attractive since people will not fear for their lives. The unique features in the products offered at Good Life will be basically their high quality.
Marketing Plan (Longenecker, Justin and others)
In order to effectively market products offered at Good Life free samples will be offered at different places so that customers can get a taste of what is going to be offered. Discounts will also be given to customers as a way of attracting them. All products at Good Life night club will be sold on cash or using credit cards. Mostly, the selling approach to be used will be individuals to come and buy from our business. Advertisement will be done through the free samples and use of posters to be distributed at Queens Astoria and other places.
Operational and Development Plan (Longenecker, Justin and others)
Our products will be from the nearby brewery company one which is known to produce high quality products. The products which will be manufactured directly at Good Life night club is only the food which is supposed to be cooked from there. Ingredients to cook this food will be bought from wholesalers in town and groceries. To control the quality of these foods, it will be ensured that qualified cooks are hired and foods are sold when still fresh. Comments from our customers will also be collected regarding the quality of our products. Incase of a complaint, the appropriate corrective measures will be taken.
Management Team (Longenecker, Justin and others)
The management team will include the overall manager who will be in charge of coordinating all the activities in the business. Below him will be an assistant manager who will be taking orders from the overall manager. The assistant manager will work in direct conduct with the other workers. Below him will be managers for each department. There will be a manager in charge of food department and another one in charge of the drinks department. These will be responsible for accounting every thing which is sold. Below these departmental managers will be waiters, cooks and a cashier. The owner of the business will be the chief executive office and will be in charge of coordinating the activities of the business with the help of the other managers below him/her.
Critical Risks (Longenecker, Justin and others)
A night club is one business venture which is accompanied by multiple risks. One risk is where customers under the age of eighteen may enter the club without being noticed and then the police identify them. This can even lead to closure of the club. Another risk involves food poisoning especially if one of the workers is a rival to some customers or is used by an outside to accomplish the mission. Other risks include; fire accidents, fight especially when people are drug and other crimes committed in the club.
Offering (Longenecker, Justin and others)
To successfully start Good Life the amount of money needed will be approximately $25,000
Out of these
$2,000 will be used to get all the licenses
$11,000 will be used to buy stock
$4,000 will be used to pay for the business space
$5,000 will be used to pay workers
$3,000 will be used for other miscellaneous.
Financial Plan (Longenecker, Justin and others)
Fifty percent of the required capital will be from personal savings. The rest of the capital will be from a banker’s loan which is to be paid from the first profits made from the business. The savings are from previous salaries gotten from job.
Income Statement Assumptions Year1 Year 2 Year 3
Year 1 projected unit of sales 1000 2500 4000
Selling price $30,000 32, 000 35,00
Fixed cost of goods sold $400,000 500,00 650,000
Fixed operating expenses $100,000 110,000 115,000
Depreciation expense $3,000 2,500 2,00
Valuable cost of goods sold 300,000 400,000 550,000
Valuable operating expense 20% 15% 13%
Income tax 15% 15% %
Abrams, Rhonda & Kleiner Eugene. The Successful Business Plan: Secrets and Strategies. California, The Planning Shop. 2003
Longenecker, Justin and others. Small Business Management: Launching and Growing Entrepreneurial Ventures. South Western, Cengage. 2010.