1.
0 Executive Summary
1.1 Objectives
The Nightclub will be the premier, high-energy, themed dance and nightclub in Leskovac. Our goal is to remain a step ahead of our competition through an exemplary service provision. We expect our guests to have more fun during their leisure time. We will provide more video and electronic technology per square footage than anyone else in the region. A simple, yet unique, themed menu and atmosphere will create a sense of 'belonging' for locals and tourists alike. Our operating credo is: "happy enthusiastic employees create happy enthusiastic guests." The main objectives of the development of this new venue are: To capitalize on excellent location opportunity with swift commitment to the new Town Square development. To launch the venue with a highly publicized grand opening event in the summer of Year 1. To maintain tight control of costs, operations, and cash flow through diligent management and automated computer control. To maintain a food cost below 33% of food revenue. To maintain a total beverage cost below 25% of beverage revenue.
1.2 Mission
It's not the lights; it's not the liquor; and it's not the sound. It's the people! And its the FUN! Successful nightclubs are based on an accurate understanding of the core customers. The mission of The Nightclub is to create a nightclub environment that satisfies the changing tastes and expectations of our core customers. In order to achieve this goal, we must constantly improve our response to the customers entertainment needs.
1.3 Keys to Success
Provide exceptional service that leaves an impression. Consistent entertainment atmosphere and product quality. Managing our internal finances and cash flow to enable upward capital growth. Strict control of all costs, at all times, without exception.
2.0 Company Summary
2.1 Company Ownership
The Nightclub is a privately-held LLC. The LLC has three owners, Danijel Lazarevic, Igor Minic and me. Danijel Lazarevic holds a BS in business administration from the The State University. He successfully opened and managed two nightclubs, and went on to open other operations including a sports bar. He is currently in his fifth year in the hotel industry, where he manages a successful sales department. Igor Minic holds a BA in Industrial Media Management, with a concentration in marketing. Igor managed two successful nightclubs.
2.2 Company Locations and Facilities
The Nightclub will be characterized by the elaborate dance club situated in a spectator setting which comfortably accommodates 750 guests. The area will also offer three private sky boxes which can be combined for use in a conference or private party setting. This room is intended for special events and daily use. The adjoining dining room and bar would present an inviting and relaxing atmosphere, which displays a collection of musical and dance memorabilia. A live dj will coordinate the events and entertain the patrons with music and games during music breaks and off-times. One of the major advantages that The Nightclub will have over its competition will be its location in the new, high-profile Your Town Center.
3.0 Products and Services
3.1 Products and Services Description
The Nightclub represents a unique opportunity for a high-energy, dance-themed venue. The development's central location, demographics, and lack of direct competition are major advantages to this project. The proposed venue will provide
a local solution to the lack of social atmosphere and live sports venues geared primarily toward the 21-35 age group in Leskovac and will help keep late night entertainment expenditures within the localized region. The new venue will specialize in high-energy themes, a quality video and gaming area, and will offer beer, wine and an array of liquors and mixed drinks. In addition, the venue will sell non-alcoholic beverages such as soft drinks, juices and bottled water. A "casual" food menu consisting mostly of appetizers. The initial hours of operation will be 8:00 P.M. To 4:00 A.M., four nights a week.
3.2 Technology
1 Sports Central Game room with TVs with various world sporting events and Gaming devices for customer entertainment.
3.3 Future Products and Services
Outside beach pool with mountains and waterfalls for conducting summer parties.
4.0 Market Analysis Summary
4.1 Market Needs
The market requires a highly functional product that is cost effective and easy to use.
4.2 Market Trends
The nightclub and bar industry is shifting towards a more entertainment-oriented concept. Guests of these venues are not only offered a dynamic place to gather and mingle, but also a place to participate in the entertainment through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as [Link] and other drinking establishments rely heavily on their primary suppliers. The primary suppliers are the various beverage distributors that provide the establishment with both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and liquor) are the primary sources of income in this industry. Other beverage suppliers also play a crucial role by providing non-alcoholic beverages. These are either served alone or mixed with alcohol. In the area, all major brands of alcoholic beverages are available, in addition to several regional brands of beer. Initial research shows that
the major distributors in the market have a high rating in both product availability and delivery.
4.3 Market Growth
We see The Nightclub as appealing to three major market segments. Fortunately, the long, late night hours of operation help The Nightclub lend itself to multiple segment appeal. Our market segmentation scheme allows some room for estimates and nonspecific definitions. Childless Young Professionals - Due to our proximity to the cinema, we must appeal to single adults and young couples. Whether it is a group of friends or a couple out to see a movie together, these people need a place to eat/drink either before and/or after their movie. We anticipate a 15% annual growth rate in tandem with the growth rate of Leskovac and through increased popularity. College Students - By creating an environment that is appealing to college students, we secure a natural progression between the high school student and the young professional. Through word of mouth, the Nightclub expects realize an increase of five percent annually from this segment. Tourists and Business Travelers - We anticipate a 20% annual growth rate in this segment.
4.4 Main Competitors (good and bad sides)
The Nightclub competition lies mainly with other casual facilities and less with conventional and chain entertainment establishments. We need to effectively compete with the widely held idea that you can't get good service anymore, while maintaining the idea that being out can be a lot of fun. Our polling has indicated that consumers think of atmosphere, price, and quality respectively. Additionally, price was frequently mentioned by pointing out that if the former concerns are present then they are willing to pay more for the experience. Our review of the market concludes that there are two entertainment venues that can be considered direct competition to the proposed new venue. The main competitors of the Nightclub will be: The Base Hours of Operation: 6:00 P.M.-2:00 A.M. Wednesday through Saturday -This club's target customer is 25 to 45 years old / middle class or above. -This club is known for its older, dressed up crowd and cramped space. Club B Hours of Operation: 11:00 A.M.-2:00 A.M. Monday through Sunday -This club's target customer is 25 to 45 years old. -This club is known for live jazz and blues entertainment and their draught beers.
5.0 Strategy and Implementation Summary
5.1 Marketing Strategy (target market and positioning)
Many new residents, as well as many existing ones, are members of clubs in other markets. The Nightclub is a place for all. The enabling technology will be an inherent part of The Nightclub's image. We depend on radio advertising as our main way to reach new customers. Our strategies and practices will remain constant, as will the way we promote ourselves: Advertising -- We'll be developing a core positioning message. Grand Opening -- We will concentrate a substantial portion of our early advertising budget towards the 'Grand Opening Event.' Direct Marketing -- We'll directly market to local hotels surrounding the powers and the local airport. The Nightclub will create an identity-oriented marketing strategy with executions particularly in radio media, alongside print ads, and in-store promotions.
5.2 Pricing Strategy
We must charge appropriately for the high-end, high-quality service and food that we offer. Our revenue structure has to match our cost structure, so the wages we pay and the training we provide to assure superior quality and service must be balanced by the fees we charge.
5.3 Promotion Strategy
We will be running regular local radio and newspaper ads to create brand awareness. We will advertise directly to local hotel guests in the local airport and surrounding the Boulevard areas to attract business travelers and tourists with no knowledge of where to go in the evening. Through the use of fliers and table tents to place in hotel rooms, we hope to create visitor awareness of our location and event promotion. Promos such as 'show your room key and get a free drink' in conjunction with the room ads would be relatively inexpensive from an advertising standpoint and requires limited ongoing maintenance and expense. Shirts, ball caps, and bumper stickers bearing the Nightclub's logo will be marketed, as well as given away as prizes, in order to further spread brand awareness.
6.0 Management Summary
6.1 Organizational Structure
We believe we have a solid team constructed in order to cover the main points of the business plan. Management growth through training will be an ongoing component of The Nightclub's priorities. However, we do realize that we may not have the hands on specific knowledge that may be required to execute pre-opening and opening phases of the venture. We also realize that we may benefit greatly from the retention of a hospitality industry consultant to guide us through the aforementioned time frames, as well as to consult with us through the first two years of our operation. Together we share a single vision: to provide a unique and entertaining experience through exceptional service.
6.2 Management Team
Tanja Damnjanovic, Co-President. Tanja has a bachelors degree in business management, five years management in the restaurant/bar business, consultative experience opening other bars, six subsequent years management in the car industry ending currently with his current position as department manager. Tanja's specific responsibilities will lie primarily with the coordination of events and oversight of the operations and evening activities of the restaurant and bar. Danijela Randjelovic, Bar Manager. Danijela has more than fifteen years bartending and bar management experience. Danijela is eagerly awaiting the opportunity to work at a restaurant/bar where things are done correctly and the customer is put first. In addition to managing the bar, its personnel, and the djs, she will also be third in command under the two co-presidents.
6.3 Personnel Plan
The Personnel Plan reflects the objective of providing an ample amount of service personnel. Our headcount will remain at thirty unless any unforeseen demands dictate otherwise. Assume a burden rate of 17%.
7.0 Financial Plan
7.1 Projected Start-up costs
The financial plan depends on important assumptions. The key underlying assumptions are: We assume a slow-growth economy of five percent the first year, and three percent thereafter, without major recession. We assume that we will grow as managers during the process, this growth will manifest itself as flat line expense growth over the five-year period, leading to increased annual cash flow. We assume access to equity capital and financing sufficient to maintain our financial plan. We assume continued popularity of nightclubs in Serbia and the growing demand for high-energy themed and casual dining venues.
