Nightclub, Dance Classes Business Plan

Nightclub, Dance Classes Business Plan

E3 Playhouse (E3) was created to offer entertainment, education, as well as a restaurant in downtown Santa Cruz. The venue will be a venue for live entertainment; a restaurant; community-based music and arts courses; a retail component that sells arts-based merchandise; and a rental service for Santa Cruz.

E3 Playhouse has a position in start-up, and the beginning date is July 2004. This business plan estimates startup and ongoing costs, identifies revenue streams, and forecasts net cash flow and profits. The company will lease the venue space in June 2004. It will then have to build out the space for three months. We expect to open our doors to the public by mid-September. The company will be operating on a July through Juniper fiscal year.

Michael Horne serves as the company CEO. Michael Horne, the company’s CEO, has extensive experience in managing live entertainment venues throughout Santa Cruz. He previously owned and operated a similar venue over six years. The management team is headed by owner Wes Anthony. Wes Anthony is an experienced musician and educator who is uniquely qualified in developing entertainment and education venues.

The nightclub and bar industry is shifting toward a more entertainment-oriented concept. These bars and nightclubs offer guests an exciting place to mingle and mix, as well as a chance to be part of the entertainment via interactive contests and theme nights. 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 possible.

The 6,600 sq. ft. complex will be home to the company&#8217s corporate business offices. 200 to 400 people will be able to use the dance club and bar. Santa Cruz will have a venue that is equipped with the most modern audio, lighting, video, and audio systems. The venue will have a clean, open appearance that is pleasing to customers. With minimal competition from other bars and venues that are dance-themed, the demographics are favorable.

E3 will bring in sales via seven revenue streams. These include the company’s products or services.

  • Membership Fees

  • Online Courses

  • Food and Beverage

  • Gate/Entertainment

  • Retail Merchandise

  • Arcade

  • Site Rental

The management of seven different revenue streams involves maximizing each individual area’s performance before moving on to the next. Food/Beverage and Gate/Entertainment will provide the best stable revenue streams.

The venue is appealing to four major market segments.

  • Young Professionals

  • College Student

  • Business Travelers and Tourists

  • Senior Citizens

The E3 Playhouse’s Santa Cruz downtown location, demographics, as well as the minimal competition, are major benefits for its success. The proposed venue will be a solution to the regional lack of live entertainment and social venues.

This business plan estimates startup and ongoing costs, identifies revenue streams, forecasts net cash flow, and predicts profits. Wes Anthony provided $190,260 of paid-in capital for the initial start-up and operation capital.

The total investment of the owner is $190,260. The owner anticipates a July 2004 start-up, with several months of construction of a suitable leased space. A grand opening is targeted for September 2004. The July 2005 target month for break-even is July 2005. This would mean that the monthly revenue breakeven will be $66,395, which has a variable cost per unit of 60%, and fixed monthly expenses of $26,558.

Total net profit for our first year is estimated at approximately negative ($161,000) due to start-up expenses. The second year forecast shows a positive profit of about $122,400. In our third year, it will rise to $129,000. Our net cashflow for the first 12 months is $22,000. This figure will rise to $93,000 by year two and $81,700 by year three. Our cash balance for the first year is $23,000. This will increase to $117,000 in the second year, and $198,000 in the third year. We anticipate our accounting net worth at the end of our first year to be approximately negative ($10,000), increasing to a positive $62,000 in our second year and $142,000 in our third year.

The owner is aware of the highly risky nature of launching an entertainment-based restaurant establishment. Failure to succeed could result in the owner losing all his capital and costs. If the venture is undercapitalized and requires more working capital, the owner will consider bringing on investment partners. If the owner is unable to provide more capital, he/she will review the return on investment. If net profitability is not achieved, the owner will follow the Exit Strategy section in the Financial Plan to exit the venture.

1.1 Mission

E3 Playhouse has the mission to provide entertainment, community education and a dining space for Santa Cruz residents. E3 will offer affordable entertainment that’s unique and attractive to all.

E3 Playhouse exists to provide entertainment for Santa Cruz County residents, as well as others, in an enjoyable and pleasant environment. You will have the opportunity to interact with other people through games, dancing, educational classes, and social events. It will feature live dance music, such as Swing, R&B, Salsa, and Americana. The casual dining ambiance, quality of the food, and excellent service will ensure a large, loyal following of customers. The restaurant will feature a beer and wine bar, along with live entertainment and an arcade area.

1.2 Keys to Success

The E3 Playhouse venue has three keys to success.

  • Location–The E3 Playhouse will be strategically located to maximize the revenue derived from the live entertainment consumer. Santa Cruz will host the showcase. This is a great location for entertainment, community education and a restaurant with live band.
  • Low Operational CostE3 Playhouse is managed with the goal of maximizing net profits. E3 Playhouse management can keep construction costs down for both the initial and final phases of construction. The venue will have its own space in a leased facility. All operating expenses will be kept to a minimum, with cost of sales and margins reviewed on a monthly basis. Cost of sales is targeted at 40%.
  • A Wide Range of Services’#8211:E3 Playhouse provides entertainment, community educational courses, a full -service restaurant/nightclub as well as a shop merchandise area and venue rentals. The purpose of the venue is to maximise revenue and extend visitors’ time there.

1.3 Objectives

This business plan will estimate startup and ongoing costs, identify revenue streams, and forecast net cash flow. Only the owner will pay in capital.

E3 Playhouse’s purpose is to offer entertainment, education, as well as a restaurant in downtown Santa Cruz. The Santa Cruz area will have a variety of services, including a live entertainment stage, a restaurant and community-based arts and music courses. A retail component will sell arts-based merchandise. These are the objectives:

  • A $40,000 startup budget was required to remodel a leased space, and the venue was launched within the first month with a capital injection of $150,000. The venue will open in three months after leasing the appropriate space. The leasing process is expected to start in June 2004.
  • Reach the sales goals of $427,757 for the first year and $1,222,164 for second. Annual growth is targeted at a conservative 7% for the third year.
  • Aim for a gross margin of at least 40%

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