Montreal Nightclub Business Plan
Essay Preview: Montreal Nightclub Business Plan
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[pic 1][pic 2][pic 3]ContentsExecutive Summary 2Reasons behind Venom 3Business Options 4Potential Locations 4Saint-Laurent Street 4Old Port Montreal 4Downtown/Golden Square Mile 5Recommendation for Location 5Rent or Buy 5Hours of Operation 6Expected Benefits and Disbenefits 7Benefits 7Disbenefits 8Key Takeaway 8Timescale 9Costs 10Investment Appraisal 11Major Risks 12Appendix A: Revenue Calculations 13References 15Executive SummaryDifferent business owners have different visions and end goals. Our client in particular, has a long-lived dream of becoming a successful business owner in the nightlife industry. More precisely, he wants to open the newest, trendiest resto-lounge/nightclub in Montreal: Venom.Business options are discussed as to where to locate the nightclub, such as St-Laurent boulevard, Old Port Montreal or Downtown Montreal/Golden Square Mile, whether to rent or buy the location, and how to operate the business on a weekly basis. Downtown Montreal/Golden Square Mile was the chosen location.Benefits and disbenefits of opening a nightclub business are large in number. Many concerns and risks can be associated with this type of business, but with the right management and personnel, the benefits are able to bring in more value and the disbenefits can be minimized. Thankfully, many situations can be dealt with professionally by the right personnel.A timeframe is also planned out for the business to take place in less than a year. In more details, everything from planning to marketing to launching the grand opening can take place in the span of 6 months with enough hard work and dedication.In terms of costs, there is a set budget of $2,000,000 which is broken down into many parts such as materials, renovations, marketing and so on. A brief investment appraisal has been included to explain the requirements to make back that initial investment under three years.Finally, a description of our major risks include to external competitors on the market, improper behaviour of clients such as violence or theft, damages, and so on. These are some of the few risks, but with proper preventative measures being taken, the risks can be avoided. Delta Consulting is proud to announce the planning of Venom and looks forward to bringing change to our client.Reasons behind VenomIt has always been our client’s dream to become the successful owner of a nightclub in Montreal. Our client’s story started when he was in university studying to get his BComm degree. While he was in school, he loved to party and worked part time in several local bars and nightclubs in the city. He even became manager at one point for one of the local bar lounges. His favourite kind of nights were those he could hang out and eat in, with some good music playing hip hop, RnB or other top hits, where he would always and get the party started. He was always looking for good vibes. Post graduation, he got an office job and worked the “9 to 5” lifestyle for 3 years before he realized that it was not for him. He decided to step foot in the entrepreneurial life with a business to call his own, and in his familiar old ways: opening his very own nightclub, called Venom. With some of his savings and a small loan of $2,000,000 from his parents, he sought out Delta Consulting.
By following through with Delta Consulting’s project plan, he will be able to open his own small business. A small business in Canada is defined, by stradegy.ca, as a company that employs 1 to 99 employees. Opening Venom can soon move from a dream to a feasible reality for our client, as explained further in this business case.Business OptionsPotential LocationsThere exist some major areas in Montreal where a nightclub may feasibly be located. As follows, some of those prime areas have become our top three options as to where we should locate Venom.Saint-Laurent StreetSaint Laurent is one of the major nightlife areas. It is a main street that attracts a considerate amount of people with its numerous bars, restaurants and nightclubs. As stated by the Society of Development of Saint Laurent Boulevard, it is a street with over 700 businesses and organizations (SDBSL, 2018). It is a prominent place to open a new nightclub. There are already many other nightclubs in the area, but there is also a lot of on-foot traffic. Usually nightclubs have long waiting lines and clients may switch to another club as there are many choices at their disposal. The main reason for choosing this location is the foot traffic, which will eventually bring clients to the Venom.Old Port MontrealAnother location for a nightclub is Old Port Montreal. It is one of the places where people tend to spend a lot of money. According to TripAdvisor, Montreal’s Old Port is “one of the most popular tourist attractions in the country with more than 50 activities and 6 million visitors every year” (TripAdvisor, 2018). There are numerous expensive shops, restaurants and nightclubs. We can assume that people who go to this area have a higher budget. Setting up a nightclub would be beneficial in the area, however it might alienate a younger crowd who are looking for cheaper alternatives. A nightclub lounge in this area would generate profits as a restaurant on the weekdays and as a nightclub on the weekend. Downtown/Golden Square MileOne of the highest concentrated areas with bars and clubs in Montreal is downtown. The area has a lot of foot traffic from mixed incomes on any day of the week. The main reason for suggesting this place is Concordia and McGill universities. Students would be one of the major clients for a nightclub. They are more likely to try our nightclub and the business also has potential to gain popularity through word of mouth, as younger people are the biggest users of social media. Beside students there are many people who regularly visit downtown for work. According to Service de sécurité incendie de Montréal, 331 000 people daily go downtown, hence becoming our potential clients as well.