United States, Pe... Area 51 Night club and enterta... "The Company The company is set to be named “Area 51” although that has not yet been set in stone. The company will consist of approximately 30 employees. At the present time there are already 10 people who have applied, so to speak, for positions. The positions left to be filled are as fallows: Security/Bouncers-16 positions open, Concession clerks-3 positions open, Sound and lighting-2 positions open. The fallowing positions have already been filled: Security/Bouncers-4 positions filled, Concession clerks-2 positions filled, Sound and lighting-1 position filled. Also I have contacted a friend who worked for the I.R.S. to fill the accounting position. There may be more positions open in the future, however for now the positions I have listed above are all that is needed at the present time. The positions listed can be filled within a few days, however I have not yet advertised that there are positions open, and will not advertise until I am positive the venue is opening. Aside from the employment aspect of the business, the business will be in the entertainment industry. The main focus of “Area 51” is to give the local people something they presently do not have, and that is live entertainment from artists they know and love, in a town right next to home. Presently there are no such companies in the general area and our goal is to change that. “Area 51” would like to bring to the people of central Pa the fallowing types of live entertainment: Live Concerts from nationally known acts of all genres of music, Live stand up comedy from some of todays nationally known comedians, Event conventions where local business can come together and draw larger crowds than normal, Dance party nights where parents can feel safe letting their teens go without the worry of big cities, and possibly other events if the customers request other events. Unlike most venues I have been to in the past, I would like “Area 51” to also be a “Club” that has a good, clean name. I am going to keep this business alcohol and drug free, and will go to extremes, if necessary, to keep it that way. I would also like to diversify the crowd that we bring to the business by bringing in entertainment that appeals to various age, and personal preference groups. Presently there is a tremendous market for a business of this style, size, and structure, especially in the area I have chosen to place it. At the present time the people of the Susquehanna valley, in central Pa, are deprived of something that people who live in cities have grown acustom to. That is the opportunity to go to a concert or other entertainment event without having to rearange an entire day. Presently the closest venue of this size is in Philadelphia, which is a 3 hour drive from where I live. When I find out about a concert that I want to go to in Philly I have to take an entire day off work, drive 3 hours to the venue, and another 3 hours home. Usually the next day I am too tired to go to work again. This stops a lot of people from my area from going to concerts and other events. Missing 1-2 days of work, Paying for tickets, paying for gas and tolls, paying for parking, and also paying for food and whatever else one needs throughout the day, all these things get expensive. However, if the venue was close, within an hours drive, you would no longer have to take off for an entire day or spend all that other unecessary money. I myself know that as a huge fan of music and entertainment in general, that if there was a venue close by, that could bring in the bands I like to see, that I would go there more often and be able to afford to go maybe 3-4 times a month. The potential for this business is infinit, there is no competition and best of all there is a huge demand. The services that the business will offer are actually offered by other businesses, sometimes. For instance some local bars will let local bands perform on occasion. However there are no actual business’ that dedicate the entire strenght of the business to the purpose of live entertainment on a scale that can compete with this business, at least not in the area the business will be located. The potential for this business can be explained easier by whoever it is that is reading this, you can answer it yourself. If one of your favorite musicians was coming to play a concert in your town, or one close to you, would you not go to see them perform? Of course you would, it’s the same reason people go to the movies, or listen to music in their car or home, or read books. People enjoy being entertained, the world is not perfect and people know this. For some reason, people worry a little too much about what is going on in the world around them. However, when people are being entertained that worry slips from their mind and the person can be happy for that moment or period of time while they are entertained. Without this worry people have a good time and they don’t think about the problems in their life or the problems in the world around them, instead they focus on the fun they are having. When they leave the worries come back and they then wait for another chance to go be entertained and forget about the worries once again. This is why people keep coming back, and why the potential is infinit. If you keep people entertained they will keep coming back whenever they can afford it. So as long as there is entertainment their will be people to be entertained and which makes the potential for a business like this one very strong. My explanation of the potential may be a little unorthadox, or a little strange, and may not fit the normal explanation that a business plan usually has. However, I think differently than other people, as does everyone else. Which is why I say that I cant explain to you the reader how the potential is so big. All I can really say is that the potential depends on entertainment. Market Research Generally with a business like this every single individual in the surrounding area is a potential customer. Everyone likes to be entertained in one way or another. Which is the reason I would like to have a wide variety of entertainment events. The customers will generally range from the age of 13 to around the age of 40. Customers for concert events will vary depending on the genre of music that the performer or act is from. In this general area the biggest genres are rock, rap, and country. Pop music is also a big craze all over the country, however, usually pop acts will play larger stadium sized venues. The older crowds will also be drawn in by stand up comedy events. I would also like to hold amateur nights for not only comedy, but for music as well. A big thing in this area is the local music scene, however the local clubs where bands can play are few and far between. The idea for the opening weekend is to hold a “battle of the bands” the night before the clubs grand opening. The winner of the “battle of the bands” will win a chance to open the next nights show for 2 nationally known recording and performing bands. With the help of the local radio stations and other area business’ I would like to start advertising, not only for the opening show but as well as for the batttle of the bands, the day that remodeling begins. This will give approx. 1-1 ½ months to advertise for the shows and to draw in the local bands to participate in the battle of the bands. Since there is no competition in this are for the business I don’t see much reason to really worry about the club not doing well. As I said in the above topics, the only place local bands get to play is at either bars, or coffee shops. Aside from local bands there are really no local clubs that bring in national acts, so unless people stop caring about entertainment the venue should have no problem staying alive and thriving without any competition. If in the future someone else see’s that the idea is good and tries to copy it and open something to compete with the business, I still have no worries. I have lived in this area for a while and know how the people of the area seem to think. Most people in the area stick to what they know and like. So if a few years from now someone opens another venue, most people will stay with the one they know and trust. Not only that but like I said, this venue will be strictly non-alcoholic, most others aren’t. So the younger crowd will definitely stay with this business until the end. The talk of another club like this opening is all speculation, I have lived here for a while and no-one even seems to think about it. If they had there would be one here now. But as it stands now, there is absolutely no competition for a radius of at least 100 miles. Estimated Sales The marketing plan that I have drawn up is quite simple. I will spare no expense to advertise. I already have a few local business’ that I have friendships with the owners, or high ranking employees. Many of them have already heard my idea and offered to help in advertising as long as I promise to do the same if my business comes through. Also as I said there are many radio stations around here that I can advertise through. My stradegy for advertising is to keep it oriented with the same media. I will advertise mainly with radio, and other entertainment oriented business’. I will also make an effort to get a few billboards, newspaper adds, and possibly a local tv add the week before opening. I can also advertise in the local movie theatre during coming attractions for new release movies, which I see as a great idea. Basically the way I look at advertising is this. You can never advertise enough, and since this business only has 30 employees, I can take that extra money I would pay other employees and spend it on more advertisement. Advertising is your greatest, and most dedicated employee. Pricing for events will vary depending on the event. Tickets for live concerts and stand-up comedy nights will generally run from about $15-$30 if not more, depending on the act. For “dance party” nights there will be a cover charge, of around $5-$15, also depending on the entertainment (I.E. local or national D.J.). Convention events will also have a cover charge which will be set depending on the convention type. Conventions will also draw a charge from business’, the charge will be to reserve a table or booth for the business, this also will vary in convention types and booth size. There will also be a snack and beverage bar, which will be another source of revenue. Another thing I would like to see is a possible gift line with the company logo on items like t-shirts, hats, back packs, and other neat little gifts. Then there is parking, there are 2 different buildings I am looking at, one allows for a fence to be put up that will allow us to charge for parking, the other does not. However the parking charge can be added into the ticket price. I have calculated the estimated profit for a single concert event and it is as fallows. IF the venue holds 3,000 people (it might hold more but I used this as a figure until I get a maximum occupancy total). If it sells out all 3,000 tickets at $20 per ticket, the ticket sales will bring in $60,000. When people go to concerts usually everyone buys a few drinks and a snack, so if everyone spends an average of $10, then there is $30,000 brought in by concessions. If we can charge for parking and 1,000 cars park in the lot for $10 per car, there is another $10,000. That brings your grand total for the night to $100,000. About half of that will go to paying the bands who play that night. Leaving anywhere from $30-$60,000 made by the venue for the single concert. The totals for dance party nights will be lower, probably around $10-$15,000. Conventions I have estimated to around $20,000 per day. My plan is to have 2 concerts, 1 stand up night, 1 dance party night, and possibly one convention per week. With my estimated nightly profits the WEEKLY profits comes to $135,000. Multiply that by 52 weeks in the year and the total comes to $7,020,000. Even if the estimations are slightly off, or even far as far off to where the venue only makes half of that, I am still happy. IF it does make the estimated profits, all loans will be paid off in the first year, and from then out it is all profit. The estimated Payroll for one year is approx. $500,000. The total yearly bills, including payroll, are under one million, actually they are around $750,000. So if the business meets its estimated profits the total yearly profit less expenses is approx. $6,270,000. Since there is no actual murchandise, besides the possible souviniers, then there is no need for any guaruntees on products. Which makes customer service quite easy. As far as policies, I touched on them slightly in saying it will be drug and alcohol free but will go firther. At all entrance doors there will be a security guard with a metal detector to ensure that no weapons are brought into concerts, this includes chains from wallets. The security will also search any bags that are brought into the club for either drugs, alcohol, or weapons. Anyone caught attempting to bring such items into the club will be held by security until the police come to escort them wherever they need to go. Anyone caught fighting inside the club, or caught inside with any of the contraband listed above that they smuggled inside, will also be handed over to the police and be banned from the club. Our rules and policies will be posted not only inside the club but also outside, so everyone is aware of them. There will be other rules but these are the most important. Other policies will be set in the future, such as ticket refunds. Tickets will only be refunded in the event of a cancellation, but that will go through ticketmaster, since I will be selling tickets mainly through them. Some of our policies will also be given in our advertisements, to make ticket buyers aware before they purchase their tickets. Design Its no secret that the name “Area 51” comes from the government facility that supposedly does not exist. The idea for the design of the building is to make it look somewhat like a “secret millitary base”. I would like to have a barbed wire fence put around the whole building with signs on them like you would see at a millitary base (without breaking any laws). I would also like to have an army Hummer (preferably one that doesn’t work) permanently by the entrance as a sign so to speak. As far as the bulding itself I would like to have a billboard with the upcoming shows listed on it, and would like the actuall business sign to be space ship that looks like it is crashing into the builing. On the inside I would like to have some really interesting alien theme. I am trying to get a good price on a lifesize replica of the H.R. Giger alien from the Alien movies. I would also like to have other things that are hard to explain but are low cost. Also inside there will be a permanent stage built at one end of the club. Along one whole wall there will be a bar with stools, this will be the concession stand. At the opposite end of the club as the stage will be the sound booth, this will be a permanent fixture. If the height of the building allows I would like to add a small balcony for security and performers special guests. If the height doesn’t allow for a balcony there will be a section that is blocked off from the crowd and raized up a couple of feet to allow a good view of everything that goes on, for security reasons. The biggest dificulty of the business is going to be sound and lighting. This can get costly over time so I would like to invest in an industrial power generator. Besides that the biggest dificulty is going to be renovation. There will be a lot of work needed to get this place open, though it should only take a month or so. The only risks I see are injuries to customers due to “Mosh Pits”, this cannot be avoided. I personally hate them, I go to concerts to enjoy music not to push and crowd surf. This is the reason for security, another policy is going to be no crowd surfing, which is a leading cause of concert injuries. Injuries do not really worry me because ticketmaster has it covered on the back of their tickets that neither the venue nor ticketmaster is responsible for injuries, however I will still try to avoid injuries with good security. The costs for renovation are sketchy, without funding I cannot get an exact estimate. However I did obtain a basic estimate from the owner of the building and it puts the basic rnovation costs at approx. $50-$75,000. This estimate is for the basic renovations the building will need before it is ready to be decorated to fit the theme, inside and out. The decoration costs are roughly in the neighborhood of $75,000, this is including the signs, stage construction, bar construction, backstage area decoration, and other decorations for the inside and outside of the venue. Other costs include the sound and lighting equipment which is approx. $50,000, Advertisement which will vary in price, stock for the concession stand, and other small costs. The only other costs will be the basic costs such rent on the building, insurance, permits, payroll, and other costs generally associated with business startups. Operation The geographic location is in Central Pa, there are 2 buildings I am looking at, one is in a town called Milton, and the other is in a town called Mount Carmel. The ideal location is the Milton location, however that building does not allow for me to charge for parking. I will more than likely go with the Milton location because the area is nicer and I like the location of the building a little better there as well. Both buldings are the same size so either way the costs are the same. There might be a way I can work something out at the Milton location to allow for me to put up a fence so I can charge for parking. The building is located right off a main highway which is ideal since their will be a lot of people who come from out of the area. There really arent too many improvements that will need to be done to the building since the Milton location has 2 new bathrooms with new plumbing in them. The main improvements will simply be the renovatins. The stradegy of the company is to shock and amaze our customers. Our ultimate goal is to make the place as nice looking inside and out as possible. I have been to too many venues that looked like trash. I would like to keep this one clean and neat, with a touch of class. We would like to have the club open by the end of summer when the college students come back, since there are about 10 colleges in a 150 mile radius. We would like to see people coming back week after week, and give them a place to come and have fun, without getting in trouble. The goal for myself is to give the local youth a place to go and be entertained, so they are not on the street causing trouble. This area has very little for people to do, the biggest attraction is our mall, which is pretty lame. I would like to not only give the youth somewhere to go though, I would like adults to be regular customers as well. Our management team is made up of 5 managers. Our accountant is in charge of calculating all of our money coming in and going out, she will also be the one taking care of taxes and permits. We will have one manager in charge of the sound and lighting, his job is to make sure everything is in good shape and test the equipment regularly. Our concessions will have a manager in charge of keeping the stock up, and keeping track of our losses, and profits through the concessions stand. I will also appoint a head of security to keep track of our security guards throughout the course of the night. He will also be in charge of scheduling our security for different events. I myself will be the last manager, I will oversee everything and keep track of what goes on with all the other managers. I myself will be the only manager with the ability to make crutial decisions about the business. Everything must go through me. I will set the payroll, and keep track of the other managers. I will also be the one who books and schedules all the live entertainment. Each of our managers will have assistants to help them throughout their duties and hopefully catch any mistakes. Our managers will have meetings at the beginning and end of every day to keep everyone informed on how the night went. In the time while the building is being renovated all the managers will sit and discuss the training programs that we feel the other employees, or even the managers, should take. However the only reall training that will be needed is on the behalf of the security guards. Their training will be done at a local marshall arts school where they will learn the basic skills of self defense, and crowd control. We will also take that time to set up all the permits, taxes, and other tasks with our accounting manager. During this time we would like to also get all of the employees together to help with decoration, this way everyone is involved from the beginning and feel more comfortable around one another. All the employees will also play a part on advertisement using word of mouth. Our schedule will depend on the event of the night. On nights of concerts all of our employees will be working. On nights of dance parties we will have all but 5 of the security guards there, since the crowd will be smaller. On convention days we will have 10 security personell, 5 concession clerks, and all managers on the schedule. Our schedule will be worked out in weekly meetings, where we will take time to let employees sign up for other tasks on dys they arent scheduled. We don’t want things run like a normal business because people don’t like going to work when they don’t have fun there, and we want to keep a fun atmosphere. Financial Plan Our business is defferent than most because we don’t run into a lot of the problems other business’ do with loss of revenue. We don’t have products that can spoil, or break. Our profit forecast varies from week to week, however we have a quota we are going to work...
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