Business plan for a karaoke club with calculations
Small towns are a great launching pad for starting a karaoke business. In recent years, this format of entertainment has become popular. Before you open your own song club or bar in the village, you need to draw up a business plan and start implementing it.
All you have to spend is installing a karaoke system, additional staff and possibly a new plan. At the same time, you need to calculate the initial investment, approximate monthly costs, plan the subsequent maintenance and development of the bar, assess whether it really makes sense to invest in this particular business.
When choosing a building to open a song club or bar in it, you need to focus on the parameters required by the business plan:
- room size - preferably for more than 50 guests;
- location - affects visitor traffic. If the club is not on the main street, it is inconvenient to get to it and the number of guests will be lower compared to the bar in the center;
- parking near the building and landscaping of the adjacent territory is a significant advantage over other establishments;
- high-quality acoustics - due to the specifics of the song point. What you shouldn't do is skimp on a good specialist in the field. Consider this when drawing up a business plan;
- sound insulation is an equally important indicator, especially if the song institution is located in a residential building.
Development of the concept of the institution and organization of its work
- Less expensive plan - "American" format. Performance on the general stage of the bar in front of the audience.
- Japanese is an expensive option. Visitors sing in separate booths, equipped with individual karaoke systems, and do not disturb other guests.
- Mixed. Singing booths and a stage for those who like to perform in public. The business plan would be complicated enough for such a bar.
Additional services are in demand and are included in the business plan. For example, the ability to record your performance on a disc or video recording of a performance in a bar. The wider the list of services you can open in the institution, the higher the profit.
People come to karaoke not only to sing. An interesting menu with reasonable prices is a guarantee of more visitors. It is important to open a good kitchen with a decent range of dishes. Organize trade in alcoholic beverages. It's no secret that a non-alcoholic establishment loses up to 90% of its visitors. In addition to working out the menu, you should take care of the necessary production and trade equipment for the kitchen and bar, suitable furniture, accessories. These are all expense items in the business plan.
The design of the premises directly depends on financial capabilities and imagination. Comfortable, cozy establishments, decorated in the same style, reflecting the most modern trends, attract more visitors.
Karaoke is one of the most popular forms of entertainment, which is very popular in almost all countries of the world. Its main advantage is that anyone, even without a musical ear and voice, can feel like a pop star. In our country, in this segment of the entertainment market, there is still no great competition, so any beginner can choose this area of activity for himself as a business opening. You will learn more about how to open a karaoke bar in our article.
Thinking about what kind of business to do in a small town? During the crisis, the purchasing power of the population decreases, so many types of business, including restaurants, are declining. But here it is worth noting one important point - the profitability of expensive establishments is decreasing. If you carefully consider a sample karaoke bar business plan, you can understand that this line of business has its own distinctive features - a low entry threshold and a quick payback.
Since ancient times, many people in our country love to sing. Karaoke bar is a great opportunity to realize your desire for publicity. The means for this is singing to the soundtrack. Most often, karaoke clubs are attended by people aged 20-50. This indicates the prospect of high profitability of such establishments, but only if an effective advertising campaign is carried out.
The demand for service and a sufficient consumer segment indicate that a karaoke bar is a rather profitable and promising business idea. With the right approach, such entrepreneurial activity will generate a decent permanent income. How to make money from scratch in a small town is up to you, but if you want your business to be profitable, choose the most promising and popular ideas.
If you are not registered as an individual entrepreneur or legal entity, you must register your future activities. For a small establishment, it is enough to open an individual entrepreneur, but if you plan to further expand your business, immediately choose an LLC.
After you register with the tax office and receive all the necessary documents in your hands, you need to choose the form of taxation. The most profitable options are a flat tax or a simplified system. It is not necessary to hire an employee for accounting. If you have any questions, please contact an outsourcing company for help.
Before opening a karaoke club, you need to obtain permits from regulatory authorities - city administration, SES, fire inspection and Rospotrebnadzor. All employees of the institution must have sanitary books and regularly undergo medical examinations. Do not forget to conclude a garbage collection agreement with the utilities. If you plan to sell alcoholic drinks and tobacco products in a karaoke bar, you need to issue the appropriate licenses.
It should be remembered that piracy is rampant in this segment, so many karaoke collections are illegal products. But if there are no other options, many clubs take risks and buy pirated compilations. There are also establishments that do not want to violate copyright. They pay money to the authoring community and buy licensed products. But, unfortunately, there are very few of them. In the entire capital with its variety of entertainment venues, only 5 clubs adhere to these rules. The idea of a business from scratch in a small town to open a karaoke bar can be realized with a small investment, if you buy used equipment at first and use pirated products. When the business starts to develop, you can change the approach and buy licensed collections.
Karaoke as a business
At the moment, karaoke maintains a leading position in the entertainment industry. As practice shows, many people like to sing, even those who do not have a beautiful voice and perfect hearing. Therefore, the karaoke business is flourishing in almost all countries of the world.
Of course, this entertainment is popular in our country. But despite this, such a business does not imply high competition, and therefore even a beginner can be successful in the field of karaoke. To do this, he will need start-up capital and a well-designed business plan.
Before opening a karaoke bar, you should first analyze the market in your region. Consider the fact that the crisis has significantly affected the purchasing power of the population. This led to the closure of restaurants that had existed for decades.
However, the population of our country has not lost its love for fun and various entertainments. And while the profitability of high-end establishments is declining, small karaoke bars not only survive, but also bring their owners a good income.
The target audience of such establishments consists of people aged 20-50. Most often these are students and people of average income.
One of the first stages of a karaoke bar business plan is to register a business. There are two possible options here:
- We are opening an individual entrepreneur - the best option for small establishments. The cost of registration in this case will be 800 rubles.
- For a large karaoke club, it would be better to register an LLC right away. This type of registration is more expensive - you have to pay 4000 rubles.
Regardless of the type of registration, this process involves the following steps:
- You need to write a statement in the proposed form.
- Be sure to indicate the business activity code in accordance with OKVED. For a karaoke club, the most suitable codes are 55. 0 - "Activities of restaurants and cafes", and 55. 0 - "Activities of bars". We register both codes.
- Attach copies of the applicant's passport and TIN to the application.
- We pay the state fee. For individual entrepreneurs, the registration cost will be 800 rubles, for LLC - 4000 rubles. The receipt must also be presented to the tax inspector.
Before opening a karaoke club, it is necessary to draw up a business plan for a karaoke bar with calculations. This will help to calculate in advance the possible risks and the amount of investments. The business plan should include an analysis of the target audience and potential competitors. Also, the karaoke bar business plan will need to include expenses for the purchase of food, utilities and other monthly expenses.
To open a karaoke bar in a small town, you also need a business plan. It does not differ from the standard one. Naturally, the cost of renting premises, salaries of employees and the purchase of equipment will be less than in big cities.
Download a ready-made business plan for a karaoke bar
First, you can download a business plan for a karaoke bar with a calculation. The examples indicated in it will help you navigate the size of the start-up capital and the list of necessary purchases.
Download a ready-made business plan for a karaoke bar.
Example of a karaoke bar business plan
Beginning businessmen often ask themselves the question: how to open a karaoke club, the business plan of which will reduce risks and will be as clear as possible. We offer you just such an example.
Relevance of the idea
Karaoke is an entertainment that is popular in many countries around the world. But the idea of opening a karaoke bar has the greatest prospects in small towns. There is a very high level of competition in megalopolises and investments in such a project will be significant.
To open a karaoke bar, it is advisable to choose cities with a population of 100 to 300 thousand people. There must be at least one large enterprise operating there. And the level of income of the population should be 10-15% higher than the subsistence level.
Doing business and organizing a private business involves making a profit. Cafes and bars that combine delicious food and entertainment are popular, so a clear business plan will help you start your business and make it thrive.
The breadth of the Russian soul is legendary all over the world. Long before the appearance of public institutions, in which anyone can legally demonstrate their talents and take away their souls for a fee, Soviet people sang drinking songs at home. Any holiday included the choral singing of touching, drawn-out love songs and vigorous glass-dancing ones. Everybody knew the words, they often did not need accompaniment.
The situation is completely different now: noisy family and friendly feasts have become a rarity, they hardly sing at holidays. And the soul asks for songs! Therefore, a competently drawn up business plan for a karaoke club is the key to a successful business that delights visitors and brings substantial income to its owners.
General business information
Karaoke bar is a kind of mix of catering and entertainment industry. Only professionals will dare to sing on an empty stomach and "dry" throat, and the stake is not on them.
When planning a karaoke bar business plan, you need to take into account:
- Location of the establishment (cities and towns have their own specifics);
- The proposed assortment of dishes and the presence of their own cuisine;
- The audience, on which is the main focus, and the appropriate selection of the repertoire;
- An atmosphere that allows visitors to feel as relaxed as possible.
The business plan should contain a calculation of not only direct costs, but also provide for the payment of employees, an accountant or the services of an outsourcing company.
The owner of a karaoke bar must constantly keep his finger on the pulse so that the food is tasty and affordable, the songs are hit, and the visitors are satisfied. What do you need for this?
Required documents for registration