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Nightclub

How to Run a Nightclub

Running a nightclub requires a good team and an even better attitude. Find out more!

Running your own nightclub often means working long hours, sacrificing holidays and weekends, and sometimes dealing with difficult or rowdy customers.

However, if you have a precise business plan and do your preliminary research, it can offer you significant financial and professional rewards.

A 2018 report reveals that the Australian nightclub industry brings in an annual revenue of $1 billion. That being said, it is a highly competitive industry. Here are just a few core building blocks that will help give you a solid foundation for future success.

A dream team

Talk to any bar or nightclub owner, and one of the first things they will tell you is your success will rely heavily on your staff. First and foremost, it’s all about relationships.

These are people you’ll be working with up to 12 hours a day. It’s important to build a cohesive working chemistry that will strengthen your team and overflow into interactions with customers. 

In order to achieve this, you need to take your time and advertise far and wide to locate the right people. Good staff can be hard to find, so sifting through numerous job applications to find quality applicants is a worthwhile pursuit.

Another key part of building your dream team is to be open to their ideas regarding daily business operations. By doing this, your staff will gain a sense of ownership that will result in positive attitudes, increased productivity, and a lower turnover rate.

Good staff are essential to keeping your business operating smoothly. Running a bar or nightclub can be a lot of work, so your staff should make it easier, not harder.

Hospitality

When it comes to hospitality, there are two crucial elements: excellent service and cleanliness. If you want customers to choose to spend their hard-earned cash at your nightclub, you must have impeccable service and a pristine environment.

This takes careful planning. In addition to hiring the most outgoing, fun-loving staff you can find, be sure to equip them with the tools they will need to do their jobs well. You should also begin training them weeks or even months before opening day.

The customer experience at your bar can make or break your club. Patrons remember an inattentive or rude bartender, and the poorer your service, the less likely they are to return. Make sure your employees have a genuine manner and a customer-first attitude.

Licencing

Licences provide a safe environment for customers and employees in and around the business premises. Depending on your licence conditions and the state or territory you’re in, you may need to comply with the following requirements:

  • Lockout laws: For example, there are 1:30 a.m. lockouts and 3:00 a.m. “last drink” calls at bars and clubs in the Sydney CBD Entertainment Precinct.
  • Security staff guidelines: Security staff will require their own licences, and they must also dress to distinguish themselves from other staff and patrons.
  • Use and management of CCTV recordings: Bars and nightclubs that trade after a certain time or that have a specific condition on their licence are required to install and use CCTV monitors.
  • Use of ID scanners: ID scanners may be required for venues that trade after a certain hour.

In addition, here are some other important regulations to be aware of:

  • All employees (including security staff) will also require Responsible Service of Alcohol (RSA) training, and you may need to appoint a Liquor Approved Manager.
  • Smoking is banned in enclosed public spaces in bars and nightclubs throughout Australia. Designated smoking areas are allowed, but regulations prevent these from being within a certain proximity to seating or dining areas.
  • Liquor-licenced venues are required to display certain signage.
  • If your nightclub has a gaming licence for poker machines, you will also need to comply with gaming regulations in your state or territory.

Inventory

Managing your inventory can be tedious, but it is critical to the health of your business. In order to successfully run a bar, you need to implement an effective inventory management tool that gives you a clear view into what’s in stock and what needs to be ordered.

Additionally, having powerful analytics software that will allow you to evaluate your sales, look for trends, and better forecast inventory will enable you to make data-based decisions that will help your bar grow.

You probably chose nightclub ownership because you have a passion for relationships and community. In creating a space for patrons to come relax, have fun, and be with their friends, you’re also providing an environment that’s conducive to meeting new people.

Although your to-do list might be overwhelming on some days, take time to remember why you first embarked on this exciting adventure—and don’t forget to enjoy the journey!

Also, keep in mind that if you ever choose to sell and begin a new endeavour, you can refer to this guide to learn how to successfully navigate a profitable sale.



Matthew Hernon

About the author

Matthew Hernon is an Account Manager at Dynamis looking after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.

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