Business Venture - Dance Club

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Anna Draganova 13S

5a)

  • Business Venture – Dance Club.

I am choosing dance club because it is enjoyable for me, gives pleasure to the people to go out and just spend one night trying to not think about their problems. Also I did choose it because I do have some experience with it. A few years ago my family used to run a nightclub, which was based on the beach, and we did enjoy doing that kind of business.

  • Business Venture’s name – “Plazma”

I choose that name because it is catchy and it easy to remember, after you hear it  will stuck in you mind. First I though to be Night Club “Tequila” but then I asked a few people what they think of it what it coming in their minds when they hear it, and most of them said that after they hear the name means that the club will be more with Latino music, which actually disappoint me. They I had to come with name that is appropriate for techno/house club that will give you some image in your head about the club, and I came up with Dance Club “Plazma”. I though of having also a motto for the club – “The Underground Sound Of London”  

  • I think the nightclub should not be like other clubs on Leicester Sq., which plays R&B, Hip-Hop, Pop. People need something different. And because of the fact that most of the night clubs are playing same type of music I have decided this night club to play most of the time Techno/ House/ Progressive / Club music.

But also knowing that most of the nightclubs which are on Leicester Sq are Hip-Hop R&B and Pop I have decided Dance Club “Plazma” to be playing two days in the week these styles of music.  

  • What attributes of an entrepreneur do you have?

I am ambitious and risk taker because I do want my business to run well, also knowing that running a nightclub is a big risk, you might not make a profit even after the fifth month. Also I am good communicator, problem solver. I am energetic, because a person who wants to run business venture like that needs a lot of energy and defiantly doesn’t have to give up after meets the first problem, determined and knowledgeable because I have try this business with my family before.

  • I would like to be self-employed because that would give the opportunity to look after the nightclub.
  • My aims of this business venture are to build a place that is different then other places, to be interesting that people would come back. And as more people are happy with the nightclub they would tell their friends about it and I will have more customers. That is calling mouth-by-mouth promotion ☺☻

5b)

  • I chose this business venture, because I already have experience. Few years ago out family used to run a nightclub and I like it, for me it was fun and I enjoyed it.
  • I did rejected the other business ideas because I didn’t know a lot about them
  1. Bakery/coffee shop – you need to have fresh made food, licence for food and also staff that is able to prepare it early in the mornings before the shop to open.
  2. Florist – you need a lot of time, need to know how to arrange the flowers into a bouquet and there is big waste of flowers of you cant sell them while they are still fresh.
  3. Cinema – the third idea was to make a cinema. But running cinema is really complicated – you need to buy land or building where to build your cinema, also you need much more money to buy all the equipment and if you rent the building to use it like a cinema you have to pay really high rent.

SWOT analysis

 

5c) Liability and Legal Structure

Limited Liability

  • The legal structure I have chosen is Private Limited Company (Ltd). First I though of the sole trader because I will run the business venture by myself I wont have partners and I wont be sharing the profit. But then I had to think how I am going to get all the money that I need to start my business.
  •  Then I tough of being Partnership, we will have same responsibility, being in partnership will bring more money to the business share more ideas and solving out problems together, but then what would happen if we are disagree for something and can not get a decision that both parties will be happy, and also I will be more happy if I run alone the business venture.
  •  I didn’t choose Buy – Out because that will mean to buy an existing business with already build reputation and an idea of how will be running, I want to have my own idea which I am sure it is really different of most of the clubs, how will look like, what people I will hire for staff.
  • Also I didn’t want to be Charity because I want to make profit. Then finally I choose Private Limited Company (Ltd). It all comes down to the responsibility for the debts of the business; the owner of Ltd (me) will be responsible up to the value of the investment in the business because I will have limited liabilities; I will be having shareholders whom they can sell or buy their shares with an agreement. Shareholders are often closely involved in running the business. Running business venture like nightclub witch is very risky business; I will big investment to start it. Banks and other finance houses are often happier to lend money to limited companies, which I will be for my business venture, but it also true that I will be sharing the profit with the shareholders and taking big decisions will take time.

5d) Sources of finance

  • For what does the business need finance?

My business needs finance for:

  • Rent
  • Alcohol license, Legal Fees, Licenses and Permit
  • Seating capacity
  •  Leasehold improvements (heating/air conditioning, electrical, plumbing, painting, carpentry, kitchen upgrade, restroom upgrade, flooring, smoke detectors
  • Interior Design and Refurbishing (including tables, chairs)
  • Equipment/Fixtures (audio/lighting lease payment, DJ sound system, bar equipment, lasers, smoke machines, stage sets, mirror objects, other equipment
  • Kitchen Equipment (draft dispenser, microbrew equipment, commercial kitchen, hand sinks, concession equipment, etc.)
  • Signage (exterior, exit signs, etc.)
  • Points of sales systems (including merchant accounts, credit card terminals)
  • Fire fighting enterprises (fire sprinkler systems, fire alarm, fire extinguishers)
  • Beginning inventory (bar suppliers, food)
  • Opening salaries deposits
  • Insurance
  • Grand opening marketing
  • Other expenses

  • List of sources of finance I am interesting in
  • Non-repayable sources such as own savings.
  • Repayable Sources such as bank loans, business angels and venture capitalists.

Having non-repayable financial sources means that you will put your own money in the business and if you lost them you cant take them back, but if you make enough profit you might take them.

You could take flexible and accessible bank loans. The bank would let you from thousand to hundreds of thousands of pounds, and you can repay within five years. It is good to get bank loan because that will help me to start my business venture, and obviously the first few months or might be a year I am not going to have any profit, but once I start making profit if I have enough money I could repay the bank before my final date.

Business angels are people or might be a group of people, who are looking for investment opportunities, usually in small sums up to £100 000. Usually the business angels also have say in the running of the company. If I am having one or two business angels, that would help me to buy the most important thinks for the business venture.

Having Venture capitals means to have group of investors who specialise in supporting new ventures that banks might find too risky. What they do to choose which business venture to help they interview managers of the company (which will be me ) and they support the most promising business plans, plans which will really run doesn’t matter that they are too risky for the banks. That means that I will have to make sure that my business plan is perfect, to make sure that all the aims are clear and to know how to stick to the plan to make sure that it wont bankrupt right at the beginning.

  • Sources of finance I rejected

I rejected a few sources of finance such as mortgages, leasing, lottery winnings and legacies, retained profit and gifts from family and friends, overdrafts.

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I rejected taking money from mortgages just because my family or I don’t have mortgage yet.

We all want to win from the lottery but you don’t know am I going to be the next lottery winner, and even if I play really often lottery it is all about really good luck to win. If I really want that business venture to run I need to find another way taking money to start it, cant sit there and wait to win.

Retained profit and gifts from family and friends – I don’t have profit yet to have the money ...

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