How to open a karaoke bar in a small town. Business plan for opening a karaoke bar

The entertainment services industry is gaining momentum every day, expanding and improving. Many aspiring businessmen start their own business in this area. Today we will look at one of the most popular categories in this industry - karaoke bar. This type of business has gained popularity only in the last 5-7 years, when the first representatives appeared on the market. Since then, the number of such establishments has increased several thousand times; every city has at least several karaoke bars where people can perform their favorite songs. In our article today we will look at a business plan for a karaoke bar, and also share tips and recommendations from experienced businessmen.

As in any business, to achieve success you must first draw up a business plan for a karaoke bar. It should consist of economic calculations, analysis of competitors, and calculation of markups on goods. Only after this can you begin to register a legal entity and choose a legal form. If an entrepreneur is thinking about a large-scale business, then the ideal form would be an LLC. A limited liability company enjoys great trust from its partners and has the opportunity to expand its business to a regional and all-Russian scale.

Since we are talking about a karaoke bar, we need to take care of a license to sell alcohol. The cost of an annual license is forty thousand rubles. In order to avoid problems with the law, it is necessary to hire a part-time lawyer, as well as outsource an accountant who will maintain tax documentation.

Once a license for alcohol has been obtained and business activity has been legalized, you can proceed to the search for premises.

Selecting a room

The development of a karaoke bar largely depends on its location. After all, if you choose a premises in a densely populated area, you can expect good traffic, and therefore a good profit. It is also important to think about parking spaces, as car enthusiasts highly value taking care of themselves and their car.

The next important factor when choosing premises is compliance with Russian legislation. Firefighters and sanitary and epidemiological station employees must issue a conclusion on the compliance of the premises for a karaoke bar. You also need to pay special attention to sound insulation, because karaoke is often noisy, and this should not disturb neighbors and residents of nearby houses.

In addition to the above, it is necessary to take the design and design of a karaoke bar seriously. People will pay much more willingly for comfort and a cozy environment. Darkened rooms with lighting and good sound insulation are suitable for karaoke. The easiest way is to open an establishment in an existing bar or restaurant, where you can prepare a room for karaoke lovers. It is best to make one open hall, where the speaker sings on stage in front of other visitors. And for more modest people, it is necessary to prepare separate small booths, each of which has karaoke.

It is necessary to take a responsible approach to the choice of room design, since people are more willing to pay for comfort and a cozy atmosphere

Equipment and music library

One of the most expensive items when opening a karaoke bar is the purchase of equipment. In order to equip a karaoke room you need:

• mirror ball;
• acoustic equipment;
• laser and light installations;
• karaoke installation;
• amplifiers;
• TV for viewing song lyrics;
• microphones.

Karaoke equipment is something you cannot skimp on; the further success of the establishment will depend on it and the acoustics. To declare yourself as a modern karaoke bar, you need to choose American and Japanese equipment, the cost of which will hit the entrepreneur’s pocket, but without which you should not expect significant income.

In order for customers to be satisfied, it is necessary to purchase a modern music library of at least 5 thousand songs. There is no need to buy pirated discs, as this can lead to a large fine; it is better to purchase a certified music library, which can be updated for an additional fee.

Staff

In order to maintain a karaoke bar, you must have the following employees:

• cook, since the kitchen will bring additional profit;
• waiters;
• bartenders;
• administrators;

50 percent of the success of a karaoke bar depends on the hired personnel. A DJ who will entertain bar clients and play karaoke music must have experience in this field; his professionalism and adherence to modern fashion will ensure the rapid development of your bar. The cost of staff wages for an average karaoke bar is 150-160 thousand rubles monthly.

The development of a karaoke bar will depend on the professionalism of the DJ

Karaoke bar services

At the first stage, the karaoke bar receives the main profit from food and alcohol; karaoke is mostly necessary to attract customers. But over time, the number of people willing to sing their favorite songs will increase, and in parallel with them, profits will grow. People come to a karaoke bar to enjoy pleasant music and favorite songs, eat delicious food and drink the bartender’s signature cocktails, relax and unwind.

The average kitchen bill in a karaoke bar is usually lower than in a restaurant and ranges from 800 to 1200 rubles. Drinks at the bar cost from 200 to 3,500 rubles per unit (shot, glass, bottle). To sing one song costs a client from 200 to 500 rubles, and to record the sung song on a disc is estimated by karaoke owners at 500-1000 rubles.

It is also worth considering the prices and consequences for damage to property and inappropriate behavior of clients. For example, broken dishes are estimated at 200 to 2000 rubles per unit, damage to a TV - 25-50 thousand rubles, singing a song with obscene words - blacklisted.

Advertising

Advertising a business such as a karaoke bar will require large expenses, since its ideal type would be broadcasting videos on TV and Internet positioning. A video on the leading channel will attract the first stream of customers, and the website and Yandex Direct setup will allow you to constantly replenish their ranks. An advertising video on a leading channel 4-5 times a day for a month will cost the owner of a karaoke bar 100-150 thousand rubles. A good website for a bar will also cost at least 100 thousand rubles.

From time to time it is necessary to conduct various PR campaigns and prize draws, distributing leaflets with information about the conditions. Printing and distribution of business cards and leaflets will cost 5-10 thousand rubles. Advertising in newspapers will not be effective, since the target audience of the newspaper does not coincide with the audience of the karaoke bar.

Expenses and income

Let's calculate all the expenses and income of a karaoke bar and analyze the return on investment of an establishment opened on the basis of an existing leased bar.

First of all, let's calculate one-time expenses:

• professional karaoke – 210 thousand rubles;
• microphones (10 pcs.) – 50 thousand rubles;
• acoustic system – 200 thousand rubles;
• karaoke system with music library – 40 thousand rubles;
• subwoofers – 100 thousand rubles;
• plasma TVs (4 pcs.) – 100 thousand rubles;
• mixer – 15 thousand rubles;
• indoor repairs – 80-100 thousand rubles;
• advertising – 100 thousand rubles;
• website – 120 thousand rubles.

Total one-time expenses will be about 1 million rubles.

Now let’s calculate the monthly costs of running a karaoke bar:

• Renting a bar (area 100 square meters) – 150-200 thousand rubles;
• Staff salary – 150 thousand rubles;
• Purchase of alcohol and food – 200 thousand rubles;
• Payment for Internet and telephony – 5 thousand rubles.

Total expenses each month will be about 500 thousand rubles.

The profit of a karaoke bar in the first months is 300-400 thousand, which means operating at a minus. Gradually the situation improves and by 4-5 months the income is 600 thousand rubles, and after 8-10 months the income can range from 800 thousand to 1 million monthly. The payback period for such a business ranges from one to one and a half years.

Opening a karaoke bar as a business idea is a very promising and profitable business. However, in order to start receiving large income from this business, you will have to initially invest in its development. Therefore, if you have 1.5-2 million or an interested investor, then feel free to start opening your own karaoke bar. With the right attitude, in a couple of years you will be able to receive a stable monthly income.

If you are thinking about how to open a karaoke bar, then you need to draw up a competent business plan with calculations and analyze the market in the selected region. This is the only way to count on the success of the project and achieve a quick payback.

Relatively recently, similar clubs began to rapidly open throughout Russia and won their clientele. People are interested in spending time with friends, having fun, but not spending too much. This type of recreation is accessible and interesting, which is why it is popular among a wide range of age categories.

Business Features

The karaoke bar combines the activities of restaurant establishments and entertainment complexes. In it, people gather in large or small groups, drink drinks and light snacks and independently perform their favorite pop hits. This method of relaxation came to us from Japan, but in just 10 years it has conquered the whole world.

The relevance of this type of business is also confirmed by the fact that during a crisis people try to find a way to spend their free time that will not be too expensive. And karaoke bars have a significant advantage over restaurants and cafes in this regard. You can count on the establishment to have customers at any time.

The main target audience is considered to be people aged 25-35 with average income and who are not shy about public speaking. The number of men and women who prefer such a holiday is approximately equal. But when creating the interior of an establishment and selecting a music library, other categories of the population must be taken into account. Thus, older people and young people often become guests here.

Like any other business, opening a karaoke bar has its pros and cons. This must be taken into account:

1. The initial investment is quite high, but it pays off much faster than when creating a restaurant or entertainment complex.
2. It is necessary to carefully monitor visitors and prevent overly drunk or aggressive clients from appearing in the hall.
3. A very important issue remains the reputation of the establishment, on which its popularity will depend.
4. If you open a karaoke bar in a small town, then some questions about organizing a business become easier, but in this case it will be more difficult to achieve constant high attendance.

Today there are two main types of karaoke clubs:

• Nari bar is a Japanese system where individual booths are installed for individual companies. This will require high financial investments in the creation of closed areas with complete soundproofing and a karaoke system for each of them.
• An American-style club is more suitable for daring performers who want to perform on a common stage. For the entrepreneur, this will require lower costs and simpler decoration of the hall.

Each option has its own advantages and disadvantages, and it is difficult to predict which version will appeal to your potential clients.

Registration process

Where to start a business? Naturally, with paperwork. To do this, you will have to contact the tax service and submit an application to create an individual entrepreneur, joint-stock company or LLC. The first form is convenient only if you do not intend to sell alcohol and limit yourself to a small premises. But without selling alcoholic beverages, a karaoke club has almost no chance of success.

A more correct form of organization is considered to be JSC or LLC. At the same time, you can divide the starting investments among several people who will become co-founders. So, it will be easier to open a good and interesting establishment that will soon pay for itself and begin to generate high profits.

The OKVED activity code is indicated as follows:

1. 40 – for bar work.
2. 30 – restaurants and cafes, which also include a karaoke bar, which serves various snacks and desserts.
3. 29 – is responsible for the entertainment program and recreation of visitors.

Since the establishment will operate as a restaurant business and various drinks and food will be served to customers, the sanitary and epidemiological service has special requirements for the premises. To do this, you need to prepare it in accordance with SanPiN 2.3.6.1079-01. Only after a thorough check will you be given a permit.

You will also have to pay for a license to sell alcohol. These are the drinks that most karaoke bar visitors prefer, so without selling them it will be difficult to attract enough customers.

The fire inspectorate will monitor the safety of the premises and issue the necessary documents. To do this, the building must have emergency exits, a fire extinguisher, a fire alarm and an evacuation plan.

Don’t forget to visit the city administration, where you will be given another permit to conduct business and open a club in a certain location. Since the karaoke bar involves an entertainment program, for these purposes you will also need to familiarize yourself with documents such as GOST 30389 and 31985-2013.

Be prepared for the fact that the whole process will take quite a long time and will require certain financial investments to register a company. If you feel that you cannot handle everything or simply do not want to deal with paperwork, then hire a lawyer, an experienced professional who will take on most of the bureaucratic concerns.

Another way to make starting a business easier is to purchase a franchise. At the same time, you will have step-by-step instructions on how to open a successful karaoke bar, a recognizable brand, the help of experienced entrepreneurs and a set of everything necessary for setting up an establishment.

Which room should I choose?

First, focus your attention on the location of the future club. It does not have to be in the city center, where rent is quite expensive, but residential or industrial areas are not suitable either. The choice of location must meet the following criteria:

• proximity to densely populated areas of the city;
• the club is easy to get to;
• There is public or private parking nearby;
• the establishment is located at some distance from residential buildings so that the noise from the music does not disturb residents.

The room itself must meet all standards and norms of the SES and GPI, and also be at least 100 square meters in size. m. This space should be enough to accommodate a hall for visitors, a kitchen, a bar, a bathroom, a wardrobe and utility rooms. It is very important that the building has a ventilation system installed, electricity, water supply and sewerage.

If you decide to create karaoke in a residential building, then you will have to seriously take care of the soundproofing of the room. Don't forget about the club's design. It should be modern, attractive and appealing to visitors of all ages and social status.

Of course, most of the clients are not elite, so furniture, curtains and various decorations do not necessarily have to be expensive. But the hall is decorated with taste. You may have to hire a designer for this.

Equipment

The amount of capital investment will largely depend on how much the selected equipment, furniture, etc. costs. But in this case you cannot save on equipment, because the quality of the acoustics completely determines whether visitors will come to you next time or not. If equipment frequently breaks down, this will not only increase fixed repair costs, but will also discourage most customers.

Here is a list of important components:

1. Direct karaoke system.
2. Acoustic microphones.
3. Mixer.
4. Lighting equipment.
5. Projector.
6. Mirror ball.
7. Plasma TVs.
8. Columns.
9. Amplifiers.
10. Furniture for visitors (tables, chairs, sofas).
11. Bar counter with shelves for alcohol.
12. Kitchen appliances (quite simple, since you don’t have to cook hot dishes).
13. Dishes.
14. Equipment for bathrooms.
15. Cash machine.
16. Some little things for office space (lockers, shelves, etc.).

In addition to the equipment and furniture itself, you need to take care of the repertoire for the performers. It also has special requirements:

• The number of songs should be at least 3000-4000, and preferably more.
• The range of tracks includes a wide variety of music styles.
• The repertoire should be changed every six months, adding modern, popular and recently released hits.
• All discs must be licensed, otherwise you can pay huge fines for a pirated music library. In addition, this threatens to close the club altogether.

Recruitment

Since the karaoke bar usually works from 12.00 to 24.00, without weekends and holidays, it is advisable to hire two shifts of employees at once. The minimum staff consists of:

1. Manager (his functions can be carried out independently).
2. Bartender.
3. Accountant (often they invite an outsider to perform certain operations).
4. Cooks.
5. 2 waiters.
6. Security guard.
7. Cleaners.

To save money, you can hire unqualified specialists for most vacancies. For example, students are not averse to working as waiters or bartenders and do not require high salaries. But the cook and accountant must be professionals in their field.

When opening a karaoke bar from scratch, you need to prepare for the fact that the influx of visitors will not appear immediately. To do this, you need to conduct a competent and targeted advertising campaign:

• Think about what to name the establishment and place a bright and visible sign above the entrance.
• Use banners on entertainment-related websites and forums.
• Hang advertising posters and notices where many of your potential clients go.
• Print out flyers and distribute them in crowded areas.
• Hold interesting competitions and themed evenings, giving valuable prizes to the winners.

By using your imagination and creativity, you can get many regular customers who will return to your karaoke bar almost every week. And here it is important to maintain a certain level of service so that visitors always leave happy and bring their friends.

Expenses

When drawing up a business plan, it is important to correctly carry out the calculations and determine how much money is needed to start and for the ongoing maintenance of the club. To do this, all expected costs are written down.

In addition, every month you will need a large amount for regular payments.

But more accurate figures will depend on the selected models and set of equipment, thoughtful interior, quality of furniture and accessories, dishes, etc.

How to earn?

Income is much more difficult to predict, since you will not immediately understand how many people will become your regular visitors and how much money they will decide to leave in the bar during one visit. Initially, consider what form of payment is expected. The following options are popular today:

1. Purchase tickets plus separate prices for drinks and snacks.
2. Hourly rate for staying in the club.
3. The entrance fee includes the standard menu and performance of songs.
4. The client deposits a certain amount into a deposit account, from which the order fee is gradually withdrawn, and karaoke is provided on an affordable basis.
5. Unlimited access to the club with a pre-set price per evening.
6. There is a price list for dishes, drinks and songs separately, and the visitor decides for himself what he will spend the expected amount on.

Average statistical calculations show that a popular karaoke bar in a small city brings in a monthly income of about 750,000 rubles. After all the calculations, the net profit remains 250 thousand, which will help cover the initial investment only after 8 months.

But these are just averages. Everything will largely depend on the traffic of your bar, established prices, services offered, the presence of competitors in the area and much more.

Be prepared for the fact that in the first months you will have to work at a loss, since very few people still know about your opening and are not always ready to immediately change their usual vacation spots for something new. Therefore, it will take some time to gain momentum. It is believed that the full payback of such a business occurs within 1.5-2 years.

Video: how to open a karaoke bar?

There are two types of such establishments. The first one was invented by the Japanese. It implies that each company that comes to the bar is located in a separate booth. There they can perform a repertoire that suits only them, and the voices themselves will not be heard by other visitors. The second type is the American version. Here vocalists, duos or trios sing for the entire audience in the bar. Depending on the chosen type of establishment, different investments will be required for its arrangement, and the attendance (and, therefore, future income) among visitors may be different.

As for our country, taking into account the mentality of the population, opening a karaoke bar is quite profitable:

1. our people have always been able and loved to sing;
2. in comparison with other objects of the restaurant business, it does not require large investments, the costs will be recouped quickly enough;
3. People from different walks of life can visit such an establishment.

According to statistics, the most frequent guests of karaoke bars are people over 30 years of age. However, this is not a rule at all. Karaoke is popular among people from 20 to 50 years old.

Bars with lip-syncing gained the highest popularity in the resort area. If there is no such thing in the surrounding region, then a cultural and entertainment center or shopping center is quite suitable for opening a karaoke bar. There is a chance for an establishment in a residential area of ​​the city to develop and prosper. The main thing is that it is densely populated, and the area around it is landscaped.

How much money do you need to open a karaoke bar?

The largest part of the cost of opening a karaoke bar is equipment for your own karaoke bar. Basically this is the provision of musical accompaniment. Karaoke machines, acoustic equipment, and televisions for broadcasting song lyrics cost about 70 thousand rubles. We are, of course, talking about professional equipment. The installations usually come with several discs with popular hits for every taste.

We must not forget that in a bar people need to be offered food and a variety of drinks. This is a significant source of income for any establishment. To cook, you need to organize a chef's workplace - install equipment, take care of purchasing fresh products. To sell alcoholic beverages you need to buy a license. The bar will not be able to operate without permission from the sanitary and epidemiological station, the fire service and Rospotrebnadzor.

To open a karaoke bar, you will need at least 3 million rubles. If repairs or re-equipment of the premises are necessary, and if you take into account the costs of the first month for rent and employee salaries, the amount will increase to 6-7 million rubles.

How much can you earn with a karaoke bar?

Let's assume that in the establishment we have placed 20 tables designed for 4 people. As a result, about 80 people can visit the karaoke bar in one evening. If we assume that the entrance ticket price will be set at 900 rubles, then the daily income will be 72,000 rubles. This amount will be 2,430,000 rubles per month. With such income, it is quite possible to recoup the costs of equipment and repairs in one year of work.

Experts say that for the simplest restaurant the payback period is usually three years. The above calculation suggests that opening a karaoke bar is a more profitable and profitable business. Find out the musical preferences of the residents of your area or city, and act boldly, and the profit will not be long in coming!

First of all, you need to decide what type of karaoke bar you are going to open. There are two types of such establishments:

1. "Nari-ban" - a Japanese analogue, or rather a prototype, in the image and likeness of which existing establishments are structured. Assumes the presence of separate booths for private vocals.
2. American style karaoke bar . Involves public performances by vocalists.

Both options have similar organizational and investment schemes. The main difference: room layout, equipment. The general concept of the problem of how to open a karaoke club initially involves answering the defining question - for whom?

Market analysis

The post-crisis period is characterized by some decline in the restaurant business. However, it should be noted that we are talking about a decrease in profitability for that part of it that belongs to the expensive segment of the public catering market. A karaoke bar as a business has one distinctive feature: low entry cost and a short payback period.

The human need for singing has ethnic and historical roots. In Russia, due to its special mentality, a karaoke bar is one of the existing opportunities to realize one’s own subconscious aspirations for publicity. The means of implementation in this case is singing to a soundtrack.

Visitors to karaoke clubs are adults in the age range from 20 to 50 years (the maximum number is among people over 30 years of age).

All of the above factors point to the prospect of high profitability for karaoke bars, subject to certain marketing nuances.

Summary: market analysis shows that opening a karaoke bar today is quite profitable from the point of view of the presence of a sufficient consumer segment and the demand for the service. If you follow all the intricacies of business at its start, entrepreneurship will bring a stable income.

Read also: The cleaning industry or how to open your own cleaning business?

“Klondike” for opening a karaoke bar – resort area, summer cafe. However, how can you open your own karaoke bar if your place of residence is different from the sea coast? Key recommendations include:

1. It is better to open a bar in a densely populated area of ​​the city.
2. If the premises are located far from the center, then it is necessary to provide a good parking place and landscape the area.
3. It would be better if the karaoke bar is part of some kind of gaming complex, cultural center, etc.
4. There is no point in opening a karaoke bar in the village for obvious reasons.

Karaoke bar is a great opportunity to have a good rest and have fun with friends

Financial investments: where to get and what to spend on

Opening your own karaoke bar is a very expensive business, so you should calculate your own strength as accurately as possible. There are several sources of investment in business:

1. Own funds.
2. Attracting funds from investors.
3. Bank lending.

In the absence of sufficient own funds, entrepreneurs choose a comprehensive financing option, which includes, in addition to their own money, credit funds. In this case, the services of leasing companies are in demand:

• the entrepreneur introduces the representative of the financial structure to the business plan;
• based on the design of the premises, indicating the location of the bar counter, musical equipment with a stage, kitchen, bathroom and other premises, a detailed inventory of the necessary equipment, inventory, furniture for the bar is made;
• the leasing agreement is signed (we will skip the nuances, because this is the topic of a separate article);
• Upon completion of installation and repair work, equipment is delivered to the premises in accordance with the contract.

Summary: without accurate calculations and confidence that the funds raised will be enough to open a karaoke bar, especially in the case of borrowing funds, it is better to postpone the idea until better times.