How to open a karaoke club in a small town. How to open your own karaoke bar from scratch

Karaoke belongs to the field of entertainment, which is only gaining popularity in Russia and the CIS countries. This is a great attraction where anyone can unprofessionally perform their favorite song to the background tune. Easy accessibility and use is the key to the success of this entertainment. Let's talk about how to open your own karaoke and what you need for this.

Organization of karaoke business

Since no special permits are required to open a karaoke, all you need to do is open a cafe or restaurant - this is a great way to increase your profits by attracting new visitors with a new entertainment - a karaoke service.

We have already written several times about how to open a cafe, so we will consider exclusively karaoke itself, especially since the described method will allow you to open karaoke even in a small town.

So, there are many different electronic karaoke systems - from household to professional. You can use any system, but the quality and additional features directly depend on what you use.

Recommendation site: Use a professional karaoke machine. Of course, the cost of such a system starts from 150 thousand rubles. But this price includes everything you need to open a karaoke. Huge database of songs. Special effects. Professional sound and acoustics. Possibility of recording and evaluating performances. And much more that cannot be obtained using a household system. Thus, by purchasing such a system, you receive a ready-made kit, which only needs to be supplemented with microphones and a screen.

By owning a karaoke machine, you can start making money. There is no need to open your own club. Agree with a good cafe or restaurant to rent a VIP room or corner. A competent and far-sighted catering owner will be happy to meet you, because this will be an additional opportunity to attract visitors, which means the overall revenue of the establishment will increase.

Karaoke in numbers, business plan

The cost of performing one song in a mid-level establishment is 50-100 rubles. In a high-level restaurant - up to 500 rubles. Let's not have our head in the clouds and take the cost of one song to calculate - 50 rubles. You can provide additional services free of charge or for an additional fee - recording a speech, photography or video shooting. But we count without them.

On average, on weekdays, you will process 50 orders, on weekends and holidays - up to 70.

Renting a room or corner in a cafe/restaurant will cost you 5-15 thousand rubles.

Let's do the math, the total number of orders is 24 x 50 + 6 x 70 = 1620 .

Total earnings - 1620 * 50 = 81,000 rubles. Rent - minus 15 thousand rubles. Total net profit - 66,000 rubles.

Thus, taking into account the deduction of your salary, the karaoke machine will pay for itself in 4 months and you will be able to hire an operator, buy new equipment yourself and open a karaoke room in another cafe.

There are different ways of leisure that are interesting to people. Some, for example, prefer to show their vocal talent with family or friends. Karaoke is popular at home because it is possible to buy the necessary equipment. But to get more adrenaline, many song and music lovers prefer public places and flock to karaoke establishments. Their number, of course, is not very large, but the sphere of such small businesses is partially occupied. In some localities there is no karaoke at all. If you like the atmosphere of fun and music, there is a reason to think about such a cozy corner and write your karaoke bar business plan.

Before this, it is worth deciding what the specifics of leisure are. Will it be just a music bar or will it provide alcoholic drinks, snacks and hot food. To understand how to prepare for planning, we offer our own example, in which we present a detailed business plan for a karaoke bar with calculations. Let's consider what investments the business requires, what documents are needed to launch a karaoke club, and whether the profitability of a highly specialized bar is high.

Resume

To get the desired profit from a karaoke club, you need to open an establishment in the “two in one” format - emotional pleasure (karaoke) and the opportunity to have a drink and snack (bar with its own kitchen). If you focus only on the stage and equipment, not all visitors will be able to express themselves. And a moderate degree and a delicious lunch help to emancipate a person. Therefore, we will open a catering establishment with karaoke services that will satisfy people of different ages and musical tastes with its list of compositions.

The activity will be aimed at serving citizens and relates both to a public catering establishment and to the premises in which conditions for recreation and entertainment will be created.

According to the OKVED classifier, we select the following codes:

• No. 56.10.1 “Activities of restaurants and cafes with full restaurant service (including the sale of alcoholic beverages).”
• No. 93 “Activities in the field of recreation and entertainment.”

Object location: regional center, densely populated area of ​​the city.

Premises: first and ground floors of a residential building. Total area – 150 sq. m. On the 1st floor there will be a guest service area with a karaoke bar and an administrative office (75 sq. m.). The ground floor is reserved for the kitchen, warehouses, and staff rest area.

Form of ownership of the premises: long-term lease.

Karaoke bar opening hours: daily from 18.00 to 06.00.

Number of visitors: 50 people can be in the room at the same time. The bar room will have 8 tables with sofas that can accommodate 6 people or more.

List of services

• Karaoke with a wide range of songs.
• Bar service (wine list, beer, juice, cocktail, tea, coffee, light snacks).
• Kitchen work preparing hot dishes, salads, desserts to order (the menu is varied).
• An entertaining show with competitions and prizes.

Form of activity: LLC (limited liability company). It is possible to obtain a license for alcohol and tobacco products. The project will require serious investments. Personal funds of the founders and a loan from a bank are used.

Taxation: simplified (income minus expenses).

We prepare documents for the establishment

To open a karaoke bar combined with a restaurant, you need to collect the following package of documents:

• Permission from the administration and Rospotrebnadzor for the possibility of placing a recreation and entertainment center in a specific location. The premises were selected in a residential building and may have restrictions for entrepreneurs.
• Conclusion on the sanitary and fire conditions of the karaoke club areas.
• Certificate of compliance of the layout with the scheme in the BTI documents.
• License to sell alcohol.
• Lease agreement with the owner of the premises.
• Architectural permission to place information on the façade of a building.
• Design documents for engineering and communication lines.
• Agreement with public utilities (water, electricity, garbage removal, heating).

The collection of documents must begin immediately after receiving a certificate of entrepreneurial activity, because this may take several months. Law firms offer services that can save a businessman from headaches and prevent mistakes.

Preparatory stage

To understand what investments will be required to implement the project, let’s note the main expense items and amounts in the business plan. We will enter the costs into the table. A karaoke bar combined with the function of a restaurant will require cosmetic repairs, communication equipment, bar, kitchen, and musical equipment.

Funds will be needed to promote the karaoke club. The advertising campaign must be large-scale so that the maximum number of potential customers learn about the opening of such an establishment. We will allocate 200 thousand rubles for this procedure. Also, money is needed for rent if the owner does not give a deferment while the premises are being prepared for opening. Let’s budget 300 thousand rubles for this article and add to it the amount for the purchase of a minimum set of products for launching a bar and kitchen - 300 thousand rubles.

Until the karaoke bar starts making a profit, employees will have to pay salaries, pay utility bills, and supply food from their own funds. Let's add 1 million rubles to the total estimate of the business plan. At the initial stage, you need to invest at least 5 million 300 thousand rubles in the business. The amount is substantial and not feasible for all beginning businessmen if they do not have their own start-up capital. Adjustments to amounts are possible if the cost of equipment, materials, services of workers, specialists is higher or lower than the estimated amounts.

Time frame for launching an entertainment establishment

Coordination with inspection authorities, work of finishers, designers, and other specialists, purchase of equipment and preparation of the establishment for opening is a lengthy procedure. It may take several months. But you need to draw up a schedule for all the work so that the opening is not delayed due to usual disorganization.

If no circumstances arise that slow down the process of preparing for the opening, the karaoke bar should open its doors to its first customers on December 1. This month is relevant for promotion and attracting the first visitors - corporate events of a New Year’s nature begin in December. If you offer favorable conditions for collective leisure, there is a chance to “kill two birds with one stone”: make a profit and interest the target audience, which will become one of the links in the advertising campaign through word of mouth.

We are staffing the establishment

The karaoke bar will be open 12 hours daily, in the evening. Therefore, it is necessary to staff two shifts of personnel who can work two after two. The following vacancies will be required:

To the kitchen:

• Cook (2 units).
• Assistant cook (2 units).
• Warehouse manager (2 units). The function can be performed by an administrator at first, so as not to overstaff.
• Kitchen worker with cleaning duties – 2 units.

To the guest room and bar:

• Bartender (2 units).
• Waiter (4 units).
• Administrator (2 units).
• DJ (2 units).
• Weekend host (guest artist).
• Security guard (we enter into an agreement with a private security company private security company). 1 person per shift is enough.
• Wardrobe attendant (2 units)

Perhaps, as the karaoke club operates, the staff will be supplemented with other employees.

Material reward at the initial stage will be in the form of salary. As the karaoke bar gains momentum and clientele, bonuses and a bonus system are expected. Tips from visitors are also acceptable.

We indicate the initial salary and contributions to funds in the table:

The security guard's salary will be paid by his own organization. The bar will pay fees according to the service agreement. It is possible that some duties (wardrobe worker, warehouse manager) will become the duties of administrators with a partial increase in salary.

Calculation of payback and profit

To assess the profitability of a karaoke bar business, you need to calculate the average monthly annual income. The calculations in the business plan are indicative, but they can clarify the picture and understand whether the business is profitable or unprofitable.

The operation of the bar will be structured according to several schemes, which will be applied alternately in order to find the best option:

1. Entrance to the karaoke club is paid (150 rubles per person). The price includes a cup of coffee. Payment for menus at restaurant rates. Ordering a composition is paid additionally (100 rubles per one).
2. Entrance to the karaoke club is free, but to get a seat at a table you need to make an order at the bar or in the kitchen for a certain amount (at least 500 rubles). Submitting songs for karaoke can be free when ordering over a certain amount. For example, for every 1000 rubles - one performance as a gift.
3. Rent a table for the whole evening. Focused on attracting large companies. A table for 4 people can cost a fixed amount of 5 thousand rubles. The price includes soft drinks, light snacks and 3 complimentary performances. On holidays (New Year, March 8 and others), the price rises to 10 thousand rubles per table and a special holiday menu and additional gift bonuses are offered.
4. Full rental of the karaoke bar hall for the evening for large corporate events, weddings, anniversaries. Cost – from 45 thousand rubles per evening. Conditions for the menu and use of karaoke equipment are negotiated with the customer individually.

In the first month, you can offer discounts of various types so as not to scare the first visitors with a high price. But for a bar to be profitable, revenue is needed, and it is desirable that the average bill be at the level of 1 thousand rubles per person. At first, it is planned to receive revenue in the region of 30 thousand rubles per evening. By the first year, it is planned to reach an income of around 45-60 thousand rubles per evening. Profit per month can vary from 1 million 150 thousand to 1 million 700 thousand rubles.

Now let’s note the costs of the establishment, which need to be subtracted from the monthly income.

It is possible that additional costs will arise and the net profit will be minimal. But to calculate the payback period, let’s take the amount of 300 thousand rubles per month. Considering the investment amount is 5 million 300 thousand rubles, in 18 months the karaoke club will reach self-sufficiency. Typically, such establishments begin to operate with net income after 2-2.5 years. So our calculations indicate that the chosen field of activity is profitable and has a chance of long-term existence if everything is organized correctly.

To do this, it is necessary to choose a universal club concept, think over an appropriate menu, and offer visitors favorable conditions for comfortable leisure time. Then there will be no end to customers, a permanent audience will appear.

In the end

Despite the fact that a karaoke bar has a certain specificity of service, with a creative approach to business it is possible to form a certain circle of regular visitors. Some people prefer to replace an ordinary disco or a boring restaurant with a cafe, where they have the opportunity to have a delicious dinner and spend their energy in a vocal duel with incentive prizes. If your locality does not yet have recreational facilities of this format, we advise you to study the situation in detail and, relying on our calculations, draw up your own business project.

To open karaoke from scratch you will need register an LLC and indicate the codes OKVED: 55.40.- “Bar activities”, 55.30. – “Activities of restaurants and”, 93.29. – “Other services in the field of entertainment and recreation.”

Other documents and permits

• License to sell alcohol;
• Permission from the SES. It is necessary to fulfill all the conditions specified in SanPiN 2.3.6.1079-01;
• Fire inspection report. Issued by Rospozhnadzor after an inspection. The bar needs a fire alarm, fire extinguishers, an emergency exit, an evacuation plan;
• Permission from the city administration to locate the club in the selected location.

Entertainment establishments have their own requirements for compliance with state standards.

You can familiarize yourself with them in the documents GOST30389-2013 And GOST31985-2013. The total cost of paperwork is $1,500.

List of services

That the establishment offers customers only alcoholic, refreshing and hot drinks, cocktails, and light snacks. This will eliminate the need to equip a full-fledged kitchen and hire professional chefs.

As for the songs, the “assortment” should contain at least 3-4 thousand tracks. A license is required for public use of compositions. The easiest way to get it is from specialized companies that sell ready-made music libraries. License prices start at $50 for the most basic song packages.

Room

A small club is good because it is easy to open both in a small town and in a metropolis. Even basements and semi-basements are suitable.

It is recommended to open a club in the city center, in the building of a large entertainment or cultural center. This is more convenient than placing the establishment in a residential building, since then you will have to transfer the residential premises to the non-residential category.

A huge advantage of any entertainment establishment is the availability of parking for visitors.

Mandatory requirements for the premises

1. High-quality sound insulation, especially when located in a residential building;
2. Availability of a bathroom, storage and utility rooms;
3. Hot and cold water, sewerage, ventilation;
4. Availability of a fire protection system.

The total area of ​​the establishment is 100 square meters, of which 70 square meters. m - a hall for guests, and 10 sq. m is allocated for the kitchen, bathroom, utility room, warehouse.

At first, it is better to open your own bar in rented premises, monthly rent will be $1100-1500. Repair and installation of communications - $1,000, development of a design project, finishing and decoration - about $2,000.

Equipment for karaoke bar

The equipment is divided into two large parts: furniture and equipment for the hall and small kitchen, and equipment for the karaoke itself.

Hall decoration, furniture and other equipment

Where to start arranging a club? From purchasing furniture. For a bar with 15 tables (70-80 seats) you will need tables, soft sofas, a bar counter, a small stage, and a wardrobe. For the kitchen, it is enough to purchase a refrigerator, a cutting table, and a microwave oven. This will require an investment of around $3500-4000.

Equipment

What you need to purchase and how much a complete set of equipment costs:

• Installation for karaoke - $1800-2000. High-quality installations are offered by manufacturers Evolution, AST;
• Wireless microphones (2 pcs.) - $450. Madboy, LG, Alctron;
• Subwoofer - $200-250. Madboy, Yamaha, Onkyo;
• Mixing console - $500-600. SoundCraft, ALTO, Allen
• Sound amplifier - $100-150. Roxton, Crest Audio;
• Acoustic system - $500. Madboy, Boss, Behringer, Sony;
• Plasma panel – $600. LG, Philips, Fujitsu;
• Switching – $50-100;
• Two laser systems – $800. X-Light, Showlight;
• Four lighting installations – $900. Chauvet, SVLight.

In total, you will have to spend about 6 thousand dollars on equipment.

Staff

It is enough to hire 10 people who will work in shifts. For example, a week after a week. We need two bartenders, four waiters, two cooks for snacks, an administrator, and a cleaning lady.

We hire an outsourcer to do the accounting. It costs approximately $4,000 per month to pay salaries.

Costs and profits

The business requires an investment of approximately 20 thousand dollars. This includes the costs of paperwork, repairs and arrangement of premises, purchase of equipment and furniture, bright signage and advertising. The monthly expenses of the karaoke bar are $8,000 (rent, salaries, food and drinks, utilities).

We calculate the profitability of the enterprise based on a minimum attendance of 40 people per day and an average check of $6. Revenue will be about 8 thousand dollars, net profit – 4 thousand dollars. Over time, the club gains popularity, increasing the number of visitors and revenue.

To open a karaoke club, you need good start-up capital. It’s worth spending money on original design, advertising and a noisy opening of the bar, because it brings good income and quickly pays for itself.

The peak of karaoke popularity either decreases or rises again, but it cannot be said that this type of entertainment is losing popularity. As a rule, they try to combine such a business with other types of entertainment in order to increase profitability. What is the essence of implementing such an idea and what are the subtleties and nuances - we’ll talk about all this in our article.

Business registration

From the point of view of a novice businessman, all people are divided into those who love public speaking and those who do not accept this type of entertainment. The doors of karaoke are open only to the first type of citizens, but many entrepreneurs who decide to connect their lives with the sphere of night entertainment would like their establishment to attract both.

Any business begins with a balanced assessment of the idea and its subsequent registration. The first thing you should pay attention to is what form of entrepreneurship to choose:

• limited liability company;
• individual entrepreneur.

The choice depends on what your plans for the future are. If you plan to open a large establishment, then it should definitely be an LLC; for a small cafe, an individual entrepreneur is suitable.

Opening a business is a fairly simple process; the basis is registration of the legal form and registration with the tax authorities. A bank account is first opened and a seal is made.

Now you can choose the form of taxation:

1. STS (simplified system).
2. UTII (unified system).

Additionally you will have to obtain permissions:

• sanitary-epidemiological service;
• Rospotrebnadzor (issues permission to provide various services).

In addition, all karaoke employees must have valid medical records, and the company itself must have concluded agreements for the removal of solid waste and garbage.

If you plan to sell alcoholic beverages, then a license is required for this activity.

Business organization

Before getting close to the issue of organizing a karaoke club, the owner must calculate everything on paper. The main points will be:

• selection of premises;
• purchase of equipment and music library;
• personnel selection;
• advertising and marketing program.

So, karaoke is high-quality and enjoyable leisure time. When starting a business, it is important to understand that attracting customers will be quite difficult in a large metropolis. Firstly, this will be influenced by competitors, and secondly, karaoke is a specific thing, it is important to present it correctly and create an atmosphere. The organization begins with the selection of premises.

Room and decor

Initially, you need to choose a great place to open a karaoke bar. There are several rules that must be followed in this matter:

You can build the building yourself or (which happens more often) rent it.

What else is important when choosing a room? Decor of course! The first thing visitors pay attention to is the decoration of the hall. The same type of classic establishments have not surprised anyone for a long time. Even if such a bar has good acoustics, customers will quickly get bored.

The task of a businessman opening a karaoke is to make it convenient, comfortable and interesting for the visitor. Another addition: you can divide the hall into a common room and several separate booths for shy people and those who want to celebrate the event only with their friends.

It is worth paying attention to thematic design, for example, in the style of a movie, an American fast food bar, Chicago of the 20s or in the Soviet style. The choice is huge, the main thing here is imagination. Pay great attention to detail.

Table placement is important. There must be space and air in the hall, otherwise it will negatively affect the atmosphere.

Hardware and equipment

If the decoration of the hall is not visible everywhere due to dim evening lighting, and you can save a little on it, then you will have to buy the highest quality equipment. Clients hear sound well, are well versed in many subtleties, and you can’t skimp on this. Need to purchase:

• professional karaoke system;
• speaker system and amplifiers;
• portable microphones;
• multi-channel remote control;
• lighting installation, spotlights for the stage (if provided);
• plasma TVs.

This is only equipment for karaoke itself. If you also plan to open a bar, cafe or restaurant, you will need to additionally equip the kitchen.

Music library

How many songs should be in the repertoire? Professionals say that the more, the better. They're right. The minimum number of songs is 5-10 thousand.

The repertoire needs to be constantly updated. Customers, as a rule, prefer new products and good old classics. A company with the right to distribute musical compositions is chosen as a supplier. Using pirated products is dangerous.

Staff

The karaoke club has a lot of staff: bartenders, waiters, cooks and kitchen workers, administrators, cleaners. But the most important person will be the sound engineer. The quality of the song system’s work depends on his qualifications.

If the club is large, you can take an experienced presenter to the main hall. He will cheer up the guests, entertain them and keep track of the queue. Large establishments allow you to additionally hire backing vocalists. Think through everything down to the smallest detail, including the staff uniform, and then the level will be high.

Marketing

All that remains is to talk about business promotion. Opening a karaoke shop is a complex process; advertising it well is very important, since the return on investment depends primarily on this.

If the karaoke club is completely new, you need to use the maximum number of advertising opportunities:

• special information portals;
• visual advertising on the streets;
• advertising on radio and in the media;
• Internet promotion;
• distribution of booklets.

Choose a feature that distinguishes your club from any similar one, and be sure to tell us about it. Karaoke can be successfully combined with a bar or restaurant. Focus on this too. The quality of food or drinks cannot be ignored. If all components are at a high level, visitors will appreciate it.

Financial component of business

According to statistics, the clients of karaoke clubs are a large audience from 20 to 50 years old inclusive. Thirty-year-olds are of greatest interest. This condition creates all the prerequisites for business profitability even in conditions of some economic downturn.

Cost of opening and maintaining

Taking into account the fact that karaoke is opened on the basis of an already created cafe or bar project, the minimum initial costs will be approximately 500 thousand rubles. If you open everything from scratch, you need to count on much more significant amounts. This is from 2 million rubles and above.

As for maintenance, you will have to take into account standard costs:

• purchasing kitchen supplies;
• rent and utility payments;
• employee salaries;
• music library update.

Depending on the size of the club and the number of staff, this will cost at least 200 thousand rubles monthly.

Amount of future income

Income dependency depends on a number of factors in this business. If you consider that karaoke is a club where there is only a small entrance fee, then you will have to rely on income only from the kitchen and bar. This is a fact. In fact, a lot of attention is paid to the karaoke atmosphere, which attracts people.

The amount of net income will vary from 60 thousand rubles to hundreds of thousands, depending on the popularity and cost of the average check.

Payback period

The payback period for karaoke depends on many factors and averages 4-5 years. The minimum period is 3 years.

There are many factors that can affect both the profit margin and the payback period:

• quality of implementation of initial investments;
• general skill of the staff;
• club location;
• prices on the menu (both low and high are off-putting).

Keep in mind that when issuing a check, your services must be of an appropriate level. In principle, this is the golden rule for the entire service industry, and not just for karaoke.