A jazz club is a venue where the primary entertainment is the performance of live jazz music, although some jazz clubs primarily focus on the study and/or promotion of jazz music. Jazz clubs are usually a type of nightclub or bar, which is licensed to sell alcoholic beverages.
The jazz club business is a part of the nightclubs and bars industry and the industry generates over $27 billion annually from more than 64,385-night clubs and bars (jazz clubs inclusive) scattered all around the United States of America.
The industry is responsible for the employment of over 414,155 people. Experts project that the industry will grow at a 2.5 percent annual rate between 2016 and 2022. Please note that the nightclubs and bars industry in the United States has no major players with a market share of greater than 5 percent.
Steps on How to Write a Jazz Club Business Plan
Table of Content
Roger Miller® Jazz Club, Inc. is a chain of jazz clubs that will operate in different venues all across the United States, United Kingdom, and Australia. Each club location will be independently owned, operated, and licensed. The company’s worldwide headquarters is in Las Vegas, Nevada. Rowland Adamson is the founder and CEO of Roger Miller® Jazz Club, Inc.
a. Our Products and Services
Roger Miller® Jazz Club, Inc. will operate jazz clubs and lounges. We will also serve food, alcohol, and beverages to our patrons. Our products and services are designed to entertain our patrons and help them to connect with jazz history, relax, and relieve themselves from stress.
b. Nature of the Business
Our jazz clubs will operate essentially as a club where patrons can pick up membership and pay their subscription monthly, quarterly, or annually.
c. The Industry
Roger Miller® Jazz Club, Inc. will operate under the nightclubs and bars industry.
d. Mission Statement
Our mission is to provide a safe and secured facility for maximum jazz entertainment, food, alcoholic and nonalcoholic drinks for our patrons.
e. Vision Statement
Our vision of to become the best jazz club and lounge in the world, Roger Miller® Jazz Club, Inc. will continue to set the standard for jazz club and lounge entertainment in the United States of America.
f. Our Tagline (Slogan)
Roger Miller® Jazz Club, Inc. – The Melting Pot for Lovers of Jazz Music!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Roger Miller® Jazz Club, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Club (Bar Manager)
- Bartender (Baristas)
- Accountants (Cashiers)
- Disc Jockey (DJ)
- Greeters/Customer Service Agent/Table Attendant
- Live Band
- Security Officers
i. Ownership/Shareholder Structure and Board Members
- Roger Miller (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Cebo Clem (Board Member) 14 Percent Shares
- ED Black (Board Member) 10 Percent Shares
- Wellton Jones (Board Member) 10 Percent Shares
- Freda Kings (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for Jazz Club and Lounge
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Jazz Artists and Collections
- Highly Secured and Clean Facility
- Easy Access to Alcoholic and Non-Alcoholic Beverages and other Supplies
- Budget Limitations
- Lack of Customized Software
- Inability to Attract and Retain Celebrity Jazz Artists in Our City
- Inability to Properly Manage Off-Peak Season
- Lack of Control for Pouring Drinks to Customers (Overpouring may culminate in loss if not properly handled).
- Food sales
- Specialty drinks sales
- More local or organic products
- Importing liquor for boosted sales of higher-priced wines and liquors.
- Availability of Mobile apps to help in tracking data
i. How Big is the Industry?
The nightclubs and bars industry that the jazz club is a part of is pretty big. It is worth over $27 billion in the United States and there are about 64,385 nightclubs and bars (jazz clubs inclusive) with a workforce of 414,155 scattered all across the United States.
ii. Is the Industry Growing or Declining?
Revenue in the Jazz clubs industry is forecast to have decreased 17.4 percent in 2023 and is anticipated to decrease 1.5 percent in 2023. In a non-COVID-19 (coronavirus) environment, the industry would have been forecast to grow.
iii. What are the Future Trends in the Industry
The jazz club’s industry is changing, and players in the industry are improvising. No doubt, technology, and social media will change the landscape of the jazz club and lounge industry going forward.
The reason is not farfetched; the societal shift away from alcoholic drinks toward healthier lifestyles is to a larger extent contributing to a steady decline in the amount of individual spending allocated to trips to bars and nightclubs plus the fact that nobody wants to be caught driving while drunk.
iv. Are There Existing Niches in the Industry? If YES, List them
Yes, there are niche ideas in the jazz club’s industry, and here are some of them;
- Online jazz club and lounge
- Drive-Thru jazz club and lounge
- Brick and mortar jazz club
- Membership subscription-only jazz club
v. Can You Sell a Franchise of your Business in the Future?
Roger Miller® Jazz Club, Inc. has plans to sell franchises in the nearest future and we will target the United Kingdom, Canada, and Australia.
- Competition from other entertainment hubs such as nightclubs and bars, restaurants, and karaoke bars.
- Community resistance
- Government regulations
- Liability problems
- Continuously changing consumer demands
i. Who are the Major Competitors?
- Birdland Jazz Club
- Village Vanguard, New York City
- Preservation Hall, New Orleans
- Bimhuis, Amsterdam
- Blue Note, Tokyo
- Nublu, New York & Istanbul
- Tramjazz, Rome
- Piano Barge, Vannes, France
- Beit HaAmudim, Tel Aviv
- Jazz Standard
- Blue Note Jazz Club
- Snug Harbor Jazz Bistro
- Jazz Showcase
- The Iridium
- Blues Alley Club
- Smoke Jazz & Supper Club
- Winter’s Jazz Club
- Swing 46 Jazz and Supper Club
- Wally’s Cafe Jazz Club
- Showman’s Jazz Club
- Andy’s Jazz Club & Restaurant
- Fritzel’s European Jazz Pub
- Grand Star Jazz Club
- Parker Jazz Club
- The Jazz Playhouse
- Minton’s Playhouse
ii. Is There a Franchise for Jazz Club and Lounge Business?
House of Jazz. The estimated investment required to open a House of Jazz Franchise is between $750,000-$1,200,000. There is an initial franchise fee of $75,000 which grants you the license to run a business under the House of Jazz name.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Jazz Club Business?
Yes, and zoning laws require jazz club and lounge operators to follow specific rules regulations, including some that apply only to players in the jazz club’s industry. Please note that in many communities, zoning laws require jazz club providers to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the jazz club meets the zoning rules of the community. Permits also ensure that all jazz clubs are properly licensed with county or state agencies.
a. Who Is Your Target Audience?
i. Age Range
Our target market falls within 18 to 55 years.
ii. Level of Educational
The basic educational qualifications of those we are targeting is a minimum of High school certificate. But they should be upwardly mobile in their thinking and approach to life.
iii. Income Level
The income level of our target market will be people that earn $25,000 annually and above.
There is no restriction when it comes to the ethnicity of the people we are looking forward to welcoming to our jazz club and lounge.
There is no restriction when it comes to the language spoken by the people we will welcome to our jazz club and lounge.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our jazz club and lounge.
Roger Miller® Jazz Club, Inc. will not restrict any patron based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with Other Businesses in Your Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Including direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Roger Miller® Jazz Club, Inc. will make sure it covers premium, skimming, economy or value and penetration, In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, wholesalers, distributors, managed service providers, marketplaces, or value-added resellers—to sell our services
Roger Miller® Jazz Club, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand product or service that is competitively priced and promoted to our customers.
b. Inventory Strategy
Roger Miller® Jazz Club, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Roger Miller® Jazz Club, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
Roger Miller® Jazz Club, Inc. will operate a no refund policy hence we will not provide compensation for purchased products or services (membership fees inclusive) that customers paid for in our jazz club and lounge.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our patrons, it will help us to first understand their needs, experiences, and pain points. We will make use of effective CRM software to be able to achieve this.
Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include procurement, service delivery, and logistics strategies that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Jazz Club and Lounge Business?
- The facility is open for the day
- Administrative work is done concurrently
- The facility is cleaned, drinks, foods, glassware, and other inventories et al are arranged and ready to welcome patrons
- Patrons come in and they are entertained by a live jazz band, their orders of drinks, foods, and tobaccos et al are taken and they are served
- The stocks are taken and the books are balanced
- The facility is closed for the day.
b. Production Process (If Any)
There is no production process when it comes to the jazz club and lounge business.
c. Service Procedure (If Any)
When a jazz club and lounge are opened and everything is in place, they will either choose to welcome patrons based on membership or open their doors to the adult population in the city. It is the norm to retail alcoholic drinks, beverages, tobacco, and even snacks, while jazz live band or artists do their thing on the stage, with the stage light-concentrating only on them while every other place remains dark or partial/poorly lighted.
d. The Supply Chain
Roger Miller® Jazz Club, Inc. will rely on trusted agents to supply us with jazz artists and jazz live bands. We have also been able to establish business relationships with wholesale supplies of alcoholic and non-alcoholic beverages, bottled water, vapes, cigars, tobacco products, et al.
e. Sources of Income
- Music and Dance (performance by jazz artists)
- Hall Rental Services for Parties
- Sale of alcoholic and nonalcoholic drinks, beverages, spirits, tobaccos, cigars, et al.
- Membership fee.
Our Membership fee will cost $50,000 for the start and then a $15,000 annual fee.
a. Amount Needed to Start your Jazz Club and Lounge Business?
Roger Miller® Jazz Club, Inc. would need an estimate of $350,000 to successfully set up our jazz club and lounge in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $180,000.
- Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up inventory – $15,000
- Counter area equipment (countertop, sink, ice machine, etc.) – $9,500
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $40,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Roger Miller® Jazz Club, Inc. will not build a new facility for our jazz club and lounge; we intend to start with a long-term lease.
d. What are the Ongoing Expenses for Running a Jazz Club and Lounge Business?
- Cost of stocking up supplies such as alcoholic and non-alcoholic drinks, beverages, tobaccos, and cigars et al
- Cost of toiletries
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
- Chief Executive Officer (Owner) – $65,000 per year
- Club (Bar Manager) – $50,500 per year
- Bartender (Baristas) – $25,580 per year
- Accountants (Cashiers) – $35,000 per year
- Disc Jockey (DJ) – $31,990 per year
- Greeters/Customer Service Agent/Table Attendant – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year.
f. How Do You Get Funding to Start a Jazz Club and Lounge Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your product/Service?
Aside from our membership fee, Roger Miller® Jazz Club, Inc. will charge patrons based on the industry standards in the United States. There is often a flat fee of $20 to $150 for a regular day, or say $400 for an event night.
b. Sales Forecast?
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
c. Estimated Profit You Will Make a Year?
Roger Miller® Jazz Club, Inc. is projecting to make;
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
d. Profit Margin of a Jazz Club and Lounge Business
The profit margin of a jazz club and lounge business is not fixed. It could range from 35 percent to 65 percent depending on the type and brand of products retailed in the club.
a. How do you intend to grow and expand?
Roger Miller® Jazz Club, Inc. will grow our jazz club and lounge by first opening other outlets in key cities in the United States of America, the United Kingdom, and Australia within the first five years of establishing the business and then will start selling franchise from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Roger Miller® Jazz Club, Inc. plans to expand to Portland, Oregon, New Orleans, San Francisco, and Tampa, Florida.
The reason we intend to expand to these locations is that Portland has the highest number per capita in the U.S. — one for every 11,286 residents and they are known to patronize businesses such as jazz clubs. So also, liberal states like Las Vegas, New Orleans, San Francisco, and even Tampa, Florida, are very welcoming for our kind of business. Internationally, we plan to expand to Canada, the United Kingdom, and Australia.
Roger Miller® Jazz Club, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Roger Miller is already grooming his son Eden Adamson to take over from him.