Truth be told, owning and managing a strip club can be a lucrative venture when done right. If you are actively pursuing or, already running a strip club, then you have the opportunity to leverage a booming industry. However, with a good number of top strip clubs to compete with, you have to do more than just bring together good music and dancers.
A good number of people venture into this business believing that money will just come once the music starts playing. But sooner or later, they realize that running a strip club doesn’t always work like that. Strip clubs are quite expensive to start and manage, and you need to generate enough capital for the initial setup, licenses, décor, stock, and staff.
In addition, you also have to set aside a substantial amount to effect critical changes on the theme, layout, décor, etc. of the premises. Also note that it will take a good amount of dedication, time, and money to manage a strip club successfully.
Running a successful strip club isn’t easy. You have several departments doing several different things, not to mention an array of staff members to account for. To effectively manage your club, here are top management tips and strategies to consider.
30 Practical Management Tips to Run a Successful Strip Club
Table of Content
- 1. Understand Your Business Market
- Create A Unique Brand
- Create Team Spirit Amongst Workers
- Create Clear Business Plans
- Use A Combination Of Pre-Sales, Up-Sales, And Cross-Sales To Boost Your Club
- Be Exclusive
- Keep Your Selection Of Drinks Wide
- Get Acquainted With The Industry
- Keep Them Wanting More
- Leverage A Club Management Platform
- Enforce Discipline Among Workers
- Create Signature Cocktail Options
- Have A Fair Tip Policy For Employees
- Get Insight On Guests To Give Them An Even Better Experience
- Talk To Other Business Owners For Advice
- Hire Top-Notch Staff
- Nurture Your Best Customers
- Study Your Competitors
- Have Regular Meetings With Your Employees
- Don’t Forget The DJs And Strippers
- Take Risks
- Reward Excellence
- Keep Things Fresh
- Review Your Management Style Annually
- Ensure Accountability
- Use The Right Management Software
- Always Review Data On How Your Club Is Performing
- Change Is The Only Constant, Be Flexible
- People Are Easily Confused — The Simpler, The Better
- Operate Like You’re Doing Poorly — Running A Tight Ship Helps When Profits Are High
1. Understand Your Business Market
The first thing needed to start and manage a successful strip club is a suitable location. Is there a substantial demand in the location? Researching your market extensively will help you determine the level of demand in your choice of location.
Another important thing to consider is who will be using your strip club and for what purpose. It’s also very necessary to realize how much time, money, and incentives it will cost to start and successfully manage your establishment. Understanding all these will help prepare you for the task ahead.
Create A Unique Brand
Just like it was noted above, the nightlife industry is quite competitive. Owing to that, creating conversation and being memorable are two of the most important ways to ensure your club is not just another neighborhood club.
Therefore, you have to strategize on every vital element involved in the business. Note that by putting together your club’s theme and knowing how to generate buzz every day, your strip club can steadily generate conversation between regular and new club attendees, making them very eager to visit your club.
Create Team Spirit Amongst Workers
To start and run a strip club successfully, you need a wide array of workers and entertainers. As the owner or manager of a strip club, it falls on you to ensure a conducive working atmosphere where everyone can thrive and enjoy the work they do. Ranging from your waiters to the hype man, DJ, strippers, and the doorman, everyone needs to be able to work for the benefit of the club.
Create Clear Business Plans
Just like any other business, your strip club will also need to create a business plan to properly direct your actions and objectives. You must conceptualize a strip club business plan before even renting or buying a space to set up your establishment. You should take time to think about the theme and concept of the strip club as it is very important in this business, and do not try too hard too soon.
Use A Combination Of Pre-Sales, Up-Sales, And Cross-Sales To Boost Your Club
The primary aim of any for-profit enterprise is to boost revenue and translate it to money in the bank. With a combination of pre-sales, up-sales, and cross-sales, you can increase the amount of revenue you’re already getting without adding any extra work to your everyday operations.
Most often, the difference between a top strip club and a neighborhood club is the people who come to the club every business day. Note that the harder it is to get entrance into your club, the more the exclusivity of the club. One sure tactics clubs tend to leverage to achieve this is not letting a certain age bracket gain entrance into the club, having a dress code, or high entry prices on the door. This all works together to improve the reputation of the club.
Keep Your Selection Of Drinks Wide
Without doubts, a strip club is just a combination of naked women and alcohol. Since you will be serving alcohol, it is imperative to not limit the bar by only serving a limited selection of drinks. In this line of business, having a limited range of drinks can turn off your customers.
Get Acquainted With The Industry
Don’t forget that the adult industry has a lot of rules, and you must keep to them if you want your strip club to succeed. This includes understanding how strip clubs work and what they’re like in different countries around the world. The market for this kind of entertainment is surprisingly high, so there’s no shortage when it comes down to researching new details and industry facts.
Keep Them Wanting More
A good number of top strip clubs in the country do not open every night of the week, or even five nights a week. According to reports, the most successful clubs only open one night a week to start with. With time, they gradually increase the number of opening nights. Have it in mind that it can take months or years to get up to three nights a week. This helps keep the club exclusive and in high demand.
Leverage A Club Management Platform
There are technological platforms out there primarily meant for the club industry. According to experts, this can help increase efficiency across board by aggregating information from multiple sources while also uncovering key statistics about your business.
Enforce Discipline Among Workers
Just like it was mentioned above, you need a lot of hands to successfully start and manage a strip club. However, you also have to realize that one of the major signs that a business is not being managed properly is a lack of discipline amongst workers.
Note that when discipline is not enforced at the initial stages of building the business, the employees will start handling assigned tasks with levity because they know there are no consequences for their actions. If you want your business to succeed, everyone working at your establishment will have to align with your culture and visions.
Create Signature Cocktail Options
To run a successful strip club, you have to stand out from the competition in the industry. Owing to that, you need to hire a cocktail consultant to create a unique list of signature drinks for your club.
As a strip club owner or manager, you need to understand the largest portion of your revenue will come from alcohol. In this line of business, unique drinks with interesting names will sell like hotcakes. Simply hand them a craft cocktail menu and within thirty seconds you’ll hear, “I’ll have the Mexican Pride please.”
Have A Fair Tip Policy For Employees
When it comes to strip clubs or generally the hospitality industry, tips are allowed and most employees depend on their tips to pay some of their bills. If you don’t want staff members who are not in positions to get tips to feel maligned, then it is imperative to put up a fair tip policy for all employees. Remember, all these should be done in a way that the person that directly receives the tip will not feel cheated.
Get Insight On Guests To Give Them An Even Better Experience
In this modern era, you can leverage a customer relationship management (CRM) system that’s connected to your point of sale system.
Note that with your CRM system, you can better identify guests, upsell guests before they walk through your door, offer well-tailored service, and improve marketing efforts. After all, nobody, especially your VIP guests, wants to be treated like a number.
Talk To Other Business Owners For Advice
This is one tip you have to take very seriously. Consider talking to an experienced strip club owner, listen carefully so that your voice can carry some of their experiences and knowledge as well! A good number of business owners won’t mind helping newbies and also mentoring them, but make sure you ask sincerely. When meeting with someone for the first time, be on time; your time mustn’t be wasted! In addition, don’t forget confidentiality when sharing information relevant to running your own business.
Hire Top-Notch Staff
In this service business, to keep your customers happy and avoid losses, it is imperative to invest in your staff. Ensure that they all possess a good level of competency, and you can also train them yourself so they know exactly what your business is all about. Always remember that one seemingly minor error or badly handled situation could quickly escalate and get your club a bad reputation.
Nurture Your Best Customers
If you are opportune to acquire some high-profile customers, to further boost your strip club, it is very necessary to respect and maintain their privacy. Don’t go about advertising the fact that they are attending your premises. If you always treat them right, these people are likely to be your best and most loyal customers. Note that they are the ones who will purchase your premium services: VIP rooms, table service, and so on. Get them upset and you could be losing thousands a night.
Study Your Competitors
It is very good advice to always keep an eye out for your competitors. Understand what makes them stand out, then leverage this to offer something better or new that can help you acquire more customers.
Have Regular Meetings With Your Employees
Note that having regular meetings with your employees is one way to ensure that you build team spirit and that they all understand what you need from them. It is also a time where challenges, feedbacks, projections, and relevant issues are analyzed. This is the time to educate your staff on any new procedures and reinforce current bar policies. The meetings could be daily, once in a week, twice a week, or once in a month.
Don’t Forget The DJs And Strippers
Regardless of how well you manage a nightclub, if the entertainment factor is substandard, then your profits will shrink. Endeavor to handpick good exotic dancers, get the best quality sound system you can afford, and book the best DJs and live acts you can. Always remember that poor sound will ruin all the hard work you have put in and both clients and dancers will not come back in the future.
You have to realize that the nightlife business is not for the faint-hearted. It requires a good level of physical and emotional stamina to be successful.
Owing to that, you must prepare yourself before starting the business. Have it in mind there will always be ups and downs in your journey, but also know it could turn out very lucrative if managed correctly!
According to experts, this is one management tip you need to adopt if you intend to effectively manage your strip club business. Rewarding excellence doesn’t have to be massive and expensive. It could be recognizing an employee, celebrating an employee, or giving out tokens in form of appreciation to an employee that goes the extra mile to get things done for the club.
Keep Things Fresh
Have it in mind that the most daunting challenge of any strip club owner or manager is keeping the club current and finding new ways to make it an attractive venue. You shouldn’t shy away from introducing new ideas and equally listen to helpful suggestions from your staff. Attention to detail is very imperative. Master the basics and steadily seek out new ways to improve the club.
Review Your Management Style Annually
Reviewing your management style annually is another very important tip to always keep in mind. Note that no matter the management style you choose, it is very necessary to at least review the method annually to see if it still remains effective and if it indeed suits your personality. A good number of business establishments go on a retreat with key management staff in a bid to examine their business’s management methods to know how well it has fared and to know if they need to change.
To run a successful strip club, you should make it clear that everybody is expected to be accountable to the whole team. No one is allowed to do things and just get away with it. For instance, any employee that is running late or who won’t be able to make it to work should make it a point of duty to call their supervisor or manager on time. This will enable the management to make adequate re-assignments.
Use The Right Management Software
With the advent of technology and software, a good number of things including business management have been made easier. Good club management software will make it easy for you to order inventory and even schedule employee work. You will be able to automate some of these processes and operate more efficiently. It can also help you generate reports to track your sales and taxes, simplify the process of employee scheduling, running of the roaster, and also how you accept payments with debit and credit cards.
Always Review Data On How Your Club Is Performing
Have it in mind that the key to measuring the success of your strip club is by analyzing vital data using a fully integrated technology solution. Systems like this can collect data from any area of your club, analyze it, and put it together in easy-to-read charts in one central spot so you can get a good understanding of:
- The exact amount you made or lost over a given time
- Which days of the week are your busiest
- The particular liquor you sell the most on a given day
- Which dancers are bringing in the most and best guests
- Which servers are up selling the most and making the most tips
- What types of promotions or events bring in the most traffic
Change Is The Only Constant, Be Flexible
Truth be told, the ability to overcome obstacles is priceless in all aspects of life. Always remember that the most valuable people are those that can overcome unexpected changes or challenges. It can be quite interesting to watch people get very stressed over a simple bump on the road, but when managing a strip club that isn’t even an option. You should be able to flow with the tide in your business.
People Are Easily Confused — The Simpler, The Better
In this line of business, anything you have to explain twice to people is more or less too complicated. Always remember that even if your clientele is coherent and well exposed, no one wants to feel stupid. Always create a very clear and simple system for interacting with your customers. Set rules and procedures early, even before you need them.
Also, ensure your employees are aware of the systems you have in place. While something may be obvious to you, as a manager, it may take a few times for your employees to catch on. Once people don’t know how to interact with your business, they will find it difficult moving through the conversion/sales funnel.
Operate Like You’re Doing Poorly — Running A Tight Ship Helps When Profits Are High
When your club business gets very successful, it can be very easy to grow complacent. This tends to apply to employees from top to bottom. Note that by managing a business without overlooking the weak points, you can create an even more profitable business when the good times come. When a business is struggling, you should make sure that every employee is playing a crucial role and every dollar is accounted for. If you take the time to reinforce your systems, they will ensure your business remains successful.