Prospective Business Plan Suite 16\"

Prospective Business Plan

Suite 16"

This business plan lays the framework for a proposed upscale nightclub establishment to be named "Suite 16" and is to be located in the South Kensington area of London. The South Kensington area is one of considerable wealth and boasts numerous businesses both in South Kensington as well as in the surrounding areas of Knightsbridge and other parts of Kensington. There are a plethora of "Four- and Five-Star" restaurants and hotels. Tourists frequent these establishments as well as do local residents. At present there is only one nightclub existing in the Knightsbridge area, which goes by the name of "Wellingtons." The proposed nightclub "Suite 16" will be located a mere five-minute cab ride from Wellingtons while all other nightclubs nearby are at least twenty-minutes travel distance from Wellingtons and the location of the proposed "Suite 16" nightclub. Due to the distance in traveling to the downtown area accredited to the problematic traffic and parking in downtown London it is believed that the "clubbers" will gravitate between these two establishments and being fully entertained and accommodated will represent a market that is cultivated in the immediate area between the two clubs.

Objectives

The objective is one in which focus is toward the start-up of a nightclub establishment named "Suite 16" and to cultivate the local market and exploit that market for building a desirable clientele and over a period of time through "slow but stable growth" to build that clientele. The business will capitalize on a low number of competing restaurants in the same geographic area

Mission

The stated mission is to open and assume business under the named "Suite 16" within the balance of the proposed investment and to provide to the public both tourists and local residents, a upscale nightclub with a relaxed atmosphere with uniquely exotic decor and amenities such as VIP rooms.

Company Summary

The company will be composed of prospective owner one and his father whose development company is involved in the project through development and funding.

Advertising and Promotional Activities

The following advertising and promotional methods will be used:

Email advertising

Clustered nightclub initiative advertising promotion between local clubs.

Website advertising quality public relations firm

Advertising though other clubs assistance in advertising, word of mouth, etc.

Evening Standard Newspaper

Membership Dues and Fees

After six months there will be a paying membership policy to begin. The fees for membership will be as follows:

300 pounds (150 pounds for Wellingtons club members)

After a year the membership fees will rise and will be in the amount of 500 pounds a year and 250 pounds a year for Wellingtons club members.

Members will be allowed VIP access on the nights of Thursday, Friday, Saturday and Sunday.

There will also be no entrance fees, which will normally be 15 pounds for non-guest and 10 pounds per those on the guest-list.

Business Days and Hours of Operation

The following days and hours are proposed for the hours of business operation of "Suite 16" Nightclub.

Monday night - Closed

Tuesday & Wednesday nights - Private parties could be scheduled to be held by public relations, companies, corporations, fashion houses (especially during London Fashion week), film companies, television companies, and could be scheduled as well for dance lesson clubs and other social clubs of public formation in the Kensington and surrounding area.

Thursday, Friday, Saturday and Sunday nights - Open for business.

(Note: a great public relations move would be to donate three or four nights a year to some charity in the area)

Music Format

The stated choice of music format by the prospective owner of "Suite 16" nightclub is that of "disco to rub." Legal licensing is required for this type of music format and may be obtained through city hall.

Business Funding for Start-up

The developing company and father of the prospective owner will provide 50,000 pounds in start-up funds with another projected 350,000 pounds to be procured through banking institution loans. Approximately one-half of this amount has been reserved for renovation and restoration of the nightclub which is inclusive of furnishing, decor but does not include whisky, champagne or wine stock and also in not inclusive of glassware or any other type of business stock.

Other start-up expense will include:

Fees licensing alcohol serving by establishment.

Staff - salary and wages

Staff- licensing fees for serving alcohol.

Labour - wages

Licenses- business operating license.

License - for playing of recorded music.

Sales Strategy

The sales plan is structured in working in coordinated effort with other club owners, specifically Wellingtons as well as three or four downtown London establishments in promotion of free memberships to Wellingtons club members for the first six months and then increasing membership fees after a year and depending upon the growth and popularity of the nightclub.

Competitive Advantage

Suite 16" is fully expected to hold a competitive advantage over the London downtown nightclubs in it's location, parking amenities, promotions for membership, upscale atmosphere, exotically furnished rooms as well as artful use of lighting throughout the club complete with tiled floors, polished brass and glass bar-back with mirrors and plants throughout the establishment. It would be a great business initiative to provide 'mini-banquet' services and accommodations during the holidays and for business meetings and conventions on a seasonal basis such as already mentioned during the London Fashion House week.

Market Segmentation & Analysis

The Totally London campaign was launched to encourage visitors-both Londoners and other tourists back into the capital' attractions. Following on from the success of this campaign, further activities are being planned. Leisure activities in London have grown by approximately 30% between the years of 1995 to 2001. " Stated is that: "Leisure activities employ nearly 300,000 people. These are significant figures on any reading and will become more important still." Further stated is that London has particular strength sin dining, theatre and cinema and visitor attractions." Furthermore the provision in jobs that extends from this business sector in both entry level and part-time jobs are "vitally important in giving the widest possible range of job opportunities to Londoners.

This report was done for identification of the opportunities and constraints that face the leisure sector. This is important the work states in "the way we support the visitor and tourist industries and provide leisure services for Londoners." (London's Mayor Livingston, 2003) Leisure activities are divided into six activities: drinking, dining, entertaining, sport, gambling and visiting. GLA Economics made estimates that leisure adds to London's economy of 9.5 billion pounds per year and 139 billion pounds per year to the economy nationally. The mayor states in his article that, "On these figures, London has a quarter of Britain's leisure economy, significantly more than its share of national GDP, which indicates a strong competitive advantage when it comes to leisure." and; "London's bars employ 58,000 people and have sales of up to £2.4 billion. Fifteen thousand people work in London's visitor attractions and the market is worth £380 million." (Livingston, 2003) Sales in London bars are roughly 2.4 million pounds employing approximately 58,000 individuals. (Livingston, 2003)

Visitors in London spend around 380 million pounds on an annual basis stimulating employment positions for over 15,000 individuals. Leisure is stated to be, "one of the fastest growing sectors in London." Although visitor rates are stated to "be falling" as of 2003. (Livingston, 2003) the licensing law of 2003 changed the outlook of the business relaxing restrictions on certain regulations. The population is experiencing rapid expansion with the age group of 25-34 being the group experiencing the most growth. The population of London is stated as being roughly 7.2 million with a 4.6% increase nationwide. The group that will live a longer life and will live more years in productive retirement characterizes the population growth. London is stated to be "overwhelmingly a service economy." (Livingston, 2003) Kensington is stated to be an "area of growth" in Mayor Livingston's 2003 Report further stating that "employment fell in much of east and south London." (Livingston, 2003)