Own business: karaoke bar

* The calculations use the average data for the World

Karaoke bars today are only gaining popularity, taking more and more customers from bars and nightclubs. This is a slightly unusual type of leisure, but it is interesting primarily for older people, young people do not visit such establishments very often. However, a famous karaoke bar is rarely filled with visitors, which makes such an initiative a profitable investment. But as in any business that is a highly profitable business, there are many competitors who have already gained some popularity with the audience.

Entering a newcomer to such a market is sometimes quite difficult due to the fact that first of all you have to lure visitors from other institutions, and people do not really like to change their vacation spot. But, as elsewhere, a competent business policy and marketing campaign is able to bring even a newly opened institution to the first place in popularity among the population. At the same time, you can count on success by opening your own karaoke club in big cities, and even in small ones, because people like to sing, and everywhere there will be lovers to demonstrate their vocal data in public. But in order to ensure interest in the institution on the part of the population, you need to first study the issue.

First you need to register as a business entity. You can use any form, becoming an individual entrepreneur or registering a legal entity. Code of activity (OKPD 2) 93.29 Other services in the field of entertainment and recreation. This stage is unlikely to take more than a month and will require about 20 thousand rubles to pay state fees and other paperwork.

But already at this moment you need to think about licensing the music that will be used in the work. A rare karaoke bar dispenses with musical accompaniment during breaks between the performances of visitors, so you need to get the right to publicly play songs, as well as the right to use phonogram music. There are many ways to obtain such licenses, it is easiest to contact a specialized company that will offer either a global music fund, or packages that match genres or artists. It all depends on the format of the karaoke club, but the initial cost of the package is 1 thousand rubles a year, but for this money you can get a very small number of songs.

In general, the question of legislative regulation of the use of the phonogram in this country remains open (while the public reproduction of compositions by third-party authors is regulated by the relevant legal acts). However, songwriters are not recommended to work without deductions, because of this fines may be imposed or the work of the institution may be completely suspended. This is especially true now, because the state has seriously taken up copyright issues.

After that, you can proceed to the search for premises. Optimally, if you can find a place in the leisure center of the city, where people come in the evenings in search of entertainment. With a high degree of probability, competitors will already be located here, so you need to look for a place away from them, but still be located in passable zones. As for indirect competitors (bars, clubs, restaurants), they will slightly affect the flow of customers, because karaoke is a specific thing, and people go there, as a rule, purposefully, and not spontaneously. Anyone who wants to just sit in a restaurant will not go singing to the soundtrack, no matter how enticing the sign may be.

Karaoke can be from 50 m2 in size, it is optimal to have 80 squares at its disposal, everything that is larger already falls within the definition of almost a concert venue. This, perhaps, is the difference between a karaoke club and a karaoke bar, because the bar is designed for a relatively small number of visitors, but the club accommodates them much more, and in addition to ordinary relaxation, it sometimes offers visitors performances by local or already famous artists, i.e. sometimes he arranges concerts himself, and sometimes he acts simply as a concert venue. It all depends on the amount of funds available to the entrepreneur, although sometimes the opening of a large karaoke center will be completely impractical due to the low interest of the population in this type of entertainment.

The largest karaoke clubs can reach an area of ​​200 m2. Regarding the room itself, it can be a basement type, it is even more likely an advantage, because it will save on the soundproofing of the floor. But it is quite appropriate to be placed on the first floors of buildings and just in a separate building. But due to the fact that you have to deal with the soundproofing of your institution, it is better to be located away from residential buildings or at least not in an apartment building. Therefore, sound insulation will be the first repair work in a rented room, it is unlikely to work without it, because karaoke is mainly an evening form of leisure, and loud music will become a violation of public order. It is unlikely that civilians will try to fall asleep under the terrible howls of tipsy karaoke visitors, it will be easier for them to inform law enforcement agencies.

Sound insulation is installed by special companies (usually apartment repair companies) that charge a lot of money for their services. It is possible, if you have enough experience and knowledge, to establish sound insulation yourself, but in any case you will have to spend money on materials. But in order to obtain permits from the SES, Rospotrebnadzor, the Fire Service and other authorities, sound insulation must be done taking into account many parameters, because not only its ability to not let out noise, but also fire resistance is checked. As a rule, only professionals can do such work, taking into account all the requirements, and in case of complaints from the regulatory authorities, there will be where to turn.

If we take into account a room of 80 square meters with a ceiling height of three meters, then the cost of sound insulation will be about 390 thousand rubles. But this is the price of a full finish, which is separately insulated by the ceiling (170 thousand), walls (190 thousand) and floor (30 thousand). First you need to find out from the owner of the premises whether he allows such repairs, although usually no one is against it. When this stage is completed, you can proceed to the interior decoration.

Here, an entrepreneur is free to choose, and can make almost anything from his institution. Someone gives the theme to the room, someone makes it ordinary, but memorable, but the main thing is that visitors should be comfortable in the establishment. The interior should be very well selected, and it makes sense to contact a design studio that can optimally select all the components of the interior space and give exclusivity to the room. About 150 thousand rubles will be spent on the development of the design project, but this is not at all an obligatory expense. If the entrepreneur or his acquaintances themselves have ideas, then they can realize them.

Designers will be needed if there are no own ideas or help is needed to refine them. Depending on how the institution will look like, a certain amount of money will be required for the purchase of furniture and interior elements, as well as for working equipment (not karaoke equipment). Of course, you can decorate the furniture for 20 thousand rubles with chairs from IKEA or the nearest hardware store, but it is better to invest at least 200 thousand to buy sofas, a bar, armchairs, lighting equipment and monitors for broadcasting videos and clips to the phonogram (those where the line with the words of the song runs).

The amounts can vary greatly, especially if you have to make furniture or equip a room in a certain way to order. Along with this, you need to decorate the appearance of the institution. The exterior will require significantly less investment, and the biggest waste will be a sign if it is neon. You can, of course, paint a wall or put up posters, but 50 thousand should be enough to make the institution stand out against the general background.

It should be noted that the cost of arranging an institution can be significantly higher if it is assumed that there is a kitchen in the karaoke bar menu. Or even the opening of a full-fledged karaoke restaurant. By karaoke is usually understood exactly the bar in which you can sing. That is, in such an institution they offer only alcohol and some light snacks, but there is no menu in the usual sense of the word (rather, a wine list). And if the entrepreneur decided to open karaoke, where you can also eat fully, while other visitors boast of the presence of vocal data (or lack thereof), then he should be ready for significantly greater expenses and closer supervision by the SES.

The issue with employees should be easily solved, especially in large cities, but you need to be prepared for the fact that you will periodically have to recruit new people. The bartender can work for a relatively long time, while working as a waiter is not a vocation for anyone, but a side job. But you don’t need to look for some special people with education, four normal people who can serve visitors will do.

You will need an administrator in addition to the bartender and the waiter, as well as one technical operator who monitors the electronics and own songs and launches. The bartender and the administrator can receive about 20 thousand rubles, the waiter and operator 15 each, so the payroll will be 70 thousand rubles per month. You only have to look for people who are ready to work at night, but in big cities such workers are usually quickly found. As for the institution’s work schedule, it will not have to be done round-the-clock, and workers will receive their two days off (only it will not be Sunday, let alone Saturday or Friday).

It follows from this that it is possible to recruit only four people who will fully ensure the operation of the karaoke bar for the first time. When the flow of visitors increases, it may be necessary to expand the staff. However, many karaoke bars accept people with the condition of paying for a shift. That is, a person works out the night, gets his money, or even a percentage of the proceeds. Therefore, employees can change from day to day, because people who have several jobs earn extra money this way.

The most important thing in karaoke is the sound quality, and the corresponding karaoke equipment is responsible for this parameter. There were times when they made money on simple music centers with microphones connected to them, but today the consumer has become much more demanding of sound. A lot of companies sell the corresponding equipment, and there is no problem in buying an already finished installation without selecting and setting up the components separately. Complex offers start at 300 thousand rubles, the price starts to increase depending on the size of the room in which people will sing. This is due to the acquisition and installation of additional speakers, the karaoke machine itself remains unchanged. You need to remember that you should buy about 5 microphones, if not more, because someone wants to sing with the company, and any microphone can break or simply not work. For 80 square meters, the cost of equipment will be about 380 thousand rubles. Thus, you can determine the amount of starting capital:

  • Registration, registration and licensing of songs - from 50 thousand rubles.

  • Rental of premises - from 60 thousand rubles.

  • Soundproofing and arrangement - 640 thousand rubles.

  • Design project - 150 thousand rubles.

  • Purchase of alcohol and snacks - 30 thousand rubles.

  • The payroll fund is 70 thousand rubles.

  • An advertising campaign - 50 thousand rubles.

  • Protection, outsourcing and utility bills - 20 thousand rubles.

  • Equipment - 380 thousand rubles.

Total amount: 1 million 450 thousand rubles, monthly payments: 180 thousand rubles.

He earns karaoke exclusively on alcohol and food, practically nowhere for the provision of singing services for sound accompaniment money is not taken from the client. To prevent lovers of singing free of charge, a karaoke bar has a deposit within which you can buy products from the menu. That is, it does not matter whether a person orders something or not, he is obliged to pay. This is similar to the practice of clubs, entrance to which is paid.

Most of all you will be able to earn, of course, on weekends, or rather in the evening and at night on Fridays and Saturdays, because these are days on the eve of rest, as well as on holidays. There are almost no visitors on Sunday, so it’s possible to make Sunday and Monday just non-working, although in some cases it can be profitable to work only three days a week or, conversely, daily. You can determine this in advance by viewing and evaluating the work schedule of competitors.

The average deposit is 500 rubles per person, for holidays this amount may increase. In order to attract customers, you can arrange a discount or provide free admission for girls on the most unvisited day (among the week). If you reach the number of customers equal to 16 people per evening, then you can almost completely cover the monthly expenses, that is, go to zero. If customers become 20 in one working day (or rather night), then operating profit will amount to 40 thousand rubles. To ensure such a flow of customers is quite realistic if you use all possible methods of advertising. The main thing to remember is that there should not be a number of clients below a certain minimum, and interest in the establishment should be constantly maintained.

You can increase profits if you exclude idle rooms during off hours. The big advantage is that the room is soundproofed, so during the day it can be rented out to music groups or ensembles. This is possible, of course, if the institution is supposed to have at least some kind of platform on which several people can accommodate. From the karaoke bar in the daytime, you can make a full rehearsal point, which even rock and metal bands will go to play. But they will already require the purchase of musical instruments, in more detail about the organization of repochki can be found here. And existing musical instruments can be used for some non-standard service - for example, the opportunity not only to sing, but also to play.

And it’s generally accepted that karaoke offers pop songs. This is not about the genre, namely the songs that are popular. But you can try to open rock karaoke or blues karaoke. This will be a new idea that can attract the population, although the risks here are significantly increased; finding a customer will become even more difficult. Another non-standard idea can be considered the Japanese way of organizing karaoke - “nari-ban”. It is not a karaoke club familiar in Russia, where everyone is sitting in a common room and listening to each other, but an institution divided into booths or small halls. In them you can sit in company and sing your favorite songs in your circle, without waiting in line and without listening to other amateur performers. The halls can be made common, but they can be distributed by genre so that ardent opponents do not have to listen to hateful compositions in the style of each other. In general, as in any recreation organization, new solutions and proposals are welcome here, everything that can diversify the leisure of the population will be perceived with interest. The main thing is to be patient and do everything carefully, pre-studying the market.

Matthias Laudanum

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08/18/2019

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