The entertainment services industry is gaining momentum every day, expanding and improving. Many aspiring businessmen start their own business in this area. Today we will look at one of the most popular categories in this industry - karaoke bar. This type of business has gained popularity only in the last 5-7 years, when the first representatives appeared on the market. Since then, the number of such establishments has increased several thousand times; every city has at least several karaoke bars where people can perform their favorite songs. In our article today we will look at a business plan for a karaoke bar, and also share tips and recommendations from experienced businessmen.

As in any business, to achieve success you must first draw up a business plan for a karaoke bar. It should consist of economic calculations, analysis of competitors, and calculation of markups on goods. Only after this can you begin to register a legal entity and choose a legal form. If an entrepreneur is thinking about a large-scale business, then the ideal form would be an LLC. A limited liability company enjoys great trust from partners and has the opportunity to expand its business to a regional and all-Russian scale.

Since we are talking about a karaoke bar, we need to take care of a license to sell alcohol. The cost of an annual license is forty thousand rubles. In order to avoid problems with the law, it is necessary to hire a part-time lawyer, as well as outsource an accountant who will maintain tax documentation.

Once a license for alcohol has been obtained and business activity has been legalized, you can proceed to the search for premises.

Selecting a room

The development of a karaoke bar largely depends on its location. After all, if you choose a premises in a densely populated area, you can expect good traffic, and therefore a good profit. It is also important to think about parking spaces, as car enthusiasts highly value taking care of themselves and their car.

The next important factor when choosing premises is compliance with Russian legislation. Firefighters and sanitary and epidemiological station employees must issue a conclusion on the compliance of the premises for a karaoke bar. You also need to pay special attention to sound insulation, because karaoke is often noisy, and this should not disturb neighbors and residents of nearby houses.

In addition to the above, it is necessary to take the design and design of a karaoke bar seriously. People will pay much more willingly for comfort and a cozy environment. Darkened rooms with lighting and good sound insulation are suitable for karaoke. The easiest way is to open an establishment in an existing bar or restaurant, where you can prepare a room for karaoke lovers. It is best to make one open hall, where the speaker sings on stage in front of other visitors. And for more modest people, it is necessary to prepare separate small booths, each of which has karaoke.

It is necessary to take a responsible approach to the choice of room design, since people are more willing to pay for comfort and a cozy atmosphere

Equipment and music library

One of the most expensive items when opening a karaoke bar is the purchase of equipment. In order to equip a karaoke room you need:

• mirror ball;
• acoustic equipment;
• laser and light installations;
• karaoke installation;
• amplifiers;
• TV for viewing song lyrics;
• microphones.

Karaoke equipment is something you cannot skimp on; the further success of the establishment will depend on it and the acoustics. To declare yourself as a modern karaoke bar, you need to choose American and Japanese equipment, the cost of which will hit the entrepreneur’s pocket, but without which you should not expect significant income.

In order for customers to be satisfied, it is necessary to purchase a modern music library of at least 5 thousand songs. There is no need to buy pirated discs, as this can lead to a large fine; it is better to purchase a certified music library, which can be updated for an additional fee.

Staff

In order to maintain a karaoke bar, you must have the following employees:

• cook, since the kitchen will bring additional profit;
• waiters;
• bartenders;
• administrators;

50 percent of the success of a karaoke bar depends on the hired personnel. A DJ who will entertain bar clients and play karaoke music must have experience in this field; his professionalism and adherence to modern fashion will ensure the rapid development of your bar. The cost of staff wages for an average karaoke bar is 150-160 thousand rubles monthly.

The development of a karaoke bar will depend on the professionalism of the DJ

Karaoke bar services

At the first stage, the karaoke bar receives the main profit from food and alcohol; karaoke is mostly necessary to attract customers. But over time, the number of people willing to sing their favorite songs will increase, and in parallel with them, profits will grow. People come to a karaoke bar to enjoy pleasant music and favorite songs, eat delicious food and drink the bartender’s signature cocktails, relax and unwind.

The average kitchen bill in a karaoke bar is usually lower than in a restaurant and ranges from 800 to 1200 rubles. Drinks at the bar cost from 200 to 3,500 rubles per unit (shot, glass, bottle). To sing one song costs a client from 200 to 500 rubles, and to record the sung song on a disc is estimated by karaoke owners at 500-1000 rubles.

It is also worth considering the prices and consequences for damage to property and inappropriate behavior of clients. For example, broken dishes are estimated at 200 to 2000 rubles per unit, damage to a TV - 25-50 thousand rubles, singing a song with obscene words - blacklisted.

Advertising

Advertising a business such as a karaoke bar will require large expenses, since its ideal type would be broadcasting videos on TV and Internet positioning. A video on the leading channel will attract the first stream of customers, and the website and Yandex Direct setup will allow you to constantly replenish their ranks. An advertising video on a leading channel 4-5 times a day for a month will cost the owner of a karaoke bar 100-150 thousand rubles. A good website for a bar will also cost at least 100 thousand rubles.

From time to time it is necessary to conduct various PR campaigns and prize draws, distributing leaflets with information about the conditions. Printing and distribution of business cards and leaflets will cost 5-10 thousand rubles. Advertising in newspapers will not be effective, since the target audience of the newspaper does not coincide with the audience of the karaoke bar.

Expenses and income

Let's calculate all the expenses and income of a karaoke bar and analyze the return on investment of an establishment opened on the basis of an existing leased bar.

First of all, let's calculate one-time expenses:

• professional karaoke – 210 thousand rubles;
• microphones (10 pcs.) – 50 thousand rubles;
• acoustic system – 200 thousand rubles;
• karaoke system with music library – 40 thousand rubles;
• subwoofers – 100 thousand rubles;
• plasma TVs (4 pcs.) – 100 thousand rubles;
• mixer – 15 thousand rubles;
• indoor repairs – 80-100 thousand rubles;
• advertising – 100 thousand rubles;
• website – 120 thousand rubles.

Total one-time expenses will be about 1 million rubles.

Now let’s calculate the monthly costs of running a karaoke bar:

• Renting a bar (area 100 square meters) – 150-200 thousand rubles;
• Staff salary – 150 thousand rubles;
• Purchase of alcohol and food – 200 thousand rubles;
• Payment for Internet and telephony – 5 thousand rubles.

Total expenses each month will be about 500 thousand rubles.

The profit of a karaoke bar in the first months is 300-400 thousand, which means operating at a minus. Gradually the situation improves and by 4-5 months the income is 600 thousand rubles, and after 8-10 months the income can range from 800 thousand to 1 million monthly. The payback period for such a business ranges from one to one and a half years.

Opening a karaoke bar as a business idea is a very promising and profitable business. However, in order to start receiving large income from this business, you will have to initially invest in its development. Therefore, if you have 1.5-2 million or an interested investor, then feel free to start opening your own karaoke bar. With the right attitude, in a couple of years you will be able to receive a stable monthly income.

Stopping development is the main sign of business decline. To meet market demands, you need to strengthen your image, improve the quality of work, and follow trends.

Karaoke is a rather complicated business, since it is very dependent on the human factor. You always need to be alert and understand what your target audience is and what they want, what they can and cannot afford, and how much they are willing to spend.

People want bread and circuses: Each entertainment establishment has its own feature. Some people prioritize performance, some invite girls to create additional excitement, and some use intricate loyalty programs for visitors. All this requires quite a lot of money.

Karaoke requires expenses for expensive equipment and additional personnel. At the same time, the club often cannot boast of a huge area for seating guests (maximum 60–80 people). Of course, you can open additional rooms, but it is not a fact that this will be beneficial, because it is very difficult to maintain a balance and not go into the red on quiet days.

For stable operation, karaoke should bring in 200-300 thousand per weekday, and per month -7‒8 million. Agree, this is a lot, especially since the lion’s share of the budget is consumed by renting premises in the center of Moscow.

On different days, the income is always different, it all depends on the number, status and, oddly enough, the mood of the guests. In a bad mood, a visitor will not spend money, even if he has a lot of it. The situation is completely different during times of fun, drive and celebration - at such moments karaoke makes money. “Sad” karaoke people don’t make money.

The main problems of karaoke clubs

• Difficulty in promotion. Recruiting a target audience requires a lot of time and effort - competition has not been canceled. That is why famous karaoke shops in Moscow are opened by large restaurant chains. This is a well-thought-out tactical move: the network’s guest base provides great coverage, karaoke will be well-known, and additional costly promotion is not required.
• Difficulties in creating a project team. A special role is played by the art team, which will give itself to the viewer without reserve every night, creating a holiday, a theatrical performance, a new reality. In premium establishments, the requirements for the working team are very high, as is the quality of the services provided.

• Organization of concerts of famous artists- a good marketing ploy to attract a new audience. The capacity of the hall should allow itself to hold such events: it is unlikely that the crush will have a beneficial effect on the mood of visitors who have come to relax.
• Advertising plays a big role in promoting an establishment. You can use social networks, the Internet, radio, and the press.
• Working with your team. I'm not saying that you have to become friends, but you must understand the level of interest of each employee: timely stimulation or replacement of personnel is important. An artist cannot work well if he doesn't want to.

Karaoke bar is entertainment for companies, corporate events and family meetings. So far, there is little competition in the karaoke business niche. It's time to start a karaoke club!

Let's figure out how to open a karaoke bar.

Documents for opening karaoke

As a rule, karaoke establishments are bars. They sell alcohol and light snacks and sometimes have a kitchen. Alcoholic drinks create a relaxed atmosphere, relieve embarrassment and encourage singing. So, to open a karaoke bar, register an LLC to obtain a license to sell alcohol. An individual entrepreneur cannot register it.

To open an LLC, you will need the following documents:

• Application on form No. P11001. If you submit it in person, you do not need to have it notarized. The main thing is to take your passport
• The decision on creation, formalized by the decision of the sole founder or the minutes of the general meeting of founders
• LLC Charter (two originals if submitting in person, and one copy if submitting by email)
• Receipt for payment of state duty
• A copy of the certificate of ownership of the premises where the LLC is located. If the premises are rented, a letter of guarantee from the owner.

The premises chosen for the bar must be approved by the SES, Rospotrebnadzor, city authorities, fire department and utility services. To sell alcohol, obtain a separate license.

Room for a karaoke bar

The ideal option is a location in a public area in the center or nearby areas of the city. Look for premises in a commercial building - it is easier to organize soundproofing there, and the bar will not disturb residents.

Karaoke bars come in three types:

• American type - common room with stage
• Japanese type - several rooms with sofas and karaoke systems
• Mixed type - one large hall and a couple of separate booths

Depending on what type of establishment you choose, calculate the area of ​​the premises.

You will need professional karaoke equipment:

• Acoustic system for stage and karaoke installation
• The same, but smaller - for booths (if you have them)
• Plasma panel/projector
• Light installation, spotlight, disco ball and other light music

Discs with “minuses” of popular songs usually come with a karaoke system. To avoid violating copyright laws, buy only licensed discs and pay fees for using songs. For example, distribution companies: it’s cheaper than paying the performers directly. In general, a karaoke bar will require a music library of 10,000 songs.

Making karaoke bar popular

Use all possible means of promotion and advertising to tell people about your karaoke bar.

Distribute leaflets in crowded places. On flyers, print special offers in honor of the opening of the bar or holidays: bonuses, discounts.

Develop a loyalty program for regular customers. Issue discount cards, even if the discount is 3%, visitors will still see the benefit.

Try to attract attention with a sign. Outdoor advertising near the bar wouldn't hurt either.

Be sure to have a high-quality bar website, as well as representation on social networks. Notify subscribers in a timely manner about promotions and updates, arrange surveys and sweepstakes, post photos of the interior and events.

How to increase your profits from karaoke

As a rule, visitors come to bars (including karaoke bars) on weekends or weekday evenings. During the day, the premises are empty, and this is unprofitable: you still pay the rent.

Include in the contract the possibility of subletting and rent out the premises during the day as a rehearsal space for musical groups. Karaoke bars are equipped with good sound insulation, so they are perfect for these purposes.

For visitors, you can introduce unusual services - for example, allowing for a fee to perform songs with obscene language, using a table instead of a stage, or being naked to the waist.

A karaoke bar is not only a promising business, but also a space for creativity. Come up with a themed design, promotions, unusual services - your imagination is limitless! The main thing is to respect and love your clients and be sensitive to their mood. Then you will succeed.

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The implementation of the idea of ​​opening a karaoke bar can bring a considerable amount of money, if you approach this idea correctly and think through many sensitive points that can bury this idea at its very start, without bringing the expected income. This is why you need a serious business plan for a karaoke bar or club.

Not everyone can decide to speak publicly, which, in turn, simply buries the very idea of ​​opening a karaoke bar. Where to start a karaoke bar business plan? The population in the countries of the post-Soviet space is more complex than the population of the United States or Japan, and there must be a compelling reason for such protests. In a karaoke bar, visitors must have a reason to perform. And this must be taken into account when you are drawing up a karaoke business plan.

If you carefully observe people who decide to make such spontaneous public appearances in front of an unfamiliar audience, it turns out that one of the motivating motives is the use of alcoholic beverages. And here lies the key to how to open a profitable karaoke bar and what to do to launch such a club. Even if we assume that 9 out of 10 people singing karaoke in a public place were already drunk, then this simply means downplaying this figure. When planning a club as a soft drink establishment, it is necessary to understand that more than 90% of potential customers will be lost. On the other hand, with very good marketing you can attract targeted visitors to the club, but again, the sale of drinks and food brings in considerable income for the club, often more than karaoke itself.

Armed with this knowledge, we plan the next stage. Actually, where and how to choose a place for a club? If you suddenly have the desire and money to open a karaoke bar from scratch, then opening it will not be much different from opening an ordinary bar or restaurant. This will require a lot of time, effort and, of course, money.

So, how to open a karaoke bar? The requirements for opening such a club are as follows. It should be located in a fairly public place or where it is easy to get to and where there is good parking for cars. The room itself must be designed to accommodate at least fifty people. There must be an appropriate interior inside. A striking and extreme example: a catering canteen would not be the most successful room for implementing the idea of ​​a karaoke bar. The club will need to change the interior with the appropriate design.

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Do we use a lot of money or limit ourselves to a small budget?

How much does it cost to build a club from scratch? Considering the conditions imposed on such an institution, especially its location, such a building costs from 300 to 500 thousand US dollars.

It is much easier, faster and less expensive if you turn to an already operating restaurant, cafe or bar with your project. This approach is much more attractive from any point of view. Even if you have the funds for a club or restaurant, opening it will still require a lot of time, while you can already receive income from a karaoke bar in just a week. You will already have tested part of the idea, namely mechanisms for attracting customers, various promotions, texts for visitors and everything else related to marketing, even before opening your own establishment. After all, it’s not difficult to come up with a promotion in which each karaoke participant will leave you their contact information. The accumulated customer base will be excellent capital when opening your own establishment. One SMS mailing can bring you a lot of potential and already hot clients to the opening of your club.

There is no need to be afraid that the establishment where you rented a karaoke area will adopt your idea.

Copying external attributes without understanding the principles of the entire multi-step approach to attracting customers will not bring any useful results.

Therefore, treat the idea as a real business with all the ensuing consequences.

That is why the presence of karaoke equipment in someone else's restaurant cannot be the reason for your despondency. There is equipment, but how is it in demand? Is it worth the investment? Maybe individual “singers” encourage the restaurant management to sell expensive equipment? So feel free to go and talk. On the contrary, the fact of having such equipment can lift your spirits. This can be incredible luck to really start from scratch. After all, you don’t have to spend money on equipment and you can hope to have several thousand phonograms, which again will not require significant costs and investments from you. Accordingly, more money will be left to attract customers.

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What can you do to make your idea make money?

Having agreed to rent the premises (and, if you’re lucky, the equipment), start creating attractive and selling mechanisms. That is, do marketing. First of all, decide on the person who will take orders. It is better to immediately separate yourself from all other establishments offering similar services and hire a person who has experience in conducting entertainment events. A professional toastmaster, who can sing beautifully and “shake up” a dull room, is ideal. Such an employee will be able to attract visitors to participate in the performance and sing to the whole hall the song that the speaker, who is also a professional toastmaster, has just sung in front of him.

And already ordinary karaoke turns into a whole improvised low-budget show, which will provide customers not only for karaoke, but also for the restaurant or bar itself. You can make a great play on this by offering your business idea to the management of the establishment. Promise an increase in visitors, offer a trial period.

It is clear that a professional toastmaster will require a large salary. But such a person is able to bring in many more customers than a person who simply takes orders and does not know how to sing and “wind up” the room. By doing it “like everyone else,” you risk getting income from karaoke “like everyone else.” And even less. Because when this idea was implemented in provincial regional centers, and there was one restaurant “with a whole karaoke” in the whole city, the profit was higher. After such equipment, although not always professional, began to be installed in many bars and restaurants, even in those with less than fifty seats, the profitability of this idea fell sharply.

Therefore, change your approach to implementing the business idea itself, distance yourself from competitors, and create a somewhat non-standard service.

One serious disadvantage with such an organization is that they will try to take away a very good employee. Moreover, the restaurant management itself. Therefore, one of the main tasks will be to counteract this phenomenon as much as possible.

So, to implement the idea of ​​a karaoke bar, you will need to rebuild, rent the premises itself to create a karaoke bar, or negotiate with the management of an already operating bar or restaurant to rent some space. The establishment must accommodate at least fifty people and be located in an area convenient for visiting.

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What other investments will be required?

You will need quite serious equipment. Good sound equipment should include karaoke machines, televisions, microphones, speakers and amplifiers. How much could it cost? This will require from 10 to 40 thousand dollars. In addition to equipment, you will also need a good music library, including at least several thousand compositions and phonograms. This point needs to be seriously considered for copyright infringement. You need to think with a lawyer, having prepared in advance for possible difficulties. And although copyright is a rather vague thing in the post-Soviet space, do not neglect this issue.

90% of your success depends on the person you hire. Ideally, if this toastmaster is you. Or if you perform with a toastmaster and accompany him. Or if the toastmaster is your close relative, for example, a temporarily unemployed father or sister. In this case, the chance that your employee will be taken away is close to zero. Take this issue seriously. Otherwise, you will soon bite your elbows.

If you can’t find a suitable toastmaster, or the restaurant’s management is not enthusiastic about your proposed idea of ​​such a show, or you don’t like it, start working on actively visual printed materials. You'll need the services of a copywriter to help you create great headlines for banners and posters that encourage visitors to sing. Appeals and headlines should be based on what such singing will bring to the client. After all, singing has enormous health benefits. Some small information may be placed in booklets lying on the table of the establishment. In general, create and don’t stop.

Consider the possibility of video and audio recordings on discs for an additional fee. Many people will want to get a disc with how they performed. In 10-20 years, such memories will be simply priceless. In addition, demonstrating your impressions and videos on social networks to your comrades, friends, and acquaintances will attract new clients to you. The cost of such a disc, depending on the region, will vary from 400 to 1500 rubles.