To set up a nightclub in Spain is not something easy and it takes a lot of processes that we must take into account if we want to do it well and make our business work.
Therefore, before launching into the adventure, we must have very clear which are the points to follow as well as analyze the profitability of the business, taking into account all the expenses that the business may involve, and not only take into account the benefits that we can get. In addition, we must also take into account aspects such as the location, the employees, the structure and of course the corporate image and the tone of communication that we are going to use.
Nightclubs are a very attractive business for businessmen and entrepreneurs, since nightlife is a market that generates good performance and much more if we talk about Spain, where the sector is one of the engines of the economy along with tourism, since it represents 1.8 of the national GDP (2019), and is where a large part of the best nightclubs in the world are located, according to the list of the International Nightlife Association.
However, setting up a nightclub is not an easy task, because, although they have enough potential in Spain, several factors come into play on which the profitability of the business depends. If we want to succeed in starting a nightclub, it is essential to have so clear the idea and make a business plan, which includes the costs of a nightclub, a financial plan and the marketing plan of the nightclub.
When we have a business idea, the first thing that comes to mind are the costs and the profit. Maybe you are wondering how much it costs to set up a nightclub in Spain and how much revenue it generates. Let's try to clear up all these doubts.
Knowing exactly how much it costs to open a nightclub is complicate, because it depends on many variables, such as: the type of nightclub you want to open, the size, the location, the decoration, if you already have the premises, if it is soundproofed and equipped, etc. In addition, you must take into account all the necessary permissions to be able to initiate the activity.
The minimum investment to open a discotheque or nightclub, very well conditioned, goes from 100,000 € to 1,000,000 or even more, depending on all the factors mentioned above.
To obtain the licenses and permits, is usually one of the most arduous steps to set up a nightclub because of all the paperwork involved and in many cases the waiting time. To make this task as easy as possible we tell you what permits and licenses you need:
The requirements may very from one Autonomous Community to another, but broadly speaking, these are the ones you need:
Opening or Operating License: in the activities of public or recreational shows, as it is the case, it is necessary the Opening or Operating License to open the doors. And one of the requirements to obtain it is to contract a Civil Responsibility Insurance.
License of Activity: this license, which is requested in the City Council, certifies that the premises are in optimal conditions to carry out the nightclub activity.
Building Permit: if the premises require works to be ready, the Building Permit, which is the permission to be able to execute them, will be necessary. Its procedure is carried out with the local authority.
Environmental License: it is obligatory because a nightclub is among the “classified activities”, that is to say, an annoying activity due to the noises and vibrations.
Certified of Urbanistic Compatibility: once you have the premises for the nightclub, the CCU must be processed so that the corresponding City Council determines if the activity and use that we want to give to the establishment complies with the urbanistic legislation.
SGAE License: this allows you to use a large repertoire of music to play in the nightclub.
License for sale of alcohol: it is essential in a nightclub, because the alcoholic drinks are of the products that more are consumed and those that report major income.
The price of renting a nightclub venue depends on the city, the location, the size and the conditions in which it is located, so it is recommended to make a research of the areas of interest.
Salary expenses also vary according to the size of the nightclub, because the bigger the club, the more staff you will need. The average salary of a waiter is 8€/h, a bartender around 10€/h. In addition, you must add the manager’s and of course the DJ or shows that are presented.
Currently, having several payment systems in a nightclub is essential for customers to feel that they are receiving good service and there is no pretext to purchase products or services. The most recurrent payments are cash, card and now contactless payments and cashless wristbands, which provide great benefits, including an increase in the average ticket.
In this case it is recommended to have an expert technician to acquire the most suitable equipment for your nightclub. But what should be taken into account are the speakers, the amplifier, the music source, cables, mixer, etc.
In any nightclub it is essential to make an inventory of the drinks and food served to ensure the supply. As the days go by, you will be able to identify the most demanded dates in order to be prepared.
If opening a nightclub is one of your dreams, we want to help you achieve it with these tips that will make the process easier.
The location is very important when setting up a nightclub, because its success depends to a great extent on it. The central places, places identified as party zones and places with a lot of affluence, are the most suitable locations.
These are elements that cannot be missing in the structure of a nightclub, but there are others that change according to the regulations or the taste of each businessman. Here are the basic elements that a nightclub must have:
For a nightclub to be successful it must have good equipment to create an ideal party atmosphere. This includes a good music system, a good lightning system, sound and special effects.
In addition to furniture such as tables, chairs, benches, sofas, bar equipment and other machinery.
The employees are another key aspect to open a nightclub, because the customer service must be very good, so the staff must be prepared to do the job.
Which are the positions that must be covered in a nightclub:
A business plan is essential to set up a business. It consists of setting down in a document the strategy of the commercial project, the objectives, the financial plan of the nightclub, the market research, the marketing plan among others.
The purpose of this is to lay the foundations of the company and to forecast several scenarios in order to be able to react to any unforeseen event.
At the moment of creating the company, you must define the corporate identity: Name of the company, logo, slogan, colors, typography, etc., to be able to use that image in the decoration of the nightclub and to create an ideal space in which the values of the brand are reflected. It is also important to write an identity manual to make sure that all employees and people involved in the business know how to use the brand image.
Before starting the search for suppliers, it is advisable to make a list of the products we are going to need and then research the best suppliers.
It is important to look for suppliers that are flexible in terms of the payment system, so you will have time to recover the money and even reinvest it.