How To Make Projections for Lounge In A Wealthy Suburb Of A US City
Dear Fellow Forum Participants,
My business partner and I share a passion for jazz and wish to turn that passion into something that will be able to generate a fantastic lifestyle for ourselves, and a generous livelihood. We have come up with a dream to open up a jazz lounge in a suburb of a major US city. The town we wish to open up our lounge in has an approximate population of 80,000 people. This is one of the wealthiest towns in the state, and boasts a healthy demographic of both successful 40 something’s, along with young professionals.
As of now, my business partner and I are still in the planning stage of our jazz lounge. We have come to grips that this is certainly something that we want to devote the bulk of our time and efforts towards for the next decade, but we have not been able to come up with realistic enough projections in terms of revenue. This is why we are posting this entry at the forum.
Our budget will allow us to be in the most desirable area of the town with access to plenty of parking. The lounge will be able to seat approximately 50 people (excluding the band). There are a handful of high-end, white tablecloth, restaurants within a short walking distance to our location. The location is also within walking to distance to the train stop which runs directly to the downtown area of the neighboring city.
We are having a hard time coming up with revenue projections. How many people can we expect to come through our doors on a weekly basis? What can we expect the average bar tab to be? Are there certain things that will be an immediate turn off when people walk in the door? What are the staples that any good lounge in a wealthy suburb possess? Is there a “major window” for when we should be looking to get to cash flow positive (what I mean is; if after running the numbers we are not at our break even point by month X, is that a sign that we should abort the entire lounge idea)? Is there anything else that we should know or that you wish you had known before started up your own small business venture?
We are aware that some of these questions can only be answered by actually opening the doors and finding out. By posting this entry here today, we hope to at least gain some insight on some possible avenues of exploration we should go down to discover the information we desire. Any insight that can be offered will be greatly appreciated.
We eagerly look forward to reading each and every response.
Jason and Bernhard