Opening up a night club?

Question

I am from Albany, GA and I am thinking of opening up a night club, Will the SBA give me a loan for this?

I have lots of experience in working in a night club. My friend owns one and I help out there also, I have a busness plan. I also have a BS in Business and Accounting.

Answer 1

The SBA does not give out loans, they will guarantee up to 80% of a loan for a legitimate business. You have to go to a lender who then contacts the SBA. Before you go to any lender, you will have to develop a detailed business plan. Instructions on how to write a business plan can be found at http://sba.gov/starting_business/planning/basic.html

Answer 2

I suggest you check out SBA Financing page and see whether you can qualify for an SBA Loan

CREDIT FACTORS A POTENTIAL BORROWER SHOULD KNOW http://www.sba.gov/financing/preparation/qualify.html
What Will I Need to be Considered for SBA Loan Assistance? http://www.sba.gov/financing/preparation/requirements.html

One of their most important criterion they have is:

"Business profile. A document describing type of business, annual sales, number of employees, length of time in business and ownership."

What are your experiences in the night club industry? If you have none, you better get someone on board as a partner or investor someone who actually knows about the business.

Even if you prepared a fantastic business plan, if SBA and their lender bank see that you have absolutely no experience in the business (even though it is your passion), they are highly likely to turn you down. They wouldn't even read your business plan but just turn you down because you have no first hand experience of how to run this business

Plus given the fact that nightclubs and restaurants are very high risk business, so they give preference to those who actually know and demonstrated that they can successfully run a nightclub.

I suggest you work for a nightclub first and see how things go. Learn everything you can on the management and financial aspects of running a night club.

Answer 3

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* How to Setup and Operate a Successful Nightclub: An Entrepreneur's Guide to Running a Profitable Club Operation by Robert Smith
* Start Your Own Bar and Tavern (Entrepreneur Magazine's Start Ups) by Entrepreneur Press
* Bar and Club Design by Bethan Ryder
* Upstart Guide Owning & Managing Bar or Tavern by Roy S. Alonzo

* How To Start A Business In Georgia (Legal Survival Guides) by Charles T. Robertson, Mark Warda
* How to Form a Corporation Llc or Partnership in Georgia by W. Dean Brown

I also posted links to some free articles in the source box.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 4

Certain things will factor into how and who will give you the loan. You should find out how many night clubs are within a 5 to 10 mile radius of yours. And then you need to be able to show what makes yours different from others. Also many loan companies are obligated to offer a certain amount of loans to a certain amount of minorities in certain businesses. If you are a minority in your area you may be more likely to get a loan.

Answer 5

More than likely we will not as liquor is not on our hot list of businesses due to the huge failure rate and often uncollectable assets . We at the SBA DO NOT give loans we guarantee them to a local lending institution only .

Answer 6

Now I don't have extensive knowledge of how the SBA works, but if you're looking for money to open a business, you will definitely need an excellent business plan.

I would suggest starting there, if you haven't already.

If this didn't help, sorry :(

Answer 7

Maybe imisidro would invest in a partnership as a silent partner, as long as he or she had no moral reservations and the like.