Would this be a good business, or do you think it would fail?

Question

I want to open a place in NYC thats a restuarant in the day and then closes for about half an hour and reopens at night as a night club. What are the chances of this not failing? How can I make it better and less likely to fail?

Also, do you think its a better idea to do both or should I just stick with either a restuarant or a night club? Which one? Why do you think so?

Thanks.

Answer 1

For starts, restaurant startups have a fairly high failure rate (about 1 in 4 during the first year, half within three years, according to one study -- cited below) - so the idea is risky to start with

On the other hand, 3/4 last a year and half are still around after three years, so....

Main question for me is whether you have any solid experience in the restaurant field (and eating out a lot doesn't count). Same question for night club operation. If you don't have experience, then a start-up in NYC (where the rents and other costs will be very high and the clientele relatively discriminating) doesn't sound like the place to get it.

If you do have the necessary experience, get a good book on writing business plans and start drafting one for your idea. If not, get yourself a job working for the best restaurant or night club owner you can find, and learn everything you can before you go out on your own.

Answer 2

I think you are probably better off starting in a low price area. To get something started in NYC due to the high rents and labor costs you will have to be very successfully from the beginning and have a ton of money. You will be able to get started sooner if you pick a less sexy location.

While there are some places that are both restaurants and night clubs, generally they do not do one of them as well. They really attract a different set of people.

Answer 3

They have places like that all over Chicago where I live and they are very successful! Look up Green Dolphin Street in Chicago, IL. They are a fine dining restuarant by day and a fairly large club at night. They also have live music during the week during dinners and stuff so that might be a perk????

Answer 4

A business is only as good as it's manager and only as good as it's business system. In other words, some people can easily turn a good business into a bankrupt one. Some people can turn a failing business into a successful, multimillion/billion dollar business.

These businesses you want to start will depend on your abilities to set up a successful business system and you ability to run the businesses efficiently, increase profits and increase cashflow.

However, one word of caution is you must do your homework thoroughly before you decide to set the businesses up and running. The other problem with the businesses you want to start, i.e resturants and night clubs is that they are the riskiest businesses to start as a beginner and they also have the highest failure and bankruptcy rates.

This is because these businesses require very high capital outlays before you even start up, plus the have very long business cycles before you even start seeing any cashflow and profits. I'm not just saying this to scare you, I'm a small business owner, so you can trust that what I'm telling you is true.

Answer 5

For my contribution I will quote a Japanese proverb.
"The man who chases two rabbits will eat only rice for dinner."

I have three business that I run myself, all with retail locations and staff, and you must be very careful about trying to be too different. Sometimes these ideas are not already around for a reason. And as far as businesses go, restaurants have the highest failure rate of any business type. Statistics are just facts in numbers so this is an important thing to consider.

Answer 6

If you put your mind to it you can do anything. Don't limit yourself in anyway. With a great vision and motivation and the desire to succeed you will be on your way. NEVER QUIT.