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.
Did you know that karaoke - such a popular and beloved entertainment by many - is an invention that arose in the last century. It was invented by a Japanese musician who decided to play music without words during breaks at his concerts. So the audience could sing their favorite songs (the words were handed out to them) while the group rested. Then there were many technical achievements, and the world learned about phonograms, “backing tracks,” and also received the invention of a special karaoke system and microphone. A Japanese karaoke bar (“karaoke” in Japanese means “empty orchestra”) or nari-ban was an establishment in which there were many isolated rooms: groups of people gathered there to sing what they liked.
Today, the American-style karaoke bar is more popular, that is, when the vocalist performs in public. Many people love to sing, even if they don’t know how to do it at all. Experts believe that among various restaurant establishments, people will choose the one that has karaoke. Moreover, in today's domestic market there is practically no competition in this business.
Features and nuances of business
If you are already the owner of a bar, cafe, club or restaurant, but want to somehow attract visitors and earn additional income, then the karaoke solution is simply a win-win option. Firstly, this line of business has excellent prospects, it is profitable and quickly pays for itself. Secondly, you will only have to spend money on additional equipment and equipment, slightly expand your staff and add advertising about the new service. This is a drop in the ocean compared to opening a karaoke bar from scratch.
For beginning entrepreneurs, the difficulties will be much greater. In general, the stages of opening and developing a karaoke restaurant are not much different from the stages for a regular establishment:
- conducting market analysis and collecting the necessary information (competitors, opportunities, prices, advantages and disadvantages, risk assessment, etc.);
- drawing up a competent business plan with all calculations;
- preparation of necessary documentation and obtaining permits;
- choice of location;
- renovation or interior design, purchase of equipment, furniture, equipment;
- personnel selection;
- work organization;
- promotion and advertising campaign.
The implementation of this idea can make you successful and bring a considerable stable income. But for this you will have to work hard. If you are afraid to set out on your own, you can first collaborate with an already functioning club or restaurant, inviting its owner to supplement the establishment with a karaoke service. This way you can start your own business under someone else’s wing. But your costs will be much lower, and profits will appear sooner. Of course, this mutually beneficial process can be just a temporary remedy: you will develop a client base, thoroughly study the pitfalls of the business, and be able to see in practice what is in demand and what is not. Having become skilled in this and having earned decent initial capital, you will open your own business.
How to open a karaoke bar: where to start?
If you are determined to become the owner of a future successful karaoke club, then you should take decisive action. First, find out how many similar establishments there are in your city and how they work. In other words, conduct a detailed collection of important and relevant information and conduct a thorough market analysis. This is necessary because you will have significant expenses.
You also need to look for funds. If you do not want to depend on investors and do not have sufficient capital, then you will have to rely only on a loan.
Opening a karaoke bar is practically the same as opening a karaoke club or karaoke restaurant. The only difference may be that the bar will require a much smaller space and, accordingly, lower costs for equipment or other organizational issues. But any establishment of this type, regardless of its size and scope, must offer visitors a cozy and welcoming atmosphere, quality service, and the opportunity to relax and sing to their heart's content.
Paperwork
If you are not registered with the tax service, then it’s time to register. When choosing the legal form of your future business (or), be guided by the prospects and scale of your activity: for a small establishment you can register as an individual, but to achieve and receive broader opportunities, it is better to immediately choose the LLC form. Moreover, if you plan to develop a whole network of such restaurants/bars/clubs in the future.
- After registering and receiving a package of documents indicating that you now have a legal business with its own charter, name, bank account and seal, you will need to pay a state fee and deal with the taxation form. You can choose a single tax - or a simplified system -. If you do not know how to do accounting yourself, then it is not necessary to hire an employee: a remote specialist (outsourcing) will be enough. You may also need a lawyer (for part-time consultations).
- In addition, you will have to obtain permission from the city authorities, Rospotrebnadzor and the SES for the selected premises. Service employees will inspect it, check whether the conditions comply with sanitary requirements and general standards, and then give you an official conclusion that you can place your karaoke establishment in this place. Also, inspections in the premises should be carried out by firefighters (plus - appropriate instructions) and city utilities.
- All employees who will work must have valid medical records. They will have to undergo regular medical examinations and record this data. In addition, employees must undergo certification from time to time.
- The SES will continue to inspect you in the future. It is necessary to keep a sanitary journal where you will record all checks and activities carried out (disinsection, disinfection, etc.). Agreements for them can be signed with different companies. With a large scale of activity, you will have to enter into an agreement with a dry cleaner or laundry service to provide washing and cleaning services for employees’ clothes.
- Don’t forget about agreements with utilities or private companies on the removal and disposal of organic waste, solid waste, etc.
- Rospotrebnadzor also issues a permit (certification) for the services that you are going to provide (the list is fixed, and if you add something new, you will need to fill out additional documents). Separate licenses will be required for the sale or trade of alcoholic beverages and tobacco products.
Please note that even equipment for this type of activity can be licensed or pirated. For example, widely sold collections of karaoke songs are usually pirated products and violate the law on copyright and related rights. But even in the capital, only a few clubs make contributions to the copyright society and use legal products. The rest simply cannot afford such luxury, since it is quite an expensive pleasure.
Selecting a room
Since karaoke is a pleasant leisure activity that should give visitors a charge of good mood and positive emotions, you need to take into account all the details and little things when choosing and arranging a room for it. Here are some basic recommendations to help you with this:
- the establishment should be, if not in the very center of the city, then at least nearby, in a densely populated area (but not a residential area!). Of course, if we are talking about the capital or a large city, then there is a lot of choice, but how to open a karaoke bar in a small town? In this case, you just need to focus on the most popular places of leisure and recreation for people;
- if the premises are located somewhere on the outskirts, then take care of landscaping the area, a good parking spot, free access to the bar and appropriate advertising;
- it’s good if your establishment is located in some kind of gaming complex or shopping and entertainment center;
- the room must have good acoustics and sound insulation, and it must also comply with all requirements and legal norms (as you understand, a residential building in this case is more than a bad option).
It is ideal if this is your own premises, because in a rented one you will not have such freedom of action. But even if there is no possibility of a major overhaul, then your main task during repairs and decoration is to make clients feel as comfortable and cozy as possible. Then, when they come to you for the first time, they will become regular visitors and will bring friends and acquaintances with them. This is not only the reputation of the establishment, but also its profit.
Some nuances
The atmosphere is extremely important for a karaoke club. When choosing an aspect and an idea from which you will build, embody it in every detail of design and interior. You can make a themed establishment, for example, in the style of the Wild West or retro, or you can simply furnish and decorate it beautifully. Depending on your financial capabilities, in the future there is an option to add columns with video projection or concert light consoles, hang a mirror ball, etc.
The optimal hall accommodates 10–11 tables (for 6–8 people). Usually in such establishments there is a queue, so you should not overdo it with the number of clients, because people come to you to sing, and not endlessly wait for their turn.
If there is enough space, you can not limit yourself to one American format (stage for a performance), but also add several isolated booths for individual companies craving privacy, where they will have their own small karaoke systems.
Equipment and services
Musical equipment is exactly what you should never skimp on, although it is the most expensive item in the entire discovery process. But the entire success of your establishment depends on how comfortable and pleasant it will be for people to sing with you. This is the only way you can expect serious profits and good promotion.
Considering the specifics of a karaoke establishment, you will not need musicians. But you will need high-quality equipment, equipment and a specialist who can manage it all:
- professional karaoke system and installation. Among the best are EvolutionPro and others;
- several portable radio microphones (4–5 minimum). Take at least the semi-professional series, so that after a year or two you don’t throw away microphones and buy new ones. Best options: Leadsinger, AKG, Shure, Sennheiser;
- speaker system, amplifiers and switching – JBL, DAS Audio or ElectroVoice;
- large mixing console (multi-channel, with a parametric equalizer and external voice effects processor) - Soundcraft, Yamaha, Lexicon;
- plasma panel or projector;
- laser or lighting installation, spotlights, other devices.
Once all the necessary equipment has been purchased, think about the repertoire that your guests will be able to perform. To do this, you will have to prepare a solid music library (at least 10 thousand songs), which will be constantly updated. Look for a compromise with phonograms: to avoid paying sky-high copyright fees, you can pay the CD supply companies monthly for the use of their compositions (they must have the right to distribute). It is illegal to download soundtracks or take pirated discs on your own. Think about this question before opening a karaoke bar.
The remaining investments are the same as when opening a regular restaurant or bar:
- furniture (bar counter, freezer, equipment, tables, chairs, sofas, armchairs, etc.);
- office equipment, office equipment, cash registers;
- kitchen equipment (cabinets, shelving, refrigerators, freezers, cutting tables, dishes and other necessary items).
It would be good if the establishment had a special wardrobe. If not, then you will have to take care of hangers next to the tables.
Organization of work and personnel selection
In addition to ordinary cooks, bartenders, waiters and hall administrators, you will need a real professional who could manage the karaoke system, that is, a sound engineer or DJ. Also hire a good presenter. His responsibilities will include:
- monitor the queue and form it;
- fill pauses;
- hold competitions;
- help in choosing a song;
- control the mood in the room.
Some establishments hire additional vocalists who help people sing or simply serve as backing vocals. There are also those who can afford to invite a celebrity or star, but still people come to karaoke to sing themselves, and not to listen to a concert performance.
The karaoke administrator can help you create a “crazy menu” or come up with some interesting entertainment for guests: singing competitions, random duets, etc. The prize for this could be a discount on your next visit, some bonuses, a disc with video recordings of your own performances (this is a great idea, since clients themselves then ask to buy such discs as souvenirs).
All staff must be well-trained, polite, sociable, stress-resistant and ready for any non-standard situations, since the public comes to the establishment to rest and relax and anything can happen. It is better to provide fees in advance for damage to property or inappropriate behavior.
Promotion and advertising
You should also spend a fair amount on advertising, especially at first. Use all available means and opportunities: contextual advertising on the Internet, social networks, on forums, in all types of local media. If finances allow, make advertising banners or big boards around the city. Be sure to stock up on a sufficient number of business cards, flyers, booklets and distribute them to shopping centers, salons, various companies and organizations. Create a high-quality website and invest in its promotion.
You can come up with PR campaigns and discounts for first visitors to attract the maximum number of people: free entry for girls on certain days, bonuses for large companies, etc.
conclusions
Experts say that this type of business has very high profitability - at least 40-60%. In addition, a karaoke establishment is considered much more profitable and promising than just an ordinary restaurant, bar or club.
Approximate costs
(prices are in rubles)
As you can see, the initial costs for a business are several million rubles. Depending on your city, the chosen premises, area and other factors, the amount of investment can range from 3 to 9 million. However, according to experts, the establishment can pay for itself in the shortest possible time - from one and a half to three years.
A karaoke establishment is a very profitable and promising niche in business, so study all the nuances and feel free to organize a profitable and successful business.
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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 such events to be held: it is unlikely that a 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.