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    0 Replies Latest reply on Jun 12, 2008 10:14 PM by Fdiskmbr

    High cash flow entertainment investments –Procuring investor

    Fdiskmbr Newbie

      High cash flow entertainment investments -Where do I find interested sources?

       

       

      Ok.. So it's not your mainstream investment :-)

       


      In short, I'm wondering where I'd find sources receptive to entertainment related investments. Forgive the lack of market specifics, but that will depend on the location of a potential source/s in this case.

       


      • Summary: Social entertainment venture, i.e., Bar, Nightclub, or Lounge. Performs extraordinarily well in distressed economies /recessions.

       


      • Demographic: Mine are focused on a 25 to 40 aged consumer, due to record high divorce, separation, and overall singles rates, combined with an aging population. More money in the pockets of these consumers.

       


      • Quick pros and cons of this type of venture:

       


      Pro's: Exceptionally high cash flow business. Fast return on original note -generally within 14 to 16 months. 3-night per week operation on average. Lower operating costs compared to other businesses. Incomparable return on investment. Not a long-term business venture -generally 2.5 to 4-years on average. As the national divorce rate continues to climb (now 52%), so does the demand for 'quality' social entertainment offerings.

       


      Cons: Higher failure rate than traditional investments. 10 to 20% make 80% of the money. Failures are almost never the result of a lack of demand, but the result of many that proceed with the erroneous idea that 'anyone' can make millions in the social entertainment arena. Silly wabbits!

       


      Location: Anywhere within the U.S., but would prefer the warmer tourist based regions. Could be a single unit in one market, or several units across several markets.

       


      Capital requirement: $300,000 upwards to 4-million depending on the size and scope of the rollout. In all honesty, I'm more interested in the smaller to midsize operations at this point in time. Mega venues may still fly in larger centers, but risk is minimized and demand higher in intermediate sized markets during recession times.

       


      Revenue: Depends on a range of variables, but as one crude example, a smaller 300-person venue can gross $72,000 a month @ 44% to 53% total expenses, based on a solid 3-nights of business. A 1000-person venue can gross $275,000 to $350,000 or more a month. Again... Many more relevant variables here, but you get the basic idea.

       


      Experience: 24-year background in the development, launch, and operation of these venues, combined with 14-years as an international entertainment operations consultant.

       


      Objective: At this point, to find likeminded investment sources receptive to the possibility of infusing their resources into social entertainment venues.

       

      Final comments: I'm relatively well versed on investment 101. I do realize that these are niche investment offerings and certainly not for everyone. I suppose I'm really more interested in where you'd find participants interested in these types of ventures.

       


      Anyone needing more information may visit my site: http://nightclubbiz.com/

       


      Related article I recently published: http://nightclubbiz.com/nightclubs_a_recession_proof_business.htm

       

      Sane insight or suggestions are certainly welcome