Reasons Night Clubs Fail

The reasons night clubs fail is probably the most talked about subject, besides promotions.

Everyone, of course, will give you their opinion. But the truth of the matter is that it’s really not that complicated. More common sense then anything.

If I could number these, making the number one being the most important, I would put them all in the number one slot. As they are all different, there are all equally important.

So, don’t make light of these. If you do them all right, you will probably be very successful. If you do even one of them wrong, you will probably fail.


Money issues are just as good as any of them to start with as one of the reasons night clubs fail. I guess I should of said, the lack there of. If you don’t have it, wait till you do! You are going to forget things, or simply there are unknowns as you as build, and you have to have money!

Furthermore, you have to be able to last! You have to have enough money to operate as usual for at least a year, or more. You see, some things just take time. You may open, and it may take a bit for you to catch on.

If you are on a budget to spend X amount of dollars, and something happens which requires more money, and you don’t have access to more money, you got problems before you even open. Get it.

Do you need to adhere to your budget? You bet you ass! But are things going to happen beyond your control that may require more money? Oh ya.

So don’t go in on a shoe string. You also need capital to keep you going for awile too. How much you say? Like the whole subject of night clubs. It depends. I don’t know what your operational costs are going to be. Generally speaking, have enough working capital to pay the bills for one year or more.

I’m sure you have seen a franchised restaurant not do well. Maybe it took awhile to catch on, or is in a new location that the city isn’t used to yet. Whatever the reason, you just can’t believe it. You know that this particular place always does well.

But do they close it after two months? No! They have the success of all the other restaurants to keep this one a float. In other words, they have working capital. Without it, they would close.

So, you are in the same position. What if this happens to you? In your gut, you know that you have a success on your hands, but you don’t have the working capital to keep you going. So what happens? Yes, you got it, you close. Don’t let this happen to you. If you don’t have enough money, wait till you do. Reasons night clubs fail has a lot to do with money. So be patient and do it right.


Other reasons night clubs clubs fail is three fold. It has to do with your homework you were supposed to do before you started. If you haven’t done so, make sure you read some other pages on this site about doing your homework.

Will the market bare it, right club in the wrong place, and having more money then brains.

Are you opening a night club in a town that is saturated with night clubs? Are their enough people in your area to support a new night club? Are there enough people in the age group and type of clientle you want to attract? So, will the market bare it?

You need to know your market. This is another example of reasons night clubs fail. You also need to get the demographics for your area, to see if you even have a customer base! Night clubs are like any other business. They have a targeted customer they want to attract. Do you? And is there a need, and enough of them?

Also, do you have the right night club, in the wrong place? Is your night club off the beaten path? Is it out of the way? Are you in the right area? Did you build a night club that’s great for LA, but not for Boston? Is it just not right for your area? These are questions only you can answer. Don’t let this simple fix be one of your reasons night clubs fail.

And of course, the old more money then brains scenerio. Yes, that’s right. It’s not a typo. This does actually happens.

Over doing it, does not make you successful. If you put a million dollars in to a premier location, in an averaged sized town, where the average night club costs two hundred thousand dollars, it will take you years to ever pay it off. And, you premier location will kill you in operating costs. If your ego needs fed this bad, you have other issue’s you need to take care of before you start building. I’ll bet you never thought that having too much money would be on the list of reasons night clubs fail.


This crazy need to copy, are other reasons night clubs fail. You have to be original. Do you actually think that your customers want to see the same thing they see everywhere else? I don’t think so.

If you are not a creative person, get help. Do your road trips to get ideas, like we talked about on other pages. Talk to a designer for some ideas, throw it around with friends to get their thoughts. Just don’t copy your competition!


Reasons night clubs fail isn’t rocket science is it? Just common sense for the most part. Well here’s another. Atmosphere!

You know what I mean. You go to some places, and you just feel comfortable. And some places you don’t.

Room size plays a big part in this. Now I have to tell you, a large night club ball room is impressive. But,it takes a hell of a lot of people to fill. You can have four or five hundred people in there, and look DEAD!

You need to create a comfortable space. Some nooks and crannys, stuff on the wall and hanging from the ceiling. And don’t build just one large ballroom with twenty foot ceilings. Your customers have to feel all warm and fuzzy. And you need to create this. People not feeling comfortable is another in the list of reasons night clubs fail.


One of the things many people talk about is management, when they talk about reasons night clubs fail.

If you are an owner and manage the night club yourself, then you have to deal with yourself. If you are going to hire a manager, like I keep saying, do your homework. There are very few GOOD night club managers out there these days. And you better pay the money, and get one!

I love to see the ads for a night club looking to hire a manager. They want one year experience and pay twenty five thousand dollars a year. You are tripping over dollars to save pennies. Get a professional. This person will make you money, not cost you money.

They need to be able to attract good employees, train well, watch your money and inventory, create fun and excitement, and above all, treat your customers well. Like the old adage, you get what you pay for. Never a truer statement. If you want to talk about reasons night clubs fail, this is sure one of them.


Be sure to spend some time on this site to get a real sense of this industry. Gather and learn as much information as you can, before you open your bar or night club and you will understand fully the reasons night clubs fail.

To get a full understanding of reasons night clubs fail, start at the beginning of this site and read it all.


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