Cost of opening a new pool room?

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Mitchb2388

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I am currently thinking about opening a new pool room. I am just trying to get a ball park figure in how much it will cost to open an establishment like this. I am looking to have a full liquor bar with 10 9ft diamond tables. I am looking to open this place within the next year and a half and I was wondering if anyone has any other good ideas or suggestions I should take into account.
 
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Mitchb2388 said:
I am currently thinking about opening a new pool room. I am just trying to get a ball park figure in how much it will cost to open an establishment like this. I am looking to have a full liquor bar with 10 9ft diamond tables. I am looking to open this place within the next year and a half and I was wondering if anyone has any other good ideas or suggestions I should take into account.
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Id like to know also-IM gonna guess 150K buying the tables as opposed to leasing and with a decent kitchen.This estimate is based on ass only.
 
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Mitchb2388 said:
I am currently thinking about opening a new pool room. I am just trying to get a ball park figure in how much it will cost to open an establishment like this. I am looking to have a full liquor bar with 10 9ft diamond tables. I am looking to open this place within the next year and a half and I was wondering if anyone has any other good ideas or suggestions I should take into account.
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What ever number you come up with, double it. A 4COP license {in Florida} was between 45K-150K depending on the restrictions, if you want full liqour make sure you get the package licence too. 10 Diamonds {nice choice} w/lights? Build your own? Architech fees, insurance, rent, permits, labor, bar inventory, TAXES and so much more...I dont evny you but I will come to see it.

Good luck...
 
I hate to put a negative spin on this, but it's not a good time in the current financial climate. Some well established rooms closed before things got really bad. You need to make sure you're accomplished both in the business area and knowing/understanding the game and it's players. I've seen people, recently, who tried being well versed in the business end but not in the pool end. They are no longer in business.
I wish you luck. Sorry I can't supply you with any dollar amounts, probably the best one so far is to double whatever you originally planned on.
 
Mitchb2388...You don't give any indication where you wish to locate this room...rural or urban, what part of the country, population base, whether you intend to try to live off the income, and lots of other factors. I'd say, without knowing any of these things, a good ballpark would be $150K up to $1M, depending on how fancy you want to make it, and where it's to be located. You need an absolute dead minimum of six months operating expenses, upfront, which need to be part of your estimate.

Scott Lee
www.poolknowledge.com

Mitchb2388 said:
I am currently thinking about opening a new pool room. I am just trying to get a ball park figure in how much it will cost to open an establishment like this. I am looking to have a full liquor bar with 10 9ft diamond tables. I am looking to open this place within the next year and a half and I was wondering if anyone has any other good ideas or suggestions I should take into account.
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Pushout said:
I hate to put a negative spin on this, but it's not a good time in the current financial climate. Some well established rooms closed before things got really bad. You need to make sure you're accomplished both in the business area and knowing/understanding the game and it's players. I've seen people, recently, who tried being well versed in the business end but not in the pool end. They are no longer in business.
I wish you luck. Sorry I can't supply you with any dollar amounts, probably the best one so far is to double whatever you originally planned on.
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I think you are talking TRUTH! Sometimes the Truth Hurts, but is not like a BIG HURT!:thumbup: ECONOMY SUCKS NOW IMHO!
 
correct but to add another detail

If you need to live off of this pool room you also need six months living expenses also. The last I knew 85% of all new small businesses failed. The primary reason was that they were undercapitalized. I suspect most of the 15% that succeeded were undercapitalized too though. If you have enough capital to start a small business you don't need to!

Good luck if you try but I think starting anything but a hobby business in this climate is super risky. Of course I don't know what things will look like in a year or two. My prediction, only a slightly better economy and we all will have a mountain of debt to pay off.

Talk to SCORE early in your planning. It is free.

Hu


Scott Lee said:
Mitchb2388...You don't give any indication where you wish to locate this room...rural or urban, what part of the country, population base, whether you intend to try to live off the income, and lots of other factors. I'd say, without knowing any of these things, a good ballpark would be $150K up to $1M, depending on how fancy you want to make it, and where it's to be located. You need an absolute dead minimum of six months operating expenses, upfront, which need to be part of your estimate.

Scott Lee
www.poolknowledge.com
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Mitchb2388 said:
I am currently thinking about opening a new pool room. I am just trying to get a ball park figure in how much it will cost to open an establishment like this. I am looking to have a full liquor bar with 10 9ft diamond tables. I am looking to open this place within the next year and a half and I was wondering if anyone has any other good ideas or suggestions I should take into account.
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First off where is this place going to be located?
How much rent do you expect to pay?
Are you going to buy the building?
Second is you do not need to go with the Most expensive tables on the market.
So if you can answer some of these questions we might have a better idea as to how we might be able to help you.
Good luck in your endeavors.
Ron
 
I currently live in Tampa but I am planning on opening this place in either Indiana or Ohio. I am doing this because the cost of liquor licenses and living are much cheaper in the midwest compared to that in Florida. I am planning on opening this establishment some where near a college or university and market this place to college students. There are a couple of pool rooms near my house that market just towards college kids and APA leagues and they are always slammed. They offer super cheap drink specials every night of the week to attract those college kids that are always drinking 24-7. I am planning on leasing the building until I can raise enough capital to buy the building outright. I am currently a junior in college and I am just trying to get a ball park figure so I know how much money I need to bring to the table so I can get a small business loan. I was thinking I would need about 30% of the total amount in order to get the loan. I currently have $30,000 saved up from playing online poker and was wondering how much more I would possible need in order to qualify for a small business loan.
 
From my past experience, all other things being equal, ten tables is not enough to sustain a business. While it's true that most of the time you will not fill all ten tables, when the prime time happens (ie weekend nights) you need to be able to accommodate the clientele. 15 minimum 20 or more preferred IMO. Try to find a location that costs in the neighborhood of 200 dollars a month rent per table. That may sound impossible, but look hard and don't be hypnotized by desire and wishful thoughts of success. Keep the overhead down.
 
Pushout said:
I hate to put a negative spin on this, but it's not a good time in the current financial climate. Some well established rooms closed before things got really bad. You need to make sure you're accomplished both in the business area and knowing/understanding the game and it's players. I've seen people, recently, who tried being well versed in the business end but not in the pool end. They are no longer in business.
I wish you luck. Sorry I can't supply you with any dollar amounts, probably the best one so far is to double whatever you originally planned on.
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Now may be the perfect time. Business property can be had cheap almost anywhere. You can even purchase a building. The thing about economies is, they always go up and down. By the time their new room is up and running and a year or two into business the economy will most likely be recovering. That is not to say there isn't some risk, but with a good business plan they can make it. What is sinking rooms now is they were stretched financially to start with. A sky high nut that was hard to meet even in good times. These were failures waiting to happen.
 
Operating costs in Ohio is cheap, but it's all relitive.

Just to give you an example. When I lived in akron, oh. There was a large upscale place right on Akron U. Jillians, had about 20 beautiful gold crowns and the best day time special I've ever seen. $5 from 12-5 for up to 4 players. It was a great deal, but on the flip side, they were making nothing. Needless to say, they are no longer there. Nor is the other good rooms. Action Billiards(Starchers) was $2/hour, 24/7. Also gone.

Most people who start a business, do it to actually make money. Sadly, it's a rough thing to do anymore. My local room (right around the corner from my house) closed down last week. And they were busy every night. Sad week. Well, I'm rambling, but my point being, opening a room now is scary. Even a bar.
 
bad idea right now unless you are in a prime market. Take it from an entrepreneur who has been looking into doing the same thing.

Your cost is really going to depend on your location and size of the place and what type of place you want (ie. finish out). The number could vary anywhere from 200k to 1 million. If you do it properly but conservatively you should be able to open a good place at around the 250k mark.
 
10 tables with lights, balls and cloth delivered and set up is going to cost you $60,000.00 alone.. The banks are not giving any small business loans right now..
 
Nostroke said:
Id like to know also-IM gonna guess 150K buying the tables as opposed to leasing and with a decent kitchen.This estimate is based on ass only.
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This is a very good guess based on ass only; the problem is that it assumes that you have already purchased the building. Like a previous poster has suggested... Double that (at least)
 
cleary said:
Operating costs in Ohio is cheap, but it's all relitive.

Just to give you an example. When I lived in akron, oh. There was a large upscale place right on Akron U. Jillians, had about 20 beautiful gold crowns and the best day time special I've ever seen. $5 from 12-5 for up to 4 players. It was a great deal, but on the flip side, they were making nothing. Needless to say, they are no longer there. Nor is the other good rooms. Action Billiards(Starchers) was $2/hour, 24/7. Also gone.

Most people who start a business, do it to actually make money. Sadly, it's a rough thing to do anymore. My local room (right around the corner from my house) closed down last week. And they were busy every night. Sad week. Well, I'm rambling, but my point being, opening a room now is scary. Even a bar.
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I am at a little bit of a loss here. People are saying rooms are closing, where is all that equipment going? Seems you should be able to pick up good used equipment for a small percent on the dollar. In no time you will have a pool room stored in a warehouse down to the last beer glass, "Paid for" just looking for a place to open. No partners needed, (One of the biggest mistakes people make) No sky high nut, prices are down and plenty of prim business properties where you can name your own terms.

People have not quit playing pool, pool is no fad. The problem just like everything else, pool room owners over extended themselves. There is only so much money to be made in a poolroom/bar. Like I said in my other post. Now may be the perfect time for someone wanting to open a room to be putting a plan in place and getting equipment together. The days of rooms thinking they can exist with a $15,000 a month overhead is over. But the days of a good well run pool room with an overhead that is in line with such a business is as viable as ever. Maybe even more today.

One question.
Have you quit playing pool because of the economy? The answer is no. You may have cut back a little but I bet no matter how bad things are for a player they will always find a way to budget few bucks to play. That is the nature of pool. By most standards it is still an inexpensive sport to play and people will always be playing no matter what. For the first time in years I have entertained the idea of another room and I haven't owned a pool room in 25 years.

I'll tell you something funny. I looked at a building a few years ago and the rent was $3000. a month. Today I can buy that same building for the equivalent of what would have been 18 months of rent. If you are broke there is never a good time to be going into business. But is you have a few bucks times like these surround you with opportunities.
 
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ShootingArts said:
If you need to live off of this pool room you also need six months living expenses also. The last I knew 85% of all new small businesses failed. The primary reason was that they were undercapitalized. I suspect most of the 15% that succeeded were undercapitalized too though. If you have enough capital to start a small business you don't need to!
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I have no doubt many new businesses are undercapitalized. But still, I've always found the above statistic a little goofy. It's a little like your keys always being in the last place you looked for them.

Any new business need to "turn the corner" as they say. You're going to start out not taking in enough revenue to cover the business expenses and your own personal living expenses. It is during this time that you are drawing on capital resources you have available to avoid insolvency. If all goes well you get to the point where you start taking in more than you're required to pay out each month. This is turning the corner.

If you run out of money in your pocket before turning the corner, you're toast.

The problem is, to any new business who runs out of money before turning the corner, it looks like money was the issue. If I only had enough money to get through the next summer or make it three more months, things will be different.

In some cases that's true, and in other cases there are other problems. But whatever the real problem, it's always money at the end.

That's why I think the undercapitalized statistic is inflated.


Talk to SCORE early in your planning. It is free.

Hu
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I agree
 
macguy said:
I am at a little bit of a loss here. People are saying rooms are closing, where is all that equipment going? Seems you should be able to pick up good used equipment for a small percent on the dollar. In no time you will have a pool room stored in a warehouse down to the last beer glass, "Paid for" just looking for a place to open. No partners needed, (One of the biggest mistakes people make) No sky high nut, prices are down and plenty of prim business properties where you can name your own terms.

People have not quit playing pool, pool is no fad. The problem just like everything else, pool room owners over extended themselves. There is only so much money to be made in a poolroom/bar. Like I said in my other post. Now may be the perfect time for someone wanting to open a room to be putting a plan in place and getting equipment together. The days of rooms thinking they can exist with a $15,000 a month overhead is over. But the days of a good well run pool room with an overhead that is in line with such a business is as viable as ever. Maybe even more today.

One question.
Have you quit playing pool because of the economy? The answer is no. You may have cut back a little but I bet no matter how bad things are for a player they will always find a way to budget few bucks to play. That is the nature of pool. By most standards it is still an inexpensive sport to play and people will always be playing no matter what. For the first time in years I have entertained the idea of another room and I haven't owned a pool room in 25 years.

I'll tell you something funny. I looked at a building a few years ago and the rent was $3000. a month. Today I can buy that same building for the equivalent of what would have been 18 months of rent. If you are broke there is never a good time to be going into business. But is you have a few bucks times like these surround you with opportunities.
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excellent point, good post

If only I had a couple hundred thousand dollars to invest in something right now. :frown:
 
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