Is it a Bad Idea to Open a Room?
- Thread starter WhatRobEats
- Start date
maintaining the ball grabber vehicle thing-a-magig.
I hadda ball-grabber thing-a-magig once,....... had to get rid of it. Wouldn't let the balls go once it got'em !!
What am I missing?
Seriously, 80 % of businesses fail in the first 5 yrs. Nearly ALL fail w/o a written plan. You needa good location, time ,and patience. (IMO) BEST :smile:
I hadda ball-grabber thing-a-magig once,....... had to get rid of it. Wouldn't let the balls go once it got'em !!
What am I missing?
Seriously, 80 % of businesses fail in the first 5 yrs. Nearly ALL fail w/o a written plan. You needa good location, time ,and patience. (IMO) BEST :smile:
This is more than likely the best advice out there in this thread...we put up a place in the 80's (wow that feels like history lessons already) 20 tables to start, but the things that paid the bills was never table time....lessen your risk profile by offering something else as a staple while working to pull the pool community in as the "place" to shoot out of. Look at the risk profiles for a night club can you do that on beer and soda (or however you wish to run your joynt and make it) and still turn a profit....we had indoor golfing too had to split that off as the "pro-shop" services for that became it's own salvation. While the business was in good shape when we all left it was the only place in town to:
-Do your laundry - order a great pizza - play pool all while listening to live music on the weekends (not to mention what was made off the gambling machines) still it was well a good living but not breaking the bank well enoughto justify the anticipated risk from the start.
I'm just passing this along...not from experience. I met a guy who used to own a pool hall. He told me that he opened it because he was a really good player who loved pool. He said when he talked to his dad about opening a room his dad said, "if you want to lose your love of pool then open a room". He said he didn't listen to his dad and went ahead anyway. Said after 10 years he hated pool. Almost refused to play anymore.
Like I said...just passing it along.
Thanks a bunch for this info. I already know that table time isn't going to be my bill payer. I've conceded already in this thread even though I don't want a full bar I'll need to have one.
Also I'll have a driving range that will most likely be the main draw especially in the area that I'm looking to be in. I think it's a great idea to also have a 'pro-shop' but instead of stocking just clubs I'll also stock pool items and dart items.
I make a really great pizza myself so having a brick oven or something similar will take me a really long way. If I'm able to provide the best pizza in town that's going to be a pretty good draw also. My personal passion is pool so my heart will always be in the pool room, however, my head will be in the money making aspects of the business.
This is the second or third time I've heard this in the thread. However, it doesn't deter me. Will I end up hating pool? Maybe, if I fail but those are the risks one has to take in life. I don't know many people that have ever succeeded in a big way without taking some risks along the way.
Last edited:
A few things . . .
First off, I have never owned a pool room. I have owned over a dozen other businesses though, most start up, so I know a wee bit about some things.
First off, partnering with vendors. As a general rule don't! One issue, down here they write the contracts and you are making commitments you don't want to make. More than that, when you partner with vendors then both business's nut and profit have to come out of those machines. If the vendor wasn't making a profit on them he wouldn't be putting machines everywhere. His nut and his profit are money you are giving away.
As for money, only count on what you have upfront and get it upfront. Been there with banks and investors. If you need an additional cash influx into your business your prior agreement and line of credit can disapppear in a heartbeat. Yeah, I got burned on a bank line of credit. I got the very least money I could upfront to minimize interest paid and when I needed more as I anticipated I would, my line of credit disappeared!
Your wife being an MBA is a big help. Still utilize SCORE. A free service of retired executives. It costs hundreds of dollars an hour for these guys in private consultations, free through SCORE. It is one of the best deals going. You won't necessarily agree or disagree with your SCORE contact but he or she will certainly make you look into things you hadn't considered. After having ran a handful of businesses I shut down on things I thought looked good when I saw for myself the odds were too long. Managing risk is the name of the game and you can't manage it if you can't see it.
Resources are another issue. Money as already mentioned you need in hand. You need far more back-up than you think on operating expenses. The actual number on new startup businesses failing in a far better climate than this was 85% within five years. The number one reason for failure was that they were undercapitalized. Another resource that seems likely to get you in trouble is your time. There are incredible demands on your time as a business owner. The fact that you can cook means that you can probably train a cook to suit you. You doing a significant amount of the cooking is unlikely. You doing much of anything other than running your businesses and keeping tabs on your help is unlikely. When I had fairly small businesses the only work I did that an employee could do also was after I locked the doors at night. It was a full time job running a business well and putting out fires while it was open. Don't count your time being available to fill any employee slot on a regular basis. Sure you can hire someone to run the business itself but that is a better paid individual and that is the slot you want to fill.
Calculate start-up costs to the best of your ability and then multiply by at least 1.5. Calculate what it will cost to operate for the first six months or a year, 1.5 again. Figure when you are going to get the doors open, stretch that date by 1.5 too. Figure your profits for the first year, divide by three. Nobody has ever failed by being overcapitalized or overprepared. One more thing, you have to commit to the business one hundred percent. Nothing is more important until it is solidly in the black every month for at least a year including paying your salary.
Listen to everyone including the naysayers while you are weighing your decision. If you make the decision to open a business, ignore the naysayers and doubters. Like any form of competition, opening a business isn't for the faint hearted. Getting a business off the ground takes an all out effort. It isn't really fair either. you can do 99% of things right and fail. You can do 99% of things wrong and succeed. You have to do everything you can to manage risk and give yourself the best shot.
Hu
First off, I have never owned a pool room. I have owned over a dozen other businesses though, most start up, so I know a wee bit about some things.
First off, partnering with vendors. As a general rule don't! One issue, down here they write the contracts and you are making commitments you don't want to make. More than that, when you partner with vendors then both business's nut and profit have to come out of those machines. If the vendor wasn't making a profit on them he wouldn't be putting machines everywhere. His nut and his profit are money you are giving away.
As for money, only count on what you have upfront and get it upfront. Been there with banks and investors. If you need an additional cash influx into your business your prior agreement and line of credit can disapppear in a heartbeat. Yeah, I got burned on a bank line of credit. I got the very least money I could upfront to minimize interest paid and when I needed more as I anticipated I would, my line of credit disappeared!
Your wife being an MBA is a big help. Still utilize SCORE. A free service of retired executives. It costs hundreds of dollars an hour for these guys in private consultations, free through SCORE. It is one of the best deals going. You won't necessarily agree or disagree with your SCORE contact but he or she will certainly make you look into things you hadn't considered. After having ran a handful of businesses I shut down on things I thought looked good when I saw for myself the odds were too long. Managing risk is the name of the game and you can't manage it if you can't see it.
Resources are another issue. Money as already mentioned you need in hand. You need far more back-up than you think on operating expenses. The actual number on new startup businesses failing in a far better climate than this was 85% within five years. The number one reason for failure was that they were undercapitalized. Another resource that seems likely to get you in trouble is your time. There are incredible demands on your time as a business owner. The fact that you can cook means that you can probably train a cook to suit you. You doing a significant amount of the cooking is unlikely. You doing much of anything other than running your businesses and keeping tabs on your help is unlikely. When I had fairly small businesses the only work I did that an employee could do also was after I locked the doors at night. It was a full time job running a business well and putting out fires while it was open. Don't count your time being available to fill any employee slot on a regular basis. Sure you can hire someone to run the business itself but that is a better paid individual and that is the slot you want to fill.
Calculate start-up costs to the best of your ability and then multiply by at least 1.5. Calculate what it will cost to operate for the first six months or a year, 1.5 again. Figure when you are going to get the doors open, stretch that date by 1.5 too. Figure your profits for the first year, divide by three. Nobody has ever failed by being overcapitalized or overprepared. One more thing, you have to commit to the business one hundred percent. Nothing is more important until it is solidly in the black every month for at least a year including paying your salary.
Listen to everyone including the naysayers while you are weighing your decision. If you make the decision to open a business, ignore the naysayers and doubters. Like any form of competition, opening a business isn't for the faint hearted. Getting a business off the ground takes an all out effort. It isn't really fair either. you can do 99% of things right and fail. You can do 99% of things wrong and succeed. You have to do everything you can to manage risk and give yourself the best shot.
Hu
It seems the quoting is off in here and not just with one person. Did anyone notice that ?
Yeah, me too.