Is it a Bad Idea to Open a Room?

WhatRobEats said:
Oh no! My super awesome thread broke AZ :eek:
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I'm sure people can figure it out from reading previous posts; just found it odd it's happening now ... what's new/changed since the last version. Btw, I like your thread and the different business plans put forth. Just wish you were in my area, and best of luck to you.
 
watchez said:
Where in Ohio do you live or planning this?

Also - don't get a vendor for your gaming/jukebox. You can buy a jukebox for $3,000 or less and be even very quickly on your investment if your place is busy. There are most likely repair guys in your area that will fix the machine if something goes wrong.

I know a little something about Golden Tee as well. Depending on where you are in Ohio, you can make a lot of money off this game and pay a substantial part of your monthly nut.
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It was 30 yrs ago but i knew a guy who tried to bring in his own jukebox. It was a busy place and the boys sent in someone to break the jukebox every chance they got-like 2-3x a week. He finally went back to renting and all was well again. Check the rep of your local 'amusement vendor' first.
 
WhatRobEats said:
Where do you suggest that I get real advice from? I've been doing 'opposition research' at the two pool rooms in my Metro Area. But I have no idea the operating costs of them.

I suppose my wife can help me out with that part of it with her MBA. But we might fall into that trap you described of seeing numbers we want to see and ignoring those we don't.

I plan to have 3 to 5 employees. Including myself and my kids to help out with odd job stuff. My cousin would manage the place, he has 10 years experience managing a similar operation. So 35k ish a year for him.

I would want to take a salary of around 40k to maintain my current lifestyle. Then get a few hourly employees at 10 bucks an hour.

My wife would still keep her well paying job and do the business/accounting end of things on a part time type basis.

I know there is electricity as an operating cost. Maintaining food service and permits involved with that as operating cost. Table maintenance, buying and maintaining balls for the driving range, buying maintaining the ball grabber vehicle thing-a-magig.

What am I missing?
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Here's a few. Straight out of my check register, actually, as I'm spending this sunny day working on my freaking taxes, lol.

TV-costs more than home service does
Rent/Building payment-don't forget property taxes & insurance
Equipment-you're always buying something, from vacuums to beer coolers
Advertising-varies, but you'll need a lot in the beginning
Alarm/camera system
Employment tax-Social Security, FUTA tax, Estimated tax & more
Interest on loans
Accounting
Legal fees
Fees/licences-Business license, liquor license-even a street tax fee.
Insurance-With alcohol, you should check into this first thing
Beer/wine- Obviously varies with volume
Cleaning-Do it yourself, or hire a service? Cleaning a public bar bathroom for 20 years is a real eye opener.
Repairs-For when your vacuum and beer coolers stop working
Garbage
Internet-No WIFI, no AZ Billiards at work. Just sayin'
Phone
Utilities- Water, electric, gas-varies but goes up EVERY year
Supplies-It's crazy how much you can spend on toilet paper and hand towels
Payroll-A big one. Don't forget the associated taxes and workman's comp, and now, health insurance.
Resale-Cues, cases, darts, clubs and whatever else you want to sell
Food-Varies, but you can't print new menus every time the cost of bacon doubles. The restaurant part is tricky in that a large part of the cost is for stuff you're charging nothing for: fryer oil, to go boxes, ketchup, cleaners floor mats, dish soap-and why the hell is Splenda so expensive?

That's a few to think about, and there's some that most people wouldn't think of. Did you know that legally you're not allowed to play a radio in your business without paying a fee to ASCAP? Having a real good business plan with some help from an experienced person in the field would be a great idea. Maybe someone from one of those 18 closed rooms? I don't have any idea if you're business idea might work in your area, but I like the "one's busy in the summer, and the other is busy in the winter" combination. IMO, I hope you're not tied to that "$40,000 for me and $35,000 for my manager" number, at least at first.

FWIW, I've been here 23 years and still love pool, though I don't get to actually play all that much. Spent the day at Rack em yesterday hanging out and talking with Nick Varner, Mark Cantrill and Darren Appleton. If you love pool, it's the best job ever.
 
a good italian fella

Nostroke said:
It was 30 yrs ago but i knew a guy who tried to bring in his own jukebox. It was a busy place and the boys sent in someone to break the jukebox every chance they got-like 2-3x a week. He finally went back to renting and all was well again. Check the rep of your local 'amusement vendor' first.
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The guy here is a good italian fella. You put his machines in, they make money, they are in for life!

Hu
 
Most establishments within an hour or so of me ALL sell alcohol. Without it, they would not survive on just pool.
An ABC permit is a definite in the pool business around here (and I am sure most places). Does not mean it has to be a bar/joint. I have seen some really upscale pool rooms serving alcohol in a classy way. The law here is you have to serve a certain amount of food in order to have an ABC permit. Not sure how it is where you are.
 
RackemBilliards said:
FWIW, I've been here 23 years and still love pool, though I don't get to actually play all that much. Spent the day at Rack em yesterday hanging out and talking with Nick Varner, Mark Cantrill and Darren Appleton. If you love pool, it's the best job ever.
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I can't thank you enough for giving me this sort of information and insider knowledge. Some of these things I've thought about taxes, equipment, licensing fees, ect.. Correct me if I'm wrong but as long as I don't have more than 11 employees I don't have to provide health insurance, do I? But some I didn't toilet paper and bathroom towels it's always the simplest things that sneak up on you.

I will most certainly have internet and free wifi because for one people love it and I work from 'home' wherever that may be and can continue to do that from the future establishment, oh and also AZB of course. I don't have the type of job that needs my undivided attention or brain power and I've already told my boss about my plans and he's cool with it so long as my work gets done. With that said I'm not committed to the 40k and 35k numbers. The manager will be my cousin who I am very close with and also has a stake in the business succeeding. All he needs honestly is a cot in the office and he would be happy.

I'm sure I'll have some questions for you though if you wouldn't mind me sending you a few PM's from time to time?

Also I've been hearing time and time again in this thread that I'll hate pool if I do this. Glad to hear that not all owners hold that opinion. I love the game and everyone always says it's never a job if you do what you love.

edit: I did a bit more research on the insurance part of things. It looks like the magic number is 50 if you are under 50 employees you are not required nor penalized for not providing health care. Obamacare does offer some benefits to employers that have under 25 employees with lower insurance rates and tax breaks of up to 35% of the cost of their employees premiums if they have fewer than 25 full-time employees. To qualify businesses must pay for at least 50 percent of their employees premiums and their workers average annual wages can't be more than $50k.
 
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WhatRobEats said:
I can't thank you enough for giving me this sort of information and insider knowledge. Some of these things I've thought about taxes, equipment, licensing fees, ect.. Correct me if I'm wrong but as long as I don't have more than 11 employees I don't have to provide health insurance, do I? But some I didn't toilet paper and bathroom towels it's always the simplest things that sneak up on you.

I will most certainly have internet and free wifi because for one people love it and I work from 'home' wherever that may be and can continue to do that from the future establishment, oh and also AZB of course. I don't have the type of job that needs my undivided attention or brain power and I've already told my boss about my plans and he's cool with it so long as my work gets done. With that said I'm not committed to the 40k and 35k numbers. The manager will be my cousin who I am very close with and also has a stake in the business succeeding. All he needs honestly is a cot in the office and he would be happy.

I'm sure I'll have some questions for you though if you wouldn't mind me sending you a few PM's from time to time?

Also I've been hearing time and time again in this thread that I'll hate pool if I do this. Glad to hear that not all owners hold that opinion. I love the game and everyone always says it's never a job if you do what you love.

edit: I did a bit more research on the insurance part of things. It looks like the magic number is 50 if you are under 50 employees you are not required nor penalized for not providing health care. Obamacare does offer some benefits to employers that have under 25 employees with lower insurance rates and tax breaks of up to 35% of the cost of their employees premiums if they have fewer than 25 full-time employees. To qualify businesses must pay for at least 50 percent of their employees premiums and their workers average annual wages can't be more than $50k.
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No problem at all. If there were ever anything I could do to help you or anyone to open a room, all it would take is a PM. I'm not sure that I could be much help, but I guess I've been here a long time, and that's something. Thanks for the health insurance info. Believe it or not, MANY business owners (including me) are unsure of how it's going to go, so your research is helpful. FWIW, you seem to me to be willing to make the effort to do what it takes to be successful. In a crowded business, there's always room right above whoever's doing the best job now.
 
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