Leasing a pool hall

[Colormegone2002]

What questions do I really need to ask about this?I know I need to ask about the bills associated with the building,electric and water and such.This hall hasn't been open in about 6 months so I will have to find out why.Anything else?
The building is about 2800 sq. ft. and has 2-0 ft and 2 7 ft. and A kitchen.The guy said he used to sell live bait and made pretty good on it through the summer months.I know there isn't alot of money to be made but I'm hoping I can do a little with it.
Thanks guys and I also posted in room owners too.

 

[Ken_4fun]

What questions do I really need to ask about this?I know I need to ask about the bills associated with the building,electric and water and such.This hall hasn't been open in about 6 months so I will have to find out why.Anything else?
The building is about 2800 sq. ft. and has 2-0 ft and 2 7 ft. and A kitchen.The guy said he used to sell live bait and made pretty good on it through the summer months.I know there isn't alot of money to be made but I'm hoping I can do a little with it.
Thanks guys and I also posted in room owners too.

Every pool room owner I have met has told me that to be successful you need more than pool.

I would find out if you can get liquor, cherry masters, or poker.

The next thing I would want to know is can you get leagues in there. Again, everyone makes fun of them, but the pool room owners I have talked to has said that the leagues pay the bills and everything above it, is the profit.

I wish you the best of rolls,

ken

 

[macguy]

What questions do I really need to ask about this?I know I need to ask about the bills associated with the building,electric and water and such.This hall hasn't been open in about 6 months so I will have to find out why.Anything else?
The building is about 2800 sq. ft. and has 2-0 ft and 2 7 ft. and A kitchen.The guy said he used to sell live bait and made pretty good on it through the summer months.I know there isn't alot of money to be made but I'm hoping I can do a little with it.
Thanks guys and I also posted in room owners too.

My first question would be, what happened and why is the place closed up. Expect to not be told the truth and do some checking on your own. Are you saying everything is there ready to reopen the doors as a pool room? Are you talking about buying the place or just renting the building and equipment to run as a business but you never own anything? First step is have a lawyer who you can run everything past. In business situations never begrudge paying for legal advice.

As far as money a simple rule of thumb is, what can you realistically make in the leanest of times and could you survive. A lot of businesses do their numbers wrong and the first down turn in business they go under. I want to know what is the lowest survival number. I also want to have an idea what it the most I can expect to make. In other words, with everything going well what can you bring in. A pool room is not like a manufacturing business, where you sign a new contract and just ramp up production to meet the business.

A pool room is governed by the clock. There are only so many productive hours in and given day, week, month or quarter. Actually fewer then you may think. Often no more then 4 or 5 a day and some days are better then others. There is only one Friday night and one Saturday night. Much of the week you may be lucky to be breaking even and making the nut. Many pool rooms have virtually no day business. Good hours in a pool room are often few and have to be cultivated and maximized. It is just a game of numbers and they have to add up. Biggest advice, don't lie to yourself.

How many tables does this place have by the way and is there a beverage license. If it does not have a beverage license and you can put one in you may run into different parking requirements, health requirements, bathroom requirements that can cost many thousands to meet. Be sure there are no surprises and don't be afraid to walk away if it doesn't add up.

 

[desi2960]

4 tables ?

how much can you charge per hr? how many hrs do you expect all 4 tables to be going, how many hrs a week ?

figure out what you think your max income is going to be then cut it in half.

then operating expenses, heat, air, rent, advertising, up-keep on equipment

and then figure out how many hours you are going to have to work ?

i was going to open a 10 table place here locally, my cost 250k, at 10 bucks per hr just how long would it be for me to recoup my money, not counting my time and all the headaches of running a business.

really am not trying to be negative, but just honest. in a small market running a pool hall today is more of doing something that you love than making money.

 

[macguy]

how much can you charge per hr? how many hrs do you expect all 4 tables to be going, how many hrs a week ?

figure out what you think your max income is going to be then cut it in half.

then operating expenses, heat, air, rent, advertising, up-keep on equipment

and then figure out how many hours you are going to have to work ?

i was going to open a 10 table place here locally, my cost 250k, at 10 bucks per hr just how long would it be for me to recoup my money, not counting my time and all the headaches of running a business.

really am not trying to be negative, but just honest. in a small market running a pool hall today is more of doing something that you love than making money.

I didn't see where he said four tables, I see it now. If that is the case there is no way he can make any money unless he has a completely different business augmenting the pool tables. In fact the pool tables would probably be the minor income. 2800 sq feet I wonder if he can add more tables and make it a real pool room. I have been in some pretty small rooms that did OK as long as the nut is low.

 

[Spimp13]

If you are unsure about what questions to ask while it may be a good thing to ask forum members, you should really have someone help you put together a business plan that is qualified so you can take a good look at everything...just my 2 cents.

I did one in college for something similar (the guy was buying property and building), so I have an idea on what all is involved and let's just say our group plan was very detailed (40+ pages).
Matt

 

[Bella Don't Cry]

Employ an expert to ask the questions. The cost may seem expensive, but not as expensive as hindsight... :thumbup:

 

[PaulieB]

You need booze and parking.

 

[TATE]

What questions do I really need to ask about this?I know I need to ask about the bills associated with the building,electric and water and such.This hall hasn't been open in about 6 months so I will have to find out why.Anything else?
The building is about 2800 sq. ft. and has 2-0 ft and 2 7 ft. and A kitchen.The guy said he used to sell live bait and made pretty good on it through the summer months.I know there isn't alot of money to be made but I'm hoping I can do a little with it.
Thanks guys and I also posted in room owners too.

Leasing is tricky business. Here are the questions when leasing:

- The length of the lease. You will be obligated to pay rent for the duration of the lease no matter what happens to your business.

- what is included. For example, any utilities, trash pick up.

- are there obligatory monthly fees, like taxes, alarm fees, maintenance?

- who is responsible for repairs and maintenance for the major components, heating and AC, plumbing, electrical.

- who pays for the property insurance? (usually the building owner). Do you need additional third party renter's insurance, for example, in case of a fire that starts in your kitchen and you get sued by the owner's insurance carrier?

- are there rent increases for cost of living, or is the rent fixed?

Leases are negotiable. Let's say you decide to lease the space for 2 years, but it needs carpet, drapes, paint, signs, a new built in oven or stove. The bathroom needs to meet modern handicapped code and a wheelchair ramp must be installed. You could ask the owner to make these improvements as terms of your lease. The owner will own them when the term is over, so it's unfair that you have to pay for all these items yourself.

The most difficult thing about a business is having a viable financial model and getting customers. Have a great plan before you sign on the dotted line.

 

[Ken_4fun]

If you are unsure about what questions to ask while it may be a good thing to ask forum members, you should really have someone help you put together a business plan that is qualified so you can take a good look at everything...just my 2 cents.

I did one in college for something similar (the guy was buying property and building), so I have an idea on what all is involved and let's just say our group plan was very detailed (40+ pages).
Matt

I am currently doing my MBA so this would be great project.

I have done a market analysis once on a pool hall in my hometown (for myself for fun). I did the numbers and I could never make it a profitable business.

As noted by someone above, you REALLY have to have a low nut to make it work.

Ken

 

[$TAKE HOR$E]

you REALLY have to have a low nut to make it work.

Ken

Try wearing loose fitting boxers.....:groucho:

 

[pwd72s]

How to make a small fortune with a pool hall?

Start with a large fortune.

 

[gesan]

How to make a small fortune with a pool hall?

Start with a large fortune.

Now that's funny!

Make sure your lease has an option to renew and you don't end up with everything you need but a building!

It happened to someone I knew - the owner of the building had an agreement with the business next door. When the shops lease ran out to lease to them for expansion.

It was quite a surprise!

Good luck

 

[poolhustler]

How to make a small fortune with a pool hall?
Start with a large fortune.

That was my quote when my ex and I started buying horses......

Seriously though, with only 4 tables you would need a brothel in the back to survive.

 

[macguy]

That was my quote when my ex and I started buying horses......

Seriously though, with only 4 tables you would need a brothel in the back to survive.

With only 4 tables it is like the Yogi Barra joke, "No one goes there it is always too crowded". Even with the tables going all night you can't make any money. Pool rooms have peak hours and during those hours you have to have the ability to make maximum money in a short time. For that you need a reasonable number of tables.

Most of the hours of any given day you make nothing. You are closed like a third of the time and more then another third of the time you are lucky to make the nut during those off hours, early hours morning and late night hours. In between you have a small window to make a profit.

Some people like to pose it in terms of days. In other words you work all week and the only profit you see starts Saturday night before you may see black, "Hopefully". I had a friend who owned a bowling alley. He told me when all was said and done the only profit he saw was what came from the bar. The whole rest of the place was a push.

 

[aceplayer]

In the Philippines the money is made with food and drinks, the pool tables are almost a gimmick to get customers in the door.

 

[ctyhntr]

How much capital are you investing and what kind of return are you looking? What is the liability limit? Try not to invest more than you're willing to lose.

 

[lowriderjim]

When buying a small business, at best, you are only buying yourself a job.

Do not take a partner. Even a trusted partner may want to take the business in a different direction which can cause problems.

Do a SWOT analysis. Strength, Weakness, Opportunities, Threats. You should get info by google SWOT. Better yet, find a MBA student that might agree to do a business analysis as a project.

When I purchased a small business for my wife the best decision I made was to set with and lawyer and an Accountant. This meeting was dollars well spent.

 

[Black-Balled]

How to make a small fortune with a pool hall?

Start with a large fortune.

I know more than a few room owners who grew to hate pool.

Sounds cool, until you are attached to it.

 

[KoolKat9Lives]

is the Lease triple-net?
do you have a copy of the Lease? cause it would detail everything.
as the Tenant, if represented by a Broker, the Landlord would pay their 3% split commission & basically you'd get FREE PROFESSIONAL advice on how to negotiate.