Free Karaoke Bar Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a Karaoke bar while showcasing the expected financials and operations over the next three years. The Karaoke Bar, Inc. (“the Company”) is a New York based corporation that will provide a comfortable environment coupled with alcohol to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Karaoke Bar will feature approximately 1,500 square feet of space. The facility will have a full bar that will serve spirits, wine, and beer. The Company will also have plasma screen TVs, karaoke stage/machines, and a pool table for customer enjoyment. The Company will also enact strict policies regarding underage drinking, and the business will comply with all state regulations regarding the sale of alcohol to the general public. Mr. Doe is currently in the process of obtaining the liquor license for the Karaoke Bar. The third section of the business plan will further describe the services offered by the Karaoke Bar.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s Karaoke Bar location. • Financing for the first six months of operation. • Capital to purchase the alcohol inventory. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Karaoke Bar’s mission is to become the recognized leader in its targeted market by providing a large selection of alcohol while concurrently providing an exciting Karaoke Bar atmosphere.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the bar industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
The Karaoke Bar, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Karaoke Bar requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Karaoke Bar, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Karaoke Bar. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products and services offered by the Karaoke Bar.
3.1 Alcohol Sales
The Karaoke Bar will offer a wide variety of liquors and alcoholic beverages that are available on the menu. The restaurant will maintain a full bar including liquors, spirits, several vintages and types of wine, as well as an extensive number of bottled and draught beers.
3.2 Other Revenue Centers
The location will also feature a number of amenities including a large LCD TV (for sports events), a Karaoke Stage, and arcade games. These amenities are often found in many tavern style bars, and they will provide the business will an ancillary stream of revenue. At all times, the Company will comply with all state and municipal regulations regarding the sale of alcohol. For each patron, a valid ID will be required to ensure that the patron is 21 or older. For very busy evenings, Mr. Doe may hire a part time door bouncer to check identifications as customers enter the bar. Additionally, Management will keep all liquor licenses up to date, and will file the appropriate documentation and fees on a quarterly basis.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the bar/tavern industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, bars operate with great economic stability as people will continue to frequent bars and nighttime entertainment locations despite deleterious changes in the general economy.
4.2 Industry Analysis
There is a plethora of bars and drinking establishments in the United States. A U.S. Economic census report indicates that there are over 48,000 individual establishments in the country. This number is expected to continue as bars remain a popular form of entertainment among people under forty. Each year the industry generates more than $14 billion dollars of revenue and provides gross annual payrolls of $3 billion dollars. The industry also employs more than 335,000 people nationwide.
4.3 Customer Profile
The Karaoke Bar’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $40,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $25 per visit to the Karaoke Bar • Ages 30 to 45 • Has an interest in singing
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Karaoke Bar intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Karaoke Bar.
5.1 Marketing Objectives
• Establish relationships with alcohol wholesalers within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Karaoke Bar to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. In addition to the high visibility location, the Company will also use direct mail, flyers, and other forms of local advertisement to promote traffic to the Karaoke Bar. During the one month grand opening period, the Company will offer extended “happy hours”, discounts on drinks, and other promotions that will draw patrons to the location. Management feels that this will solidify a repeat customer base that will regularly frequent the bar. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the alcohol products and Karaoke services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Karaoke Bar will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, people always continue to frequent bar and nighttime entertainment locations as it is a low cost of entertainment. As such, only a severe economic downturn would result in a decline in revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis