Lounge Business Plan
You’ve come to the right place to create your Lounge business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Lounge establishments.
Below is a template to help you create each section of your Lounge business plan.
Executive Summary
Business Overview
Lulu’s Lounge is a cozy community lounge located in Las Vegas, Nevada. Our mission is to create a fun and relaxed environment where residents can buy drinks and food, and socialize with their friends, family, and neighbors. We also have fun activities such as pool tables and darts and have special events like karaoke nights. With our relaxing environment, fun activities, good food, and friendly staff, we aim to make Lulu’s Lounge a home away from home.
Lulu’s Lounge is led by Lulu Gibbons who has worked in the industry for five years. Throughout her career, Lulu has managed lounges, nightclubs, and similar establishments throughout Las Vegas, including some of our top competitors. She has extensive experience in all aspects of the industry and also holds an MBA. She is our most valuable asset and is sure to make Lulu’s Lounge one of the most popular lounges in the Las Vegas area.
Product Offering
Lulu’s Lounge provides a relaxing and inviting atmosphere to unwind in after a long day or week. Our friendly staff and welcoming environment encourage relaxation and conversation. Customers can indulge in an extensive menu of drinks, appetizers, and dinner options. They can also enjoy the multiple sources of entertainment Lulu’s Lounge provides, including darts, pool, and karaoke.
Customer Focus
Lulu’s Lounge will target adult men and women between the ages of 21 – 55 with disposable income in Las Vegas, Nevada. This demographic will consist of local college students, young professionals, millennials, and tourists visiting the city looking to embark in Las Vegas nightlife.
Management Team
Lulu’s Lounge is led by Lulu Gibbons who has worked in the industry for five years. Throughout her career, Lulu has managed lounges, nightclubs, and similar establishments throughout Las Vegas, including some of our top competitors. She has extensive experience in all aspects of the industry and also holds an MBA. She is our most valuable asset and is sure to make Lulu’s Lounge one of the most popular lounges in the Las Vegas area.
Success Factors
Lulu’s Lounge will be able to achieve success by offering the following competitive advantages:
- Location: Lulu’s Lounge’s location is near universities and business offices, giving us access to students and workers nearby.
- Décor and Environment: The lounge will have upscale décor and lighting to attract customers.
- Management: Our management team has years of business and management experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having worked in the industry for five years, Lulu Gibbons has the contacts with suppliers, promoters, and influencers to successfully launch a lounge.
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Financial Highlights
Lulu’s Lounge is seeking a total funding of $550,000 to launch its lounge. The capital will be used for funding capital expenditures, building and design, bar equipment and kitchen appliances and utensils, labor costs, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Design/build: $200,000
- Equipment for bar and kitchen: $150,000
- Initial supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $25,000
- Working capital: $25,000
The following graph below outlines the pro forma financial projections for Lulu’s Lounge.
Company Overview
Who is Lulu’s Lounge?
Lulu’s Lounge is a cozy community lounge located in Las Vegas, Nevada. Our mission is to create a fun and relaxed environment where residents can buy drinks and food, and socialize with their friends, family, and neighbors. We also have fun activities such as pool tables and darts and have special events like karaoke nights. With our relaxing environment, fun activities, good food, and friendly staff, we aim to make Lulu’s Lounge a home away from home.
Lulu’s Lounge is led by Lulu Gibbons who has worked in the industry for five years. Throughout her career, Lulu has managed lounges, nightclubs, and similar establishments throughout Las Vegas, including some of our top competitors. She has extensive experience in all aspects of the industry and also holds an MBA. She is our most valuable asset and is sure to make Lulu’s Lounge one of the most popular lounges in the Las Vegas area.
Lulu’s Lounge History
Upon surveying the local customer base and finding potential retail locations, Lulu Gibbons incorporated Lulu’s Lounge as an S-Corporation on May 1st, 2023.
Lulu’s Lounge’s operations are currently being run out of Lulu’s home office, but once the lease on Lulu’s Lounge retail location is finalized, all operations will be run from there.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Found a location for the lounge and signed a Letter of Intent to lease it
- Initial floor and design plans
- Created the food and drinks menu
- Determined equipment and inventory requirements
Lulu’s Lounge Services
Lulu’s Lounge provides a relaxing and inviting atmosphere to unwind in after a long day or week. Our friendly staff and welcoming environment encourage relaxation and conversation. Customers can indulge in an extensive menu of drinks, appetizers, and dinner options. They can also enjoy the multiple sources of entertainment Lulu’s Lounge provides, including darts, pool, and karaoke.
Industry Analysis
The lounge industry has experienced overall growth over the past five years. This growth was largely driven by sustained growth in consumer spending and per capita expenditure on alcohol. The industry will continue to benefit from economic growth, a decrease in the unemployment rate, and increased discretionary spending. Additionally, per capita expenditure on alcohol is expected to increase at a faster rate than in the previous five-year period, particularly on premium beverages.
The rising popularity of lounges and similar establishments has helped sustain the industry. According to IBIS World, the Lounge & Nightclub industry has grown by 2.2% in the past five years and this growth is expected to continue. The industry is expected to grow at a compound annual growth rate of 5.9%, showing that the popularity of lounges will continue to rise.
Download the Lounge business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Lulu’s Lounge will target adult men and women between the ages of 21 – 55 with disposable income in Las Vegas, Nevada. This demographic will consist of local college students, young professionals, millennials, and tourists visiting the city looking to embark in Las Vegas nightlife.
A demographic profile of the Las Vegas area is as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Lulu’s Lounge will primarily target the following customer profiles:
- Local college students
- Millennials
- Young professionals
- Men and women with disposable income between the ages of 21 – 55
- Tourists
Competitive Analysis
Direct and Indirect Competitors
Lulu’s Lounge will face competition from other companies with similar business profiles. A description of each competitor company is below.
Carl’s Lounge
Carl’s Lounge is an intimate lounge with ample tables, drinks, and other menu offerings. The decor exudes a calm and intimate setting, which is great for those looking to unwind after a hard day or week. They have an extensive menu of domestic and exotic drinks, friendly staff, and an overall inviting atmosphere that keeps customers coming back.
The Rose Lounge
The Rose Lounge is a family-owned establishment that offers local drinks and meals made with local ingredients. They sell craft beer and wine made in the region and all ingredients used in the food are grown nearby. In addition to supporting the local food and beverage industry, The Rose Lounge also creates a welcoming environment that helps all tourists and residents who visit feel like they are part of a community.
Bud’s Sports Lounge
Bud’s Sports Lounge is a local lounge that offers sports, beer, and good food. It’s the ultimate spot to hang out and watch the game with your buddies or fellow fans. The lounge has an extensive menu of bar food and snacks as well as a diverse menu of imported and local beer.
Download the Lounge business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Lulu’s Lounge will be able to offer the following advantages over their competition:
- Location: Lulu’s Lounge’s location is near universities and business offices, giving us access to students and workers nearby.
- Décor and Environment: The lounge will have upscale décor and lighting to attract customers.
- Management: Our management team has years of business and management experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having worked in the industry for five years, Lulu Gibbons has the contacts with suppliers, promoters, and influencers to successfully launch a lounge.
Marketing Plan
Brand & Value Proposition
Lulu’s Lounge will offer the unique value proposition to its clientele:
- Offering an inviting and relaxing environment
- Providing high-quality drinks and food
- Providing a premiere lounge experience
- Providing excellent customer service
Promotions Strategy
The promotions strategy for Lulu’s Lounge is as follows:
Location
Lulu’s Lounge’s location is a promotion strategy in itself. It will be located in an area of Las Vegas that is surrounded by trendy restaurants and bars. This segment of Las Vegas is where the most popular bars and nightlife is located and where the majority of locals and tourists congregate that are looking for a great time.
Website/SEO
Lulu’s Lounge will invest in developing a professional website that displays images of the lounge and many of the drinks and food that it offers. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
Since the company’s main target market is students and young adults, raising Lulu’s Lounge’s online visibility will help in bringing people to the lounge.
Advertising
Lulu’s Lounge will initially advertise in local newspapers and local tv shows, and sponsor community events in order to gain awareness.
Pricing
Lulu’s Lounge pricing will be moderate so customers feel they receive great value when patronizing the lounge.
Operations Plan
The following will be the operations plan for Lulu’s Lounge.
Operation Functions:
- Lulu Gibbons will be the Owner/Operator of the lounge. She will be in charge of developing the drink menus, ordering the alcohol inventory, training the staff, and ensuring optimal customer service.
- Lulu will hire several key staff to help run the lounge, including bartenders, bar backs, and servers.
- Lulu will hire a third party marketing company to develop the website, social media accounts, photography, and maintain the SEO presence.
- Lulu will also work with an outside accounting firm/CPA to handle all necessary licensing and permitting, accounting, budgeting, forecasting, and tax payments, as well as a liquor attorney to ensure all compliance regulations are being met.
Download the Lounge business plan template (including a customizable financial model) to your computer here <–
Milestones:
Lulu’s Lounge will have the following milestones complete in the next six months.
- 8/1/202X – Execute lease for prime location
- 8/15/202X – Begin construction of the build-out
- 9/1/202X – Finalize food and drink menus
- 9/15/202X – Start of marketing campaign with social media
- 10/1/202X – Final walk-thru of completed build-out
- 11/1/202X – Hire key employees
- 12/1/202X – Decoration and set up of lounge
- 1/1/202X – Grand opening of Lulu’s Lounge
Management Team
Lulu’s Lounge is led by Lulu Gibbons who has worked in the industry for five years. Throughout her career, Lulu has managed lounges, nightclubs, and similar establishments throughout Las Vegas, including some of our top competitors. She has extensive experience in all aspects of the industry and also holds an MBA. She is our most valuable asset and is sure to make Lulu’s Lounge one of the most popular lounges in the Las Vegas area.
Financial Plan
Key Revenue & Costs
Lulu’s Lounge’s revenues will come from the sales of drinks and food.
The major costs for the company will be food and alcohol costs and staff salaries. In the initial years, the company’s marketing spend must also be taken into consideration as it establishes itself in the market.
Funding Requirements and Use of Funds
Lulu’s Lounge is seeking a total funding of $550,000 to launch its lounge. The capital will be used for funding capital expenditures, building and design, bar equipment and kitchen appliances and utensils, labor costs, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Design/build: $200,000
- Equipment for bar and kitchen: $150,000
- Initial supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $25,000
- Working capital: $25,000
Download the Lounge business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Initial number of customers per day: 100
- Average revenue per month: $10,000
- Annual lease: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Lounge Business Plan FAQs
What Is a Lounge Business Plan?
A lounge business plan is a plan to start and/or grow your lounge business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Lounge business plan using our Lounge Business Plan Template here.
What are the Main Types of Lounge Businesses?
There are a number of different kinds of lounge businesses, some examples include: Party lounge business, Corporate lounge business, Wedding lounge business, and Pop-up lounge business.
How Do You Get Funding for Your Lounge Business Plan?
Lounge businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Lounge Business?
Starting a lounge business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Lounge Business Plan - The first step in starting a business is to create a detailed lounge business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your lounge business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your lounge business is in compliance with local laws.
3. Register Your Lounge Business - Once you have chosen a legal structure, the next step is to register your lounge business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your lounge business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Lounge Equipment & Supplies - In order to start your lounge business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.Â
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your lounge business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.