Pool Hall Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Pool Hall Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Pool Hall business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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Pool halls are a very popular form of entertainment especially in suburban and rural markets. These businesses are able to generate a number of revenue streams not only from the usage of the pool facility but also from the ongoing sale of alcoholic beverages and food to the general public. While the barriers to entry for these businesses is considered to be moderately low, the startup costs are also considered to be low as well. As such, these are low to moderate risk small businesses to start in any given market. Most importantly, the startup costs associated with developing a new pool hall typically runs anywhere from $50,000 all the way to about $200,000 depending on the city and state in which the business is located. The biggest expense for the development of the seven business is usually the acquisition of pool tables, large-screen TVs, and the acquisition of a liquor license. The liquor license expense is typically the biggest variable as it relates to the development of a pool hall business. The gross margins generated from the sale of alcoholic beverages as well as the usage of the pool facility are extremely high, and these revenues allow these businesses to typically remain profitable and cash flow positive in any economic climate.
Given the high gross margins generated, most financial institutions are willing to provide a startup loan in order to launch this type of business. Of course, a pool business plan is going to be required and like any business planning document that should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, there are approximately 20,000 pool hall business is in operation in any given time. The industry generates about $1 billion a year and provides jobs to about 125,000 people. The business plan should also include an analysis of the competition within the market especially as it relates to bar restaurants and other similar facilities given that people have the option to Google pool or a related business. A full demographic analysis should also be included as it relates to how you will market to the target market. This includes examining annual household income, annual median family income, hydration size, population density, and the typical person that will come to the pool hall on an ongoing basis. Generally, these businesses are very popular among people between the ages of 21 to 50. In some cases, some pools will allow individuals were 18 years to 21 years into the facility they will not be allowed to consume alcoholic beverages.
A pool hall SWOT analysis should be produced as well in conjunction with a business plan as well as the marketing plan. As it relates to strengths, pool halls generate very high gross margins, typically in excess of 85%, on all revenues generated throughout the facilities. These businesses typically have moderately low operating expenses.
For weaknesses, the biggest weakness faced by these businesses is the fact they face ongoing competition from sports bars as well as other facilities that typically provide pool tables as part of their overall entertainment offering. However, by maintaining the facility is exclusively as a pool hall business this can create a differentiating factor for the company.
For opportunities, specials and discounts can be freely offered within the target market in order to drive traffic to the facility on an ongoing basis. In some cases, pool hall facilities will often host tournaments in order to have a number of people come to the facilities during Friday and Saturday evenings. Weekday specials are also developed in order to drive people during slower nights. Additionally, one of the other ways of the pool hall facility can expand their operations simply by establishing additional locations from which to conduct operations.
There are really no threats beyond competition and a substantial downturn in the economy. Even during times of economic recession, most pool halls are able to remain profitable given that is considered to be a low-cost form of entertainment.
A pool hall marketing plan should be developed and this is going to be one of most important aspects of the overall business development. Given the substantial amount of competition that is normally associated with these types of businesses, pool hall owners must find ways to differentiate your business from other companies within the market. As such, many discounts and related promotions should be included within the grand opening. This also includes discounts on drinks as well as usage of the facilities that people become familiar with it. A presence on the Internet is nearly mandatory for pool business given that people are going to find this company online.
The website should clearly state the hours of operation, manual food, drink list, fees, and any other related information as it pertains to a pool hall business. This would say she was among all major search engines such as Google, Bing, Yahoo. A presence on social media is also extremely important for a pool hall business given that many people now communicate through social media would making evening plans.
By maintaining a platform on pages such as FaceBook, Twitter, snapshot, and Instagram – the pool hall can rapidly increase its visibility. Additionally, these pages now allow for customers to relieve reviews on these respective websites. Over time, this can be a great boon to the business given that once a number of positive recommendations are made – people come to the pool hall facility on an ongoing basis.
Pool hall businesses are always going to remain popular in any economic climate and in any market. Pool is a very popular nighttime entertainment sport among people that enjoy sports for apartheid venues. As such, these businesses are not subject to risks pertaining to automation and they will be able to remain profitable at any given time. These can be highly lucrative small businesses for owner operators that know how to properly market them to the general public.