To Start a Club, It Takes Work Behind Scenes

Question: A couple of my colleagues would like to start a dance nightclub somewhere in West Los Angeles. They are looking for a location they can lease on Friday or Saturday nights and have searched newspapers and inquired with several business establishments but have been unsuccessful. Do you have any suggestions?

--Rebecca E. Rotar, Burbank

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Answer: The reason your friends are not having much luck may be that they are using the wrong terminology when they approach nightclub owners. It is virtually impossible to “lease” a nightclub.

Rather, you need to think in terms of being a club “promoter,” someone who can bring in talent and has access to the audience that will pack a club on a Friday or Saturday night. Nightclub promoters usually work out a deal where they agree to pay the owner a minimum fee and allow the club to keep the bar proceeds, while the promoter gets the take from the door and/or cover charge.

Instead of calling a nightclub or a hall and asking to lease space, put together a two- or three-page proposal, something like a mini-business plan that outlines what kind of clientele you’ll be targeting, how you’ll notify them of your event (i.e., what mailing lists or clubs you have access to) and what sort of talent you will book. Then drop your plan off in person at several clubs in the area you want to target. Ask to speak to the manager or owner in person when you leave your plan with them.

If your friends don’t have much experience in promoting, I’d advise them to reach out to some club operators who don’t compete with your event and ask them to co-promote the first couple of nights. For instance, if you want to run your promotion in Santa Monica or West Los Angeles, make contacts with club operators downtown or in Hollywood. The experience and business savvy they bring to the deal will make it much more attractive to a club owner.

And when you are putting together the event, recognize that, along with bringing in the talent and the audience, you must also ensure that the club owner--or yourselves--have arranged for security and insurance.

--Todd Elliott, real estate broker,

Hillcrest Realty Services,

West Hollywood

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If you have a question about how to start or operate a small business, mail it to Karen E. Klein at the Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016, or e-mail it to [email protected]. Include your name, address and telephone number. The column is designed to answer questions of general interest. It should not be construed as legal advice.