A billiard hall (sometimes known as a pool hall) is a kind of establishment that leases out pool tables and generally offers alcoholic drinks. Patrons often hire tables by the hour and socialise with friends while drinking – and sometimes eating if the establishment serves food. These are often cash-based enterprises, which might be interesting to some entrepreneurs. Billiard halls, whether cash-based or not, may provide business owners with a consistent stream of revenue provided they are situated in the proper region.
Follow these ten steps to start a billiards hall business:
Plan your Billiards Hall Enterprise
Create a legal entity for your Billiards Hall business.
Register your Billiards Hall for Taxes.
Create a Business Bank Account and a Credit Card
Set up Accounting for Your Billiards Hall
Get the Permits and Licenses You Need for Your Billiards Hall Business
Get Billiards Hall Commercial Insurance
Define your Billiards Hall Company Brand.
Make a website for your Billiards Hall business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to launching your Billiards Hall Business has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a Billiards Hall Business?
A single pool table for usage in a pool hall costs between $3,000 and $4,000. That is one of the primary reasons why establishing a pool hall requires substantial investment. To serve clients, you’ll need many tables, a rental area, a bar, beverage inventory, furnishings, and more. You need budget at least $50,000 to start your own billiard hall.
What are the continuing costs of running a Billiards Hall?
In the billiards industry, you must plan for a variety of continuous expenditures. Table upkeep is an expensive expenditure. In the appropriate circumstances, pool tables may endure for 25 years. However, in a pool hall, you will need to repair/replace felt on a regular basis, and other pieces, such as rail rubber and pockets, will also need to be repaired. Annual maintenance expenditures might go into the thousands of dollars.
Who is the intended audience?
Billiard halls’ target clientele is generally guys under the age of 35. There are exceptions, and you may always try to reach a different demographic via inventive marketing efforts, but younger males are normally your target market.
How can a Billiards Hall earn money?
Pool table rental fees and alcohol sales provide revenue for billiard rooms. Billiard tables need a significant initial expenditure, but as long as you have consistent clientele, they will create consistent revenue hour after hour, year after year. Alcohol sales are also a good way to make money since you can usually mark up your drinks greatly.
How much money may you charge your customers?
For table rentals, most billiard rooms charge between $10 and $15 per hour. The bar component of the company costs the usual rate for beverages in the neighbourhood, albeit the bar focuses on more cheap drinks such beers and simple cocktails rather than high-end drinks.
How much money can a Billiards Hall make?
According to Entrepreneur, a billiards hall with ten tables might earn up to $200,000 a year. It will, however, take time to get there. The majority of your revenues in the first few years will go into loan repayment, maintenance, and other expenses. However, you may expect to make a solid living from your billiard hall company in the long run.
How can you increase the profitability of your company?
You may increase the profitability of your company by recruiting additional clients. You may create a solid reputation in your neighbourhood if you run a clean, pleasant, and well managed billiard hall. You may have competition, but you can often distinguish yourself just by paying close attention to the quality of the experience you provide them. Customers will return for more if they know your tables are constantly in excellent shape, your cues are straight, and your customer service is dependable.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal company organisation, such as an LLC or corporation, shields you from personal liability if your Billiards Hall Business is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Billiards Hall
Knowing your target market allows you to find marketing perspectives and methods that will most likely reach that market. Men between the ages of 21 and 35, for example, utilise social media. This market is likely to be reached via social media marketing.
To attract customers, billiard rooms often employ promotions such as drink discounts, happy hours, food specials, and table rental offers. To attract customers, these companies will often conduct pool-related activities such as competitions.
How to Keep Customers Returning
Customers come to your billiard hall to play pool and other similar games, not to drink, since they can do so at any bar. So, although excellent bar service is essential, your primary emphasis should be on the gaming experience you provide your guests. Maintain your tables and understand what is vital to pool players. Make the game more accessible to newbies by providing courses and/or teaching materials.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.